In 12Th Five-Year, The Pesticide Industry Development Plan Promulgated &Nbsp, And The Industry Leader Is Expected To Benefit From It.

The reporter learned from the China Pesticide Industry Association that the "12th Five-Year special plan for pesticide industry development" was formally promulgated.

The plan proposes to further concentrate pesticide production. By 2015, the number of pesticide enterprises will be reduced by 30%. Through the annexation and reorganization, we will cultivate 2-3 large scale sales of more than 10 billion yuan and international competitiveness.

Analysts pointed out that the current pesticide industry integration space is huge, the introduction of these policies will speed up the industry mergers and acquisitions, and the industry's leading enterprises are expected to benefit from it.

Speed up mergers and acquisitions in pesticide industry

To promote the industrial upgrading of the pesticide industry, the China Pesticide Industry Association has officially promulgated the "12th Five-Year" special plan for pesticide industry development.

The plan has clearly defined the development goals for the next 5 years. By 2015, the output value of the pesticide industry reached 230 billion yuan, with a sales income of 220 billion yuan and a profit of 15 billion yuan, with an average annual growth of 7.7%, 7.7% and 9.6% respectively.

It is worth noting that a series of development goals and measures proposed by the plan are focused on improving industrial concentration and accelerating the pace of annexation and reorganization.

It is proposed that pesticide production will be further concentrated, and pesticides will be produced by 2015.

In addition, by 2015, the pesticide companies that strive to enter the chemical concentration area will reach more than 50% of the total number of pesticide companies in the country.

Through the merger, reorganization, shareholding system pformation and other ways to set up large-scale pesticide business groups, to promote the formation of a large scale, multi species pesticide production enterprise group, and cultivate 2-3 large sales enterprises with more than 10 billion yuan in sales and international competitiveness.

As a matter of fact, the goal of a series of plans to increase industry integration in the 2010-2020 China's pesticide industry policy jointly issued by the four departments of the Ministry of industry and the Ministry of agriculture and other four departments last year is in line with the same goal.

"There are more than 1800 pesticide production enterprises in China, more than 500 of which are original production enterprises, with scattered layout and small scale. So far, there are no leading enterprises with international competitiveness. The top 20 enterprises account for only about 30% of the total output."

Pesticide industry association responsible person told reporters.

Insiders pointed out that, according to policy requirements, measures to reduce the number of pesticide enterprises by 30% and enhance the market share of leading enterprises will greatly promote the integration of pesticide industry and enable strong enterprises to pass.

Leading enterprises in the industry are expected to benefit

It can be seen that the future merger and reorganization of pesticide production enterprises and elimination of backward production capacity are the general trend.

Analysts pointed out that in this context, the industry consolidation expected by the government will be more forcefully implemented, and long-term leading industries in the industry.

It is understood that the current sales of 1 billion yuan of pesticide enterprises, most of which are listed companies, such as Xinan shares, Yang Nong chemical and so on.

According to reporter statistics, so far, 11 pesticide listed companies have disclosed the first half performance notice, of which 6 have increased in advance.

Guotai Junan analyst said.

In addition, the reporter learned that in the industry consolidation, in recent years, a number of Listed Companies in the pesticide industry have been through mergers and acquisitions to seize the market.

For example, in recent years, the company has gradually annexed its products and expanded its sales territory through the merger of pesticide companies in Fujian, Shandong and other places.

The new pyridine pesticide company, Lier Chemical, has expanded its business from a single chlorinated pyridine pesticide to three categories of more than 70 products, including herbicide, insecticide and fungicide, through the acquisition of Jiangsu fast food agricultural chemicals. Meanwhile, the sales field has also developed from Sichuan to coastal areas.