China produced an estimated 2,3 million tons of crop protection products last year, accounting for over 60% of global production, according to a RaboResearch report.
China has been the global market leader in crop protection product production for twenty years. A wave of capacity expansion has only further strengthened this country's position, according to Rabobank's research department. the reportAbout 90% of the resources they produce are exported.
Despite its successful growth, the Chinese crop protection industry is also facing increasing challenges. Global demand for crop protection products is growing less than anticipated. The industry is also facing stricter regulations, trade policies, increased competition, and the rise of biological agents and resistant varieties. In the long term, precision agriculture will further limit the sales volume of these products.
To meet these challenges, the Chinese industry will have to adjust its strategy, according to RaboResearch. Growth ambitions must be adjusted to combat overcapacity. This will bring the sector to a phase of mergers, acquisitions, and restructuring, the researchers outline. Companies will also seek to strengthen their international presence to secure sales.