Thought on the Impact of the Pandemic on the Development of the Chinese Pesticide Industry

In the early days of the pandemic, almost all industries stopped production for some time, traffic was disrupted, and domestic and international sales was dull. Pesticide enterprises were also impacted by shutdown and disrupted sales and traffic. The impact of the pandemic on the pesticide industry was especially prominent in January and February 2020. Take export for example. Compared to the export sales in the corresponding period last year, the growth rate was -3.91% in January and -41.26% in February. However, the impact was short-term and didn’t cause substantial recession. With the pandemic brought under control, relevant state administrations including the Ministry of Agriculture and Rural Affairs of the People’s Republic of China issued policies aimed to ensure smooth transportation of agricultural means of production and give priority to agriculture in resumption of work and production. In particular, the Ministry of Agriculture and Rural Affairs quickly restored relevant export policy in middle February, which relieved the recession of the pesticide industry fast. Export trade recovered quickly in March and April. Compared to the corresponding period last year, it grew by 15.22% in March and 37.34% in April. In May, it slightly increased compared to last year and then entered into the normal state. From January to May, in terms of domestic sales, most manufacturers reflected a sales level no lower than or equal to that last year. Last year, pesticide sales, especially export sales, was the highest in recent years. So, even it decreased this year, it’s normal.

More information, please see China Agrochemicals Monthly report.

Sign Up For Our E-Newsletter