The pesticide market in China has gradually developed into a buyer's market in recent years and the competition is extremely fierce. The overall trend of the pesticide market in 2004 will be as follows:

Fiercer competition

The long-time monopoly of the pesticide market by agricultural production

means departments of Supply & Marketing Cooperative will have a fundamental change. Most agricultural production means companies have ended their good old days and their business is fast dwindling. "Agricultural stations" are cropping up and have already occupied half of the pesticide market. Producers have fully employed advantages in "direct sale", actively participated in competition and gradually expanded their market shares. The market share held by agricultural production means departments of Supply & Marketing Cooperative will therefore drop to less than 30% in 2004.

Changing demand structure

With the rapid development of green agriculture, the pollution caused by pesticides with high toxicity and high residual to environment has aroused general concern. Pesticides with high toxicity and high residual have been forbidden for use in many areas. The demand proportion of new pesticides with high effect, low toxicity and no hazards will therefore increase by around 20% in 2004. The demand of biological pesticides will also increase by around 5%. The demand proportion of conventional insecticides will drop by around 12%. As varieties with high toxicity such as methamidophos and monocrotophos have already been forbidden for use, conventional varieties such as pyrethroid, trichlorfon, dichlorophos and validamycin A will hold a leading position in the market. The demand of imported pesticides with moderate price such as herbicides will also have an increase.

Reduced price

With the supply/demand change and the fierce competition, the overall price in the pesticide market will go down by around 8% in 2004. The price reduction will be different with different varieties. The price of traditional varieties will reduce by around 10% and the price of varieties with high effect, low toxicity and no hazards and biological varieties will be stable and have a rise of around 8%.