China – Focus on a Growing Market – Part 4 Final – Beyond Agriculture – an increasing market in China
What is Beyond Agriculture?
Beyond Agriculture is the phrase used in China and increasingly worldwide to describe the markets known by many as “Non Crop Markets”. The global market for pesticide products Beyond Agriculture is already valued at US$ 25 billion and currently growing at a faster rate than crop protection. China is one of the most dynamic markets where estimatesindicate the market in China may now have reached as much as US$1.7 Billion almost 7% of the global market.
At a global level, much of the value is in Consumer Products, with Pest Control, Turf and Ornamentals and Public Health Mosquito Abatement also significant international markets. In addition to the market value for the products themselves, they contribute to added value in service markets such as in Pest Control where US$1.7 billion product sales are utilized to support a service market valued at US$ 16.0 billion. Although the active ingredients used are mostly the same as in Crop Protection, their formulation and use allows them to be sold generally at higher margins than in Crop Protection. In each market sector, the channel to market is unique and the key companies different to those in Crop Protection.
Speakers at the seminar. From left to right, Ras Patel, Peter May, Dr Peter McEwen, Rod Parker, Ms Ma Chunyan, Ms Wang Yiyan, Rob Fryatt and Mr Yong Lou
Following on from the successful launch of the Beyond Agriculture seminar at the CAC Agrochem Show in March 2011, the 2nd seminar promoted jointly by Pest Business and the Chemical Sub Council of CCPIT was held in Shanghai on 4th March 2012. The programme presented to delegates from around the globe included both Chinese and international experts in the fast growing market Beyond Agriculture.
Opening the seminar Ms. Ma Chunyan from CCPIT, highlighted how important these markets were to Chinese chemical companies both in China and abroad. She thanked the organisers Pest Business for the range and quality of international speakers they had brought to China, many for the first time.
Opening the programme Rod Parker (AIS Ltd.) focused on the changes to the global market over the previous 12 months, indicating that the Chinese Beyond Agriculture market had now reached the #3 position in value, behind only the USA and Japan. He indicated that all the drivers for growth remained strong and the perspective of a significantly larger market in the future remained.
Ms. Huang Xiaoyun, Deputy Director of the Chinese Pest Control Association, reported that the drive for a more professional industry had been supported by the introduction of training of service technicians. In the fast evolving market, communication with consumers was becoming a more and more important role of the Association and she welcomed the opportunity to highlight the great progress the pest management industry in China continued to make.
Both Luo Yong (Guangzhou Liby) and Jiang Guomin the Director of the Shanghai Spray and Aerosol Centre, highlighted new technology developments in the Chinese industry that had potential applications worldwide. Closing the morning Peter May (Xavca), reviewed the market opportunities in both the Australian and New Zealand markets. Australia has a high per capita spend with Turf & Ornamentals, Timber Treatment and Pest Control being significant in addition to the Home & Garden market. Opening the afternoon session, Rob Fryatt (Xenex Associates Ltd.) outlined some of the major players in the global market and the key factors that companies must consider when entering these substantially different markets. In many market sectors the only common factor was the use of agrochemical inventions. The formulations and mode of application are often very different from agriculture.
Two further presentations during the afternoon session highlighted the use of a Contract Research Organisation (CRO) from Dr. Peter McEwen (I2L Research Ltd.) and the use of the media from Ras Patel (Research Information Ltd.), the publisher of International Pest Control and many other industry technical journals. Peter highlighted the services a CRO can provide. Ras reviewed the modern media options available to companies wanting to raise their profile in markets Beyond Agriculture.
The final presentation of the day was from Ms. Wang Yiyan from ICAMA, the Chinese Regulatory Institution outlining the current status and challenges of registration in the Chinese market. Summing up the event Rob Fryatt, one of the Pest Business partners, spoke of “the increasing level of collaboration between Pest Business and CCPIT which is assisting companies from China and around the world to have a better understanding of these markets”. He concluded “these markets are complex to understand but the rewards in added value are there for companies prepared to know more about them and these seminars will continue to be the only opportunity in China to learn that information”.
Published in International Pest Control – May/June 2012 issue.
Category: Special features
