Under the “One License, One Product” Policy for Pesticide, Can the Agricultural Supplies Business Still be done?
The website of the Ministry of Agriculture and Rural Affairs recently released a notice on soliciting opinions on the requirements for pesticide labels and instructions (hereinafter referred to as the “Notice”), and the “one certificate, one product” system has officially entered the countdown to implementation.
The policy of requiring each pesticide product to hold an independent registration certificate will not only end the long-standing chaos of “one certificate, multiple products” in the industry, but also trigger the most profound structural change in the history of the agricultural inputs industry.
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🚨’One certificate, one product’ means that each registration certificate number will correspond to a unique product identifier, which will greatly regulate the pesticide market. According to statistics, there are currently about 1920 pesticide production enterprises in China, of which 1068 enterprises hold about 20 registration certificates each, and 161 enterprises only have one registration certificate each. These enterprises have long relied on rental documents for survival.
🏭️However, through the operation of second – and third tier brands, commissioned processing, and other methods, the actual number of pesticide brands circulating in the market is several times the number of registration certificates, resulting in a mixture of good and bad products in the market, making it difficult for consumers to distinguish between good and bad.
The second article of the “Notice” clearly stipulates that “pesticide products with the same registration certificate number shall be labeled with the same trademark, and products entrusted for processing or packaging shall not be labeled with the trademark of the trustee.” The document directly points out the long-standing chaos in the pesticide industry’s market of certificate duplication, loan, and license plate duplication.
Its core is to regulate market behavior, raise the threshold for compliance, promote the development of the industry towards standardization and scale, and provide strong guarantees for the high-quality development of the industry.
♨️With the gradual implementation of the “one product, one certificate” policy, the pesticide industry will inevitably undergo a large-scale “elimination” stage. This policy requires that each pesticide product must correspond to a unique certificate, which will directly lead to the elimination of a large number of homogeneous and low-quality products.
⌛️According to statistics, there are currently about 40000 pesticide registration certificates in China, but some professionals predict that with the implementation of the “one product, one certificate” policy, 80% of the industry’s products will disappear from the market. This prediction is not groundless, but based on the various chaos in the current pesticide market.
Faced with the implementation of the “one product, one certificate” policy, agricultural material distributors are also facing unprecedented challenges.
On the one hand, distributors who rely too much on low-priced small factory products are starting to worry about not having enough stock to sell; On the other hand, some powerful dealers see opportunities for transformation.
🚀In this transformation battle, the differentiation of agricultural material distributors has become increasingly evident. Some dealers choose to cooperate with high-quality manufacturers to enhance product quality and brand influence;
Another group of dealers have chosen to transform into service-oriented dealers, increasing added value through providing technical support, solutions, and other means. Only dealers who keep up with the pace of the times and are brave enough to innovate can stand out in the fierce market competition.
Although the implementation of the “one certificate, one product” policy has brought short-term pains and elimination, it is also a necessary path for the agricultural inputs industry to move towards a more standardized, specialized, and branded new era!
In this major reshuffle, only enterprises and distributors with core competitiveness, emphasis on quality and innovation can win market recognition and consumer trust.
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