Overview and Classification of 1. Fertilizer Industry

Fertilizer is a material that can provide nutrients needed by plants or improve soil properties, and is an indispensable input in agricultural production. According to the source, composition and form of fertilizer, fertilizer can be divided into organic fertilizer and inorganic fertilizer (fertilizer) two categories.

Organic fertilizer refers to the raw materials mainly from plants or animals, after fermentation of carbon-containing organic materials, its function is to improve soil fertility, provide plant nutrition, improve crop quality and so on. Organic fertilizers can be divided into the following categories according to the source:

Livestock and poultry manure: such as cow dung, pig manure, chicken manure, sheep manure, etc;

Straw: such as rice straw, wheat straw, corn straw, etc;

Green manure: such as leguminous, gramineous, compositae and other plants;

Kitchen waste: such as vegetable leaves, peel, tea residue, etc;

Municipal sludge: such as sludge produced by sewage treatment plants;

Other categories: such as humic acid, compost, biogas residue, etc.

Fertilizer refers to the inorganic salt or compound containing one or more plant nutrient elements made by industrial or mineral processing, and its function is to directly supply plant nutrition or change soil properties. Fertilizer according to the composition can be divided into the following categories:

Nitrogen fertilizer: such as urea, ammonium nitrate, ammonium chloride, etc;

Phosphate fertilizer: such as calcium superphosphate, diammonium phosphate, monoammonium phosphate, etc;

Potash fertilizer: such as potassium chloride, potassium sulfate, etc;

Compound fertilizer: such as nitrogen, phosphorus and potassium compound fertilizer, nitrogen and phosphorus compound fertilizer, etc;

Trace element fertilizer: such as boron fertilizer, zinc fertilizer, iron fertilizer, etc.

Organic fertilizers and chemical fertilizers have their own characteristics, and the main differences are summarized as follows:

Organic fertilizer contains a variety of organic matter and trace elements, which can improve soil structure and biological activity, improve soil fertility and crop quality, but its nutrient content is low, the release is slow, the application amount is large, the quality is unstable, and it is easily affected by the environment;

Chemical fertilizers contain high concentrations of plant nutrients, which can quickly supplement the nutrients needed by plants and improve crop yield and efficiency, but their long-term application will lead to soil acidification, salinization and hardening, reduce soil fertility and crop quality, and cause environmental pollution.

Therefore, organic fertilizer and chemical fertilizer should be used in combination to realize the basic application of organic fertilizer and the top dressing application of chemical fertilizer, so as to achieve the purpose of increasing production, increasing efficiency, increasing income and preserving the environment.

Policy Background and Industrial Chain Analysis of 2. Fertilizer Industry

(I) policy background

At present, the national level attaches great importance to the healthy and orderly development of the fertilizer industry. Relevant departments actively formulate and continuously improve fertilizer industry policies, from fertilizer output, utilization rate, application method, raw material structure, product quality, tax rate of operating enterprises, product import and export tax rate, etc. Introduce policies to adjust the order of the fertilizer market and promote the healthy development of the fertilizer industry. The main policies are as follows:

Several Opinions on Promoting the Green Development of Agriculture:2020Achieve the goal of zero growth of chemical fertilizers and pesticides in, promote green production methods and technical models, and establish a green agricultural product certification system and a green agricultural standard system;

Opinions on accelerating the structural reform of the agricultural supply side: put forward.2020Achieving major breakthroughs in agricultural supply-side structural reform, promoting agricultural transformation and upgrading and high-quality development, and strengthening the protection and restoration of the agricultural ecological environment;

Guiding Opinions on Promoting the Pilot Work of Organic Fertilizer Substitution of Chemical Fertilizer: Proposed2020Carry out the pilot work of replacing chemical fertilizer with organic fertilizer nationwide in, and establish the policy system, technical system, standard system and supervision system of replacing chemical fertilizer with organic fertilizer;

"Guiding Opinions on Accelerating the Utilization of Rural Human and Animal Manure Resources": Proposed2020The national rate of harmless treatment of livestock and poultry manure reached75%above, the effective utilization rate reached70%Above, establish and improve the long-term mechanism of resource utilization of livestock and poultry manure;

Guiding Opinions on Accelerating the Comprehensive Utilization of Straw2020Realize the comprehensive utilization rate of straw in China85%Above, effectively control the open burning area of straw in200Within 10,000 mu, establish and improve the policy support, technological innovation, market operation and social supervision mechanism for the comprehensive utilization of straw;

Guiding Opinions on Promoting the Development of Bio-organic Fertilizer Industry2020The annual production of bio-organic fertilizer reached3000More than 10,000 tons, accounting for the total amount of organic fertilizer50%Above, the establishment of bio-organic fertilizer industry development policy guidance, technical support, quality supervision and market promotion mechanism;

"Notice on Further Strengthening the Management of Chemical Fertilizer Production and Operation": It is proposed to strengthen the management of chemical fertilizer production and operation, standardize the order of chemical fertilizer market, improve chemical fertilizer production efficiency and product quality, and reduce chemical fertilizer production costs and environmental pollution;

Notice on Adjusting Import and Export Tariffs on Certain Commodities: Proposed since2021Year1Month1Import and export tariffs on some commodities will be adjusted from January to March, including the reduction of import tariffs on fertilizers from1%Drop0%To ensure the supply of fertilizers needed for agricultural production.

The above policies reflect the state's high attention and support to the fertilizer industry, aiming to promote the green development, structural optimization, quality improvement and benefit growth of the fertilizer industry.

(II) Industry Chain Analysis

The industrial chain of fertilizer industry mainly includes three links: upstream raw material supply, midstream fertilizer production and downstream agricultural application. Specific as follows:

Upstream raw material supply: mainly includes raw material supply of organic fertilizer and raw material supply of chemical fertilizer. The raw materials of organic fertilizers mainly come from livestock and poultry manure, straw, green manure, kitchen waste, urban sludge, etc., and the raw materials of chemical fertilizers mainly come from natural gas, coal, phosphate rock, potash ore, etc. The main enterprises in the upstream raw material supply link are PetroChina, Sinopec, CNOOC, China Coal Energy, Yunnan Yuntianhua, Sinophobe Group, etc.

Midstream fertilizer production: mainly includes organic fertilizer production and chemical fertilizer production. The production of organic fertilizer is mainly made into different types and specifications of organic fertilizer products through fermentation, crushing and screening, granulation and packaging, and the production of chemical fertilizer is mainly made into different types and specifications of chemical fertilizer products through synthetic ammonia, urea, ammonium nitrate, superphosphate, potassium chloride and other processes. The main enterprises in the midstream fertilizer production link are plum blossom biology, Genlido, Sirte, Jin Zhengda, Huajin shares, East China Medicine and so on.

Downstream agricultural applications: mainly include the demand and use of different types and sizes of fertilizers for different crops. Downstream agricultural applications involve a variety of crops, such as food crops (rice, wheat, corn, etc.), cash crops (cotton, rape, sugarcane, etc.), vegetable crops (cabbage, radish, tomatoes, etc.), fruit tree crops (apples, pears, peaches, etc.), flower crops (roses, chrysanthemums, orchids, etc.). The main enterprises in the downstream agricultural application link are Wanda Group, New Hope Group, Zhengbang Technology and so on.

3. fertilizer industry supply and demand situation and market size

(I) supply and demand

supply and demand of organic fertilizer:2021The output of organic fertilizer in China is5012Ten thousand tons, year-on-year growth6%；2022In, the production of organic fertilizers in China was5363.6Ten thousand tons, year-on-year growth7%。2021The consumption of organic fertilizer in China is6060Ten thousand tons, year-on-year growth4.6%；2022The consumption of organic fertilizer in China is6363Ten thousand tons, year-on-year growth5%. It can be seen that the gap between supply and demand of organic fertilizers in my country is large, mainly due to the high production cost of organic fertilizers, unstable quality, low market awareness, and insufficient policy support.

supply and demand of fertilizer:2022In the year, the country's production of fertilizers (in pure terms) was5679Ten thousand tons, down year-on-year.1.2%；2022The consumption of fertilizers (in net terms) in China was5541Ten thousand tons, down year-on-year.0.3%. It can be seen that the supply and demand of chemical fertilizers in my country are basically balanced, mainly due to the high production efficiency, stable quality, high market awareness, and strong policy control of chemical fertilizers.

(II) market size

Market Size of Organic Fertilizer: Market Demand for Organic Fertilizer in China2022Annual market demand reached166010,000 tons, the average market sales price is7698.8Yuan/tons, the market size is nearly780Billion yuan, year-on-year growth6.4%. expected2023The market size of China's organic fertilizer industry will reach660billion yuan, with a compound annual growth rate4.4%。

fertilizer market size:2021The market size of China's fertilizer industry in2964Billion yuan, year-on-year growth1.8%；2022The market size of China's fertilizer industry in3027Billion yuan, year-on-year growth2.1%. Expected2023The market size of China's fertilizer industry in may reach3100About 100 million yuan, year-on-year growth2.4%Left and right.

4. fertilizer industry competition pattern

(I) enterprise competition pattern

The competitive landscape of enterprises in the organic fertilizer industry: According to the analysis of the Prospective Industry Research Institute, China's organic fertilizer industry has not yet produced enterprises with very obvious scale advantages, and the market concentration is low. The main competitors include Plum Blossom Bio, Genlido, Silter, Jin Zhengda, Huajin shares, East China Medicine and so on.

The competitive landscape of enterprises in the fertilizer industry: At present, there are some enterprises with strong scale advantages and brand influence in China's fertilizer industry, and the market concentration is high. Major competitors include Sinochem Group, Chemical Group, Zhongnong Fertilizer, Huaneng International, Salt Lake Group, Yuntianhua, etc.

(II) regional competition pattern

Regional competition pattern of organic fertilizer industry: According to the information provided by the enterprise search cat, the main competitors of China's organic fertilizer industry are mostly gathered in Shandong, Beijing and other places, of which Jin Zhengda and large biological and other leading enterprises in Shandong layout. In addition, many small and medium-sized organic fertilizer enterprises are mostly gathered in Shandong, Anhui and other places, forming a certain aggregation effect.

Regional competition pattern of fertilizer industry: according to the information provided by enterprises, the main competitors of China's fertilizer industry are mostly gathered in Beijing, Shanghai, Sichuan and other places, among which the giant enterprises such as Sinochem group and chemical group are located in Beijing and Shanghai. In addition, many small and medium-sized fertilizer enterprises are mostly distributed in Sichuan, Henan, Shandong and other places, forming a certain regional characteristics.

5. Fertilizer Industry Development Prospects and Challenges

(I) development prospects

In the future, China's organic fertilizer industry will maintain steady growth, mainly benefiting from the following factors:

National policy support and guidance, promote organic fertilizer instead of chemical fertilizer, realize the green development of agriculture and the construction of ecological civilization;

Farmers' awareness and acceptance of organic fertilizers continue to increase, and their demand and consumption capacity for organic agricultural products continue to increase;

Organic fertilizer enterprises to increase technological innovation and product research and development, improve the quality and effect of organic fertilizer, reduce production costs and prices;

Organic fertilizer market channels continue to expand and improve, the use of e-commerce platform, live delivery and other ways to increase market coverage and sales.

The development prospects of the fertilizer industry: China's fertilizer industry will maintain slow growth in the future, mainly benefiting from the following factors:

The regulation and balance of national policies to ensure the basic matching of fertilizer supply and demand and achieve the goal of zero growth of fertilizer;

Farmers are still more dependent on chemical fertilizers and are still more recognized for their efficiency and effectiveness;

Chemical fertilizer enterprises to increase the transformation and upgrading and structural adjustment, improve the quality and efficiency of chemical fertilizer, reduce environmental pollution and resource consumption;

The competition pattern of fertilizer market tends to be stable and reasonable, and the market share and income are increased by means of international trade and regional cooperation.

(II) development challenges

In the future, China's organic fertilizer industry still faces the following challenges:

the production scale and level of organic fertilizers are still insufficient and cannot meet market demands and standard requirements;

The production cost and price of organic fertilizer are still high, which affects the market competitiveness and consumption intention;

organic fertilizer market awareness and trust is still not high, there are quality problems and fake phenomenon;

The market supervision and standard system of organic fertilizer is still imperfect, and there are difficulties in policy implementation and implementation.

In the future, China's fertilizer industry still faces the following challenges:

The production capacity and level of fertilizer are surplus, which leads to the imbalance of market supply and demand and price fluctuation;

The production cost and price of chemical fertilizer are affected by factors such as raw material price and international trade, and there are greater risks and uncertainties;

The production efficiency and effect of chemical fertilizers are restricted by factors such as soil degradation and crop resistance, and there is a large waste and loss;

The production environment and social responsibility of chemical fertilizer are under the pressure of public opinion and public supervision, and there is a large room for improvement and promotion.

Conclusion

In summary, the fertilizer industry is an indispensable part of agricultural production, and its development status and trend are affected by many factors. Under the guidance of national policies, the organic fertilizer industry will usher in opportunities for rapid development, and the fertilizer industry will usher in the challenge of transformation and upgrading. Shangpu Consulting believes that in the future, the fertilizer industry should adhere to the direction of green development, structural optimization, quality improvement, and benefit growth, realize the coordinated development of organic fertilizers and chemical fertilizers, and provide better, more efficient and more environmentally friendly services for agricultural production. expected2023The market size of China's fertilizer industry will reach1895billion yuan, with a compound annual growth rate3.7%。