China largely popularizes government pesticide procurement and the value is estimated to reach USD321.2 million in wheat, rice, vegetable, tobbaco and cotton, etc. in 2012.

1. Government's pesticide procurement gets hot in 2012
Summary: China largely popularizes government pesticide procurement and the value is
estimated to reach USD321.2 million in wheat, rice, vegetable, tobbaco and cotton, etc. in 2012.
Tags: Mesa Tech, spinosad, indoxacarb and fosthiazate, acephate, government pesticide
procurement, plastic masterbatch, helminthic,green control on pests, metaflumizone
Recently, government pesticide procurement has become a hot topic on many agricultural
conferences. It is estimated that the procurement value has reached USD321.2 million
(RMB2.00billion) in the application of wheat, rice, vegetable, tobbaco, cotton and other crops. It
has also become a good marketing method for dominant pesticide producers, according to
CCM’s December issue of Insecticides China News.
Lin Yanru, a researcher from Shandong Plant Protection Station, revealed that government
procurement is the general development trend of China's agriculture industry. The coverage of
government procurement ranges from rice, wheat, cotton, vegetable to fruits and some other
cash crops, and its investment will be raised year by year.
Since 2011, government pesticide procurement was in full swing. "Its coverage area and crop
range have been gradually expanded. In 2001, Chinese government began to procure pesticides;
the Ministry of Finance allocated about USD16.06 million (RMB100 million) every year for
purchasing pesticides to control rice plant hoppers, rice stem borer, wheat rust, locusts and other
pests and diseases", said researcher Lin Yanru.
According to Li Yanru, in recent three years, the investment for government pesticide
procurement has quickly increased. Many provinces growing wheat, rice have spent over
USD16.06 million (RMB100 million) on pesticide procurement since 2009. Hebei Province is the
most prominent one and it invested USD32.12 million (RMB200 million) every year during 2009-
2011. Another big rice-growing province—Jiangxi also invested over USD16.06 million (RMB100
million) every year during 2010-2011.
In 2012, the investment for government pesticide procurement has reached a new peak.
According to the Ministry of Agriculture of China (MOA), the investment merely on wheat has
reached about USD253.2 million (RMB1.6 billion) which has been allocated to 11 winter wheat-

2. planting provinces and areas for the control and prevention of pests and diseases of 21.33 million
ha. wheat in China.
Generally speaking, government procurement has the following advantages.
First, pesticides with low toxicity, high effectiveness and environmental friendliness will be given
prior consideration. Therefore, product mix will gradually become more reasonable.
Secondly, large purchasing amount attracts many suppliers, and favourable procurement cost will
adjust pesticide price and make it more reasonable.
Thirdly, centralized bid improves the efficiency of marketing and creates mutual benefit for
participants.
With Chinese government's increasing attention on government pesticide procurement year by
year, domestic pesticide enterprises start to realize the importance of anticipating and obtaining
bid invitations. Once winning the bid, pesticide enterprises can largely reduce costs and raise
profits.
Jiangsu Anpon Electrochemical Co., Ltd. (Jiangsu Anpon) is one of the bidding pesticide
enterprise, which has successfully bid in Hebei, Jiangxi, Shandong and Anhui in recent years. For
example, in Oct. 2011, Jiangsu Anpon's pymetrozine (brand name: Feidian) successfully bid for
the demonstration project of government procurement for high yield rice in Anhui Province. In
June 2011, Hebei Province purchased a batch of pymetrozine formulations from Jiangsu Anpon
to control wheat aphid; Jiangxi Province also purchased 300 tonnes of pymetrozine formulations
from it to control rice plant hoppers in Sept. 2010. Another bid pesticide enterprise—Jiangsu Kwin
Group Co., Ltd. also bid in Yunnan, Shandong, Henan and other provinces in recent years.
In fact, for the bid of government procurement, many pesticide enterprises still can't get involved,
even for some large pesticide enterprises. Manager Shenyangfeng from Shaanxi Sunger Road
Bio-Science Co., Ltd. expressed that many enterprises had difficulties managing government
procurement. Taking county-level procurement bid for example, the bid application usually needs
to be sealed from village government to country government and it involves sealing cost every
procedure. Only enterprises that have comprehensive social networks and bravery to compete for
the price can act like a duck to water.
The procedures of bid invitation are cumbersome and lots of pesticide enterprises lack the
experiences of preparing for bid materials. Many pesticide enterprises had to give up the bid

3. when they found that it was impossible to fetch the necessary materials in a short time as they
treked a long way to other provinces for the bid invitation.
In addition to the cumbersome procedures, high threshold set by local governments was also a
big obstacle to pesticide enterprises who want to obtain the bid invitation, especially those
medium and small sized ones.
Lastly, some overseas pesticide enterprises also see government procurement as a big
opportunity and want to participate. Though government favors domestic pesticides, it is believed
that some foreign pesticide enterprises will benefit from government procurement thanks to
excellent effect of imported pesticides and their increasing cooperation with the government. For
example, spinetoram and spinosad from Dow AgroSciences have been selected in Jiangsu
government procurement in 2012.
Source: Insecticides China News 1212
http://www.cnchemicals.com/Newsletter/NewsletterDetail_1.html
Main content of Insecticides China News 1212:
Domestic insecticide industry recovers but still faces challenges
Yancheng Confident builds 2,000t/a bifenthrin intermediate production line
Overall relocation of Jiangsu Kwin continues
JPRI promotes fufenozide in China again
Mesa Tech registers three insecticide technicals
Guangxi: over 4,500 tonnes insecticides reduced by green control in 2001- 2011
Government's pesticide procurement gets hot in 2012
Development of metaflumizone takes on well in China
Development of outstanding acephate formulation is very urgent
FNU develops helminthic agricultural film
New technical registrations in Nov. 2012
Sumitomo Chemical: the first formal registrant of clothianidin
Monthly ex-factory prices of key raw materials in China, Dec. 2012
Monthly ex-factory prices of main insecticides in China, Dec. 2012

4. Monthly Shanghai Port prices and FOB Shanghai price of main insecticides in China, Dec. 2012
Average market price of main crops in China, 30 Nov., 2012
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provides the latest and influential analysis on insecticide industry for you, including company
dynamics, supply and demand, price analysis, policy, raw material and intermediate.
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