Fertilizer or will meet the "private custom" era

After the Ministry of Agriculture formulates and publishes the Zero Fertilizer Growth Action Plan to 2020 and the Zero Growth Action Plan for Pesticide Use by 2020 (hereinafter referred to as the Action Plan), there are signs that the industry and enterprises have adjusted their development pace: "The company is Through the non-public issuance of stocks to raise funds to invest in new 1.2 million tons/year new compound fertilizer project (one period 800,000 tons/year) and 600,000 tons/year nitro compound fertilizer project, the future will enter nitro-water soluble compound fertilizer, and control The market for high-end compound fertilizers such as compound fertilizers was released, and the successful development of the above-mentioned new fertilizers was based on the company's long-term cooperation with China Agricultural University and other research institutions.The company plans to increase the proportion of new fertilizers to 30% within 3-5 years. -40% right," Xinyangfeng said in an interview with a reporter from Securities Daily.

Another scholar who is engaged in research on chemical fertilizers told a reporter from Securities Daily that, under the circumstances that growth is limited, the industry should vigorously promote the use of formula fertilizer and organic fertilizer, and at the same time, promote the transformation of fertilization methods and improve the quality of cultivated land. To encourage the development of new types of fertilizers, if there is no supplement of organic fertilizers and other products, the goal of zero growth is difficult to achieve. At present, the fertilizer industry is based on industrial and chemical sciences as the main research field, and the industry in the future will certainly increase its relevance to biology and other related fields. Research".

Zero-growth goal set ceilings for the industry

The action plan shows that the annual growth rate of fertilizer use will be controlled within 1% from 2015 to 2019. It is expected that by 2020, the use of main crop fertilizer will achieve zero growth. There is no doubt that this sets an accessible “growth ceiling” for the industry.

This means that in the case of fertilizer-listed companies, it means that there is a sustainable growth in performance within a defined scope. Judging from the current performance of these companies, the overall level is uneven. Wind data shows that of the 14 nitrogen fertilizer production companies, 11 companies’ operating revenues are decreasing year-on-year, and 7 companies have lost money in 2014; of the 3 phosphate fertilizer production companies, 1 company’s operating income is slightly higher than last year. The decrease; the situation of potash fertilizer and compound fertilizer companies was slightly better, of which, 6 companies in the compound fertilizer production company had a significant year-on-year decline in their net profit and incurred a loss. Other companies’ net profits all increased in varying degrees in 2014.

In the nitrogen fertilizer companies with poor performance, many companies attributed the poor business performance to the imbalance of supply and demand in the industry and the instability of raw material prices.

The change has also become the choice of some companies. Under this background of “growth ceiling”, what kind of plans will the company have for the proportion of future main business operations? Xinyangfeng, the company's main business with phosphate and compound fertilizer, said in an interview with Securities Daily that “the company gradually increased the proportion of new fertilizers to about 30%-40%. (Apple and other crop-specific fertilizers also belong to phosphorus compound fertilizers.) )".

Formula fertilization will gradually become mainstream

It should be noted that although the action plan sets an overall "growth ceiling" for the industry, it also mentions the different types of fertilization varieties that need to be adjusted in the future, that is, between different varieties and different regions. There is an opportunity for “interconnection and non-presence” and, in addition, methods such as “formula fertilization” are also mentioned in the action plan.

According to the introduction of “Securities Daily” by relevant persons of the New Yangfeng Company, the company is also actively trying out custom fertilizers.

“China Agricultural University-New Yangfeng New Fertilizer R&D Center Builds a National Demonstration Network of Soil Testing and Fertilizing Formulation, Promotes Formula Fertilizer Promotion and Training to Farmers, Agricultural Service and Field Guidance, New Fertilizer and Formula Fertilizer Development and Marketing Model Innovation Effectively and in combination, more than 70 special formula fertilizers have been developed and launched, covering a variety of large crops adapted to different soils in China, and successfully introduced to the market.” According to the above-mentioned Xinyangfeng company sources, at the same time, companies and countries The Hybrid Rice Engineering and Technology Research Center will use the “four experimental projects” of the national hybrid rice as a platform to conduct comprehensive trial and demonstration cooperation and develop and popularize new super rice special fertilizers suitable for different super rice, different planting systems, and different ecological types. .

In addition to the structural adjustment of products, the change in the sales channels of agricultural enterprises is also a subject of continuous discussion in the industry recently. Some people think that when the Internet joins, the information symmetry and supply relationship of the industry chain is changed. By reducing the intermediate links, the traditional model of product distribution has been fundamentally changed. After the action plan mentions the adjustment of regional categories, how does the company Adjust sales channels? Perhaps using the internet is a good idea.

According to public information, several agricultural enterprises described the company's investment and focus in the field of agricultural capital Internet or Internet finance in the 2013 and 2014 regular financial reports, and that fertilizer was an important agricultural product category, and whether the business enterprise was also Will actively plan for "touch nets"? For this topic, Xinyangfeng did not directly reply to the "Securities Daily" whether it intends to enter the Internet field, but said: "The Internet is changing many traditional industries, including the agricultural resources industry. Agricultural enterprises can use the Internet to build electricity suppliers. Platforms, optimize supply chain processes, reduce overall costs, and increase operational efficiency and profitability.The company pays close attention to agricultural capital e-commerce companies, will establish professional teams, actively explore Internet marketing, and provide farmers with more convenient and targeted Agricultural products solutions to improve the efficiency of agricultural planting and farmers' planting income."