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Environmental Protection Deadline Pesticide Industry Will Face A Major Reshuffle! Ebb Tide Choose The Leading Opportunity!
Jan 15, 2018

Since the fourth quarter of last year, with the tightening of environmental protection and the further reform of the agricultural supply side, pesticide enterprises and relevant sectors have also become the chasing hot spots in the capital market. Reporter learned from a pesticide industry association at a high office, the pesticide industry limits of emissions permits issued in the last two months, after which law enforcement inspections will be carried out. In the future, enterprises without a permit will be required to stop production and the pesticide industry pattern has entered a countdown before a major change.

Permit system to change the pesticide pesticide industry structure

In accordance with the implementation plan for the control of pollutant discharge permit system issued by the General Office of the State Council in November 2016, the full coverage of fixed sources of pollution will be achieved step by step in the industry, taking the lead in issuing permits for enterprises in the thermal power and paper-making industries to issue emission permits in 2017, completing 15 In key industries and overcapacity industries, enterprises should issue permits for sewage discharge and basically accomplish this task by 2020. Pesticide industry is one of the 15 key industries.

"At present, 958 of the more than 2,200 pesticide enterprises in the country have applied for sewage permits, with the largest number in Jiangsu and the second in Shandong. Among these, over 450 have obtained permits. Due to time constraints and the review process, Enterprises applying for but not receiving a permit may be delayed for a maximum of one or two months, which will not be possible later on. Enterprises that have not yet obtained access documents within the commitment period will also be granted a permanent license. March, eligible companies will get a permit, no declaration of the company will certainly be shut down. "Association said the top.

The senior also disclosed that in the first half of this year, the Ministry of Environmental Protection will carry out a "look back" pollution permit law enforcement inspection, is currently preparing a law enforcement guide. In the future, enterprises without certification will be asked to stop production, and non-compliant enterprises will lose their competitiveness. All this means that the pesticide industry will face major changes in its structure.

"At present, the implementation of this system will be more stringent, will become the basis for law enforcement by the environmental protection department." One of the makers of the system, an expert from Nanjing's Central Research Institute, told reporters.

Integrated pesticide companies benefit

In the opinion of the above associations, last year's "2 + 26" urban environmental inspection was only an interim regulatory measure and the sewage allowance system was a regulatory system with a long-term impact. If we can strictly enforce the sewage permit system and environmental requirements, the formal business is a good thing. "This is indeed the case from 2017, as long as the normal production of enterprises can make money .From the foreign situation, this system has a long-term positive effect on the development of the entire industry.Enterprises can specify the requirements of the government, the government in the environmental protection Law enforcement will also be more fair. "

He said the environmental protection policy will not be relaxed this year, but the impact on the industry will not be as great as in 2017. It is estimated that the pesticide enterprises that have put a large amount of environmental protection facilities into the pre-2018 period will be more favorable.

Researchers said the overall price of pesticides rose more than 20% to 30% last year, partly doubling the expected performance of related companies since the fourth quarter of last year will exceed market expectations. In addition, from the perspective of both supply and demand, the pesticide supply side will continue to be restricted due to stringent environmental regulations. The demand side is relatively rigid and gradually recovered. As a result, the current profitability is in good condition and is expected to continue to improve. It is expected that there will be opportunities for valuation enhancement in the whole industry .

The National Agricultural Technology Center had previously organized relevant experts to discuss the trend of major pests and diseases in crops in 2018. Based on such factors as the base number of pests and diseases, crop layout, planting system and climate trends, it is estimated that the overall occurrence of major pests and diseases of crops in China will be heavier than perennial in 2018, Cumulative area of about 50 million mu times.

Fortune Securities analysts said the domestic agricultural environment is gradually improving, corn and other bulk prices are picking up, overseas listed companies report is also good. Therefore, the overall pesticide industry this year will maintain a relatively good degree of prosperity. The direction of investment is still in the integration advantages, with core competitiveness, long-term representative of the future of China's pesticide industry, the company.