With the increase of national policy support for organic fertilizer industry and the large-scale pilot project of replacing chemical fertilizer with organic fertilizer in China, the organic fertilizer industry in China has developed rapidly, and the scale of organic fertilizer market is also increasing year by year. From 2015 to 2018, the national organic fertilizer sales scale increased by 11.5 billion yuan, with a growth rate of 14.46%. However, there are still many problems in China’s organic fertilizer industry.
Table 1. National organic fertilizer sales scale
1. Those who pay attention to the quality or the economic added value tend to choose organic fertilizer products with good brand and excellent quality, which means higher price, usually over 800 yuan/ton. However, the long transportation distance, users’ vague understanding of organic fertilizer, improper use of organic fertilizer, fierce internal competitiveness of the organic fertilizer industry have all inevitably caused price wars. However, the low-end users’ ideal price for organic fertilizer is mostly 300-500 yuan/ton, which is greatly confronted by the pricing of farm fertilizer. The downstream market has not been widely accepted.
2. The commercial organic fertilizer started late in China, and the raw material sources are not concentrated with small production scale and scattered production capacity. According to relevant data, at present, the design capacity of organic fertilizer in China is 34.82 million tons, while the actual annual output is 16.3 million tons, and the actual output is less than half of the design capacity; Enterprises with an annual output of less than 5,000 tons account for nearly half of the total number of enterprises, and those with an annual output of more than 20,000 tons account for less than 20% of the total number of enterprises, which shows that the scale of production enterprises is generally small and the production capacity is relatively scattered.
Figure 1. Organic fertilizer production capacity of national enterprises
3. The utilization rate of organic fertilizer resources is low. According to the data, the utilization rate of organic fertilizer in China is only about 20%. However, the British Fertilizer Recommendation Manual stipulates that organic fertilizer should replace 50% of chemical fertilizer nitrogen supply, while Denmark stipulates that at least 40%-50% of livestock manure should be reused.
In conclusion, the potential market demand of organic fertilizer is presumed to be huge under state vigorous advocacy. As a sunrise industry, while developing the market, the quality and service should be improved accordingly. In this way, opening up the export market of organic fertilizer is around the corner.
Post time: Jun-30-2022