Aiming to establish key market indicators of China’s rice industry, CCM has carried out a syndicated research project, namely Syndicated Research Project of Hunan Rice Panel Data & Analysis Model, on rice production in Hunan Province—one of the largest rice production provinces in China, by conducting panel data investigations around the basic information which includes pesticides, seeds, fertilizers, diseases, pests and weeds, meteorology and agricultural produce.
With all the data and information refined from the results of the research, CCM will finally set up a multiple analysis model of the rice production dynamics in Hunan Province which can also be applied to any crop in any area in China. Actually, the project is just one of the experimental field plans of China Agricultural Information Platform Project—a project of CCM’s long-term planning. CCM will keep conducting similar projects on main crops in different provinces in the future so as to build an overall China Agricultural Information Data Platform.
CCM chose three main rice production cities in Hunan Province to start the investigation, namely Changde City, Yueyang City and Hengyang City. Rice is mainly used for sales in the northern part of Hunan, while self-supply for the southern part. Therefore, Changde and Yueyang are selected to represent the north of Hunan, while Hengyang for the south. Investigation area of this project covers: all counties under Hengyang, Yueyang and Changde, which in total are 30 counties.
Parts of the results from the research project
Farmers in the three cities show different rice planting enthusiasm
Different geography and land features in the three cities cause different cultivation habits of local farmers. The planting enthusiasm of rice held by the farmers in Hengyang City is the lowest as a result of low economic benefit. The geography and land features of Hengyang City which is covered with hills make it lack of the conditions of promoting mechanized planting. Changde City and Yueyang City which lie in Dongting Lake area own much fertile soil and relative flat farmland. The planting cost of rice in the two cities is much lower than that in Hengyang City and the planting enthusiasm of farmers in these cities are much higher.
Main sales channels of agricultural means of production in the three cities
There are four sales channels of agricultural means of production in Changde, Yueyang and Hengyang. The profit margin in every agent level of the circulation link stays at around 5%, while the profit margin of retailers reaches over 20%. As terminal sellers, retailers usually choose to recommend farmers those products with larger profits and some of them start to care about the problems of environmental protection on the premise of considering profits and effectiveness of products.
1. Manufacturers => provincial agents => municipal agents=> county-level agents => retailers => farmers
Owing to the complicated circulation links, the purchasing price of agricultural means of production is pushed up level by level. While reaching retailers, few profits of the products are left. Thus, this kind of sales channel seldom appears in the market of the three cities.
2. Manufacturers=> municipal agents=> county-level agents => retailers => farmers
This kind of sales channel is the most common circulation form in the three cities. Manufacturers directly supply to municipal agents, which decreases circulation links.
3. Manufacturers => county-level agents => retailers => farmers
Retailers in this kind of circulation link enjoy good profits and it becomes the main way for retailers in the three cities to purchase agricultural means of production.
4. Manufacturers => retailers => farmers
Although large profits exist in this kind of circulation link, it seldom appears in the market of the three cities. Main reason for the phenomenon is that aiming to preserve their interests, county-level agents with much greater influence in local agricultural means of production market wouldn’t let manufacturers directly sell products to retailers. Sometimes they will join up together to boycott such kind of circulation form when necessary.
Governments in the three cities gradually strengthen the support for rice planting
Governments’ support for rice planting in these cities gradually grows year by year. Cash is directly subsidized to the bank accounts of farmers, which has effectively stimulated the rice planting enthusiasm of farmers. Take the subsidy policy in Huarong County, Yueyang City for example, local government will subsidize USD281.4/ha. to the planting of single cropping rice and USD343.40/ha. to the planting of double cropping rice.
Besides releasing the information of pests and diseases to farmers, the staffs in crop protection stations will visit fields at regular intervals every week during planting seasons to help farmers solve problems.
The unified management of pest and disease in Hunan Province has made great progress in recent years. It has attracted more and more enterprises to get involved in the business of unified management services. Although it has promoted the development of agricultural industry in Hunan Province, it is actually not welcomed by farmers because they benefit little from it.
The information above is just part of the whole project that CCM is now conducting. Some other information and data are still analyzed, please keep focus on CCM.
Source: Crop Protection China News 1224
Contents of Crop Protection China News 1224
Panel data research on Hunan rice planting
Domestic pesticide demand to see growth in 2013
Overview of domestic pesticide industry in 2012
CCPIA issues new limit standard for harmful solvents in pesticide EC formulation
China cuts fertilizer tariff in 2013 to encourage export
Noposion to buy back shares
Jiangsu Heben to upgrade 2050t/a pesticide production lines
Bio-pesticides registered hot in China in 2010–2012
Crop Protection China News, a monthly publication issued by CCM on 31stevery month, offers timely update and close follow-up of China’s crop protection industry dynamics. It also provides you with professional features articles, keeping you aware of the latest industrial development, import and export analysis, and market data.
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