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 Markets Introduction |
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 China is both the
world¨s largest manufacturer and consumer of fertilizer. As of
2005, Chinese fertilizer accounted for 33% of total world output
and 35% of total world consumption. (Source: China National
Agricultural Means of Production Circulation Association) |
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Pricing Trends
The global fertilizer market is estimated to be worth
roughly US$100 billion. Fertilizer prices have increased
steadily over recent years and are likely to continue this
trend upward. |
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Market Diversity
Preferences of the Chinese fertilizer market vary greatly
across the country. For example, in southern and eastern
China, farmers are able to grow high-margin crops such as
fruit and seasonal vegetables where climate and rainfall
permits. As a result, they are able gain more return on
investment from more expensive, specialized fertilizers. In
northwest areas, agriculture is concentrated in low-margin
crops, thereby necessitating a more broad spectrum, low cost
fertilizer |
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| Trend in the market |
In 2003, only 25% of the fertilizers used in China¨s
agricultural industry were organic according to the Agriculture
Technology Promotion Centre. However, agriculture specialists at
the Chinese Chemical and Industrial Technology Research Institute
suggest that the optimal ratio of organic versus chemical
fertilizer should be around 50% as it is in developed countries.
By 2005, the China Ministry of Agriculture stated that organic
compound fertilizer accounted for 27% of all fertilizer consumed
in China. Organic compound fertilizer comprises a balance of both
organic and inorganic substances, thereby combining the speedy
effectiveness of chemical fertilizers with the environmental
benefits of organic fertilizer. However the quality is generally
very low, leading to ecosystem degradation and leaving large areas
of development in the Chinese fertilizer industry.
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| The Outlook for the industry is being shaped by a handful of shifting factors in the market: |
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 Shrinking Arable land |
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Exploding Population |
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Environmental Concerns |
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| Within this market we have positioned ourselves in a strategic position.
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