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Long-term and stable monopolistic raw material source is an important means for organic fertilizer production enterprise

China Agriculture Report By CnAgri2017-10-17 10:02:59China Agriculture Report Print Currently, there have been 2,300 organic fertilizer producers, with designed capacity at 34 million MT. Organic fertilizer companies develop rapidly, but due to low prices, high long-distance transportation costs and limited raw materials in certain regions, it is easy for organic fertilizer producers to form cost advantages by monopolizing regional material supply.     


If a company has long-term, stable and exclusive material supply, other companies won’t participate in local market competitiveness, resulting in a lot of organic fertilizer producers but a low industrial concentration. By taking measures of depending on local raw material supply and shortening sales radius, the companies improve regional market competitiveness.    


However, intensive management of rural land, scaled planting and farming are becoming the trend, so organic fertilizer producers would be gradually being integrated and merged with the forming of scaled raw material suppliers, and some companies with high quality, advanced and reliable techniques and reasonable costs would form the chain operation by gaining trans-regional market. 

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