Agricultural product prices continued to fall, farmers will slump, weak market demand

Agricultural product prices continued to fall, farmers will slump, weak market demand; the mainstream business model has the advantages of simple imitation, product homogenization, intense competition; overcapacity, vicious competition, the enterprise brand product brand, development is not sustainable; zero growth of fertilizers and pesticides and agricultural products quality and safety policy pressure; continued investment in environmental protection increase the operation cost; industry net profit rate to decline further.

Deputy general manager of Sichuan Lier Chemical Co., Qiu Feng believes that the pesticide enterprise performance generally fell sharply; pesticide enterprises struggling to cope with the foreign acquisitions of domestic enterprises; layoffs, no bottom line of scrimmage, such as blindly follow the trend of the new, for example, do not finish the “customer”, no end “credit” etc.. To use, market response, dealers, retailers and farmers are called “difficult”, wait, don’t take that. These are the new normal performance.

His understanding of the new normal is different from the past, a relatively stable state. He pointed out that the Chinese economy entered a new stage and different period of rapid growth over the past thirty years. The quality and efficiency is the essence of the new normal. The new normal pesticide industry is the enterprise in the domestic market, the legal norms, promote enterprise standardization and rising costs (the new labor law, the new environmental law, the quality and safety of agricultural products, a new method of pesticide management introduction), product cost and operation cost of the enterprises and the illegal cost increases; the concentration of land to promote the planting depth transformation and integration industry structure adjustment and industry; rational just need to enhance the elasticity of demand, foam extrusion, marketing revenue dropped. He believes that under the new norm, based on the nature of the industry, driven by the innovation of quality and efficiency, establish differentiated core competitiveness to achieve the sustainable development of enterprises.

In the ninth session of China pesticide forum, Qiu Feng carried out and the development pattern of the pesticide market of our country enterprise he believes that the current pesticide enterprise market development in China there are 5 modes.