9th Brasil AgrochemShow: Agrochemical market faces changes

The market for agrochemicals is changing – that is the primary message of the 9th Agrochem Show, which opened this Monday (Aug. 22) in São Paulo. “The major companies have had losses in this first semester of 2016. There will be big changes in the sector,” predicted Ma Chuyan, a representative of the sub-council of the Chemical Industry under the China Council for the Promotion of International Trade (CCPIT).

 

Ms Ma stated that economic reforms were in full swing in China. “We believe that we are regulating procedures for quality and sustainability. The sector is eliminating companies that are not qualified, and Chinese products, today, are seeking a guarantee of quality and health security.”

 

Jalen Fan, also a member of CCPIT, corroborated this viewpoint, adding that China had “entered a developed and mature phase of regulation and registration. Each company needs at least three authorizations from different agencies before it can begin production. This can go up to six or more agency approvals.”

 

Fan noted that the consumption of agrochemicals in the world had earned US$87 billion, mostly for soybeans (16%), cereals (14%), and rice (7%). China produces nearly 17% of the total, while Brazil produces 16% and the United States produces 12%.

 

“The Chinese law was created in 1997, revised in 2001 and is currently being updated this year. The new law, to be presented soon, will aim to reduce bureaucracy and establish a plan for the next 13 years. After the country experienced significant growth in the sector in 2012, we are now seeing a period of stability, with greater focus on environmental protection – currently, a major problem faced by China. Over 150 companies were penalized only last year and others are under reevaluation,” explained Fan.

 

He went on to say that the growth of the market for pesticides in China should be around zero, with expansion only in the segment of biopesticides. The Chinese now seek, according to him, tools that optimize intelligent applications, for which there is a lot of demand. Besides this, they want to develop an online commerce platform in Brazil and Paraguay, similar to those in China.

 

AgroPages attended the Brasil AgrochemShow and brought its newest magazine – 2016 Latin America Focus.

 

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