The Biopesticides Market & Prospects in China

Antares , Mar 6th

Content1. World/China biopesticides history & current

status

2. Comparison with EU/US biopesticides usage

3. Conventional pesticides misusage and hazards

4. China provisional policy for biopesticides

5. Biopesticides market prospect in China

Global Biopesticides Market

EU

The global biopesticides is growing because of the low toxicity, have the ability to target specific organisms in an ecofriendly manner.

GlobalBiopesticides Market

15-20%

M$

44%12%

11%

13%20%

Asia

AusOthers

100020003000400050006000

19931999200520092012201420162020

70%ConPBioP

bioinsecticides biofungicides bionematicidesbioherbicides others

LATAM EU ASIA/PAC ROW USA/CANplantextracts pheromonesmacroorganisms microorganisms

Global Biopesticides market -by Classification, area, function, enterprise division

China Biopesticides market

1773

507199

herbicide pesticidebactericide

446

133

86

81

63

31 25

EAST CENTRAL NORTHSOUTH NORTHEAST NORTHWEST

2011201220132014201520162017

production

1000

2000

3000

4000

50006000 Pesticide

Export

2649354931903745374137783548

1409159916221642150913731562

8%Biopesticides

Conventionalpesticides

92%

China Biopesticides History

1960’s

1997’s

2008’s

2017’s

China begins producing biopesticides and used in over 2 million hectares

Pesticide law ‘The Regulation on Pesticide Administration’ was issued and about 30 kilotons biopesticides have been used in over 10 million hectares

327 biopesticdes products registered and land use ratio over 1.6%

8% usage in country-wide and land usage ratio over 10%

China Biopesticides current statusØ By 2017, China's pesticide production was 3.54Mtons, domestic

consumption approximately 2M tons, biopesticides use up to 8% of biological control methods and farmland covers approximately 10% of all pesticide usage.

Ø The conventional pesticide China had used contaminated the soil, threatening both human and animal health. Due to low toxicity and ecological benefits, biopesticides have widely demanded, but are limited by R & D, disordered production, misusage from farmers, have lead to Chinese biopesticides utilization rates lower than EU and US.

Ø Low efficiency and high cost are also the reasons for low utilization.Ø China's agricultural revitalization plan, rural land transfer system,

ecological agriculture demonstration area, pesticide management system renewal, and a surge Under Environmental Protection Demands all lead toward opportunities for developing biopesticides in China.

UnderEnvironmentProtectionDemands

1. Productionlicensing,two-dimensionalcodetracking,permit,businesslicenseandothermoredifficulttoobtainregistrationpapers,35thousandpesticidesandthehomogenizationinmorethan20%productswillnotberegistered,andapproximately60%*ofpesticidedealerswillnotbeabletocontinueoperationproperly;

2. Asaresultofthemassiveshutdownoftherawmaterialenterprises,thepricesofpesticidesproductshaverisensharply,whichwillcontinueandmaypromotethesaleofbiologicalpesticides.

3. Thelimiteduseandgradualwithdrawalofhightoxicpesticides,andthereplacementofcommonpesticideswillbepushedforwardunderthepressureofenvironmentalprotection.

4. WiththeChinesegovernmentmovetostimulateagriculturaldevelopmentalleviatepoverty,thecombinationofscienceandtechnologywiththegrowinginterestofbiopesticides hasappearedandasaresulthasbeenpromotedrapidly.

Content1. World/China biopesticides history & current status

2. Comparison with EU/US biopesticides

3. Conventional pesticides misusage and hazards

4. China provisional policy for biopesticides

5. Biopesticides market prospect in China

Compare with EU and US

Definition

Registercost

Crops/plantManagementSystem

R&D

Regulation

Comparison with EU/US biopesticides

ThemaindifferencesintheapplicationofbiologicalpesticidesinEU,USandChinaare

1. thepopulationstructureofcultivatedlandpercapitaduetothedifferentbiologicalpesticidescanbeextendedinlargeareaandcoverawiderrangeofcropsinEurope,andonlycoverfewareasinChina;

2. InChina,thereisnoagriculturalplanningorlongtermlowpricesformajoragriculturalproductscausingindividual farmerstopaymoreattentiontoprofitandprefertouselow-costquickchemicalpesticidesorhighlytoxicpesticides.Alternatively,largeareaplantingwhichhastheadvantagesofcropclassificationandmarketdifferentiationwhereagriculturalpractitionersintheEUusebiologicalpesticidestoobtainadditionalbenefitsoffarming.

3. Chinaisstilllackingindependentbiopesticides regulationsandindependentregistration standards,whichleadstothehighcostandlongcycleofbiologicalpesticidesinChina.

Content1. World/China biopesticides history & current status

2. Comparison with EU/US biopesticides usage

3. Conventional pesticides misusage and hazards in China

4. China provisional policy for biopesticides usage

5. Biopesticides market prospect in China

Misusage and hazards² ThemisusageofpesticidesinChinaisaseriousprobleminChina.Themainreasonsinclude:³ Lackofpropertrainingandeducationforfarmers,³ casestudy“1.PoisonedScallion”;

² Lackofgovernmentoversightregardingmarketablepesticides.³ I.E.Organochlorine pesticidepollution,nitratepollution,heavymetalpollution,organophosphorus pesticidepollution,pyrethrumlipidspesticidepollution…

³ casestudy“changzhou toxiclandevent”

² Lackofcontroloverhazardousmaterialscausinggroundwatercontamination,foodcontamination,andanincreaseincancercases.³ Casestudy:“highincidencesofcancerinChina”

Poisoned scallion Changzhou poisonland

Convetional P and BioPBiopesticides decreasethesoilpollution;Reducingdamagetosoilmicrobesandpestnaturalenemies;Reducingthetoxicityandpollutionofcropstoprotectthehealthofhumanandanimal

Conventionalpesticidespollutesoilandgroundwatercontinually;Pollutecropsandthreattohumanandanimalhealth;Killingofsoilmicrobesandnaturalenemiesofpests

BiopesticidesØHighlyselectiveØLowtoxicityØMoreeffectiveandlongtermcontrolwithoutresistance

n ThestandardofChina's

pesticideregistrationadmittance

fallsbehindthedevelopedareas

andleadstothehighcostof

advancedbiologicalpesticide

productsorbecomesinaccessible.

Casestudy.TounderstandwhyChinagovernmentwillpushBiopesticides development.

“PoisonedScallion“-26,000KgpollutedbyhightoxicpesticidePhorate ledhundreds

goatsdied

‘Changzhoutoxiclandevent’causedmorethan500studentstodevelopcancer

Content1. World/China biopesticides history & current status

2. Comparison with EU/US biopesticidse usage

3. Conventional pesticides misusage and hazards in China

4. China provisional policy for biopesticides usage

5. Biopesticides market prospect in China

Provisional policy for Biopesticides

Ø 2013 Jan 6, the state council offcially issued the Bioindustry development plan, to promote the industrialization of high quality plant immune inducer,

biological fungicide or insecticide,natural enermies and other biological

pesticide products.”

Ø 2015 Feb 17, “Action Plan for Zero Increase in pesticide use by 2020”Ø 2017 June, China issued new “Regulation on pesticide management”Ø In December 2017, the Ministry of Agriculture announced that the last 12

kinds of highly toxic pesticides would be banned in succession in five years.

Endosulfan, Methyl bromide (2019); Aldicarb, Phorate, Optunal (2018);

Ethoprophos, Omethoate, Methyl P, Liu heterogeneous, Aluminum phosphide (2020); Chloropicrin, Budweiser and Do-win (2022)

HIGH TOXIC PESTICIDE EXIT TIMETABLE

Highlytoxic toxic medium low microtoxic Non-toxic

2002 Fluoroacetamide Gliftor Tetramine Sodium fluoroacetate Silatranes

2003 Methamidophos Methyl parathion Parathion Moncrotophos Phosphamid

on

2011 Terbufos, Calcium phosphate

Magnesium phosphide casting Fenamiphos Fonofos

Methyl sulfur ring P Cadusafos Coumaphos Sulfotep

2015 Methidathion

2018 Aldicarb Phorate Optunal

2019 Endosulfan Methyl Brom

2020 Ethoprophos Omethoate Liu p methyl isomers AL Phosphide

2022 Chlorpicrin Budweiser Dowin

After the “New Pesticide Magagement System in China” was implemented, the following events occurred:

Wholecountryover30%pesticidesproducerswillclose• Jiangxi36• Shandong32

Higherthresholdcoming• Prodpermit,two-dimensionalcodetracking,emissionpermit�pesticidebusinesscertificate,causecompaniestoeithershutdownorupgradetheircurrenttechnologies

Newpesticides/biopesticides registration• Jan2018,451pesticidesregisteredincluding171herbicides,116insecticides,114bactericides,bioproductincreasedby10%.

2018 –Agriculture Document No.11. Promotegreendevelopmentinruralareasand

createanewpatternofharmoniousdevelopmentbetweenmanandnature.

2. Systematicmanagementofmountain,river,forest,farmland,lakeandgrassland.

3. Strengtheningthecomprehensivemanagementoftheruraloutstandingenvironmentalproblems.

4. Establishingamarketorientedanddiversifiedecologicalcompensationmechanism.

5. Increasethesupplyofagriculturalecologicalproductsandservices.

-China rural development mode Upgrade

Sustainable development

• Governance Mountain, river, forest, farmland�lake�grassland

• Diversified�ecological�market-oriented-compensation mechanism

• Increase ecological products and service

Green EconomyBalance between

Man & Nature

Content1. World/China biopesticides history & current status

2. Comparison with EU/US biopesticide usage

3. Conventional pesticides misusage and hazards in China

4. China provisional policy for biopesticides usage

5. Biopesticides market prospect in China

China biopesticides market Aspirations

Ø BiologicalpesticideswillbedevelopedrapidlyfromthepromotionofChinaBiocontrol targets.

Ø UsageonminorcropssuchasFruit,Tea andVegetableswillbeimportantpotetional marketforbiopesticides.

Ø EcologicalAgriculturalDemonstrationCountieswillbecomethemaindevelopmentsitesforbiopesticides.

Ø ToxicPesticideExitwillprovidewidemarketspaceforbiopesticides(e.g.Beijing,SichuanandGuizhou)

Ø Newbiopesticides regulationsandgreenchannelswillshortenbiopesticides entryandreducethebiopesticide registrationcostwhichwillleadtocompetitionbetweencompaniesforthenextproduct.

Challenge and Opportunities 1. Chinesetechnologydevelopmentandindustrialpromotionabilityfor

biopesticides islimited,whichrequirescontinuousfundingtechnologyinadditiontolocalscientificresearchinstitutionswich leadingenterprisesintojointmultinationalenterpriseswhomalsoneedtocropresearchanddevelopmentandindustrializationofnewtechnologiesandnewproducts;

2. SubjecttothezerogrowthrequirementofpesticideconsumptioninChina,biopesticidesmustbesuitableproductsreplacementsasopposedtoexistingchemicalpesticidesandhighlytoxicpesticidesthatwillfalloutofthemarket.

3. Highlyintegratedmanagementofplantprotectionsforpesticidecrops,China'sbiologicalpesticidesmustcooperatecloselywithcropsandplantprotectionenterprises.

4. Thepromotionofbiologicalpesticideswillbenefitfromtheenvironmentalprotectionandremediationofsoilandwaterresources,whicharenowbeingvigorouslycarriedoutinChina.

Thanks

² Furtherdiscussion,pleasecontactEmailantares.w.gang@outlook.com orTel+8613911029134