Guangzhou, Guangdong -- (SBWIRE) -- 12/12/2011 -- Bayer CropScience (China) sets up its first Seed Treatment Application Center in China on 10 Nov., 2011 and it is the seventh one of Bayer CropScience in the world, based on CCM’s latest issue of Crop Protection China News.
The application center is located in Haidian District, Beijing City, with the most advanced seed processing equipment and detection measures. It is considered to be a bond between the R&D of new seed processing products, marketing and seed customers, including the services of customer support & training, tailored technical solutions, etc.
As seed treatment agent is one of the most important products in agricultural production, large international pesticide enterprises, such as Syngenta, Bayer and Dow AgroSciences, have got involved in the field since many years ago. The sales revenue of seed treatment in Bayer CropScience in 2010 reached about USD450.19 million, accounting for 8.9% of its total revenue, about USD5,048.95 million.
Eyeing the growing market of seed treatment agent in China, international crop protection giants have continuously entered China's market with high quality products, such as Bayer CropScience's Gaucho (70% imidacloprid), Sygenta's Dividend (difenoconazole) and Celest (fludioxonil).
Some self-developed products by Chinese enterprises have also shown good performance in domestic pesticide market in recent years, such as Yuezhong (60% imidacloprid) from Shenzhen Noposion Agrochemical Co., Ltd. and Fudie (70% imidacloprid) from Hebei Veyong Bio-Chemical Co., Ltd.
So far, there are more than 400 seed treatment agent players in China. The annual increment speed of the total sales volume has reached 10% in recent years, showing the great prospect of seed treatment agent in China.
According to CCM International, the total consumption volume of seed treatment agent in China reached 41,000 tonnes in 2009, valuing USD150 million.
Some insiders in China even predict that seed treatment agent, after herbicide, will account for large share of domestic pesticide market in the next three to five years.
However, problems still lie ahead of domestic seed treatment agent industry, even though it has witnessed rapid development in recent years, such as weak R&D capability, weak market surveillance, etc.
The R&D capability of seed treatment in China is largely lagged behind that of some developed countries due to the late start of domestic research. Although some large pesticide players have realized the prospect of seed treatment agent and put investment R&D in recent years, most of their products' quality don't come close to those of foreign products. As more and more sub-quality products appear in domestic market (there are some good quality products but without good usage instructions, while foreign enterprises do a good job in this terms), peasants prefer foreign seed treatment agent to domestic one.
Domestic market of seed treatment agent also faces the problem of lacking efficient market surveillance, which has led to many illegal productions and sales of seed treatment agent. Highly toxic seed treatment agents which can bring large profit still take up large market share in China.
However, compared with other branches of pesticide industry in China, the situation seems not so serious.
The registration fee of a compound seed treatment agent reaches USD78,740.16 (RMB500,000), which blocks the entering of small-sized pesticide players.
Source: Crop Protection China News 1122
http://www.cnchemicals.com/Newsletter/NewsletterDetail_16.html
Content of Crop Protection China News 1122:
Bayer sets up Seed Treatment Application Center in China
Jiangsu Huifeng to change IPO projects
Accident occurs again in Nantong Jiangshan
New tax policy barely benefits small agricultural enterprises
China may largely support the development of agricultural technology
Rhizobium inoculant faces market promotion problems in China
Sumitomo expands the capacity of urea-formaldehyde fertilizer
Plant construction upsurge of chloride pesticide intermediate
10 new AIs registered in Q3 2011
Crop Protection China News, a semimonthly publication issued by CCM International on 15th and 30th(31st) of every month, aims to gain a deep insight into Chinese market, supply the latest market data and strategy support, analyze the newest legislation and policy and grasp the future market trend.
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