AgriChina Investor 1211

Domestic listed agricultural enterprises have gradually released their Q3 financial reports. Different sub-industries showed different performance in Q3 2012. In poultry breeding industry, owing to the price growth of feed, especially corn and bean pulp, some listed poultry companies showed poor performance and even loss in Q3 2012. However, this situation will be changed in Q4 2012 with the demand increase of poultry products and the estimated price decrease of feed. As for sugar industry, it is not optimistic for some large sugar enterprises in the following year because the domestic market price downtrend of sugar will continue in 2012/2013 mainly due to the oversupply. The pressure on sugar enterprises is becoming tense, which calls for more effective macro-control such as reducing sugar cane's purchasing price in a reasonable range.

Different from poultry breeding and sugar industry, most domestic listed pesticide enterprises showed good performance in Q3 2012 thanks to the demand increase both in domestic and overseas markets. In addition, some biopesticide enterprises will see a brighter prospect than before with the promotion of biological crop protection technology in China. However, a problem may arise with the promotion of biological crop protection technology, namely how much influence it will exert on the pesticide industry. Perhaps, those enterprises who produce not only chemical pesticides but also biopesticides can benefit a lot in the long run.