Anhui Meiland Agricultural Development Co., Ltd

Anhui Meiland Agricultural Development Co., Ltd

Ten-year review and prospect of China's pesticide export under the Belt and Road Initiative

2024 01/15

China is the world's largest producer and consumer of pesticides, the annual output of pesticides accounts for more than 30% of the world's total. Along with the "Belt and Road" initiative, it has also brought vitality and bright prospects to the export of pesticide products in China. At present, China's pesticide exports have been developing towards high quality...

The following is a brief review of China's pesticide exports under the "Belt and Road" Initiative in the past 10 years, guided by the third "Belt and Road" Forum for International Cooperation, the future of China's pesticide exports are expected and suggestions are made for pesticide export enterprises.



Under the "One Belt and One Road", China's pesticide export has changed dramatically in the past 10 years

China is the world's largest producer and major consumer of pesticides, with annual output accounting for more than 30% of the world's total. In 2022, China's pesticide production will be about 2.5 million tons, accounting for 38.5% of the global total; From January to September 2023, the national output of chemical pesticides is 1.917 million tons, and China's pesticide production is more than enough to meet the domestic agricultural production every year, while actively exporting to the international agrochemical market. Under the "Belt and Road" initiative, China's pesticide exports in 2022 will be 1.4 million tons, accounting for 28.9% of the global total exports; According to statistics, the cumulative export volume from January to September 2023 has reached 1.197,500 tons. The growth rate of China's pesticide exports has made the world sit up and take notice of China's pesticides.

1. The Belt and Road Initiative enables China's pesticide exports

As early as the 1970s, China began to export pesticides, and in 2001, China officially joined the WTO, which brought opportunities for pesticide import and export trade. After 2001, the import and export trade of pesticides was active, and by 2012, the export volume of pesticides in China reached 1,599,400 tons. 10 years ago, although China's pesticide exports have increased, but the quantity is not proportional to the price, but rely on low prices in exchange for international market share. 10 years ago, although China was a large country of pesticide production and marketing, it was a country with low pesticide export efficiency and low discourse power in the international market. Take 2013 as an example, according to customs statistics, the export amount of pesticide raw drugs in 2013 was only 5.082 billion US dollars, and the export amount of pesticide preparations was only 3.441 billion US dollars. In 2013, the amount of pesticide exports was only several billion dollars, and the export efficiency was extremely low. In 2013, China's annual export volume, sales and benefits of pesticides are negligible compared with the world's pesticide exporters. Ten years ago, China's pesticide export benefits were lukewarm, and there was no big improvement, resulting in the total weight of China's pesticide exports in the country's foreign trade.

With the rapid advancement of the "Belt and Road" and the deepening of international cooperation, in the past 10 years, China's pesticide export quantity, structure, efficiency and other indicators are optimistic, and the export efficiency has increased a lot than 10 years ago, whether it is the export quantity, or the export amount, export countries and regions have changed in different degrees, making the world look at them. Driven by the "Belt and Road Initiative", China's pesticide exports have ushered in a good period of historical development.

2. Pesticide exports continue to increase

Although the export volume of pesticide in China from 2013 to 2022 has increased and decreased, it is still a moderate climbing trend on the whole. Pesticide enterprises have stepped up the market deployment of countries and regions along the "Belt and Road", and pesticide exports have shown a good momentum of high-level development through adjustment, adaptation and improvement in the ups and downs. In 2014, China's pesticide exports reached 1,641,700 tons, reaching the best level in history; In 2020, China's pesticide exports reached 11.68 billion US dollars, an increase of 14.6% compared with the caliber, and another record high.

From 2011 to 2020, the average output of pesticide in China was 1.48 million tons/year, an increase of 13%; Exports averaged 950,000 tons a year, an increase of 35%. From 2011 to 2020, the price of export pesticides continues to rise, and the price of imported pesticides gradually falls, and the price of imported pesticides is reduced from 3 times of the initial export pesticides to about 2 times. In 2021, China's cumulative pesticide exports were 2.202 million tons, with an export value of $8 billion, and the decline in export value was mainly due to the impact of the three-year epidemic and the constraints of the global economic depression. In 2022, China's pesticide exports reached 2.577 million tons, accounting for 35.9% of the total global exports (according to the United Nations Food and Agriculture Organization (FAO)), a record high. The cumulative export volume from January to September 2023 is 1.197,500 tons.

3. Although the volume of exports fluctuates, the quality is improving

Despite the ups and downs of pesticide exports in the past 10 years under the "Belt and Road", China's pesticide exports are still developing in the adjustment of ups and downs. When we consider China's pesticide exports, we should not just look at the number of exports, but look at the whole. Looking at China's pesticide exports in the 10 years under the "Belt and Road", we found that despite the peak and decline of pesticide exports in the 10 years under the "Belt and Road", the annual average is increasing, that is, from 2013 to 2023, the index base of pesticide exports has been continuously and mildly improved, even if there is a decline adjustment, but through the volume compression, quality improvement and technological progress. It's building up momentum for the next ascent.

There are peaks and valleys, "One belt and One Road" under the 10 years of pesticide exports have experienced ups and downs, although there are adjustments, but also quantitative and qualitative changes, although the annual weight is decreasing, but the quality is improving, China's pesticide exports as a whole still show a good development trend consistent with domestic policies and markets, and this development is high-quality development, high-level development. At the same time, we also found that in the 10 years of pesticide export and pesticide foreign trade, China's pesticide export has obviously become an important path for pesticide enterprises to reduce the pressure on the domestic market, alleviate overcapacity, and curb the decline in efficiency, and it also obviously benefits from the 10 years of the "Belt and Road" initiative. The "Belt and Road" initiative has played an important role in alleviating domestic overcapacity, withdrawing preferential export policies, and resolving adverse factors such as rising prices of raw materials such as coal, electricity, oil and gas, and petrochemicals. The initiative has further promoted the opening up of China's pesticide industry, increased China's pesticide enterprises to actively go out and carry out layout along the "Belt and Road" countries.

4. The decade of the Initiative has seen significant achievements in pesticide exports

Relevant statistics show that China's glyphosate and other products are constantly moving towards the international pesticide market, and more and more pesticide companies are looking for more cooperation opportunities in the international market to go abroad. Nowadays, many countries in the world such as Vietnam, India, Malaysia, Thailand, Laos, Myanmar and other Southeast Asian countries import a large number of Chinese pesticides, including Europe and the United States and other countries also import a large number of Chinese pesticides, some traditional agricultural countries love Chinese pesticides. China's pesticide exports have entered the best historical period of development along with the "Belt and Road" initiative. As the "Belt and Road" cooperation extends from the Eurasian continent to Africa and Latin America, more than 150 "Belt and Road" cooperation countries and regions can see Chinese pesticides in the local market to serve agriculture, the "Belt and Road" has promoted the high-quality development of China's pesticides, and the export structure has been significantly improved.

In terms of figures, although the export of China's pesticide industry in the past 10 years of the "Belt and Road" has had ups and downs, the export quality has been improved, the export efficiency has been improved, the export market has expanded, and the export trend is optimistic. It can be said that China's pesticide export achievements in the past 10 years under the "Belt and Road" are not simply reflected in the quantity of exports, but in the qualitative improvement. Looking back at the development of China's pesticide export in the past 10 years, China's pesticide has stepped out of the pace of opening-up.