Regent, for use against brown planthoppers in rice, is the leading product in the Chinese insecticide market

Bayer CropScience plans to increase its annual sales in China to €100 million ($133 million) "in the medium term". The company's crop protection sales in the country were €65 million in 2006, up by 46% on 2005. Its growth strategy focuses on the introduction of new active ingredients, formulations and mixtures, as well as expanding agrochemical production.

The latest product introduction was the fungicide, Infinito (fluopicolide + propamocarb), which "got off to a good start" in China in 2006, Bayer says. Fluopicolide, which is for use against late blight (Phytophthora infestans) in potatoes and vegetables, gained its first global registrations in China and the UK at the end of 2005 (Agrow No 485, p 21). "The fact that we selected China as the first market for the Infinito launch last year also illustrates our confidence in the improved protection of intellectual property that China now offers," Bayer CropScience chairman Professor Friedrich Berschauer says.

Other product categories also performed well in China in 2006. Bayer's insecticide business grew "very strongly", the company says. Regent (fipronil), for use against brown planthoppers (Nilaparvata lugens) in rice, is the leading product in the Chinese insecticide market, it says. The acaricide, Envidor (spirodiclofen), for the control of spider mites, also recorded strong growth in its second year on the market. Sales of the cereal herbicide, Puma Super (fenoxaprop-P-ethyl), increased by around 70%.

Despite the improvements in intellectual property protection in China, Professor Berschauer stresses the company's determination to continue defending its patent rights against illegal producers. The company is pleased with the judgement from the High Court in Beijing at the the end of 2006 that confirmed Bayer's rights to fipronil in China, he adds. Earlier in 2006, Bayer won a trademark infringement case concerning Puma Super in China (Agrow No 504, p 2).

In addition to new products, Bayer is to invest €25 million in 2007 and 2008 in its agrochemical manufacturing plant in Hangzhou. The plant produces, formulates and packs fipronil. The investment includes a project to double the production capacity for Regent before the end of 2007. The plant has 380 staff and supplies other countries in Asia and the US. A new distribution warehouse at the Hangzhou site was inaugurated in March. Some Euro 2 million will be invested to expand warehousing capacity on-site to keep up with the planned production expansion.

Fluopicolide, which is for use against late blight in potatoes (pictured) and vegetables, gained its first global registrations in China and the UK at the end of 2005

"The Chinese agrochemical market presents us with some good opportunities for profitable growth," says Professor Berschauer. Growth in the Chinese market is being supported by a "sharp" rise in demand for high-quality food, changing dietary habits and a constantly growing population, he explains. The government is promoting the use of modern agricultural production methods in line with its goal to achieve self-sufficiency in crops such as rice, cereals, vegetables and fruit.

Bayer also intends to expand its seed business in China, with the establishment of two joint ventures with local partners in hybrid rice seed. It has concluded an agreement with Lu Dan Seed Co in Sichuan to set up a joint venture in which Bayer will hold a 49% share. Regulatory approval is expected this summer. Bayer has also signed a letter of intent with Nong Ke Seed Co in Jiangxi for another rice joint venture. In both cases, Bayer will contribute expertise in marketing, logistics, supply chain and quality management, while the Chinese partners will provide experience of local markets, breeding conventional rice varieties and developing high-yielding lines. Some 16 million ha of rice are grown in China.

Bayer is examining options for further expansion in its other core crops of canola, cotton and vegetables in China. The company is open to invest in these sectors in partnership with Chinese companies seeking to develop new varieties and produce seed, says Professor Berschauer.

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