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The World Market for Crop Protection

Products in Rice
by
Susan Watkins




DS233
! 17 March 2003 by PJB Publications Ltd

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PJB Publications Ltd, 2003
Exective Summary The World Market for Crop Protection Products in Rice
EXECUTIVE SUMMARY
Rice, along with wheat and maize, is one of the three leading food crops, grown on more than
10% of the world's arable land. The area harvested was 151.5 million ha in 2001. It is grown
mainly in the humid and sub-humid tropics of Asia, and is particularly important in south,
south-east and east Asia. India grows the largest area of rice, at 44.5 million ha in 2001.
The top four countries (India, China, Indonesia and Bangladesh) together accounted for
63.2% of the total rice area harvested in 2001. China is the world's largest producer of rice, at
more than 181.5 million tonnes in 2001. While India grows a much larger area of rice, yields
are less than half those in China.
In recent years, production has increased enormously, due to the introduction of modern
varieties of rice. The first of the modern, semi-dwarf varieties of rice, IR8, was released in
1966. However, further increases are necessary to cope with the rising population,
particularly in Asia, where rice is a staple crop.
Sales of rice agrochemicals have fallen from $3,097 million in 1996, to $2,404 million in
2001. Although sales rallied in 1999 and 2000, the overall trend has been downward. Sales of
herbicides, fungicides and insecticides have all fallen in this period.
Table ES:1: World rice agrochemical usage 1996-2001 ($ million)
Year Total Herbicides Insecticides Fungicides Others
1996 3,097 1,187 1,073 768 69
1997 2,855 1,082 998 702 73
1998 2,599 1,006 896 630 67
1999 2,737 1,057 934 680 66
2000 2,798 1,051 986 689 72
2001 2,404 946 810 584 64
Source: AMIS Global.
Herbicides are the most important category of agrochemicals used on rice, with 39.4% of
sales in 2001, followed by insecticides at 33.7%. Fungicides made up less than a quarter of
sales. The percentage share has changed little since 1996.
The rice agrochemical market is dominated by Japan, which took 45% of the market in 2001.
Although the rice area there is comparatively small, agrochemical usage per ha is the highest
in the world. However, agrochemical sales are likely to be flat in the future, as the market is
mature and the government has a policy of reducing the area of rice.
Next to Japan, China and South Korea are major rice agrochemical markets, with 15.5% and
10.1% of the total market in 2001, respectively. These two markets have also shown flat or
declining sales over the last five years. The US accounted for 6.2% of global rice
agrochemical sales in 2001, due to heavy demand for herbicides.
Japan dominates the herbicide sector. However, its market share has declined from 50.1% in
1996 to 45.8% in 2001. The second-largest market in 2001 was the US, with only a 12.7%
share.
PJB Publications Ltd, 2003
Exective Summary The World Market for Crop Protection Products in Rice
For insecticides, Japan is again the main country market, accounting for 36.2% of the global
rice market in 2001. China accounted for a further 26.0%. Usage across all countries is
generally falling or static in dollar terms. The fall is particularly marked in Indonesia and
Thailand. However, Vietnam has seen growth in recent years. Carbofuran is the most widely
used insecticide.
For fungicides, Japan is by far the largest market, taking up 53.8% of global market in 2001,
with sales of $314 million. However, this was well below sales in 1996, which reached $435
million. India saw a large decline in 2001, with usage halving in value terms from $33
million in 2000 to $14 million in 2001, and well below the $43 million of 1997. However,
sales in Vietnam and Brazil have increased slightly.
Rice prices have been dipping sharply on world markets. In 2001, international rice prices
reached their lowest for 15 years, as a result of bumper crops in most exporting countries.
They remained relatively flat from April to mid November 2001, the longest period that
prices remained at such a low level since the early 1970s. To stabilise world rice prices,
Thailand, India, Vietnam, China, and Pakistan formed the Council on Rice Trade
Cooperation (CRTC) in October 2002. The group wants to raise prices to 1997 levels, some
30% higher than 2002 prices. Rice exports from these five countries accounted for about 70%
of the world market in 2001.
Global rice production still depends on many older agrochemical products and formulations.
However, the situation varies between countries. In developed countries like the US and
Japan, the agrochemical industry is heavily regulated, and many older products have been
phased out. In other countries, this change is underway, although it may be some time before
the effects are fully felt. However, eventually, the phasing out of older products will lead to
the introduction of newer ones.
GM rice will affect agrochemical sales. It has yet to be grown commercially. Transgenic rice
first came to general public attention with the development of "golden rice", a plant modified
to contain beta-carotene, a precursor for vitamin A. Aventis (now part of Bayer CropScience)
was developing LibertyLink rice tolerant to its broad-spectrum herbicide, glufosinate. The
US launch was expected in 2001, but this has been delayed due to a lack of progress with
international regulatory approvals and consumer acceptance. Instead, herbicide-tolerant rice
developed in China may be the first herbicide-tolerant rice to be launched commercially.
China is likely to be the first country to introduce commercially GM insect-resistant rice. It is
developing rice resistant to stemborers using Bt and cowpea trypsin inhibitor (CpTI) genes
and planthoppers. These have passed two years of environmental-release tests and could
soon be grown commercially. Numerous researchers are working on disease-resistant rice.
The International Rice Research Institute began field testing its transgenic IR72 rice resistant
to bacteria blight in 2002.
PJB Publications Ltd, 2003
Contents The World Market for Crop Protection Products in Rice
CONTENTS
CONTENTS 1
LIST OF TABLES 5
LIST OF FIGURES 7
ABBREVIATIONS 9
CHAPTER 1 INTRODUCTION TO RICE 11
1.1 Classification 11
1.2 Importance of rice 11
1.3 Increase in area, yield and production 11
1.4 Where rice is grown 13
1.5 Plant breeding 15
1.5.1 Modern rice varieties 15
1.5.2 Rice genome 16
1.5.3 How biotechnology is used for transgenic rice 17
1.6 Growing conditions 18
1.6.1 Direct-seeding vs transplanting 18
1.6.2 Irrigated rice ecosystems 18
1.6.3 Rainfed lowland rice ecosystems 20
1.6.4 Upland rice ecosystems 20
1.6.5 Flood-prone rice ecosystems 21
1.7 Damage caused by pests, weeds and diseases 21
1.7.1 Weeds 22
1.7.2 Pests 23
1.7.3 Diseases 23
CHAPTER 2 CROP PROTECTION 25
2.1 Overall rice agrochemical market 25
2.2 Herbicides 26
2.2.1 Herbicide market by country 26
2.2.2 Rice herbicide ais 28
2.3 Insecticides 34
2.3.1 Insecticide market by country 34
2.3.2 Rice insecticide ais 35
2.4 Fungicides 40
2.4.1 Fungicide market by country 40
2.4.2 Rice fungicide ais 41
2.5 Problems with rice agrochemicals 44
2.6 IPM 46
CHAPTER 3 COUNTRY MARKETS 49
3.1 Introduction 49
3.1.1 The countries 49
3.1.2 Spend per ha 53
3.2 Brazil 53
3.2.1 Rice crop 53
3.2.2 Rice agrochemical usage 55
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Contents The World Market for Crop Protection Products in Rice
3.2.3 Pesticide issues 57
3.3 China 58
3.3.1 Rice crop 58
3.3.2 Rice agrochemical usage 60
3.3.3 Pesticide issues 62
3.4 Colombia 64
3.4.1 Rice crop 64
3.4.2 Rice agrochemical usage 66
3.4.3 Pesticide issues 67
3.5 India 68
3.5.1 Rice crop 68
3.5.2 Rice agrochemical market 70
3.5.3 Pesticide issues 71
3.6 Indonesia 73
3.6.1 Rice crop 73
3.6.2 Rice agrochemical sales 74
3.6.3 Pesticide issues 76
3.7 Japan 77
3.7.1 Rice crop 77
3.7.2 Rice agrochemical sales 78
3.7.3 Pesticide issues 82
3.8 South Korea 85
3.8.1 Rice crop 85
3.8.2 Rice agrochemical sales 87
3.8.3 Pesticide issues 88
3.9 Thailand 90
3.9.1 Rice crop 90
3.9.2 Rice agrochemical usage 91
3.9.3 Pesticide issues 93
3.10 US 95
3.10.1 Rice crop 95
3.10.2 Rice agrochemical sales 96
3.10.3 Pesticide issues 98
3.11 Vietnam 99
3.11.1 Rice crop 99
3.11.2 Rice agrochemical sales 101
3.11.3 Pesticide issues 102
CHAPTER 4 THE FUTURE OF THE RICE AGROCHEMICAL MARKET 105
4.1 Future demand for rice 105
4.2 Price of rice on world markets 106
4.3 Legislation phasing out old ais 108
4.4 New ais in development 109
4.4.1 New herbicides 110
4.4.2 New insecticides 112
4.4.3 New fungicides 113
4.4.4 New biopesticides 114
4.5 Future for transgenic rice 115
4.5.1 Introduction and take-up of transgenic crops 115
4.5.2 Transgenic rice 115
4.5.3 Herbicide-tolerant rice 118
4.5.4 Insect-resistant rice 120
4.5.5 Disease-resistant rice 121
4.5.6 Future of GM rice 122
CHAPTER 5 COMPANY PROFILES 125
5.1 Arysta LifeScience 125
5.1.1 Background 125
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Contents The World Market for Crop Protection Products in Rice
5.1.2 Rice ais 125
5.1.3 Rice ais in development 126
5.2 BASF 126
5.2.1 Background 126
5.2.2 Rice ais 126
5.2.3 Rice ais in development 128
5.2.4 GM rice 128
5.2.5 Herbicide-tolerant rice 128
5.3 Bayer CropScience 129
5.3.1 Background 129
5.3.2 Rice ais 129
5.3.3 Rice ais in development 132
5.3.4 GM rice 133
5.4 Dow AgroSciences 133
5.4.1 Background 133
5.4.2 Rice ais 133
5.4.3 Rice ais in development 135
5.4.4 GM rice 135
5.5 DuPont 135
5.5.1 Background 135
5.5.2 Rice ais 135
5.5.3 Rice ais in development 136
5.5.4 GM rice 136
5.6 FMC 137
5.6.1 Background 137
5.6.2 Rice ais 137
5.6.3 Rice ais in development 138
5.7 MAI 139
5.7.1 Background 139
5.7.2 Rice ais 139
5.7.3 GM rice 139
5.8 Monsanto 139
5.8.1 Background 139
5.8.2 Rice ais 140
5.8.3 GM rice 141
5.9 Sumitomo Chemical 141
5.9.1 Background 141
5.9.2 Rice ais 141
5.9.3 Rice ais in development 142
5.9.4 GM rice 142
5.10 Syngenta 142
5.10.1 Background 142
5.10.2 Rice ais 143
5.10.3 Rice ais in development 144
5.10.4 GM rice 144
REFERENCES 145

PJB Publications Ltd, 2003 3
List of Tables The World Market for Crop Protection Products in Rice
LIST OF TABLES
Table 1.1 Area harvested and production of wheat, rice and maize 2001 11
Table 1.2 Top 20 countries ranked by area harvested (2001) 13
Table 1.3 Top 20 countries ranked by yield (2001) 14
Table 1.4 Top 20 countries ranked by production (2001) 15
Table 1.5 Percent of rice area that is irrigated 19
Table 1.6 Type of yield by country 19
Table 1.7 Causes of yield loss in rice in tropical Asia 21

Table 2.1 World rice agrochemical sales 1996-2001 ($ million) 26
Table 2.2 Herbicide sales by country 1996-2001 ($ million) 28
Table 2.3 Top herbicides used on rice by value (2001) 29
Table 2.4 Insecticide sales by country 1996-2001 ($ million) 35
Table 2.5 Top insecticides used on rice by value 2001 35
Table 2.6 Fungicide sales by country 1996-2001 ($ million) 41
Table 2.7 Top fungicides used on rice by value 2001 42

Table 3.1 Rice agrochemical sales by country 2001 ($ million) 50
Table 3.2 Sales value of the 10 leading rice agrochemical markets 1996-2006 ($ million) 51
Table 3.3 Spending on rice agrochemicals per ha by country 2001 ($/ha) 53
Table 3.4 Brazil harvested crop areas 1997-2001 (000 ha) 54
Table 3.5 Brazil rice agrochemical sales ($ million) 56
Table 3.6 Brazil rice agrochemical sales (Real million) 56
Table 3.7 Brazil top rice agrochemicals by value for harvest year 2001 57
Table 3.8 China harvested crop areas 1997-2001 (000 ha) 59
Table 3.9 China rice agrochemical sales ($ million) 60
Table 3.10 China rice agrochemical sales (Renminbi Yuan million) 61
Table 3.11 China top rice agrochemicals by value for harvest year 2001 61
Table 3.12 Colombia harvested crop areas 1997-2001 (000 ha) 65
Table 3.13 Colombia rice agrochemical sales (S million) 66
Table 3.14 Colombia rice agrochemical sales (Peso billion) 66
Table 3.15 Colombia top rice agrochemicals by value for harvest year 2001 67
Table 3.16 India harvested crop areas 1997-2001 (000 ha) 68
Table 3.17 India rice agrochemical sales ($ million) 70
Table 3.18 India rice agrochemical sales (Rupee million) 70
Table 3.19 India top rice agrochemicals by value for harvest year 2001 71
Table 3.20 Indonesia harvested crop areas 1997-2001 (000 ha) 73
Table 3.21 Indonesia rice agrochemical sales ($ million) 74
Table 3.22 Indonesia rice agrochemical sales (Rupiah billion) 75
Table 3.23 Indonesia top rice agrochemicals by value for harvest year 2001 75
Table 3.24 Indonesia 28 ais banned from use 76
Table 3.25 Japan harvested crop areas 1997-2001 (000 ha) 77
Table 3.26 Japan rice agrochemical sales ($ million) 79
Table 3.27 Japan rice agrochemical sales (Yen million) 79
Table 3.28 Japan top rice agrochemicals by value for harvest year 2001 79
Table 3.29 Japan herbicide application methods (000 ha) 80
Table 3.30 Japan treated crop areas for insect pests 2001 (000 ha) 81
Table 3.31 Japan treated crop areas for rice diseases 2001 (000 ha) 82
Table 3.32 South Korea harvested crop areas 1997-2001 (000 ha) 85
Table 3.33 South Korea rice agrochemical sales ($ million) 87
Table 3.34 South Korea rice agrochemical sales (Won billion) 87
Table 3.35 South Korea top rice agrochemicals by value for harvest year 2001 88
Table 3.36 Thailand harvested crop areas 1997-2001 (000 ha) 90
Table 3.37 Thailand rice agrochemical sales ($ million) 92
Table 3.38 Thailand rice agrochemical sales (Baht million) 92
Table 3.39 Thailand top rice agrochemicals by value for harvest year 2001 92
Table 3.40 Thailand banned pesticides 93
Table 3.41 US harvested crop areas 1997-2001 (000 ha) 95
Table 3.42 US rice agrochemical sales ($ million) 96
PJB Publications Ltd, 2003 5
List of Tables The World Market for Crop Protection Products in Rice
Table 3.43 US top rice agrochemicals by value for harvest year 2001 97
Table 3.44 Vietnam harvested crop areas 1997-2001 (000 ha) 99
Table 3.45 Vietnam rice agrochemical sales ($ million) 101
Table 3.46 Vietnam rice agrochemical sales (Dong billion) 101
Table 3.47 Vietnam banned pesticides 102
Table 3.48 Vietnam top rice agrochemicals by value for harvest year 2001 102

Table 4.1 Per capita rice consumption (milled equivalent) 2001 (kg/person/year) 105
Table 4.2 Exports of main rice-exporting countries 2001-2003 (million tonnes) 107
Table 4.3 Rice prices on world markets 1993-2001 ($/tonne) 107
Table 4.4 New ais being developed for use on rice 110
Table 4.5 US Crop area planted with GM crops 2002 (%) 115
Table 4.6 Some ARBN collaborators 118
Table 4.7 Sources of insect resistance in GM crops 121
Table 4.8 Status of transgenic rice in Japan (July 2002) 124

Table 5.1 Arysta's main rice agrochemicals 126
Table 5.2 BASF's main rice agrochemicals 127
Table 5.3 Bayer CropScience's main rice agrochemicals 129
Table 5.4 Dow AgroSciences' main rice agrochemicals 134
Table 5.5 DuPont's main rice agrochemicals 136
Table 5.6 FMC's main rice agrochemicals 137
Table 5.7 MAI's main rice agrochemicals 139
Table 5.8 Monsanto's main rice agrochemicals 140
Table 5.9 Sumitomo Chemical's main rice agrochemicals 141
Table 5.10 Syngenta's main rice agrochemicals 143


PJB Publications Ltd, 2003 6
List of Figures The World Market for Crop Protection Products in Rice
LIST OF FIGURES
Figure 1.1 Harvested rice area 1961-2001 (million ha) 12
Figure 1.2 Rice yield 1961-2001 (tonnes/ha) 12
Figure 1.3 Rice production 1961-2001 (million tonnes) 13

Figure 2.1 World agrochemical market by crop by value (2001) 25
Figure 2.2 World rice agrochemical usage 1996-2001 ($ million) 25
Figure 2.3 World rice agrochemical usage by category (2001) 26
Figure 2.4 Rice herbicide usage by country 1996-2001 ($ million) 27
Figure 2.5 Rice insecticide sales by country 1996-2001 ($ million) 34
Figure 2.6 Rice fungicide sales by country 1996-2001 ($ million) 41

Figure 3.1 Rice agrochemical sales by country 2001 49
Figure 3.2 Sales value of the 10 leading rice agrochemical markets 1996-2006 ($ million) 52
Figure 3.3 Brazil rice area harvested and production 1961-2001 54
Figure 3.4 Brazil rice yield 1961-2001 (tonnes/ha) 55
Figure 3.5 China rice area harvested and production 1961-2001 59
Figure 3.6 China rice yield 1961-2001 (tonnes/ha) 60
Figure 3.7 Colombia rice area harvested and production 1961-2001 65
Figure 3.8 Colombia rice yield 1961-2001 (tonnes/ha) 65
Figure 3.9 India rice area harvested and production 1961-2001 69
Figure 3.10 India rice yield 1961-2001 (tonnes/ha) 69
Figure 3.11 Indonesia rice area harvested and production 1961-2001 73
Figure 3.12 Indonesia rice yield 1961-2001 (tonnes/ha) 74
Figure 3.13 Japan rice area harvested and production 1961-2001 78
Figure 3.14 Japan rice yield 1961-2001 (tonnes/ha) 78
Figure 3.15 South Korea rice area harvested and production 1961-2001 86
Figure 3.16 South Korea rice yield 1961-2001 (tonnes/ha) 86
Figure 3.17 Thailand rice area harvested and production 1961-2001 90
Figure 3.18 Thailand rice yield 1961-2001 (tonnes/ha) 91
Figure 3.19 US rice area harvested and production 1961-2001 95
Figure 3.20 US rice yield 1961-2001 (tonnes/ha) 96
Figure 3.21 Vietnam rice area harvested and production 1961-2001 100
Figure 3.22 Vietnam rice yield 1961-2001 (tonnes/ha) 100

Figure 4.1 Rice prices on world markets 1993-2001 ($/tonne) 107

PJB Publications Ltd, 2003 7