to consolidate competitive edge to enable chinese pesticide industry to change from the “left over” status to a “win over” position-凯发天生赢家

at the beginning of china’s 13th-five-year plan, chinese economy has experienced new challenges, such as the declines of economic growth, industrial commodity price, profitability of real economy and fiscal revenue. the probability of occurrence of economic risk is rising, which causes adverse impact to petroleum and chemical industry, where pesticide business sector could not be an exception. at the 10th china international forum on development of pesticide industry, hosted by ccpit sub-council of chemical industry, zhao jungui, the vice chairman of china petroleum and chemical industry federation, delivered the 2015 china petrochemical industry operation status report.


zhao jungui, the vice chairman of china petroleum and chemical industry federation

the report pointed out that the main problem faced by chinese petrochemical industry inclusive of pesticide sector is the structural problem, where supply structure is seriously mismatched. the marginal benefit of demand has decreased progressively, the over-capacity structural problem could not be solved only by stimulation of domestic demand. instead the improvement of supply structure should be the primary objective of the industry in the future. the goal is to achieve a balance between high-level supply and demand, thus to eliminate excessive capacity, reduce stock, de-leverage, cut down cost and make up for the weakness.

key indicators of petroleum and chemical industry performance in china 2015(￥million, $million, %)

-	jan-mar	jan-jun	jan-sep	jan-dec
prime operating revenue	2,935.13	6,353.39	9,668.25	13,143.49
yoy	-7.3	-5.7	-5.7	-6.1
total profit	111.58	313.21	454.19	648.49
yoy	-43.1	-25.0	-23.7	-18.2
total investment	327.44	979.00	1,619.46	2,234.03
yoy	4.7	2.6	0.2	-4.1
total value of foreign trade	128.21	265.30	401.52	526.28
yoy	-23.3	-21.7	-21.8	-22.1

pesiticide production in 2015(tons, %)

category	number of manufactures	jan-dec
		2015	2014	yoy
pesticide	357	3,741,000	3,658,000	-2.3
insecticide	125	514,000	536,000	-4.3
fungicide	70	182,000	199,000	-8.4
herbicide	114	1,774,000	1,801,000	-1.5

total value of foreign trade in 2015 ($ million, %)

category	total value of foreign trade			trade surplus(deficit)
	2015	2014	yoy	2015	2014	yoy
pesticide	4,295.62	4,917.52	-12.6	2,797.36	3,376.58	-17.2
insecticide	1,043.50	1,232.02	-15.3	755.61	900.04	-16.0
fungicide	713.65	732.19	-2.5	157.16	94.52	66.3
herbicide	2,288.40	2,743.61	-16.6	1914.89	2,387.70	-19.8

after elaborating the challenges to pesticide industry, vice chairman zhao gave out constructive ideas for the future development of the industry – government, industry player, industry association to synergize integrated development fully utilizing the institutionally advantageous and market-oriented dynamic mechanism.

 

- from government perspective

to strengthen top-level industry planning and policy support; to make use of the functions of industry alliance to promote downstream industry cooperation, as well as to regulate market and respect ipr protection. while industry structure is adjusted with difficultness, the weakness of innovation capability is exposed. therefore enhancement of innovation capability has become an evadable issue to chinese pesticide industry. non-profitable national-level pesticide innovation center shall be established by government, which will be an effective approach to solving key technical issues, upgrading industry strength and elevating theindustrialization level.

- from industry perspective

to change the traditional business mode and the blundering state of mind which always looks at quick grow in a short time. before growing bigger and stronger, importance should be attached to quality of growth not just quantity of growth; to change the mindset to imitate others and be courageous in innovation; to consolidatecompany’s own competitive edge, which shouldbe used to create value and drive the sustainable development of one’s company toward a higher level.

under new normal status and new situations, there are new challenges and opportunities. chinese pesticide industry should seize the chances and be well prepared for the new round industry restructuring so as to achieve abig changefrom the “left over” status to the “win over” position.
 

source:        agropages.com