The pesticide industry ushered in favorable policies. On February 16, the Ministry of agriculture and rural areas, together with the national development and Reform Commission, the Ministry of science and technology, the Ministry of industry and information technology, the Ministry of ecological environment, the State Administration of market supervision, the State Food and material reserve bureau and the State Forestry and grass administration, jointly issued the national pesticide industry development plan for the 14th five year plan (hereinafter referred to as the plan) to promote the merger and reorganization of pesticide production enterprises and improve the industrial concentration. The plan specifies that by 2025, the pesticide industry system will be more perfect, the industrial structure will be more reasonable, the supporting role for agricultural production will be continuously strengthened, and the level of green development and high-quality development will be continuously improved. Promote the merger and reorganization, transformation and upgrading of pesticide production enterprises, become bigger and stronger, and cultivate a number of competitive large and medium-sized production enterprises. By 2025, efforts will be made to cultivate 10 enterprises with an output value of more than 5 billion yuan, 50 enterprises with an output value of more than 1 billion yuan and 100 enterprises with an output value of more than 500 million yuan, and the output value of pesticide production enterprises in the park will be increased by 10 percentage points. Hong Tao, a professor at Beijing University of technology and industry, told the Securities Daily that as China enters a new era, green development has become a new concept and trend. How to develop China's pesticide industry needs corresponding industrial planning. In view of the current small, scattered and chaotic structure of the pesticide industry, through merger and reorganization, China's pesticide industry system will be more perfect, the industrial structure will be more reasonable, the supporting role for agricultural production will be continuously strengthened, and the level of green development and high-quality development will be continuously improved. According to the data disclosed in the plan, there were 1705 pesticide production enterprises in China in 2020, including 693 Enterprises above designated size. China has a large number of pesticide enterprises, small scale and low industrial concentration. More than half of the enterprises have not entered the chemical park, and the number of enterprises below the scale accounts for 60%. Some enterprises are in environmentally sensitive areas. The plan proposes that by 2025, the number of pesticide production enterprises will not exceed 1600, and the pesticide business income of Enterprises above Designated Size will exceed 250 billion yuan. With regard to improving industrial concentration, the plan said that according to the conditions of production factors such as resource endowment, transportation and logistics, scientific and technological development, we should adhere to market orientation, innovation drive and policy support, strive to build a number of pesticide industry clusters and improve the level of production intensification. Relying on the advantages of advanced technology and talents in the East and around the Bohai Sea, cultivate a number of innovative and export-oriented enterprises with high technology and high added value. In view of the ecological requirements and industrial status in the central and western regions, we will focus on cultivating a number of advantageous biological pesticide enterprises and green pesticide preparation processing enterprises. Encourage the merger and reorganization of enterprises, the whole chain production layout, promote the development of pesticide enterprise groups, brands and internationalization, and gradually change the pattern of large, small and scattered pesticide enterprises. The plan points out that in accordance with the principles of ecological priority, green and low-carbon, enterprises are encouraged to strengthen technological innovation and process transformation, eliminate backward production technologies and process equipment, and promote the clean, low-carbon and circular development of pesticide production. Vigorously promote the complete set of technologies of microchannel reaction, high-efficiency catalysis and reactive distillation, optimize process design and production process, encourage equipment renewal, promote the automation, continuity and intelligence of production process, reduce pollutants and greenhouse gas emissions and reduce energy consumption. Establish and improve the pesticide green standard system, improve the production management system, improve the quality of pesticide products, strengthen pollution control, promote the rectification of existing environmental problems, and promote the green and high-quality development of pesticides. "The pesticide industry welcomes policy support, which is expected to reshape the industrial pattern and optimize the industrial layout." Guo Yiming, director of Jufeng investment consulting, told the Securities Daily that the total amount of pesticides in China ranks among the top in the world, but the industry concentration is low. Promoting enterprise merger and reorganization, transformation and upgrading and becoming bigger and stronger is not only conducive to the improvement of industrial concentration, but also conducive to the further improvement of industrial dragon competitive advantage. With the accumulated advantages, the profits of leading enterprises may also be boosted, opening up new growth space. "The plan will play the role of planning guidance, policy guidance and development standardization for the development of pesticide industry, guide the pesticide industry to gather in relevant industrial parks, promote industrial intensive and green development and make relevant leading enterprises bigger and stronger." Bai Wenxi, chief economist of IPG China, told the reporter of Securities Daily that promoting the merger and reorganization, transformation and upgrading, and becoming bigger and stronger of pesticide production enterprises is the only way to enhance industrial competitiveness and intensive development and upgrading. Relevant pesticide enterprises can use the policy east wind to achieve their own development and scale up and enhance their competitiveness. (Xinhua News Agency)