China’s attempts to clean up its environmental policy are having an effect on the pest control industry here in Australia. 

The implementation of strict new environmental protection measures by the Chinese Government is having an impact on insecticide prices globally.

The Chinese Government has reacted to the significant air pollution issues over the cities and other aspects of environmental pollution by shutting down a large number of non-compliant factories and restricting production on compliant factories. This is a cross-industry initiative that includes the pesticide industry.

Whilst this environmental crackdown is a good thing for the environment and should also result in the production of higher quality products, the result of reduced supply and therefore increased demand has an obvious effect – a price increase.

With the resulting global shortage of a number of insecticides, price increases have been significant over the last few months. For the pest control industry, the biggest impacts have been seen in the prices of imidacloprid and bifenthrin. For example, the price of technical imidacloprid has increased more than three times over the last few months.

Australian pest managers have already seen price increases in some products and it is likely there may be more in the future.