China supports research on GM crops to boost glyphosate demand

Developing Genetically Modified Crops (GM crops for short) is a major strategic decision of China. In recent years, China has issued a series of policies to promote the development of the GM crop industry (see the table below). From these, we can see that China supports the research of GM crops. In the future, with the promotion of GM crops in China, the demand for glyphosate may increase.

China is the largest country in glyphosate production. In addition, the demand for glyphosate is strongly related to the planting area of GM crops. At present, the planting area of GM crops is mainly distributed in the United States, Brazil, Argentina, Canada, India and other overseas countries. Therefore, a large number of domestic glyphosate is exported to overseas markets. In 2019, the global demand for glyphosate decreased and China's Glyphosate exports also decreased due to the impact of China-USA trade friction, climate, and increased restrictions on the use of glyphosate. However, under the epidemic of COVID-19, global food security has been highly concerned, which has stimulated the demand for agricultural materials in major grain producing countries such as Brazil and Argentina, and the international demand for glyphosate has shown a restorative growth. In 2021, China's Glyphosate export volume was 310,700 tons, and the export value was 2.5 billion US dollars.

Due to the weakening of environmental protection in the later period, the resumption of production by small and medium-sized enterprises, and the rise of glyphosate prices in 2012-2013, which stimulated the expansion of domestic glyphosate enterprises' production capacity, the supply expanded significantly, resulting in the drafting of glyphosate prices in 2014 beginning to fall, until the lowest price in 2016 was ￥18684 yuan / ton. Subsequently, when low inventory, low operation, stricter environmental protection and the peak season of overseas demand brought about, prices began to rebound. In 2021, food security concerns caused by the epidemic have boosted the strong demand for global bulk agricultural products. Glyphosate demand has grown significantly. In addition, glyphosate production capacity has been controlled against the background of low inventory operation, leading to a sharp rise in glyphosate price, reaching ￥51434 yuan / ton.

Glyphosate as an herbicide is mainly used for weeding non cultivated land in China, and for genetically modified corn, soybean, cotton and other crops resistant to glyphosate in foreign countries. At this stage, the growth rate of GM crop planting area in North America is slowing down, but there is still space for growth of GM crop planting area in developing countries, which will promote the growth of glyphosate demand in the long run.

In addition to being used alone, glyphosate is often mixed with MCPA, 2,4-D, Glufosinate-ammonium, dicamba, etc. so that to solve the resistance or increase the efficacy. Because the physicochemical properties of different herbicide, the stability of its compound formulation is much less than that of glyphosate single formulation. Therefore, the related compound of glyphosate should first solve the problem of formulation stability, and then improve the efficiency so as to maximize the performance of the two compound herbicide.

Some formulations of glyphosate and its compound are as follows. Please contact GMAC if you need relevant additives, formulation development or technical support.