Chinese pesticide enterprises go for novel fertilizer industry

Date:04-26-2013

In a recent agro material workshop in China, pesticide enterprises’ entry to fertilizer industry has become a subject of discussion among industry experts and entrepreneurs. Dozens of large pesticide enterprises including Qingdao Hailir, Greeland Chem, Tianda, Hansen, Qiaochang, Lukang, Yucheng, Jingbo and Kesai-Jinong have moved into the novel fertilizer industry for production of novel organic bio-fertilizer, slow-release fertilizer, formula fertilizer, foliar fertilizer, water-soluble fertilizer and soil conditioner. 

Industry experts believe that because of the saturated Chinese pesticide market while facing competition from international pesticide producers, local enterprises are looking for a new market to make up for their lack of competitiveness in innovative pesticides. Novel fertilizer requires less financing input and can be marketed via existing pesticide channel and brand image, thus it is relatively easier to promote an extended business by using pesticide sales channels.
 
Furthermore, Chinese central government has adjusted its fertilizer industry policy which encourages the use of novel fertilizers, this has no doubt attracted the attention from pesticide enterprises. Due to the late start of China’s novel fertilizer industry, there will be a great potential of growth. The market business volume is expected to reach Yuan 100 billion in the 5 years ahead, as driven by the policy support of the central government.
 
Information shows that enterprises who initiated novel fertilizer business 10 years ago especially those who have covered water-soluble fertilizer, foliar fertilizer and punching fertilizer, like Qingdao Sobel, Jiangsu Rotam and Noposion, have stepped into the First-Tier Supplier List, with annual sales of Yuan 100 million.

Qingdao Haida, Sinofert, Weifang Duoleshou, Caozhou Agrochem, Beijing Leili, Beijing Xinhefeng and foreign brands including Scotts, Hydro, Stoller, Borax and Planta have stepped into the Second-Tier Supplier List, with annual sales of Yuan 50 million.

Enterprises that shifted from pesticide production to fertilizer industry have the chance of stepping into the Third-Tier Supplier List, with annual sales of Yuan 10 million.