Market Introduction
Industry Outlook
Principle Markets

Markets Introduction
China is both the world¨s largest manufacturer and consumer of fertilizer. As of 2005, Chinese fertilizer accounted for 33% of total world output and 35% of total world consumption. (Source: China National Agricultural Means of Production Circulation Association)
Pricing Trends
The global fertilizer market is estimated to be worth roughly US$100 billion. Fertilizer prices have increased steadily over recent years and are likely to continue this trend upward.
Market Diversity
Preferences of the Chinese fertilizer market vary greatly across the country. For example, in southern and eastern China, farmers are able to grow high-margin crops such as fruit and seasonal vegetables where climate and rainfall permits. As a result, they are able gain more return on investment from more expensive, specialized fertilizers. In northwest areas, agriculture is concentrated in low-margin crops, thereby necessitating a more broad spectrum, low cost fertilizer
Trend in the market
In 2003, only 25% of the fertilizers used in China¨s agricultural industry were organic according to the Agriculture Technology Promotion Centre. However, agriculture specialists at the Chinese Chemical and Industrial Technology Research Institute suggest that the optimal ratio of organic versus chemical fertilizer should be around 50% as it is in developed countries.

By 2005, the China Ministry of Agriculture stated that organic compound fertilizer accounted for 27% of all fertilizer consumed in China. 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 organic fertilizer. However the quality is generally very low, leading to ecosystem degradation and leaving large areas of development in the Chinese fertilizer industry.
The Outlook for the industry is being shaped by a handful of shifting factors in the market:
          Shrinking Arable land
          Exploding Population
          Environmental Concerns
Within this market we have positioned ourselves in a strategic position.




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