The vicious competition in China's pesticide industry is serious

In 2012, the National Pesticide Association Secretary-General Joint Meeting and the Pesticide Industry Media Working Forum were held in Zhangjiagang, Jiangsu Province. The meeting delivered a strong message that the current development of China's pesticide industry has fallen into extreme difficulties. Only by taking the road of independent innovation and differentiated development, exploring new markets and business models, and standardizing and purifying the market, can we achieve further development.

Luo Haizhang, chairman of the China Pesticide Industry Association, pointed out that the pesticide industry in China has developed rapidly in recent years, maintaining an average annual double-digit growth rate. However, by 2011, the development bottleneck encountered by the entire industry has been fully exposed: excessive production capacity, vicious competition is very serious, the average profit margin has dropped to about 5%; product structure is irrational, domestic companies in the homogenization of old products to fight The strength of foreign companies carrying large amounts of their patented products and mature agrochemical services has continued to divide the domestic market; labor productivity of domestic enterprises is generally weak.

The industry generally reflects that the current pesticide companies are facing problems such as credit crunch, tax burden, labor costs, and environmental pressures. Affected by this, the efficiency of domestic pesticide companies has decreased significantly, and the sustainable development of the industry is in an unprecedented crisis, which deserves high vigilance.

Luo Haizhang believes that breaking the bottleneck of development can only take the road of independent innovation. Enterprises should have their own core technologies and competitive products, and differentiated development can avoid homogenous vicious competition. At the same time, we should step up efforts to regulate and purify the market and accelerate the pace of mergers and restructuring in the industry. Zhou Yu, secretary general of the Jiangsu Provincial Pesticide Industry Association, pointed out that the training and after-sales services of foreign agrochemical companies have entered the village, which poses a huge competitive pressure on domestic companies, and domestic companies must focus on long-term learning. Zhang Wei, secretary general of the Shandong Pesticide Industry Association, stressed that the pesticide industry must speed up the birth of new business models, otherwise the industry development is worrying under the current development model.

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