On September 23, 2025, UPL, a leading global provider of agricultural solutions, once again announced an increase in the price of its mancozeb products in the Chinese market. This marks the second price adjustment for the product by UPL in a short period, highlighting the complex situation currently faced by the global agrochemical market, especially in the fungicide sector.

Price Increase, What are the Reasons?

According to the price adjustment letter issued by UPL, this price adjustment will affect all its mancozeb technical and formulation products in China, covering three subsidiaries and joint ventures: Uniphos (Shanghai) Co., Ltd., Yanhua Yongle (Laoting) Biotechnology Co., Ltd., and Uniphos (Jiangsu) Co., Ltd.

This price adjustment is not an isolated case. As early as July 18, 2024, UPL had already increased mancozeb prices by 5%, signaling tight market supply and demand. This subsequent increase is driven by similar factors as the previous adjustment, but to a greater extent:

Robust Domestic and International Market Demand: As a broad-spectrum, highly effective protective fungicide, mancozeb plays a crucial role in agricultural production, widely used in disease control for various crops such as vegetables, fruit trees, and field crops. With the continuous development of global agricultural production and increasing demand for agricultural products, the market demand for mancozeb remains strong. Especially in areas with severe pest and disease outbreaks, the reliance on efficient fungicides is even higher.

Continuous Rise in Raw Material Prices: The production of mancozeb involves various basic chemical raw materials, and their price fluctuations directly impact production costs. In recent years, affected by global energy prices, supply chain tensions, and stricter environmental policies, the prices of related chemical raw materials have continued to climb, significantly increasing the production cost of mancozeb and forcing producers to raise prices to alleviate cost pressures.

Persistent Tight Market Supply: Despite strong market demand, affected by production capacity, environmental restrictions, and raw material supply, the market supply of mancozeb has remained tight. Particularly in some key production links, once a capacity bottleneck or unexpected event occurs, it can easily exacerbate the supply shortage.

Market Impact and Future Outlook

As a giant in the global agrochemical industry, UPL's product price adjustments undoubtedly serve as a market indicator. This latest price increase for mancozeb will have multifaceted impacts on downstream distributors, farmers, and the entire agrochemical industry chain:

Increased Costs for Farmers: Pesticides are an important input in agricultural production. The rising price of mancozeb will directly increase farmers' planting costs, to some extent squeezing their profit margins.

Adjustment of Distributor Inventory and Procurement Strategies: Facing continuously rising prices, distributors may adjust their inventory strategies, increasing procurement to hedge against higher future costs, but also facing capital pressure and inventory risks.

Potential Changes in Industry Competition: Other mancozeb producers may follow UPL's lead in adjusting prices, leading to a general price increase across the market. At the same time, high cost pressures may also force some small producers to face greater survival challenges.

Increased Attention to Alternative Products: Persistently high prices may prompt some farmers and distributors to seek other cost-effective alternative fungicide products, thereby promoting the diversification of the fungicide market.

Looking ahead, the tight supply and demand situation for mancozeb is unlikely to be effectively alleviated in the short term. Fluctuations in raw material prices, uncertainties in the global supply chain, and rigid demand in agricultural production will continue to support high mancozeb prices. Agrochemical companies need to closely monitor market dynamics and optimize production and operation strategies to cope with challenges. Meanwhile, technological innovation and the development of green agriculture will be the direction for future sustainable agricultural development, with efficient, low-toxicity, and environmentally friendly new pesticides having greater market competitiveness.