Land transfer to stimulate fertilizer demand

Recently, fertilizer producers in Hunan and Jiangsu provinces in the plains of the middle and lower reaches of the Yangtze River have stated that sales are acceptable, but there are many manufacturers and competitive pressures are still there. There is a slight surplus of factory inventory in Hunan, but it is within a reasonable range. At present, the fertilizer has been shipped to farmers. It is expected that the early rice planting will be completed before the May 1st; and the winter wheat in Jiangsu Province will have to wait for more than a month before it can be harvested. Rice will be planted only in the month. After the land is transferred, the field crops in the region will be dominated by simple fertilizers, while the economic crops will be dominated by compound fertilizers, irrespective of their prices.

The factory leftovers in this season are within the reasonable range of the Hunan three-season rice, which is currently in the early rice breeding stage. Fertilizers have been transported to farmers and it is expected that the planting will be completed before May 1st. The sales of chlorine-based compound fertilizers in this region are mainly based on the ex-factory price of 45% chlorine-based compound fertilizers in the same period last year was RMB 2,300-2,400/ton, which has dropped by RMB 100/ton this year, and this year's price difference between compound fertilizers and the price of winter storage in this year's compound fertilizer differed. Not great. Hunan Longke Agricultural Resources Chain Co., Ltd. Wang Pingchu said: “This year's compound fertilizer prices in Hunan are rather strange. In previous years, the price of compound fertilizer winter storage was relatively low, and prices would have slightly increased by the beginning of spring. After the urea rose this year, the compound fertilizer did not rise. The urea fell after the compound fertilizer fell.The market sales this season is still acceptable, but the market atmosphere is slightly less than last year, mainly because last year, the winter storage downstream took more goods, and there was not such a large amount of shipments in this season. The downstream distributors indicated that they are still operating the winter storage stocks. At present, there is no intention to order new prices for new spring prices. Now the implementation of the new price is based on the implementation of the winter storage savings, I think this is the compound fertilizer prices this year. One of the reasons why Hunan does not rise is that this year's purchase price of rice is not good. Last year, there was 136-140 yuan/million (one load was 100 kg) for late rice and 122 yuan for this year. It is very easy to increase the output and not increase income, which also affects the enthusiasm of farmers in using fertilizers.” When the reporter asked if there is any surplus fertilizer, Wang Pingchu said: “At present, the compound fertilizer plant is an order production. According to the situation of the previous collection, the situation was decided, and then the raw materials were purchased to avoid production risks. Several compound fertilizer plants in Hunan were added to this year's demand this year. Everybody has a certain amount of stock. There is a reasonable range of surplus, not a lot, but it seems to be a bit more than it was in the same period last year."

Land circulation changes in demand for fertilizers Jiangsu needs to grow rice and winter wheat in summer and autumn, and wheat has to wait for more than a month to harvest. It is only possible to grow rice in June. The weather is still cold, and cotton is still growing. After land transfer, many large-scale plantations have emerged, and the number of migrant workers has increased. In order to save time and labor, these people have more choices of applying compound fertilizers; large-scale planting of large-field crops for contracting land has resulted in the selection of simple fertilizers to save costs, with the exception of cash crops. Wu Kaibing, Jiangsu Shuangchang Fertilizer Industry Co., Ltd., said: “Jiangsu's coastal areas are alkaline soils. There are not many compound fertilizers for bulk crops, but the amount of fertilizers used here is still very large. The planting area of ​​field crops has been shrinking year by year, and the economic crops are year by year. After the land transfer, many farms emerged. They must first consider the cost, and secondly, they must consider scientific planting. According to the cultivation conditions of their own soil, they need special fertilizers from the technical departments, but they only choose single fertilizers. There is a certain market.” When asked by reporters about the demand for fertilizers for economic crops, Wu Kaibing said: “Because of the large value of land for planting cash crops, farmers are demanding that the quality of compound fertilizers is good and the prices are higher. We also have water conservancy facilities built here. It is perfect, and by the time of the flood season, the government has already taken measures and will hardly encounter major floods. Although the grain purchase price is not high at present, the overall trend is still rising."

Downstream demanding manufacturers have great competitive pressure. The amount of fertilizer used in the provinces of Hunan and Suzhou is still very large, but domestic production capacity is too large, coupled with the international market is not good, domestic companies are not good. Wu Kaibing said: “Our factory was built in 1965. It is an old factory. There are a lot of loyal fixed customers. We have a good sales of compound fertilizer, but the market is such a piece of cake. There are too many manufacturers now, too many varieties of fertilizer. The upstream and downstream competitions are very fierce, and we still have competitive pressures. In recent years, the market has not been able to operate.” Wang Pingchu also said: “There are too many homogenized fertilizers. Everyone starts a price war. More than that; now that the price war is not enough, everyone has begun to take the differentiated route. There are many new varieties, and the market is confusing."