Zhejiang Economic and Trade Commission held in late November meeting of heads of the province’s pesticide business, study and analyze the current situation of pesticide industry and the development of favorable factors in 2010 and proposed to raise the industry access threshold to raise the overall level of pesticide technical equipment, contain industry within the low-level redundant construction, optimizing the layout of pesticide industry to achieve sustainable development.

It is understood that, in order to promote transformation and upgrading of pesticide industry, the industry department, Zhejiang Province, from four aspects to study and formulate relevant policies, one strictly control new plants, and greater market access.

Second, research to support and promote inter-firm alliances and mergers and acquisitions. By large enterprises, small and medium enterprises with joint and acquisitions, established enterprises to cultivate and support a group of industry leaders to promote the enterprise structure optimization. Third, a comprehensive technology and equipment to enhance the level of pesticide industry.

Strictly implement the access requirements of pesticides for more than reaction steps, low yield, high energy consumption, “three wastes” discharge volume of the production process behind the implementation of green design and reconstruction, using energy efficient equipment, devices and technology. Fourth, industrial policy as the starting point of pesticides, contain low-level redundant construction industry.

Production capacity expansion of the pesticide assessment and control, research and development of the corresponding industrial policy, optimize the layout to achieve the sustainable development of pesticide industry. From 1 November the main pesticide production and operations point of view, Zhejiang pesticide industry is still very grim situation. Zhejiang is a province of China one of the main production of pesticides, the products of its export-dependent structural features, determined the pesticide companies to the global financial crisis than other provinces in deeper, more lasting time.

This year, the multiple factors leading to the pesticide industry, Zhejiang, there are some significant changes: First, reduce the number of manufacturing enterprises, from 92 in 2008 to reduce the current 82. The withdrawal of business or changing products, or close down, due to their common low sales prices, operating costs are too high, leading to unsustainable production. The second is the first time “increase in volume” and “drop in price” pattern.

Continued for many years in production, sales, exports and profits increased steadily, this year there Zhejiang pesticide industry production, sales, export volume growth, but the total output value, sales income, exports and profits were significantly decreases. This reflects the efforts of Zhejiang pesticide companies are still expanding the market, it also reflects the price has dropped to its lowest. Third, poor rebounding, pesticide market season is not busy.

In the first half, rarely seen in history of China there is widespread drought in Zhejiang pesticide companies seize the opportunity to take the lead out of a financial crisis rally, but the market and short-lived, soon to enter a recession. Now, not the busy season is obvious characteristics of the enterprise generally reflect poor sales, growing inventory, accounts receivable increased business risk has increased.

According to statistics, the first three quarters, the province’s pesticide business inventories reached 48.5 thousand tons, up 82.3%; accounts receivable 1.04 billion yuan, up by a relatively large increase. Committee by letter, Zhejiang Medical Petrochemical Industry Management Office Director Zhou indigenous combination of industry situation and economic trends in 2010 were analyzed, although the industry faced great difficulty in developing, but still there are some favorable factors, such as China has gradually out of the global financial macroeconomic crisis, the recovery was stabilizing.

Central to “Agriculture” series of preferential policies will effectively stimulate the enthusiasm of agricultural production, the production of pesticides is a big plus. State pesticide for 3 times to improve the export tax rebate rate, the state Department of Transportation to relax the micro-toxic, low toxicity, moderate toxicity of pesticides and transportation management, effectively reducing the cost of pesticide production and operations. These factors will resume on the market of pesticides play a positive role in promoting growth.

Meanwhile, the pesticide industry structure adjustment and integration will be further accelerated. Pesticide industry “low, small, scattered” issue for years, to solve these problems calls for more and more strongly. Zhou indigenous view that structural adjustment of the chemical industry, pesticide industry is likely to bear the brunt. With environmental protection, registration and registration requirements of the increasingly strict policy barriers to increased trade barriers, the international transfer of production to China and the advanced research and development capabilities gradually improved, China’s pesticide industry will change the current disorder.

The state administration has intensified pesticide industry, but also will effectively promote industrial restructuring and optimization. In addition, Zhejiang pesticide industry transformation and upgrading of the pain will be “Metamorphosis”, the realization of new development. Zhejiang pesticide industry now has a number of high-quality pesticides backbone enterprises with strong market competitiveness and risk-resisting ability of these enterprises in Zhejiang pesticide industry a major force for sustainable development.

Among the bears the opportunity to adjust for these leading companies, the priority is to support scientific and technological progress as to speed up the optimization and upgrading of product structure, as soon as possible to change the way of economic growth, to gain broader space for development.

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