Impact of the COVID-19 pandemic on pesticide industry
In early 2020 when the first wave of COVID-19 stroke Hubei Province, nationwide lockdowns and traffic controls had influenced negatively and severely the production and operation in China's pesticide industry.
In Q2 2020, China took lead in controlling the infections and advanced work resumption. However, on the international level, global trade got a hit—pesticide production of the foreign peers was disturbed by the spread of the COVID-19 pandemic. The overseas demand for China's pesticides was boosted, driving up the domestic exports.
In 2021, the domestic businesses continued to recover from the early stage of the pandemic impact, with the output and exports of pesticides growing above the pre-pandemic levels, albeit at a moderate pace. However, obstacles like supply chain disruptions, soaring prices for large commodities and costs of manufacturing, shipping, labour, etc. have placed heavy burdens on Chinese pesticide producers.
Entering 2022, the Delta and Omicron variants occurred across mainland China have hampered domestic production, especially in medium- and high-risk areas, and challenged the nationwide logistics, even though there were varied political and financial aids launched by the central and local governments.
In this report, CCM will do analysis of the impact of the COVID-19 pandemic on pesticide industry in China from the following aspects:
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