An Qitao, 28, is a major walnut planter in Yijun County, Shaanxi Province. One of the biggest headaches for him every year is the selection of a variety of branded fertilizers.
"Now, chemical fertilizer is really not good to buy, not to say that it can't be bought, but it's really too much, a few dozen or so, and it's not good which kind is good." An Qitao said: "The former In the year, I bought a fake chemical fertilizer, and when I got it back, the old man in the village saw that the particles were too miscellaneous and it might be a fake. I was specifically invited by the quality inspection department of the county to verify that it was a fake and the quality was not up to the standard. Fortunately, the discovery was timely and it would be a big loss if we were to delay farming."
An Qitao said that not only him but many people in the village have bought fake fertilizers. One year, the county's agricultural department organized a unified purchase for the farmers to buy qualified fertilizer. Who knows the returned goods, or fake. "This market is too confusing. We are afraid to try new brands and products now. We only use one brand."
While An Qitao and other farmers are struggling to purchase high-quality products, some companies are also guilty of selling their own qualified products. A sales manager of a Tianjin fertilizer company told the reporter that at present, the domestic fertilizer market is flooded with products of low quality produced by small companies, which has formed the phenomenon of “bad money drives out good moneyâ€.
"Now, among chemical fertilizer companies, there are too many small ones and many backward ones. They are trying to make huge profits, and they just want to register and start production. They don't care whether they have qualifications or not. The quality of products is often very low, and they simply don't work. Due to the low cost and high profit for dealers, the grassroots department stores are willing to sell their products. The high-quality products of big companies cannot effectively occupy the market and are difficult to sell to farmers.†said the sales manager of Cao.
A sales person in a fertilizer production company in Shaanxi said that because of the excessive product brands of small companies, “farmers tend to pick their eyesâ€, and some local administrations of industry and commerce, quality supervision and other departments are not responsible, but the quality of the products can be overwhelming. Hawking. "This year was squeezed by these (small business products), we have a lot of sales decline." He said: "In addition, raw material fluctuations are also relatively large, not easy to grasp, production costs are difficult to control. But the price is high, farmers do not buy; The price is low, and corporate profits are limited."
According to statistics from the Ministry of Industry and Information Technology of China, as of 2010, there were 1,057 fertilizer manufacturing enterprises above designated size in the country, producing a total of 66.20 million tons of chemical fertilizers, a year-on-year increase of 2.5% and a self-sufficiency ratio of 105.5%. During the “Eleventh Five-Year Plan†period, the output of major products maintained a rapid growth, and the average annual increase in output of urea, ammonium phosphate, and potassium chloride reached 4.8%, 16.7%, and 6.3%, respectively, which better ensured the need for agricultural production.
Although China's fertilizer industry has made considerable progress during the “11th Five-Year Plan†period, the industry generally believes that the entire industry is still caught up in the mess of scattered industries. This has caused the fertilizer industry to fail to produce “two ends†for many years. Difficult situation.
According to industry insiders, the overall concentration of the fertilizer industry is not high, there are too many companies and the average size is small. The backward technology and equipment of small enterprises and the low utilization of resources are one of the important factors that affect the competitiveness of the industry. In addition, chemical fertilizer companies have a single product and the competition for homogenization is fierce.
Second, the industrial layout is excessive and the circulation burden is heavy. According to a special survey conducted by the Ministry of Industry and Information Technology of the People's Republic of China, the rational distribution of fertilizer production and distribution in China has not yet been established, and the transportation and circulation burden is heavy. On the one hand, many producers of high-concentration, basic fertilizers are far away from sources of resources and energy; on the other hand, the same variety of fertilizers (such as urea) flow between different regions, a large number of secondary processing of compound fertilizers and their required Nitrogen, phosphorus, and potassium raw materials are more serious across the country. This phenomenon has caused strains on the production capacity of fertilizers, increased costs, and increased corporate burdens.
At the same time, chemical fertilizer production enterprises generally report that factors such as weak supervision, local protectionism, poor circulation, and other factors still exist, resulting in the emergence of “bad money drives out good money†in the fertilizer market.
According to Song Xianzhu, deputy director of the Department of Raw Materials of the Ministry of Industry and Information Technology of the People's Republic of China, the Chinese fertilizer industry has long been relying on preferential policies, resulting in poor overall competitiveness. With the support of policies, the fertilizer industry has achieved basic self-sufficiency after several decades of development, and its production capacity ranks first in the world. However, compared with major international fertilizer exporting countries, the overall competitiveness of China's fertilizer industry is not strong.
He said that with the liberalization of fertilizer prices in the future and the cancellation of some preferential policies, the fertilizer industry will face challenges.
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