Affected by the depreciation of the US dollar and the soaring of international oil prices, in recent years, bio-replacement energy sources have been continuously strengthened, leading to large-scale agricultural products in a historic bull market. The strengthening of agricultural products has led to a significant increase in the enthusiasm for the cultivation of agricultural products around the world, boosting the demand for pesticides and boosting the price of pesticides.
At present, pesticide production enterprises in China are facing historic opportunities for successful transformation and accelerated development. The Ministry of Finance and the State Administration of Taxation have issued a notice a few days ago to cancel the export tax rebate for some products, including more than 30 kinds of pesticide products, starting from August 1. It is expected that the policy adjustment will speed up the survival of the fittest in the pesticide industry and promote industry consolidation. Its role will be directly reflected in: 1. Increase the cost of production-related product companies, intensify the degree of market competition of related products, and ultimately eliminate weaker companies with weaker environmental protection measures, thereby increasing the market space of advantageous companies. 2. The elimination of export tax rebate objectively played a positive role in forcing companies to reduce the export of low value-added products, research and development of high value-added products, speed up structural adjustment, and find new profit points.
At present, various economic indicators of the pesticide industry have reached record highs and are in a booming cycle of production and sales. In particular, the six new regulations for pesticides in 2007 and the minimum capital requirements for pesticide companies provide policy opportunities for industry consolidation, which are conducive to optimizing the industrial structure and increasing industry concentration.
Among pesticide listed companies, some of the products of some companies are included in the list of export tax rebates, so they will be negatively affected. On the other hand, due to the increased operating pressures of companies that have eliminated production tax rebates, it is beneficial to them to further establish their competitive advantages and increase their market share.
At present, pesticide production enterprises in China are facing historic opportunities for successful transformation and accelerated development. The Ministry of Finance and the State Administration of Taxation have issued a notice a few days ago to cancel the export tax rebate for some products, including more than 30 kinds of pesticide products, starting from August 1. It is expected that the policy adjustment will speed up the survival of the fittest in the pesticide industry and promote industry consolidation. Its role will be directly reflected in: 1. Increase the cost of production-related product companies, intensify the degree of market competition of related products, and ultimately eliminate weaker companies with weaker environmental protection measures, thereby increasing the market space of advantageous companies. 2. The elimination of export tax rebate objectively played a positive role in forcing companies to reduce the export of low value-added products, research and development of high value-added products, speed up structural adjustment, and find new profit points.
At present, various economic indicators of the pesticide industry have reached record highs and are in a booming cycle of production and sales. In particular, the six new regulations for pesticides in 2007 and the minimum capital requirements for pesticide companies provide policy opportunities for industry consolidation, which are conducive to optimizing the industrial structure and increasing industry concentration.
Among pesticide listed companies, some of the products of some companies are included in the list of export tax rebates, so they will be negatively affected. On the other hand, due to the increased operating pressures of companies that have eliminated production tax rebates, it is beneficial to them to further establish their competitive advantages and increase their market share.
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