Pesticide development requires environmental protection costs

China has become the world's largest producer of pesticides, with its pesticide sales growing at an average annual rate of 19% since 2000. Despite this strong growth in production and sales, experts at the recent China International Forum on Pesticide Development highlighted that challenges such as high environmental costs, low technological content, and heavy emission reduction tasks still hinder the industry's sustainable development. These issues demand urgent attention from relevant stakeholders. Li Yongwu, president of the China Petroleum and Chemical Industry Association, emphasized that government policies like the "three rural" initiatives and new rural construction have boosted farmers' incomes, leading to increased investment in agricultural inputs, including pesticides. With population growth and shrinking arable land, grain production increasingly relies on higher agricultural investments. In 2007, 30% of the 6% increase in summer grain output was attributed to chemical fertilizers and pesticides. However, China’s per-unit-area pesticide usage remains significantly lower than in developed countries, indicating substantial room for future growth. In 2007, China produced 1.731 million tons of chemical pesticides, a 24.3% increase from the previous year. The industry’s total output value reached 95 billion yuan, up 23.6%, while sales revenue hit 91.9 billion yuan, rising by 25.1%. As the world’s leading pesticide producer, China has expanded its exports to over 160 countries. In 2007, it exported 477,000 tons and imported 41,000 tons, resulting in a net export of 436,000 tons—an increase of 22.9% compared to the previous year. Despite this success, Chinese pesticide exports are often characterized by low technology, low prices, and high “three lows” (low technology, low price, low quality) and high pollution costs. The average export price is less than $3,000 per ton, only half the price of imports, and far below the total cost, including environmental treatment. For example, glyphosate is sold at around 29,000–32,000 yuan per ton, but the environmental cost can reach up to 4 million yuan, leading to serious distortions in pricing. Currently, about 80% of China’s pesticide exports are raw materials, while imports are mainly finished preparations. Experts warn that many of these exported products are those phased out by developed countries due to environmental concerns or due to their inability to compete with Chinese pricing. This has led to criticism that China is exporting high-polluting products while using cleaner ones domestically. Although the government has taken steps to shut down small, polluting plants and promote green technologies, many companies still face challenges such as scattered layouts, limited funding, outdated facilities, and weak R&D capabilities. Additionally, most SMEs lack effective treatment systems for wastewater, leading to non-compliance with emission standards. Many also ignore ecological risks and environmental impacts, further complicating the sector’s sustainability. Experts stress that regional differences in regulation and enforcement create significant hurdles in achieving energy conservation and emission reduction goals. These issues require immediate attention from all levels of government to ensure the long-term health of the pesticide industry.

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