VOL.

12 Issue 2

July-September 2011

Mirror to GLoBAL AGriCULtUrE

WORLD NEWS
EU
Market value continues to decrease in 2010
The value of sales in the European crop protection sector decreased by 1.7% (3.3% in real terms) in 2010, with nominal sales in the EU-15 decreasing by 3.8% (5.3% in real terms). The decrease in the market in France (-10.8%) and the UK (-5.7%) contributed to the overall decrease as did more substantial decrease in smaller markets such as Slovakia (-13.5%) and Belgium (-8.4%). The decrease in sales were partly balanced by growth in other markets, in particular Spain (+4.7%), Greece (+7.3%) and Romania (+24.1%). The decrease in the value of the European market was due to the drop in the sales of herbicides (-2.8%) and fungicides (-2.5%), compared to 2008. Insecticides sales however bucked the trend and increased by 2.9%. Over the last decade, while the sales of the crop protection products have increased slightly in nominal terms, the real value of sales have decreased. Comparing the average sales values in the period 2002-2004, nominal sales in the EU-15 were 6.4% higher in 2010. However, in real terms, this equates to a decrease of 7.3%.

ECPA Total National Agrochemical Market in 000

YEAR 2010 HERBICIDES 3,334,077 FUNGICIDES 2,852,288 INSECTICIDES 1,103,236 OTHER 742,798 TOTAL 8,032,399

EU 15 Total
National Agrochemical Market in 000 YEAR HERBICIDES FUNGICIDES INSECTICIDES 2010 2,462,804 2,295,930 838,611 AUSTRIA 2010 52,919 36,400 14,813 BELGIUM 2010 68,580 60,375 30,199 BULGARIA 2010 27,200 16,100 5,100 CROATIA 2010 26,228 19,813 4,615 CYPRUS 2010 2,603 5,263 8,978 CZECH REPUBLIC 2010 72,890 52,918 13,016 OTHER 606,080 6,645 9,986 1,100 1,626 1,481 6,192 TOTAL 6,203,425 110,777 169,140 49,500 52,282 18,325 145,016

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DENMARK 2010 FINLAND 2010 FRANCE 2010 GERMANY 2010 GREECE 2010 HUNGARY 2010 IRELAND 2010 ITALY 2010 NETHERLANDS 2010 NORWAY 2010 POLAND 2010 PORTUGAL 2010 ROMANIA 2010 SLOVAK REPUBLIC 2010 SLOVENIA 2010 SPAIN 2010 SWEDEN 2010 SWITZERLAND 2010 TURKEY 2010 UKRAINE 2010 UNITED KINGDOM 2010

52,543 32,400 767,600 540,000 45,654 145,387 25,100 256,359 77,955 14,400 227,640 39,289 55,611 36,694 7,020 216,921 29,765 34,600 61,000 160,000 257,749

33,689 18,000 674,100 506,000 44,912 78,143 23,100 318,404 117,977 4,500 146,490 51,488 33,784 21,597 9,550 160,607 20,333 26,200 62,000 80,000 230,545

4,960 3,000 140,900 138,000 53,903 42,890 2,300 187,907 6,470 800 44,990 23,565 17,184 6,842 2,510 194,559 2,935 7,700 80,000 30,000 35,100

1,996 1,600 216,600 71,000 20,753 19,268 3,200 45,241 101,405 1,400 35,690 4,146 12,117 3,594 750 57,220 1,048 4,500 19,000 30,000 65,240

93,188 55,000 1,799,200 1,255,000 165,222 285,688 53,700 807,881 303,807 21,100 454,810 118,488 118,696 68,727 19,830 629,307 54,081 73,000 222,000 300,000 588,634
(Source: Ecpa )

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AUSTRALIA
Use of the insecticide Dimethoate suspended on many food crops
The Australian Pesticides and Veterinary Medicines Authority (APVMA) has today suspended the use of dimethoate on a number of food crops due to potential dietary risks. New restrictions have been put into place that allow dimethoate to be used only on certain horticultural crops. The announcement follows the release of the 2011 Dimethoate Residues and Dietary Risk Assessment Report (August) which found that its use on many crops could exceed the recommended public health standard (the Acute Reference Dose). Some of the estimated exposures for consumers are above the Acute Reference Dose, reducing, but not breaching, the margins of safety that are normally in place to protect consumers, said Dr Raj Bhula, Pesticides Program Manager. These safety margins, built into the APVMAs risk assessment, provide a protective buffer to ensure that consumers will not actually be exposed to high levels of residues in food. If our risk assessment shows that these standards could be exceeded, the APVMA must remove or modify the use of the chemical on the crop so that consumption remains in line with the public health standard. The suspension will last for 12 months while the Authority completes further assessments on the chemical. It prohibits: use of dimethoate on certain horticultural crops use on all food producing plants in the home garden supply and possession of dimethoate products unless they carry the new instructions for use. Possession and use on some crops can continue provided the products carry the new instructions for use. Product registrants are requested to inform AGROLOOK

all parts of the supply chain that new instructions have been issued by the APVMA. All products in the supply chain and the marketplace must contain the new instructions prior to sale. The new use instructions and answers to frequently asked questions about the dimethoate suspension are available on the APVMA website.
(Source: APVMA )

INDIA
Crop protection cos join hands to check illegal pesticide sales
The crop protection industry has joined hands with Crop Life India, an association of technology-driven agriculture companies, to form an Anti-Counterfeiting Task Force in a bid to check the rampant growth bio-products laced with chemical insecticides. The major crop protection companies that have joined hands with Crop Life in the initiative include Rallies India, Bayer CropScience, BASF, Indofil Industries and Excel Crop Care. The growth of Rs 8,000-crore Indian pesticide market is being stymied due to sale of these illegal products. According to industry estimates, the sale of illegal pesticide products may cross Rs 2,000-crore mark in the current financial year. In response to a complaint made by the crop protection industry, the Department of Agriculture in Andhra Pradesh conducted raids in July and initiated action against 309 bogus companies. Mr P.K. Mazumdar, Chief Executive Officer, Crop Life India, said: Of the estimated Rs1,600 crore of illegal pesticides sold in India last financial year, about Rs 500 crore was through the garb of bio-products. These so called bio-products does not need any registration, testing, quality control norms or lab certificates as it is not mandatory, he said Explaining the modus operandi, Mr Mazumdar said counterfeit crop protection products comprise mainly illegally imported pesticides with questionable

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potency and impurities and are laced with chemical insecticides. Importers of illegal products camouflage their shipments especially from China as bio products. The untested so called bio-products laced with pesticides are the shortest route to sell unregistered products in the highly regulated Indian pesticide market, he said. Most of the loop holes in the current Insecticides Act are expected to be plugged in the New Pesticide Management Bill 2010, awaiting approval of the Parliament. The current Indian Insecticides Act 1968 has a list of 875 registered products classified as pesticides. The norms for registration of pesticide are tough and involve an investment of over Rs 1,000 crore in R&D, said Mr Mazumdar. The activities of illegal bio-product makers have shifted to Andhra Pradesh after the recent Karnataka Government cracked down on them, he said. Crop Life India plans to make a presentation by August to the Chairman of Central Board of Excise and Customs on the illegal bio-products laced with harmful chemicals in order to check imports.

restored from 2009, the main producing provinces of pesticides sales showed rapid growth, especially in Jiangsu and Zhejiang, with the increase of 15.76% and 15.49%, respectively. Besides, sales of Shandong increased by 14.40%. Except for these three provinces, sales growth rate of other provinces was just 10.63%, lower than that of the national average.

Analysis of National Agrochemical Technical Market

After a small peak of the original drug procurement in March, the regional agrochemical technical procurement was smoothly. The regional situation is different. Hebei Market: after Spring Festival, Hebei pesticide procurement market is gradually up, the sales of conventional product phoxim, Malathion, omethoate, chlorpyrifos, carbosulfan, cyhalothrin, beta-cypermethrin, biphenthrin, fenvalerate, fipronil, hexaflumuron, thiamethoxam, carbendazim, dimethomorph, etc. rose rapidly. As insecticide or fungicide, all of the products were mainly used for wheat fields.

(Source : Business Line)

Products Price Trends

Shandong Market: Shandong market was chaotic in the last two years, the situation is worse this year. Price wars have intensified. Sales of major products are acetamiprid, abamectin, emamectin benzoate, chlorpyrifos, phoxim, cyhalothrin, betacypermethrin, fenvalerate, methomyl and so on in Shandong market .

CHINA
China Agrochemicals Sales up in 2010
According the survey, China agrochemicals sales represented double digit growth, with the increase of 13.56% in 2010. The proportion of agrochemical sale of Jiangsu, Zhejiang and Shandong provinces increased in 2010. It showed that the sales of three provinces accounts for sales 60.86% in 2009 and 61.87% in 2010 of national sales, which indicating that the concentration of pesticide industry improved preliminarily. From the figure above, advantage of pesticide industry of Jiangsu Province further promoted, Zhejiang and Shandong provinces remain unchanged. In addition, Chinas pesticide industry has been AGROLOOK

Products Price Growth Rate in SHANDONG

Compared with Jiangsu and Zhejiang, Anhui market started earlier. Conventional insecticides have been distributed in the early March. Anhui market changes much compared to the previous two years. From the original old products to new product development, out of conventional low-end products, introduce the high-end products, from the local to the surrounding area has gradually expanded, Sales also rose year by year. Guangxi Market: After the Spring Festival, main products of Guangxi market is abamectin and emamectin benzoate. Sales of these two products declined with the prices fall. Prices were expected

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Higher during May to June. Need to focus! Products Acetamiprid TC Abamectin TC Amamectin benzoate Price growth rate%(Q2/Q1) 0 -7.7 -7.5

whichinsecticide 87, 000 tonnes, fungicide 14, 000 tonnes, herbicide 104, 000 tonnes, up 26.1%, 40.0% and 14.3% over May 2010, respectively. According to the data released by the General Administration of Customs, pesticide import/export and trade favorable balance in May 2011 is shown in Table II. It is shown from the table above that the exported pesticide increased greatly. The imported pesticide amount was 5,000 tonnes, decreased by 3.7%; the imported pesticide value reached $ 47 million, decreased by 5.8%, the imported average price was $ 9,400/t. Among them, imported insecticide, herbicide and fungicide increased by -7.6%, 49.9% and-49.3%, respectively. The exported pesticide amount reached 70,000 tonnes, increased by 43.5%, the exported pesticide value reached $0.207 billion, increased by 45.6%, and the exported average price was $ 2,957/t. The exported amount accounts for 27.1% of the total output. Among them, exported herbicides volume was 42,000 tonnes, increased by 63.1%, accounting for 60.0% of the total export, 40.4% of herbicide production. The exported herbicide value was $ 0.107 billion; the average exported price was $2,548/t, increased by 9.7%. The exported fungicide was 6,000 tonnes, increased by 32.0%, accounting for 8.6% of the total exported volume, 42.9% of fungicide production; the exported fungicide value reached $ 30 million, up 44.0%, the average exported price was $ 5,000/t, increased by 13.8%. The favorable trade balance was $0.16 billion, increased by 73.1%.

China Agrochemicals Output upto 25.2% (Jan-May 2011)

Table II, Pesticide Import/Export and Favorable Trade Balance in May 2011(1,000 tonnes, $100m) Agrochemicals output in May of 2011 increased by 25.2 percent, representing the consecutive quarters of double digit growth. 1.Pesticide Production According to the data released by the National Bureau of Statistics, the production of pesticide products in May 2011 is shown in Table I. Table I, Pesticide Production in May 2011 (a.i.100%, 1,000t) 2.Import and Export In May 2011, accumulated production of technical pesticide products was 258,000 tonnes, increased by 25.2% over the same period over 2010, among

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Source : CCPIA report

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COMPANY NEWS
Syngenta - 2011 Half Year Results
Double digit growth in sales and net income
Sales $7.7 billion, up 14 percent; up 12 percent at constant exchange rates(1) Robust volume growth, improved pricing environment: Q2 prices unchanged Seeds EBITDA margin 25.7 percent (H1 2010 20.0 percent) Net income(2) $1.4 billion, up 14 percent Further improvement in working capital ratios: inventory reduction Reported Financial Highlights
1st Half 2011 $m Sales Crop Protection Seeds Net Income (2) EBITDA Earnings per share (3) 7,702 5,634 2,092 1,427 2,149 $15.60 1st Half 2010 $m 6,740 4,996 1,763 1,254 1,927 $13.95 Actual % + 14 + 13 + 19 + 14 + 12 + 12 CER1 % + 12 + 10 + 17 + 10

percent with prices two percent higher.

Net income
Reported net income increased by 14 percent to $1.43 billion. Earnings per share, stated before restructuring and impairment, increased by 12 percent to $15.60 (2010: $13.95).

* Crop Protection sales include $25 million of intersegment sales.

Business Highlights 1st Half 2011 Crop Protection

Sales $5.6 billion, up 10%* Volume +12%, price -2% EBITDA $1.64 billion (2010: $1.57 billion) EBITDA margin 29.3%* (2010: 31.5%)
* At constant exchange rates.

Strong volume growth was maintained in the second quarter (+9 percent) despite challenging weather conditions in North America and Europe. The pricing trend continued to improve with price stability in the second quarter (Q1: -3 percent). The EBITDA margin was lower primarily due to lower prices in the first quarter. In Europe, Africa and the Middle East registered double digit volume growth in the first half despite the drought which hit several countries in the second quarter. Growth was particularly strong in the CIS where weather conditions improved compared with last year and we offered an expanded range. France also grew strongly with the launch of AXIAL on cereals and the expansion of CALLISTO and CRUISER on increased corn acres. In North America, volume growth offset a decline in herbicide prices notably in the first quarter. Fungicide prices were stable and volume rose strongly with increased usage intensity. Latin America has now seen double digit growth for six consecutive quarters. Growth in the first half was led by insecticides, with further expansion in ACTARA and the roll-out of AMPLIGO (DURIVO family). A reduction in generic competition contributed to higher pricing. Sales

1 Growth at constant exchange rates, see Appendix A. 2 Net income to shareholders of Syngenta AG. 3 Excluding restructuring and impairment; EPS on a fullydiluted basis.

Financial highlights 1st Half 2011 Sales $7.7 billion

Sales at constant exchange rates (CER) increased by 12 percent. Reported sales were up 14 percent. Crop Protection sales* were up 10 percent (CER), with 12 percent volume growth and a two percent reduction in price. Seeds sales registered volume growth of 15 AGROLOOK

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in Asia Pacific reflected our market-leading position and broad portfolio, with further impetus from high rice and cotton prices. Sales were particularly strong in ASEAN and in China, where seed care sales on rice, cotton, corn and cereals are expanding rapidly. Growth in Selective herbicides was concentrated in the emerging markets, notably the CIS and Central Europe. AXIAL was successfully launched in France and Iberia. Sales of atrazine grew strongly in the Americas with lower imports of generic product. Sales of Non-selective herbicides were broadly flat, with volume growth offsetting some further price weakness. Fungicides showed growth in all regions, with a particularly strong performance in the USA where awareness of the crop enhancement effects of AMISTAR is increasing. Growth in Insecticides was broad-based with double digit increases in a number of products. Seed care sales were boosted by the further expansion of AVICTA and CRUISER and by the success of MAXIM in Europe. In Professional products sales increased reflecting an improvement in the consumer segment in Europe and higher turf sales in Asia Pacific. New products: Sales of new products (defined as those launched since 2006) increased by 27 percent* to reach $386 million. The main drivers were AVICTA, up 72 percent*, with expansion on soybean and cotton, and DURIVO, rolled out on a number of crops and now sold in all regions.
* At constant exchange rates.

In Non-selective herbicides, volumes increased across all regions driven in particular by the use of GRAMOXONE in Asia as an alternative to hand weeding. TOUCHDOWN volumes were also higher. Pricing remained below last year with the exception of Brazil, where lower inventory levels are leading to price recovery.

Fungicides: major brands ALTO, AMISTAR, BRAVO, REVUS, RIDOMIL GOLD, SCORE, TILT, UNIX
Fungicides sales were 13 percent higher due to strong volume growth in all regions and slightly higher pricing. North America volumes increased by almost 40 percent reflecting positive market sentiment and growers desire to maximize yields through crop enhancement solutions, as well as an increased level of disease pressure. Volumes in both the CIS and China were up strongly reflecting increased technology adoption. AMISTAR sales were up 21 percent globally with significant growth in North America and in Asia Pacific, where they were driven by growth in rice, fruit and vegetables as well as higher consumption in cereals. The new fungicide SEGURIS continued to grow with a UK launch on wheat.

Insecticides: major brands ACTARA, DURIVO, FORCE, KARATE, PROCLAIM, VERTIMEC

Insecticides sales were up 19 percent with volume growth in all regions driven primarily by DURIVO and ACTARA. Both Europe and Brazil saw significant sales growth linked to increased insect pressure. DURIVO sales were up 85 percent due to its continued roll out; growth in Asia Pacific was mainly driven by launches in vegetables, notably in China. ACTARA sales were largely driven by Latin America where we were able to capture significant share resulting from the replacement of organophosphates, as well as building on the success of ENGEO launched in 2010.

Selective Herbicides: major brands AXIAL, CALLISTO family, DUAL/BICEP MAGNUM, FUSILADEMAX, TOPIK
Selective herbicide volumes were significantly higher, notably in Europe driven by AXIAL on cereals and the corn herbicide CALLISTO. Growth in demand in the CIS was augmented by the successful integration of the Dow AgroSciences portfolio. In North America, strong sales of atrazine reflected increased corn acreage and reduced generic competition. TOPIK sales were adversely affected by high opening channel inventories in Canada. Pricing was positive in all regions with the exception of North America..

Seed Care: major brands AVICTA, CRUISER, DIVIDEND, MAXIM, VIBRANCE

Seed care sales were 13 percent higher reflecting strong growth in Europe and increased adoption rates in Asia Pacific, notably China. CRUISER sales in France more than doubled with expansion on corn and first sales on oilseed rape; further growth was generated

Non-selective Herbicides: major brands GRAMOXONE, TOUCHDOWN

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through its expanded use on oilseeds in Central Europe and potatoes in Latin America. AVICTA sales were up in North America due to extended use on cotton; MAXIM performed strongly in Europe. VIBRANCE seed treatment was launched in Argentina in May.

Professional Products: major brands FAFARD, HERITAGE, ICON

Professional products sales were six percent higher led by higher ornamentals sales in Northern Europe and increased demand in the golf and landscape market in Asia Pacific.
2nd Quarter 2011 $m 2010 $m Growth Actual % CER %

1st Half Crop Protection by region Europe, Africa, Mid. East NAFTA Latin America Asia Pacific Total 2011 $m 2010 $m

Growth Actual % CER %

2,152 1,568 955 959 5,634

1,785 1,544 833 834 4,996

+ 21 + 2 + 15 + 15 + 13

+ 16 + 14 + 9 + 10

1,041 873 480 450 2,844

827 857 419 383 2,486

+ 26 + 2 + 15 + 18 + 14

+ 16 + 1 + 13 + 10 + 9

Europe, Africa and the Middle East: Sales were up 16 percent reflecting the successful launch of AXIAL in France and Iberia. Owing to adverse cereal growing conditions there was a shift from cereal to corn acreage resulting in a strong performance by CALLISTO and DUAL GOLD corn herbicides. Weather conditions also increased the demand for insecticides with strong sales increases seen in ACTARA and KARATE. Continued high commodity prices have encouraged farmers to secure yields through the use of fungicides: AMISTAR showed strong growth in the CIS and South East Europe; REVUS performed strongly in Northern Europe. Increased corn acreage boosted sales of seed care products. In North America strong volume growth was offset by lower prices compared with the first half of 2010; however, prices were unchanged versus end 2010, and the second quarter showed a significant improvement compared with the first quarter. In a context of high crop prices, growers are making significant investment in crop enhancement solutions to maximize yields, leading to significant growth in fungicides. The largest contributor was AMISTAR with volumes up 63 percent AGROLOOK

and prices up five percent. Sales of cereal herbicides and non-selectives in Canada were lower. Latin America: Sales were up 14 percent driven in particular by growth in Insecticides. Sales in ACTARA were boosted by the substitution of organophosphates as well as by extended use in both sugar cane and cotton. Growth was further enhanced by AMPLIGO which was up significantly following last years launch on fruit and vegetables. Continued expansion of GM seed areas increased overall demand for TOUCHDOWN. The further growth in CRUISER enhanced seed care sales. Asia Pacific: Asia Pacific saw a further significant volume increase driven by the continued roll out of the DURIVO family across the region, with an initial launch of AMPLIGO in China and continued ramp up in the Bangladesh and Vietnam rice markets. AMISTAR volumes continued to grow in China and across ASEAN reflecting enhanced positioning and continued high crop prices. Strong volume demand for GRAMOXONE was seen as channel inventories declined in several countries.

10

(Source : Syngenta Press Release)

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