Pesticide companies must work hard to face environmental protection
At present, there are serious environmental problems in the development, production, packaging machinery , transportation, use and waste disposal. There are not only technical problems in the treatment and disposal of waste water, waste gas and hazardous waste, but also in the use. Management issues such as environmental supervision and quality supervision throughout the process.
The Ministry of Environmental Protection issued a document to conduct environmental verification on glyphosate enterprises, and environmental protection will have a greater impact on the industry. The shortest production capacity of glyphosate, which has the worst environmental protection facilities, will be completely eliminated. This small capacity accounts for about 10% of the current industry capacity. For medium-sized enterprises with conditional environmental protection facilities, there is the possibility of purchasing environmentally friendly technologies for companies that have done a good job in environmental protection, which will also increase the production costs of such medium-sized enterprises.
Domestic environmental verification has a long-term impact, and short-term impact may be limited. As the demand in the downstream market increases, orders for glyphosate increase gradually. At the same time, due to pressure from environmental protection, the start-up of SMEs is unstable, and supply in the market continues to be tight. The price is also rising; and the increase in the price of glyphosate has also led to an increase in the price of small varieties of herbicides. In the insecticide market, affected by factors such as environmental protection supervision and increased demand, the supply of mainstream insecticides such as imidacloprid, acetamiprid and chlorpyrifos was once tense, which pushed the price to continue to rise to a certain extent. In addition, the prices of avermectin and carbaryl in the first half of the year also showed an upward trend.
China's biological pesticides are greatly affected by environmental protection policies, which are determined by the characteristics of the industry's overall "low-end, re-creation". China's pesticide industry mainly focuses on the production mode of copying foreign patented pesticides, and lacks independent research and development products. Most of the main products produced by enterprises are products with foreign patents expiring. The advantage of this model is that the products are mature and stable. The sales difficulty of the manufacturer is small; but the shortcoming is obvious. Because it is a foreign patent, the profit rate of the product is not as high as that at the initial listing. The profit model of the factory is mostly small profits but quick turnover, especially in large tonnage pesticide products. The performance is particularly outstanding. The direct consequence of the low profit margin caused by this replication model is that manufacturers have to reduce costs from various aspects to increase their profits. From the aspects of raw material consumption, labor costs, environmental protection investment, etc., environmental protection investment It is the most easily compressed cost in addition to raw materials and labor, which has also caused shortcomings in China's pesticide industry in terms of environmental protection.
The increase of environmental protection pressure and the acceleration of mergers and acquisitions are two important opportunities for pesticide companies. With the gradual improvement of national environmental protection and safety laws and regulations and China's strides towards the beautiful China's long-term goals, every enterprise must have a large amount of capital investment and long-term scientific management measures, which also brings new to the industry. Development Opportunities. In other words, to become a sustainable pesticide company, we must pay double efforts and huge investment to get social recognition. The “Twelfth Five-Year†development plan of the pesticide industry puts forward the development direction of “industrial upgrading and industrial agglomerationâ€, requires further concentration of pesticide raw drug production, and fosters large-scale enterprise groups with international competitiveness, with continuous R&D investment, product planning and clear development. The target pesticide manufacturer can use the capital advantage to become bigger and stronger in the industrial integration and upgrading. This provides a good development opportunity for every business in the industry.
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