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| Countries covered: China Domestic pesticide market is predicted to see growth in 2012, as pests and diseases are predicted to be more serious by National Agro-Tech Extension and Service Centre. Total domestic demand for pesticides in 2012 is predicted to reach 319,400 tonnes, up 4.37% over 2011. Two of the three main pesticides, namely insecticides and fungicides, will witness a demand uptrend in 2012; and the demand for herbicides in 2012 will keep almost the same level as that in 2011. Although it is good news for most of the pesticide players in China, they can't expect much from it. Some factors will still bother the performance of most pesticide players in 2012. First of all, the prediction may not be that accurate according to the prediction data in the past years. It is just a predicted data for reference. Weather and climate will change unexpectedly in parts of China, just like the serious drought in northern China. Second, as a pesticide export-oriented country, a large volume of Chinese pesticides are consumed by overseas market every year. The increasing demand in domestic pesticide market will have a little help to relieve the pressure of domestic overcapacity. Other factors, such as RMB appreciation, climbing of production cost, and intense competition, etc. will continue to be big problems domestic pesticide players have to face in 2012. |
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