Last year, the loss of the Chinese compound fertilizer industry was as high as 40%. Experts of this situation suggested that this year's relevant state departments should formulate mitigation adjustment measures and policies; compound fertilizer production enterprises should accurately grasp the situation of supply and demand of compound fertilizer, reasonably arrange production plans, and prevent Blind production, causing new losses. Otherwise, the days of compound fertilizer industry this year will not be better than last year.
Relevant experts pointed out that in recent years, due to the country’s proposal to increase the level of chemical fertilizers and vigorously support the high-concentration compound fertilizer industry, the output of nitrogen, phosphorus, and potassium dual-compound fertilizers has grown rapidly, and the country has developed from less than 8 million tons in 2000. In 2005, 17.07 million tons were doubled in six years, an increase of speed, rare in history.
The rapid growth of domestic compound fertilizer production capacity has greatly exceeded the demand for compound fertilizers in the domestic market and there has been an oversupply. As compound fertilizers are affected by factors such as resource constraints and lower sales prices, the profits of the compound fertilizer industry are declining year by year. According to statistical data provided by authoritative organizations, the total loss of the compound fertilizer industry in 2006 was as high as 40%.
It is estimated that in the next two years, the growth rate of domestic high-concentration compound fertilizer production will remain at more than 20%. However, according to statistics from relevant departments, the actual demand for compound fertilizers in China has only increased by about 4.3% in recent years, and there is a wide gap between demand and growth.
It is worth mentioning that at present, the regional distribution of the compound fertilizer industry is uneven, mainly concentrated in Huanghuai and North China. In 2005, the production of compound fertilizers in Shandong, Jiangsu, Hubei, and Hebei accounted for 77.8% of the national total. These provinces are also the major sales regions, with Shandong, Henan, Hebei, Anhui, Jiangsu, and Guangxi provinces. The area of ​​compound fertilizer accounts for about 50% of the national total. In addition to the local sales of compound fertilizers produced in these provinces and districts, a considerable amount is also sold to other regions outside the province. However, if you want to purchase raw materials and compound fertilizers produced in other regions, you have a higher requirement for logistics capabilities and a higher logistics cost. There are no effective solutions and instructions for this.
At present, most of the compound fertilizer companies are fighting each other. The homogeneity of products is serious, and the supply is soaring. It is in a transitional stage from blind competition to core competence competition. In the future development process, compound fertilizer prices will also linger near the cost line, and profits will remain at a low level. In view of this, experts suggest that relevant state departments should formulate mitigation adjustment measures; compound fertilizer production enterprises should accurately grasp the situation of compound fertilizer supply and demand, reasonably arrange production plans, prevent blind production, and cause new losses.
Relevant experts pointed out that in recent years, due to the country’s proposal to increase the level of chemical fertilizers and vigorously support the high-concentration compound fertilizer industry, the output of nitrogen, phosphorus, and potassium dual-compound fertilizers has grown rapidly, and the country has developed from less than 8 million tons in 2000. In 2005, 17.07 million tons were doubled in six years, an increase of speed, rare in history.
The rapid growth of domestic compound fertilizer production capacity has greatly exceeded the demand for compound fertilizers in the domestic market and there has been an oversupply. As compound fertilizers are affected by factors such as resource constraints and lower sales prices, the profits of the compound fertilizer industry are declining year by year. According to statistical data provided by authoritative organizations, the total loss of the compound fertilizer industry in 2006 was as high as 40%.
It is estimated that in the next two years, the growth rate of domestic high-concentration compound fertilizer production will remain at more than 20%. However, according to statistics from relevant departments, the actual demand for compound fertilizers in China has only increased by about 4.3% in recent years, and there is a wide gap between demand and growth.
It is worth mentioning that at present, the regional distribution of the compound fertilizer industry is uneven, mainly concentrated in Huanghuai and North China. In 2005, the production of compound fertilizers in Shandong, Jiangsu, Hubei, and Hebei accounted for 77.8% of the national total. These provinces are also the major sales regions, with Shandong, Henan, Hebei, Anhui, Jiangsu, and Guangxi provinces. The area of ​​compound fertilizer accounts for about 50% of the national total. In addition to the local sales of compound fertilizers produced in these provinces and districts, a considerable amount is also sold to other regions outside the province. However, if you want to purchase raw materials and compound fertilizers produced in other regions, you have a higher requirement for logistics capabilities and a higher logistics cost. There are no effective solutions and instructions for this.
At present, most of the compound fertilizer companies are fighting each other. The homogeneity of products is serious, and the supply is soaring. It is in a transitional stage from blind competition to core competence competition. In the future development process, compound fertilizer prices will also linger near the cost line, and profits will remain at a low level. In view of this, experts suggest that relevant state departments should formulate mitigation adjustment measures; compound fertilizer production enterprises should accurately grasp the situation of compound fertilizer supply and demand, reasonably arrange production plans, prevent blind production, and cause new losses.
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