Since the second half of 2016 after the beginning of environmental verification, the pesticide market has entered a "suspended animation" state, all kinds of pesticide products are in short supply.聽Price is all the way up, but the volume does聽not follow.聽This contradictory situation may be improved聽by the fourth quarter of this year .
Environmental protection constraints in two aspects of the pesticide industry: on the one hand the production of chaos to be suppressed.聽Some small production capacity companies will be eliminated because the high cost of environmental protection, and other companies which focused on聽environmental protection will win the a opportunity of development; On the other hand, shortage of products will cause the price raise, companies can achieve profit growth聽and聽the government can also insure聽the tax.
Yang Chaofei, the original chief engineer聽of Environmental Protection Department,聽interpreted聽supporting policies聽of the new "Environmental Law".聽He stressed that since the new "Environmental Law" introduced,聽the Central government聽has sent two Environmental protection inspection team聽to inspect聽environmental in different聽provinces, and got good results.聽Till the end of 2017,聽the central environmental protection inspectors will achieves full coverage,. Meanwhile, for pesticide聽companies, the cost of illegal sewage聽emissions will be greatly improved. For reach the standards, companies need to upgrade their technology, close down outdated production facilities, and improve the rules and regulations聽to follow a more strict聽environmental management.
Zhang Bo聽from Anhui Agricultural Information Consulting Co., Ltd. believes that the Chinese government's environmental policy will be聽a "magic spell"聽for sustainable development. It is also a effective tools聽to clear the poor legitimacy companies. Environmental protection policy will highly聽improve the concentration of agrochemical industry, more than 90% companies which sale less than 100 million yuan per year are facing survival challenge by choosing to be shut down or move to industrial parks and upgrade sewage聽emissions equipment And the others which has already shut down are hopeless to聽recover. Pesticides聽supply will remain tight for a long period, the industry is expected to accelerate the process of concentration聽and leading enterprises will further enhance the profitability.