China’s Top 10 Pesticide Companies in 2016

By CCM

 

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The total combined revenue of China’s top 10 pesticide companies reached $4.634 billion in 2016, down 8% from a year ago. Of the top 10, five posted lower revenues, four had higher revenues and the remaining company was a newcomer to the list.

In 2016, the top three companies were the same as in 2015, but ranked differently. Nanjing Redsun Co., Ltd. climbed to the top from No. 3 with revenue of $569 million, down by 1.47%, followed by Zhejiang Wynca Chemical Group Co., Ltd. (Zhejiang Wynca, $546 million, down by 11.86% YoY) and Nutrichem Co., Ltd. ($535 million, down by 12.06% YoY).

Zhejiang Wynca’s decreasing revenue in 2015 was mainly due to the low glyphosate price. Many domestic pesticide companies that were engaged in glyphosate production suffered a significant decline in revenue, such as Fuhua Tongda Agro-chemical Technology Co., Ltd., Jiangsu Good Harvest-Weien Agrochemical Co., Ltd., Zhejiang Wynca, Hubei Sanonda Co., Ltd., and Shandong Weifang Rainbow Chemical Co., Ltd.

However, Jiangsu Yangnong Chemical Co., Ltd. also produced mainly glyphosate, but losses from that business in 2015 were offset by revenue from its insecticide business and income from new projects of its subsidiary, Jiangsu Youjia Crop Protection Co., Ltd.

The newcomer, Sinochem Agro, which ranked 15th on last year’s list, and Sinochem Crop Protection Co., Ltd. (Sinochem Crop Protection), are both subsidiaries of Sinochem International Corporation. After its business integration in 2015, Sinochem Crop Protection became the controlling shareholder of Sinochem Agro and ranked 8th this year with revenue of $422 million.

The domestic pesticide market grew slower than in previous years in China. Combined total revenue of the 829 pesticide enterprises with annual revenue of over RMB 20 million from their main business operations hit $49.90 billion, with a YoY growth rate of 1.88%.

According to Phillips McDougall, a crop protection research company, the total revenue of the global pesticide industry in 2015 reached $58.18 billion, down by 8% YoY. During 2011-2015, output of herbicide technical took up roughly 50% of the total pesticide technical output every year in China. However,  low herbicide prices in 2015 — especially for glyphosate and paraquat — had a huge impact on China’s pesticide industry.

Under these circumstances, some companies, including Jiangsu Huifeng Agrochemical Co., Ltd., managed to increase revenue thanks to their balanced product structure and innovative marketing methods. In general, performance of China’s pesticide industry in 2015 was worse than that of previous years, but many domestic manufacturers were still be able to achieve progress.

Predicting the ranking list in 2017, Li Biyan, agrichemical researcher of CCM, stated that: “It is not likely that these 10 pesticide enterprises would edge out of the ranking list as they are all leading pesticide enterprises in China.”

 

For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailing [email protected] or calling +86-20-37616606. Also see CCM’s newly published report: 2016 Top 100 Pesticide Enterprises in China.