OPEC and non-OPEC major oil-producing countries reached an agreement at the end of November last year to boost oil prices. At that time the market a good voice, but one analyst asserted that the cut agreement will not work. Because some oil-producing countries have resorted to cheating, and American shale oil production is more resilient than ever. To the current point in time, can prove that the analyst’s concerns are justified.

OPEC VS US shale oil

Although the shale oil company’s debt level is a big problem, but the United States shale oil is indeed more flexible than before. Although OPEC members did not completely cheat, but some countries in the slowdown in production. Russia in the negotiations in the end to get a favorable result, although Russia agreed to cut 30 million barrels / day, but the output from last year’s record highs in the level of gradually reduced, so Saudi Arabia had to bear about 50 million barrels / day The burden of the burden.

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Oil prices rose to around $ 50 in a month’s time, and remained at more than $ 50 in January. And then after the oil prices began to fall, first shock down, gradually lower, after all the way quickly diving. Now oil prices have returned to the level before the cut agreement reached, pessimism enveloped the market.

Eugen Weinberg, head of commodities at the German commercial bank line, said the cut-off agreement would not work, but his voice was just a glimpse of the voices, Immediate increase in production agreement after the oil price is expected.

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Weberger said in early December last year that the OPEC production agreement would only increase US oil production, so he maintained its oil price is expected to remain unchanged: oil prices are expected to decline below $ 50 this year, the current trend has confirmed his judgment The In addition, those who quickly raised oil prices are expected to quickly change the previous expectations, because the oil market is very pessimistic, the reality had to make them yield.

Weinberg suggested that OPEC change the strategy and return to the original plan: the maximum production of oil, stifling US shale oil to use oil prices to rebound to produce oil opportunities.

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“OPEC should crash the oil price as soon as possible, stifle the US shale oil business, put it in trouble, and then strive to stabilize oil prices over the long term.” But the most important question is whether OPEC can withstand the huge reversal of the strategy. They had struggled for too long in low oil prices.

Although Weinberg’s proposal will make OPEC kill a thousand, since the loss of eight hundred, but they have not much way to choose. Now placed in front of OPEC have such a few options: 1, continue to cut oil production; 2, to expand the rate of reduction. 3, to give up production, re-start the oil war.

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The first option will not make much change, and OPEC needs to make a variety of efforts. The second option may be worse than the other two. Qatar, the oil long Atiyah said that a more substantial reduction will only for the United States shale oil companies to create a new round of production to create an enabling environment, and will not allow OPEC to benefit. Shale oil hiding in the dark, waiting for OPEC to expand production cuts, when the price increases, they will increase production.

From the point of view of oil prices, to some extent, Weinberg’s proposal may be the most effective. If OPEC completely reversed the established strategy, oil prices may plummet. However, the rate of decline in oil prices will not be as serious as OPEC worried, after all, oil prices have fallen low. But this strategy may not be enough to stifle the US shale oil business.

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July 1, the European Commission issued a notice that the origin of China’s melamine (Melamine) made anti-dumping sunset final ruling, ruled that if the abolition of anti-dumping measures, the dumping of the products involved in the EU industry damage will continue or recur, Decided to continue to maintain the anti-dumping measures against the products involved. The investigation period is April 1, 2015 to March 31, 2016, the damage investigation period for the January 1, 2012 to the end of the investigation period.

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According to the final result: three Chinese enterprises limit the minimum import price of 1153 euros / ton, other Chinese enterprises anti-dumping duty of 415 euros / ton.

February 17, 2010, the European Commission for originating in China’s melamine for anti-dumping investigation. May 13, 2011, the EU anti-dumping on the case of positive final ruling. May 11, 2016, the European Commission on the case initiated anti-dumping sunset review investigation.

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Recently, the Ministry of Agriculture Plant Protection Bureau issued an official letter, said the temporary suspension of 13 products will be accepted for registration, the suspension time from the current 28 to 30 approved. 13 products include glyphosate, paraquat, imidacloprid and so on. Details of the notice are as follows:

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Temporary suspension of application (new) registration of the active ingredient (AI) list issued notice

1, at (25-5-2017) at the (27) Pesticide Conference meeting to discuss the decision, the same active ingredient (including the amount of complex preparations) more than 50 of the 13 active ingredients will be suspended for registration.

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2, the relevant active ingredient compound preparation is no longer accept the application for registration. We will also discuss whether to re-accept the registration at the 30th Pesticide Conference.

30 times before the meeting to suspend the application for registration of the active ingredient list:

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The same time as the above-

No.
Active ingredient
category
1
Carbendazim carbendazim
Fungicide
2
Mancozeb mancozeb
Fungicide
3
2,4 – D
herbicide
4
Glyphosate Glyphosate
herbicide
5
Paraquat Paraquat
herbicide
6
Abamectin
Insecticide
7
Acephate
Insecticide
8
Cartap Hydrochloride
Insecticide
9
Chlorpyrifos chlorpyrifos
Insecticide
10
Cypermethrin cypermethrin
Insecticide
11
Fipronil fipronil
Insecticide
12
Imidacloprid imidacloprid
Insecticide
13
Lambda-Cyhalothrin Highly effective cyhalothrin
Insecticide
It is reported that the Plant Protection Agency of the Ministry of Agriculture of Myanmar has registered a batch of plant protection products for about one year. According to the letter, the registration of the above 13 products will be suspended until 2020. During this period, the original drugs, preparations and the ingredients containing the ingredients Preparations are not allowed to declare.

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These products are the best-selling mainstream products in the Myanmar market. Myanmar pesticide long-term dependence from Thailand, Vietnam and Sino-Burmese border trade imports, the registration suspension, blocking the Chinese pesticide exports to Myanmar, Burma will open up the Chinese companies have a great impact.

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According to the Canadian Health Ministry news, June 1, the Canadian Ministry of Health issued a notice to ethylene oxide (Ethylene Oxide) as fumigant pesticides, remove the “other uses of food additives list.”

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October 5, 1971, Canada will be ethylene oxide as a fragrance fumigant, used to inhibit some of the pathogenic microorganisms. After that, in 1976, according to the requirements of the Pesticides Act, ethylene oxide was used only for the sterilization and fumigation of spices.

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The Canadian Department of Health believes that ethylene oxide as a fuming agent is more appropriate, in line with the “pesticide Act” as a pesticide definition.

In 2013, the Canadian Pest Management Board again evaluated the safety of ethylene oxide and considered it necessary to remove ethylene oxide from the list of food additives.

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In view of the above, the Canadian Ministry of Health to ethylene oxide out of the list of food additives, comments for the deadline for August 15, 2017.

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The word “price” in 2016, 2017 became the pesticide industry was frequently mentioned but do not want to mention the word. In particular, as a pesticide production enterprises, the pesticide prices in 2016, the day is not good; 2017 pesticide prices, the day is more difficult.

Price is difficult, price is more difficult

In 2016 the company’s procurement department reported the most is the decline in raw material prices, good! The original drug sales report on the theme of the original drug prices have dropped, can not dry! Preparation of sales staff will say that the product price is too high, “The dealer does not have a request, the price and then low! Retail store?” The price I do not! “Farmers, but it does not matter,” I will be the lowest price, and not give money!

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2017 is about half past the time, the price is still flooded in every corner of the pesticide: farmers on the price or does not matter, but can not rise, or not to give money! Retail stores do not accept the dealer’s price, you rose my Profit, I do not do! Dealers are helpless, manufacturers directly to the price up, can only endure! Manufacturers sales staff back to the company complained that the price is up, and other manufacturers did not rise, we do not account in the market Advantage (very strange, we actually have to say)! Selling the price of the original three days a day price, but also no way, raw material prices. Purchasing Department began to complain about the beginning of this year’s procurement costs down the index failed, raw material prices, the original drug prices, simply HOLD not live!

Channel to bear the weight

Two years of price changes in sharp contrast, after the top-down, from bottom to top after the price analysis, we found that for the end consumer, whether it is price or price increases, they feel The price is actually very small changes, and even can be ignored, the original drug prices fell when the grassroots prices did not decline (at least not the same percentage decline), the original drug prices, retail prices did not rise.

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The price from the downstream to the upstream is like a loudspeaker as layer by layer. Here the top of our analysis of the original drug companies, the original drug prices in 2016 dropped significantly, in fact, raw materials have not fallen so much, so most of the original drug companies lose money, and 2017 the original drug prices straight up, in fact, raw materials should Did not rise so much, so the original drug companies are making money. This is the problem: the terminal price change is not the top of the loss of money when the real compensation, when making money really earn, where the profits were digested it?

Yes, it is the channel. Is the upper and lower poles between the preparation of manufacturing enterprises, distributors, retail stores; channels can enjoy the original price cuts brought about by the moment of pleasure, but also bear the endless price of pain caused by the waves of rising prices Became a reality in 2017.

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Marketing needs to be diversified

Is the price all the marketing?

“Of course not!” – I think the vast majority of people will say, and then add a sentence: “There is no advantage of the price there is sales? The right price is stepping stone.”

Square view:

Knock on the customer’s heart, in order to have further communication, low-cost to open the door.

Negative view:

If this is the case, this “bricks” is a bit expensive, there are more ways to choose marketing. Most of the support side view is the frontline sales staff, those who face the customer’s business representatives; support against the other side is like my general market sector or business operators, business owners, those who are responsible for profit, marketing expert. A few years ago I was a firm anti-party view holder, but after a few years of market experience and work practice, I had a different view.

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First of all, why do you need low-priced products?

The existence of that is reasonable, whether it is farmers, retail stores, dealers or business clerks have the need for low-cost products reasons: planting large – the need to control costs; retail stores – to ensure the needs of profits; The need for distribution; manufacturers clerk – to participate in the needs of market competition.

Second, the market needs really low-priced products?

Which business is willing to sell at low prices without profit? Which salesman is willing to every day with the company to low-cost products and was said to be incompetent generation which dealers are willing to low-cost sales and credit sales which retail stores are willing to sell low-priced products, Finally, because there is no effect of farmers blocked at the door? Which growers are willing to buy low-cost pesticides caused by the loss of production?

It seems that for low-priced products, manufacturers do not want to sell, dealers and retail stores do not want to sell, growers do not want to buy, then why there are low-priced products? Manufacturers why the price as the main means of competition? And retail stores every day with the manufacturers to policy, to concessions, to low prices? Growers as users why the where to the lowest price of the product?

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Finally, let us look at the market need low-cost products behind what is the reason?

Manufacturers to bear the channels and farmers to our question: your product in addition to the low price can also give the salesperson and the difference between the selling points and differences between these products can support sales? In addition to low-cost products you can also bring to the dealer What can be a product marketing program, so that dealers can get the market from the product and then make a profit? In addition to your low-priced products can also give retail sales support? You will be put into the store regardless In addition to low prices can also give farmers (grow large, co-operatives) which products added value? Is it able to solve the disease Cordyceps, the product will be a series of marketing activities, Harm to the problem? Can improve the user’s income, so that users get the use of products after the satisfaction and happiness?

If you solve the above problem, the price is not a problem. A leaf barrier is difficult to see Taishan, manufacturers are deeply price dilemma, in the final analysis, or products and services on a problem.

To solve the price problem, or the need for pesticide companies to work hard, if not in other areas that can only fight the price. In the enterprise who should be the most efforts in this area? Of course, the marketing department of the enterprise, in fact, the price of pesticide industry (especially domestic enterprises) product competition is the main means, because the role of the market in the past few years have been weakened The ability of the product manager has not improved in recent years. After entering a new era of pesticide competition, the marketing department, product manager is not able to develop with the times. Personally think that to improve the ability of product managers to strengthen the role of the market is to solve the problem of price the only way, but also the first to solve the problem.

Looking forward to the arrival of non-price competition era, then be able to give channel operators and consumers with first-class products and more value-added.

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