National policy is the decisive factor in the fertilizer market

Due to overcapacity of chemical fertilizers, oversupply in the market, and national policies to increase the export tax rate of chemical fertilizers, exports have been blocked, resulting in a sluggish fertilizer market in the first half of the year, and fertilizer prices have continued to decline. Fertilizer prices are not prosperous in the busy season and not in the off-season. Recently, the reporter interviewed Feng Runchang, chairman of Fengyi Feiyou Club and Feng Runchang, chairman of Liaoning Fengsong Agribusiness Co., Ltd. He analyzed the situation in the first half of the year and the recent rise in compound fertilizer prices, and expressed some of his own countermeasures against the market of SMEs. View.

Policy is the decisive factor in the market

Feng Runchang believes that the trend of the fertilizer market in the first half of the year has broken the trend of recent years, and there has been a persistent downturn in the peak season. Fertilizer overcapacity and export policies are the main factors for the downturn in the fertilizer market. Other factors cannot be ignored.

The first is the cultivation factor. The policy orientation of eco-agriculture and soil testing formulas has forced the traditional single-element inorganic fertilizer application rate to decline year by year. At present, it is less than 20% of the total application amount. Compound fertilizer has become the absolute mainstream; followed by the peasant households. Now is the crucial period for the country’s urbanization. There have been major changes in population flow and the transfer of agricultural labor. Disposable fertilizers have the characteristics of saving time and labor, reducing the number of fertilization and the amount of fertilization. These two points combined to change the fertilizer habits of farmers in some regions; there are also weather factors this year, natural disasters such as drought, cold, heavy rain, floods, etc., resulting in a certain change in fertilizer demand this year, for the fertilizer market The demand has had a negative impact.

In view of the future trend of the fertilizer market, Feng Runchang believes that there are several factors that must be focused. First, it focuses on national policy orientation. For agricultural enterprises, national policy studies have understood that there is ample room for business survival. Therefore, we must pay special attention to the policy orientation of “three rural issues” and agricultural resources. We must pay attention to the policy direction of “three rural issues” and the policy of grain purchase price. Changes in the country's emphasis on the "three rural" work and the increase in grain purchase prices are conducive to the development of agricultural capital enterprises. The second concern is the policy on fertilizer import and export. The amount of fertilizer imported is related to the increase of the total domestic quantity, the export of fertilizer means the export of resources, and the country’s long-term macroeconomic policies will not support the output of resource-based products. Therefore, do not report too much hope on exports. We must also pay attention to the policy of saving fertilizers. The fertilizer storage has been implemented for 6 years. The scale of light storage has increased from 6.15 million tons to 16 million tons, and the storage and storage enterprises have expanded from more than 20 to more than 90. The three-year round of light storage period has already expired, and new ones may be issued before the end of the year. "Fertilizer Storage Management Measures." Finally, we must pay attention to energy conservation and emission reduction policies. Countries pay close attention to energy-saving emission reduction, fertilizer companies can not be avoided, some companies will be restricted or eliminated, which promotes the upgrading of the fertilizer industry structure and integrated development.

Product, network and service need to be equal

“The imbalance between supply and demand has become a definitive conclusion, and the market downturn is an indisputable fact. Complaining about people is not an issue, and survival of the fittest is the law of the market economy. We must work hard in the development market, make a fuss about the demand, seize the market with quality, and win customers with credibility. It is the way for small and medium-sized enterprises to survive." Feng Runchang said so. At the same time, he believes that small and medium-sized compound (mixed) fertilizer companies are power that cannot be ignored in the fertilizer market, but it is essential to grasp the following points in order to establish a foothold in the market.

The first is to do a good job in the development of new products. Fertilizer companies must comply with the development direction of eco-agriculture and high-efficiency agriculture, and focus on research and development of formula fertilizer. According to the local soil and planting crops, provide professional, practical, and efficient fertilizer packages, allowing farmers to taste the sweetness and benefit; and provide individuality for crops and soil. Supporting services will be the direction for fertilizer companies to develop in the future.

Followed by the sales network construction. The marketing network of an enterprise is a manifestation of the comprehensive competitiveness of the enterprise. It not only determines the size of the market share of the enterprise, but also determines the level of corporate reputation. Grasping the network means grasping the market, and circulation companies and production companies are all the same.

Then choose a good partner. Feng Runchang believes that the market economy is a friend economy. Having a good partner and a partner who stresses credibility can not only achieve benefits, but also avoid risks. This is a profound experience for Fenghe Agricultural Assets Company.

There is a full range of services. Service work can not be overlooked, service levels directly affect sales, said that serious, service work is higher than marketing, because "people have a steelyard in mind," a wide range of services, covering a lot, quality, technology, after-sales, promotion, popularization, etc. .

In the end, Feng Runchang also said that the 6-year history of the Fengyi Feiyou Club proves that it is also a good way for SMEs to resist market risks and reduce the cost of raw materials for enterprises.