China Green Agriculture

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Industry Outlook
In the future, there will be enormous space for the development of organic compound fertilizer for the following reasons:
Shrinking Arable land and Exploding Population
In 2005, per capita farmland in China was only 940 square meters, approximately 40% of the global average, according to the PRC ministry of Land and Resources. It is predicted that by the middle of the 21st century, China’s population will reach 1.6 billion and arable land will decrease to half of the current size. This implies that by the middle of this century, per capita farmland in China will be only 16% of world average levels. Moreover, it is estimated by the China State Meteorological Administration that by 2030, global warming will further reduce China’s current grain production by 5-10%. Because of these combined factors, high yielding and environmentally sustainable fertilizers will be crucial to China’s agricultural production.

Environmental Concerns
According to the Chinese Statistics Bureau, in 2005, Chinese farmers used 47.66 million metric tons of chemical fertilizers or about 400 kg per hectare of farmland, which far exceeds the acceptable safe limit of 225 kg per hectare in developed countries. After a long period of chemical fertilizer overuse on China’s farmland, accumulated heavy metals have hardened the soil and reduced its fertility. Surface water has and is being eutrophicated (an increase in chemical content resulting in severe reductions in water quality and in fish and other animal populations). However, balanced “green” fertilizers which contain humic acid reduce the amount of traditional chemical fertilizers needed per hectare. They also cleanse soil of the existing chemical residue and stimulate crop growth, thus further improving the stability of the soil’s ecosystem. Also, the general public as well as agriculture professionals are increasingly aware of the need for high-quality green agricultural products. Consequently, non-polluting, residue-free green fertilizer is in growing demand in order to satisfy the market for safe and green food.

Industry Trends

In 2003, only 25% of the fertilizers used in China’s agricultural industry were organic (Source:Agriculture Technology Promotion Centre), however, agriculture specialists suggest that the optimal ratio of organic versus chemical fertilizer should be around 50% as it is in developed countries (Source: Chinese Chemical & Industrial Technology Research Institute). In 2005, compound fertilizer accounted for 27% of the total fertilizer consumed in China,  however the quality is generally very low leading to ecosystem degradation (Source: Ministry of Agriculture). Organic compound fertilizer comprises a balance of both organic and inorganic substances, thereby combining the speedy effectiveness of chemical fertilizers with the environmental benefits of the organic ones, hence ensuring vast room for its future development in the Chinese agricultural production system.