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New-Type Fertilizer Companies Mainly Depend on Exporting and Government Procurement

China Agriculture Report By CnAgri2018-06-13 15:41:27China Agriculture Report Print
Keywords:Fertilizer MAP NPK DAP
New-type fertilizer companies mainly adopt selling models: traditional dealers, direct selling and government procurement. Of which the products for exporting account for more 50%; however, the revenues from government procurement take up 30%—40% in total operating revenues for that company. 
For export markets, in foreign markets such as Europe and America and Southeast Asia, new-type fertilizers such as biological stimulants, medium and trace element fertilizer and organic fertilizer are mature, with high safety and efficiency, so the demand is strong.      
However, in the domestic, due to high prices, slow results and low acceptance by farmers, the companies have great difficulty in promoting new-type fertilizers. For example, average selling expenses of Genliduo, Backer Ecological, Astronautics Hengfeng and Jinsui Ecological Technology doubled, but operating revenues only saw an increase of less 30%. New-type fertilizers are mainly sold through  government procurement. Taking Jinggeng Tianxia and Penshibao for example, the revenues of new-type fertilizer for government procurement tendering take up 50% in total revenues for that company.
BOABC thinks new-type fertilizer markets can’t be changed in the short time, and still would depend on exporting and government procurement, but government procurement possibly would result in corruption of public power executors, which is not good for sustainable development of industry. 

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