Low Margins of Fruit and Vegetable Planting Brought Influence on Fertilizer Market

Fruit and vegetable industry is the sale growth point for fertilizer industry, especially some high-end fertilizer products. However, in 2020, influenced by a decline in fruit and vegetable prices and a reduction in output resulting from a natural adversity, low margins of planting aggravated the competitiveness of fertilizer industry.   
  
Influenced by the novel coronavirus outbreaks and other factors, the prices of fruits and vegetables decreased year on year in 2020. According to data statistics, from January to April of 2020, the year-on-year data of the prices of 37 varieties of 30 vegetables was 74.31%, -6%, 22.44% and -19.44% respectively; from January to May of 2020, the year-on-year data of the average wholesale price of 6 fruit products monitored by the Ministry of Agriculture and Rural Affairs was -4.8%, -4.7%, -2.2%, -5.7% and -16.3%. Besides, influenced by cold damage, hail, drought and flood, the output of fruits and vegetables in some areas also were influenced.      
   
Fruits and vegetables are important consumption groups of fertilizer, and the consumption of fertilizer per mu is far higher than that for grain crops. In 2018, the investment of fertilizer per mu was 672.94 RMB and 454.12 RMB, however, the investment of fertilizer for corn and wheat per mu only was 137.53 RMB and 148.56 RMB.
 
The changes of planting margins of fruits and vegetables bring greater competitiveness pressure to fertilizer industry, and promote the revolution of industry. On the one hand, the companies need to do well in products, channels and brands. On the other hand, they must response to market changes and adjust their products and marketing strategies timely.