Japanese agrochemical market declines

Adverse weather conditions and strict controls on pesticide residues contributed to a decline in the Japanese agrochemical market in 2006/07. Pesticide sales in the year to September 30th 2007 amounted to ¥319,359 million ($2,684 million), down by 1.6% on the previous year, reveal figures from the Japan Crop Protection Association (JCPA). Volume sales fell by 7.9% to 212,284 tonnes.

 

High temperatures, low rainfall and frequent typhoons reduced crop production during the year. There were also low levels of disease and pests, the JCPA notes. Farmers cut back on pesticide use amid concerns over compliance with strict rules on maximum residue limits and the new "positive list" of permitted pesticides. In addition, companies took action to reduce stock in distribution channels.

 

There was a widespread reduction in volume sales across all crops. However, value sales increased for most crops, except rice.

 

Japanese agrochemical sales by crop 2006/07(1)

                    Volume                  Value

Crop           (tonnes)  % chg(2) (¥ million)  % chg(2)

Rice            85,894   - 9.1     112,815        - 4.1

 Insecticides   20,641   -11.1      13,771        - 9.1

 Fungicides     12,272   -14.6      14,509        - 9.2

 Insecticide/   20,453   -13.0      29,375        - 6.2

  fungicides

 Herbicides     32,528   - 2.7      55,160        - 0.2

Fruit           21,708   - 2.8      52,030        + 0.7

 Insecticides   10,627   - 3.6      25,104        + 1.2

 Fungicides      7,085   - 0.1      18,970        - 0.4

 Insecticide/       36   -12.2          57        - 6.6

  fungicides

 Herbicides      3,960   - 5.0       7,899        + 2.2

Vegetables/     82,609   - 6.8     114,214        + 2.4

 field crops

 Insecticides   44,244   -11.4      55,921        - 0.7

 Fungicides     26,739   + 0.5      40,784        +12.1

 Insecticide/      856   -15.7         636        - 8.9

  fungicides

 Herbicides     10,770   - 2.9      16,873        - 6.7

Other crops     15,830   -13.6      34,001        + 8.9

 Insecticides    2,541   -39.4       5,375        -14.4

 Fungicides      1,194   - 0.3       7,276        + 8.7

 Insecticide/    1,603   -15.9         818        -28.5

  fungicides

 Herbicides     10,492   - 4.9      16,833        - 1.6

Unclassified(3)  6,243   - 7.0       9,998        -20.8

Total          212,284   - 7.9     319,359        - 1.6

(1) year ended September 30th 2007;

(2) versus year ended September 30th 2006;

(3) includes PGRs, rodenticides and surfactants.

Source: JCPA.

 

In terms of product categories, volume sales again decreased across all groups. However, value sales for fungicides improved on the previous year.

 

Japanese agrochemical sales by category 2006/07(1)

                    Volume              Value

Category       (tonnes)  % chg(2) (¥ million)   % chg(2)

Insecticides    78,053   -11.7     100,171        - 2.3

Fungicides      47,290   - 4.0      81,539        + 4.4

Insecticide/    22,948   -13.3      30,886        - 7.0

 fungicides

Herbicides      57,750   - 3.3      96,765        - 1.4

PGRs             1,957   -11.5       7,165        -15.4

Rodenticides        28   - 6.7          27        - 6.9

Surfactants      4,211   - 5.5       1,771        -32.4

Others              47   > 100       1,035        -30.9

Total          212,284   - 7.9     319,359        - 1.6

(1) year ended September 30th 2007; (2) versus year ended