“If you want to keep up with the pace of the times and consolidate your market position, you must enter China.” Agrochemical giants hit the Chinese market

Although several years ago, transnational agrochemical companies still have some concerns about China's protection of intellectual property rights, this has not prevented them from increasing their investment in China. The United States "Chemical and Engineering News" published an article saying that due to the continuous improvement and improvement of China's intellectual property protection work, coupled with the cost advantages of production in China and the market's stimulation of the growth of "green" food demand, The more transnational agrochemical companies are flooding into China.
Intellectual property protection for environmental improvement The article states that in the past, the active ingredients of products produced by Chinese agrochemical producers have almost been patented by other companies. For example, DuPont believes that its investment of US$25 million was put into production in Shanghai in 1992. When a patented herbicide product was harvested, it was once produced by another manufacturer. However, as China's IP protection measures continue to improve, fewer and fewer infringements have occurred.
The global general manager of the Degussa AG's agrochemicals and intermediates business said that in China, the problem of transnational corporations being infringed can be completely solved, and the danger of infringing on infringements at will will only allow large international companies to enter this huge market. Cause adverse effects. "Compared with general consumer goods, the counterfeiting of agrochemical companies in China is not a big problem." He also used Syngenta as an example. Last year, Syngenta sued two Chinese companies for infringement and won a lawsuit in Nanjing, stating that the overall environment for protecting intellectual property in China is continuously improving.
Although Degussa also has some crop protection products that are sold directly to farmers, it is more to supply various active ingredients to other agrochemical producers. This summer the company invested in the production of cyanuric chloride in Liaoning Province, which is an intermediate for agricultural chemicals and dyes.
In the future, more market space will be released. There are more and more reasons for foreign companies to increase their investment in China. According to BASF, China is currently the sixth-largest agrochemical market in the world, with a scale of US$1.5 billion. This figure is even less than half of Japan, the world’s third-largest market, but it also shows that China’s use of agricultural chemicals The demand for goods will also grow rapidly.
With the development of China’s economy, people are more willing to choose “green” and healthy foods. Most of the residents of big cities buy food from supermarkets, because these shops mainly source from reputable farms. These farms use agricultural products that meet the national food safety regulations. These large farms are also the main export base for agricultural products. In large food stores in Hong Kong, Seoul, and Tokyo, China, tomatoes, apples and lettuce grown in mainland China are popular with local people.
Taking into account China's huge market and its low labor cost factor, relevant experts said that China will undoubtedly become one of the most powerful fruit and vegetable exporters in the international market. BASF said that the company has now sold its agrochemicals directly to some of China's large, reputable farms.
Increased competitiveness of Chinese companies The rapid development of the Chinese agrochemical market currently has some problems. For example, many farms are operated and managed by less educated farmers. Most of them use cheap, environmentally harmful pesticides that were invented 30 years ago or 50 years ago because of the latest research and development by internationally renowned agrochemical companies. The environmentally friendly products are more expensive than the others.
However, the development of the situation made these international large companies eventually choose to sell their most advanced products to China. BASF said that it has put the company's newly developed F500 series of fungicide into China this year and stated that it will not postpone the introduction of the latest results to the Chinese market because of concerns about the infringement of intellectual property rights.
However, the most important factor driving these large international companies to increase their efforts in China is still the strong competitors from domestic Chinese companies. Degussa’s spokesperson said that foreign companies must go to China sooner or later to face the competition from the Chinese agrochemical companies. Otherwise, these Chinese companies will inevitably cause more shock when they hit the international market. Red Sun Group, an agrochemical company headquartered in Nanjing, said that its annual global sales have reached 500 million U.S. dollars. Although some Western managers are skeptical about this figure, competition from domestic companies in China is still increasing. People doubt it.
There is no alternative to consolidate market position The way in which multinational companies increase their presence in China varies. For example, Japan’s Sumitomo Chemical Industry Co., Ltd. cooperates with a Chinese company to build a herbicide production plant for export in Dalian. Degussa's production plant in Liaoning Province will mainly supply Chinese agrochemicals and dyestuff manufacturers. In 2001, Syngenta's herbicide paraquat production plant invested in Jiangsu Province was completed and put into production.
BASF said that so far it has held more than 100 technical training sessions in China, and Chinese customers' orders for agrochemical intermediates are increasing. Dow Chemical and DuPont also set up laboratories in Shanghai to conduct R&D activities specifically for the Chinese market, including agrochemicals.
For the international agrochemical company's flooding into China, it is an inevitable choice in the words of Degussa. “If you want to keep pace with the times and maintain your market position, you must enter China.” .

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