The Influence And Challenge Of New Pesticide Production Capacity On Pesticide Foreign Trade

At present, China's pesticide industry is in the process of industrial upgrading and layout optimization. With the gradual improvement of the requirements for environmental protection and safety, the traditional chemical industry in the eastern region and other regions has accelerated the integration and adjustment of production capacity, and the western region has become a national important industrial transfer area with its vast development space, the domestic pesticide production enterprises have entered the period of transferring from coastal area to inland area and expanding production capacity.

The effective production capacity of China's pesticide industry is about 4.5 million tons. With the construction and expansion of production in the past two years, the production capacity will exceed 5 million tons. In the two years from 2019 to the end of 2020, nearly 500,000 tons of production capacity of the projects have been started, and in terms of pesticide raw materials, more than 120,000 tons of new production capacity of fine/glufosinate have been added, the new capacity of more than 30,000 tons of saltpetre sulfone, Tebuconazole and other, the new capacity of more than 20,000 tons of Benzamide, enoxal, prothionazole, thiamethoxam and so on.

How to rationally utilize and effectively release the new pesticide production capacity? The export of pesticides remains a major area of concern. There are a lot of influences and challenges to the foreign trade of pesticides in the newly increased production capacity. On the one hand, expanding production capacity can enhance scale advantage, maintain competitiveness and keep the elasticity of supply chain. On the other hand, the expansion of production capacity can easily cause price fluctuation, the unpredictability of price also makes it difficult for customers to make decisions in the trading process. In addition, it can not be ignored that, driven by "made in India" , the expansion of pesticide production capacity in India has entered a fast channel, intensifying the fierce competition in the international market, and Chinese pesticides have to find more export markets and channels.

Yang Jian, general manager of Pampana (Beijing) Technology Co. , Ltd. will be invited to attend the 8th China Forum for International Trade Development of plant protection products and the annual working meeting of the International Trade Commission, which will be held in Guiyang on May 19, to make a special report on "the impact and challenges of new pesticide production capacity on foreign trade" , this paper explores the driving force behind the expansion of production capacity, analyzes the situation of pesticide foreign trade after the expansion of production capacity, and explores the new growth point of China's pesticide export under the "Belt and Road" .