In the past, small-scale fertilizer companies were always at a disadvantage in competition with large companies. However, the current soil testing and fertilizer application carried out throughout the country provided excellent opportunities for small-scale fertilizer companies. This is the information that the reporter got when he recently interviewed some fertilizer companies in Hebei.
Soil testing and formula fertilization started in 2004 throughout the country. At present, there are more than 1,200 experimental soil testing and fertilization pilot counties invested by the state, together with nearly 200 counties that have been put into place by local governments, and more than 1,400 pilot fertilization pilot counties across the country. According to the statistics of the Ministry of Agriculture, the soil testing and fertilization project has achieved gratifying results: grain production is increased by 5%, fertilizer utilization rate is increased by 3%, and the benefit per mu is increased by more than 25 yuan. Now, fertilizer production and processing companies have all combined with soil testing and formula fertilization. Some fertilizer production companies are equipped with equipment for soil testing and fertilizer application, and the main role of companies in soil testing and fertilizer application begins to appear. However, some large companies have reported that it is somewhat difficult to develop formula fertilization by soil testing.
According to the report, the biggest factor constraining large and medium-sized enterprises from participating in soil testing and formulating fertilization is the contradiction between formula, small-scale, regional, and targeted characteristics of formula fertilizer and the modernization, mechanization, scale, and mass production of the enterprise. This contradiction undoubtedly increases the company's production costs and sales risks. Li Yuejin, director of the Soil Fertilizer Station of Langfang City, Hebei Province, told reporters that once the company participates in soil testing and formula fertilization, it must continuously adjust the production process according to the formulation requirements, and constantly change the product packaging, which inevitably brings about an increase in production costs and yields. Larger enterprises have difficulties in arranging production. In addition, because the formula fertilizer is produced for a specific region, it is difficult to transfer it to other regions for sales if it becomes sluggish. Unlike common formula products, which are not limited by sales regions, they can be sold across regions.
The difficult problem of soil testing and formula fertilization for large enterprises has brought business opportunities to the long neglected small enterprises. According to the director of Hebei Baozhou Yinong Fertilizer Factory, Jia Baoxiang, in the past, in the developed agricultural areas, each county has a nitrogen fertilizer plant. These nitrogen fertilizer companies have unique advantages in the development of compound fertilizers and compound fertilizers. Due to the loss of scale advantages, small nitrogen fertilizer plants have been hit by the survival of the fittest for many years, but many still exist. For example, in Langfang, Hebei, 80% of counties have compound fertilizers, BB fertilizers, and bio-organic fertilizers. These companies have their own production of matrix fertilizers, markets and sales networks, and the products are easily transported. They are familiar with local farmers' production habits. This is not only beneficial to the development and promotion of formula fertilizer, but also facilitates the use of fertilization indicators provided by the local Bureau of Agriculture to produce formula fertilizer. The agrochemical services provided by these companies will not only save marketing and promotion fees, but also increase farmers’ acceptance of the company and products. Therefore, it is wise for small-scale fertilizer companies to “test the wind†by using soil-based formula fertilization.
As a test base for soil testing and fertilizer application in the country, Sanhe City, Hebei Province Xiangfeng Fertilizer Co., Ltd. has long considered agrochemical services as the focus of marketing services. Gao Huifeng, general manager of the company, introduced that they changed the traditional mode of waiting for the farmer to buy fertilizer. The company's dealers and agricultural technicians drove the agrochemical service vehicle through the countryside and asked the target farmer for the arable land. According to the test results, they provided " One-on-one "fertilization guidance. It can be said that soil testing and formula fertilization has become the conscious action of Xiangfeng Company to expand its market and increase its market share. Combined with the opportunity created by the national soil testing and fertilizing project, they use the fertilization indicator system provided by the local agricultural sector to produce suitable crops. Products, and the establishment of grass-roots sales network, the formula fertilizer directly to the hands of farmers, greatly reducing the cost of fertilizer circulation, to meet the needs of soil testing, formula fertilization formula, small batch needs.
Yongqing County, Hebei Province, Jinfeng Biotechnology Fertilizer Co., Ltd. is also an early participation in soil testing and fertilizer application of small fertilizer companies. They are free to conduct soil testing formula for farmers, produce multi-species formula fertilizer, and guide farmers to fertilize at any time. At present, Jinfeng Company has established more than 300 agrochemical service centers in its product sales area and formed a team of nearly a hundred (apart-time) agrochemical service teams to answer difficult questions raised by users at any time and organize on-site soil testing and agricultural technology training. Such activities have been widely praised by agricultural technology departments, distributors and farmers.
According to reports, there are currently more than 280 fertilizer companies in the country that provide fertilizer for soil testing and fertilizer application. Most of these companies are relatively small-scale, relatively small-yield, and relatively easy-to-adjust enterprises. From the point of view of the amount of fertilization needed for soil testing and formula fertilization in the country, the current amount of fertilizer supply is still far from enough. This provides a large space for the development of small fertilizer companies.