AgroChemicals
China
Overview
Unit: (Million USD)
| x | 2004 | 2005 | 2006 |
| Total Market Size | 10,9552 | 12,587 | 13,236 |
| Total Local Production | 11,016 | 11,676 | 12,376 |
| Total Exports | 2,390 | 2,327 | 2,373 |
| Total Imports | 2,326 | 3,238 | 3,233 |
| Total Imports from U.S. | 502 | 487 | 481 |
All figures in the above table represent unofficial estimates. No accurate figures are available.
China’s agricultural chemical market has been the subject of great attention. China is one of the biggest agro-chemical consumers and a large agro-chemical importer. Agro-chemical exports to China ranked as the top destination for U.S. fertilizer exports until 2003. In 2005, China imported $445 million in fertilizers and $36.94 million in pesticides from the U.S., accounting for 14.60% and 20.29% of total imported fertilizers and pesticides respectively. U.S. DAP (Diammonium Phosphate) has a strong position in the China fertilizer market. In 2005, China imported $441.31 million of DAP from the U.S., accounting for 40.03% of total DAP imports. China’s goal is to rely less on fertilizer imports in the future, but domestic output cannot meet the total market demand, forcing China to import high-concentration and compound fertilizers. The import of such fertilizer is still controlled by a quota management system.
China’s accession to the WTO provides benefits to U.S. fertilizer exporters. On accession, tariffs dropped 6% from the 11% import duty rate. On October 10, 2006, China’s Ministry of Commerce (MOFCOM) released the 2007 fertilizer import tariff rate quotas (TRQs). The total 2007 TRQs will be 3.3 million tons of urea imports, 6.9 million tons of diammonium phosphate (DAP) and 3.45 million tons of NPK compound fertilizers. Of the TRQs, 2.97 million tons of urea, 4.49 million tons of DAP and 2.24 million tons of NPK are for state trading while non-state trading TRQs will be 330,000 tons of urea, 2.41 million tons of DAP and 1.21 million tons of NPK. The import volumes within the quota are levied an import duty of 4%, while imports exceeding the quota are levied a duty of 50%.
In addition, based on the WTO commitment, from December 11, 2006, China started to allow foreign companies to gain the right to retail and distribute fertilizers. China’s fertilizer circulation field will face fierce competition. Fertilizer exporters should apply to MOFCOM for a license to be authorized to retail and distribute fertilizer in China.
In the last several years, the U.S. has held the No.1 position among pesticides exporters to China. China is taking measures to regulate the pesticide market to prevent toxic runoff and alleviate risks of consumer poisoning. The proportion of herbicides and fungicides within pesticide production has increased. The proportion of output of the pesticides featuring high performance, low toxicity and better safety characteristics has also increased. Imports of high efficiency, low toxicity, and low residual pesticides have strong market prospects, mainly as an alternative to highly toxic Chinese pesticides. However, foreign suppliers currently face discriminatory product testing requirements.
Best Products/Services
Fertilizer
Local producers have yet to meet the growing local market demand, especially for phosphate and potassium fertilizer, which are limited natural resources. China still must rely on importing fertilizers in large quantities.
· Nitrogen fertilizer
· Phosphate fertilizer
· Potash fertilizer
Pesticides
High efficiency, low toxicity pesticides have strong market prospects. Although domestic output of pesticides satisfies local demand in most areas, domestic production of high efficiency herbicides, high-efficiency and low-toxicity insecticides and fungicides cannot meet the demand both in terms of quantity and quality. Some raw pesticides and intermediates rely on imports, such as aniline with o-dihydroxybenzene, furphenol and tripoly-nitrogen-chlorine dialdyl. China aims to curtail the application and production of highly-toxic pesticides, especially organo-phosphorous biocides, since the highly-toxic pesticides take up about 36% of the country's total consumption.
· Herbicides
· Environmentally safe insecticides
· Biopesticides
· New technologically advanced pesticides
· Because the Chinese government now emphasizes environmentally sound technologies, pesticides will have to meet new requirements.
Opportunities
Fertilizer
8th China International Agrochemical & Crop Protection Exhibition
Date: March 21-23, 2007
Venue: Shanghai Everbright Convention and Exhibition Center, Shanghai, China
Profile: Chemical Pesticides, Crop Protection Products and Technology, Chemical Fertilizer and Farming Bio-engineering and Bio-engineering Technology
Frequency: Annual
Organizers: CCPIT Sub-council of Chemical Industry
Co-organizer: - China National Agricultural Means of Production Circulation Association
- China Pesticide Industry Association
- China Nitrogen Fertilizer Industry Association
- China Phosphate Fertilizer Industry Association
- China Humic Acid Industry Association
Supporters: - China Petroleum and Chemical Industry Association
- China National Agriculture Means of Production Group Corporation
- Institute of Plant Protection of CAAS
- Institute of Agricultural Resources and Regional Planning of CAAS
- Institute of Environnment & Sustainable Development in Agriculture of CAAS
Contact: Mr. Sun Heying, In-bound Exhibition Department
CCPIT Sub-council of Chemical Industry
Tel: 86-10-6427-2719
Fax: 86-10-6422-5384
Email: sunheying@agrochemshow.com
Internet: www.agrochemshow.com
Pesticides
The Ministry of Agriculture and National Development and Reform Commission set strict regulations on importing newer, higher-tech pesticide products. Pesticide products that have not been used before in China must be registered with the Ministry of Agriculture and tested at designated agricultural research and development centers. Proper certification of each pesticide usually takes 2-3 years. Imports or exports of pesticides without the Certificates of Pesticide Import and Export Registration (CPIER) are banned, according to the Ministry of Agriculture.
In recent years, the Pesticides Inspection Institute under the Ministry of Agriculture put forward detailed measures for pesticides. It emphasized both quality and safety issues so as to: 1) enforce registration administration and promote pesticides structural adjustment; 2) enforce supervision and standardize the pesticides market; 3) strengthen supervision and control of pesticide residue and improve the safety of agro-products. These measures implied more strict control on imported pesticides. U.S. exporters should keep a close eye on related new laws, regulations, and measures.
Resources
CS Beijing Contacts
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David Gossack – Commercial Attaché
Tel: (86-10) 8529-6655x807
Fax: (86-10) 8529-6558/9
Email: david.gossack@mail.doc.gov
Yue Cao – Commercial Specialist
Tel: (86-10) 8529-6655x808
Fax: (86-10) 8529-6558/9
Email: yue.cao@mail.doc.gov
Web Sites
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China Fertilizer Information Net
China Agricultural Means of Production Net
China Chemical Information Net
China National Chemical Industry Information Center
International Fertilizer Association (IFA)
The Fertilizer Institute (TFI)