According to the semi-annual report of listed pesticide comanies,30% of the enterprises running in the red deficit. Profits of many companies appeared slip in various degrees. Shandong Dacheng pesticide Co., Ltd.(Shandong Dacheng) is one of the most serious company that suffered great loss, the loss volume stood at USD41.5million. Zhejiang Wynca Chemical Industry Group Co., Ltd.(Zhejiang Wynva), Nantong Jiangshan Agrochemical & Chemicals Co.,Ltd(Nantong Jiangshan), Anhui Huaxing Chemical Industry Co., Ltd.(Anhui Huaxing), their profit decreased compared with the corresponding period last year.
The pesticide enterprise's profits declined in the first half of this year for the following reasons: First, problem of over-capacity of pesticides has not been settled yet and there is keen competition in pesticide industry. Second, owing to domestic abnormal weather, sowing time and fertilizer applied period were changed, leading to the supply of pesticides have declined. Third, high cost of pesticide production is one of reason for low profit, as the rising cost of raw materials, labour costs, appreciation of the RMB and environmental policies.
Facing this difficult situation, some company have a good performance in this field. Shenzhen Noposion Agri-chemical Co., Ltd.(Noposion) posted a net profit of USD18.5 million, up by 49.87% compared with the corresponding period last year. According to the analysis on the competitive market, only through innovation could producers obtain the economic profit.
(Guangzhou China, September 1, 2011)
Source: CCM International