Small Phosphate Producers in Difficulties

By CnAgri2012-11-23 11:01:14 Print

While large phosphate producers generally enjoy a 10% increase of sales revenue this year, many small and medium producers have to cut production or suspend operation. The nation’s top five MAP producers held 44% of the market in January ~ September, 10% more than the same period of last year.

Large producers’ strength lies in large scale of production, advanced technology and abundant supply of raw materials. Small and medium producers’ plight originates from small scale of production, outdated technology, high energy consumption and shortage of raw materials.

Small and medium phosphate producers have an advantage in fertilizer distribution in local areas, which may enable small and medium producers to provide storage and distribution service for large producers. Small and medium producers can also become OEM producers in local areas.

From “China Fertilizer Market Weekly Report”