Pesticide Industry Needs To Optimize Structure

In recent years, the threshold of China's pesticide industry has been relatively low, and many enterprises have poured in one after another, making the overall oversupply of the industry very obvious, which has led to long-term lower product prices. In 2014, the total profit of the pesticide industry declined for the first time in six years. Moreover, many companies have no awareness of environmental protection, and their investment in environmental protection is far from enough, and it is difficult to adapt to the country's strict requirements for environmental protection.

National environmental protection policies have become stricter, and the pesticide industry has become one of the industries that have been greatly affected. In particular, with the deepening of measures such as environmental protection verification, enterprises must accelerate the elimination of backward production capacity that does not meet environmental protection standards, free up more market space, and accelerate the pace of structural adjustment.

First, we must implement technological innovation. With the tightening of national environmental protection policies, the realization of scale, continuity and cleanliness of pesticide production process, and the formation of internationally advanced production technology and equipment will become the focus of enterprise development. To this end, pesticide companies should accelerate technological innovation, gradually extend the industrial chain upstream, develop intermediate synthesis processes, and continuously improve the overall technical level and market competitiveness of the pesticide industry in order to achieve a clean and environmentally friendly production process and green products with low toxicity.

Second, we must promote mergers and acquisitions. It is reported that there are currently more than 2,000 enterprises that have obtained pesticide production qualifications in China, including more than 600 original drug companies and more than 1,500 preparation companies. Among them, many enterprises have problems such as low R & D efficiency, low added value of products, serious homogeneity of products, and lack of independent intellectual property rights. Mergers and reorganizations are conducive to increasing the concentration of the industry, optimizing the allocation of social resources, optimizing the industrial structure, and enhancing the competitiveness of the enterprise itself. Therefore, enterprises should actively do a good job of merger and reorganization, so as to achieve "1 + 1 is greater than 2", improve industry concentration and competitiveness, and realize green transformation and development.