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Exploration of novel fertilizer’s current status and future trends
Nov. 18, 2014
The good growth momentum of novel fertilizer emerged since the products rose up. The future developing trends of novel fertilizer products includes high and long-term efficiency, specialty, multi-function and low carbon. Conforming to these trends, control-released fertilizer, nitro-compound fertilizer, water soluble fertilizer, seaweed fertilizer and others become new market growth points. Recently, AgroPages has invited several leading enterprises in the novel fertilizer industry to comment on the current development status and future trends of novel fertilizer, exchange their strategies on market promotion, as well as uncover the superiority traits of their products. These companies are: Beijing Leili in China, Rural Liquid Fertiliser (RLF) in Australia, Bio Huma Netics(BHN) in US, Dongbu Farm Hannong in Korea, BioAtlantis in Ireland, RNZ in United Arab Emirates.
The current status and future trends of novel fertilizer
Beijing Leili: Compared with traditional fertilizer, in my opinion, novel fertilizer has novelties in technology, function, application and material selection. It has been defined as specialty fertilizer and bio-stimulants in the international market. In recent years, novel fertilizer has been developing very fast with new products emerged one after another. For the developing trend in the future, we can conclude that only those fertilizers, which have innovative technologies and can solve new problems occurred constantly during plant growth, can have stronger vitality.
RNZ: The higher level of fertilizer demand has changed the market structure from the past which was dominated by straight bulk fertilizers to a market which is now more open to novel fertilizers. The new agricultural farmers are not sensitive to prices but focused more on cost-benefit ratio. Growth potential of novel fertilizer is shown in the following aspects: area under drip irrigation is steadily increasing; increase in awareness of precision farming; fertigation being used crops like Bt Cotton, Vegetables, Sugarcane & fruit and vegetable crops; increasing cost of bulk fertilizers is narrowing gap with novel fertilizers; farmer Purchasing power increasing; ease of application of water soluble fertilizers (Fertigation); farmer focus on quality and productivity (expecting more profit from unit crop).
RLF: The emerging status of new types of fertilizer products and practices have taken some time – however we see the future as being very strong. Efficiency in farming globally has helped our technology products become far more important – the need to grow better crops and achieve bigger or more consistent yields has no doubt helped our particular brand of premium products.
BioAtlantis: The fast growth of sales of foliar fertilizers and residue free products applied through fertirrigation and by spraying is driven by consumers and retailers demand for residue free fruits and vegetables. Seaweed extracts is one of the fastest growing agriculture markets to date with BioAtlantis working as one of the world’s top manufacturers. The ability of seaweed biostimulants to further boost yield when production has reached a plateau is crucial to ensure the growing world population continue to be fed.
The market promotion modes of novel fertilizer
RLF: On farm, RLF has a clear model for its products called Integrated Fertilizer Management (IFM). RLF products do not compete with traditional fertilizers – they work with traditional fertilizers – they integrate into each farmer's fertilizer practices to achieve more results – so for RLF we never competed against traditional granular fertilizers. This is not our model.
IFM allows farmers to achieve a more reliable result using RLF products, by working with traditional fertilizers in a way that is more efficient and more productive. So, RLF's model is about re-allocating the farm's fertilizer budget to integrate RLF products into a new modern farming fertilizer practice.
BioAtlantis: The marketing model is to ensure that the agronomic expertise and knowledge is disseminated to the farmers with the product. BioAtlantis solutions are designed to have a clear “fitness for purpose”, and are sold on the strength of their proven efficacy in the field. Distributors employing professional agronomists are marketing new solutions by having demonstration field visits with groups of farmers. BioAtlantis organised trials are set in replicates of treated and untreated crops and demonstrate the efficacy of BioAtlantisproducts statistically and scientifically. Growers want to be certain that using BioAtlantis products increases three folds their return on investment.
Beijing Leili: The marketing mode of novel fertilizer is different from traditional fertilizer. Traditional fertilizer focuses more on NPK content and cost. And the products only differs in two crops one year on physical performance.
However, new type of fertilizer mainly focuses on the active substances effect on crops by bio-tech, which needs lots of field trail and demonstration, thus the farmers can tell the difference between application of new type fertilizer and traditional fertilizer, and they can conclude that using new type fertilizer has high cost performance and input-output rate.
The best way to promote new type fertilizer is sharing the market channels of seeds, agrochemicals products based on the same service principles. The advantage is providing more solutions based on different crops.
BHN: After World War II and during the Green Revolution, agriculture was inundated with what is now considered traditional fertilizer. Over the years traditional fertilizer has become commoditized. Since our fertilizer products are not commodities, our approach to marketing/promoting them differs from traditional fertilizer. We focus on providing valuable solutions. Of course cost is important. However, when the end-user realizes that our products are price-competitive and begins to observe the value that our products bring, the choice is clear. Since we are an international company, the sales channel differs from one area to another. Whether through distribution or direct to the end-user, we apply an approach that fits the area and market that we are serving.
Dongbu Farm Hannong: Dongbu has special market development team for specialty products and they are mainly working in the field with farmers. They are mainly involved in launching new specialties and training dealers and their sales team. The main marketing target has been changed from distribution chain to customers and consumers.
The market expansion orientation of novel fertilizer
Beijing Leili: The future market of novel fertilizer lies mainly on the crops with high economic value and the regions with intensified agriculture and massive production.
LEILI Group has undertaken marketing extension and network allocation in the dominant production areas of vegetables and fruit trees based on LEILI’s product R&D and international extension experiences over two decades. This extension has been through the process of “International first, domestic second”. Alga 600 as our major product has been tested on the market for more than ten years, and thus has accumulated plenty of successful application cases.
In the last two years, we’ve been deeply cultivating domestic market. The novel fertilizer market in China is currently very active due to the innovation of domestic companies and the entering of foreign novel fertilizers. Dealers and farmers’ recognition of novel fertilizer is increasing and this is a good time to do scale operation. Since 2003, LEILI had developed thousands of end stores by chain-store operation mode. Recently, we focus on channel construction. Our star products, Alga 600, LEILI 2000, Softguard, have built cooperate platforms with provincial and municipal agents; mutually develop terminal outlets to sever farmers. Our base fertilizers and top dressing fertilizersadopt the county level cooperation mode. Popularize innovative crop differentiation solution has some effect in Shandong, Guangdong and Yunnan provinces.
RLF: RLF products are incredibly versatile and this range of diverse products will suit most markets and nearly every agricultural purpose – this advantage means the RLF can work in any marketplace. That said, RLF is the same as any other major fertilizer company – the bigger agricultural markets provide the best economic outcome – so RLF has focused more resources into these areas. However, RLF has never limited itself to any opportunities in smaller or emerging markets, and as an example of this we have recently began to distribute through partners in Sri Lanka.
Our corporate plans are to continue increasing our manufacturing and packaging capacity to be able to keep supplying product to our loyal customers, and to increase product sales to new markets globally. RLF is actively seeking new partnership opportunities as we continue to expand our production levels.
The Chinese market is a most valuable market for RLF and it has seen the biggest commitment in terms of the care and respect we have learned to give this incredible marketplace. RLF was one of the first Australian fertilizers companies to set-up in China and RLF has directly invested in the establishment of facilities and people – so after nearly 10 years, RLF China is well established and very well managed.
BioAtlantis: Novel fertilizer will apply first of all to high value crop growers and secondly producers of crops who have reached a yield plateau such as cereals, rice, etc. Finally the fruit and vegetables producers, strategically capable of exporting their crops, will be at the forefront of the novel fertilizer market.
Increasingly retailers are also becoming aware of the risk of selling possibly contaminated food and are implementing referenced program such as Integrated Pest Management (IPM) & Integrated Crop Management (ICM) approach to reduce pesticide & fertilizer use. BioAtlantis have already devised complete crop programs to address the issue of increasing yield while producing residue free crops.
The Chinese market is growing steadily for BioAtlantis Super Fifty® which is sold along the entire East coast of China. The product efficacy and uniqueness has been the main driver to this growth. The total low application rate per season of 180ml per mu and its high solubility and compatibility in a broad dilution range, have helped Super Fifty conquered wide area of exported crops grown in China such as green tea production, banana, pineapple, raisin, litchi, ginger and garlic crops.
BHN: Our main market is field agriculture. By using our unique Micro Carbon Technology® end-users are often able to do more with less. Specifically, they are often able to achieve similar or higher yields while using fewer inputs. This is accomplished by efficiently delivering nutrients as well as releasing tied-up nutrients from the soil, without mining the soil of those nutrients. Our Chinese Distributor, BHN China, has been distributing our products in China for more than fifteen years. The line of Huma Gro® products in China is well respected and well received. Other important markets that we service include turf and landscape as well as wastewater treatment. We are already active in all of the aforementioned markets and continue to develop plans to expand our business in these markets.
Dongbu Farm Hannong: I can say the main market for specialty is 'cash crop'. If the price is going up, even rice can be considered as a cash crop. Actually, we are selling our WSF even for water seri and spinach during summer days. Nowadays, more farmers installing irrigation systems and more rice farmers in Korea are using CRF blends. I can say, 'the sky is the limit'.
Regarding Chinese market, though our business has started just 3 years ago, I can see it is a dynamic market and growing so fast. I can see almost every world-famous specialty brands been presented in China. In this market, Dongbu's strength is 'Determining customer needs first followed by offering suitable products with global standard quality'. We can design products and packages for each customer's needs, and can supply them within short period of time. Also, we are supporting their promotional efforts with agronomical knowhow and with flyers, videos and so on.
The requirements of distributor/partner
Beijing Leili: Firstly, agreeing on the green sustainable development idea, but not shortsighted and focus on quick results. In addition, the awareness of service is desirable; they have to build a comprehensive service and extension team. Thirdly, the current product line is differentiated, able to place LEILI product in category A.
RLF: RLF looks for partners that can support the RLF product range in their market through having a solid distribution and support channel. RLF needs a partner with a mature reputation, and a distribution channel that is large enough to be able to distribute RLF products to the market in a timely and efficient way. Mostly, we look for partners that are active in providing information, support and help to their customers and are capable of making sure that farmer customers can achieve better and direct results through the correct use of RLF products. It is important to RLF that our distribution partners develop a long term sales relationship with customers by doing everything possible to achieve RLF results and to build the trust to use RLF product year after year.
BioAtlantis: BioAtlantis distributor must be in close proximity to growers in order to distribute our products. They must also be able to offer growers the agronomic professional advice to achieve the highest yield using BioAtlantis crop program. BioAtlantisselected distributors and partners are often also distributing plant protection products from other large multinational companies and are working to the same highest quality standards.
BHN: We look for distributors/partners who are honest, well respected, and share our vision, mission and operating values which can be found here, http://bhn.us/about/. We are also interested in distributors/partners that care about sustaining the environment, are technically oriented, open to novel ideas, and of course enthusiastic about their respective industry.
 Tang Jie Vice President of Beijing Leili |
"The biggest advantage of Leili’s bio-stimulant which derived from seaweed and contains a patented ingredient is the world's first proprietary technology – whole seaweed enzymolysis technology, which could retain biological activity of algae active substance at the greatest extent." |
 Pierre Prouteau Sales Executive of BioAtlantis |
"We offer efficient solutions for abiotic stress tolerance, regulating phenological growth stages, seed stimulation, plant health supplement, plant strengthening & flowering, early crop establishment in cold stress conditions, residue free micronutrient chelation through a range of biostimulants product and liquid nutritional blends." |
 Gavin Ball Global marketing director of RLF |
"We provide the world-leading BSN Seed Priming fertiliser which supplies nutrient directly inside the seed, a complete range of Ultra Foliars which deliver nutrient directly to the plant in a high-analysis broad spectrum solution, Rapid Foliars which use as a specialised rapid delivery system to deliver the required nutrient to the plant and a full range of fertigation products." |
 Lyndon Smith President, CEO and part owner of Bio Huma Netics |
"We provide crop nutrition products in the areas of soil fertility, macro- and micronutrients, growth management, crop protection, as well as carbon-rich organic acids. Sustainable for us means that they are environmentally sound for the long-term. They are ecologically friendly. They are both very efficient and effective. Our products are complexed using our base ingredient, Micro Carbon Technology®." |
 R Soomar Managing Director of RNZ |
"We produce over 400 different NPK water soluble grades at its state-of-the-art facility with a capacity of 36,000tpa. We ensure the raw materials we use are very low in chlorides/ sulphates/ sodium content and monitor heavy metal contents like Arsenic, Lead, Chromium, Mercury & Cadmium which are detrimental to both soil & human health." |
 Taeyoung Kwak Manager of marketing, Fertilizer Division of Dongbu Farm Hannong |
"Our main product line was only the granular fertilizers for rice. Since 2010 we've changed our business strategy, focusing into WSF and CRF markets. To achieve, first we invested for new WSF and CRF facilities. We've developed specialty products with international standards and we started exporting our specialties to many countries. Our specialties' main market is vegetables and fruit trees but Dongbu continue developing specialties for rice market as well." |
Read more articles in AgroPages' magazine - Market Insight 2014
Source: AgroNews
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