Both China’s export volume and value of herbicide formulations showed double-digit growth in 2017, according to trade intelligence firm Tranalysis.
“Exports of China’s pesticides have undergone significant changes in the past years, shifting the share of pesticide formulations into bigger parts on the cost of pesticide technical. Hence, the proportion of formulation exports has increased year by year. China’s manufacturers see the trend as a chance to get higher margins by value-added products and more players are getting into the market to claim their share,” according to Tranalysis.
Along with rising and production, pesticide exports saw year-on-year rises in volumes, prices and value following 2016’s crisis. More specifically, herbicide formulation exports reported 17.61% increase YoY in volumes, while the value climbed 34.65% from 2016 to 2017.
China’s manufacturers are mainly exporting technical in international markets, due to the tax rebate gap between technical and formulations. This issue is a long-time thorn in the eyes of China’s industry, lowering motivation for value-added processing of technical into formulations and slowing down healthy development, Tranalysis said.
However, several government departments are working on suggestions on higher pesticide formulations tax rebates, which, after implemented, will likely lead to a surge of exports, better competitiveness in international markets, and new investments as well as innovations in technology.
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