Beginning in 1978, the “supply and marketing cooperative” system, a state-owned distribution network from the national, provincial and township and village level, was replaced by private wholesalers and retailers who became the main distributors of agricultural materials. This process resulted in a fragmented, immature industry. In the highly fragmented fertilizer market, we were able to set up our own distribution channels with private distributors and link them together.

As of September 30, 2011, we had a total of 850 distributors covering 22 provinces, four autonomous regions and three central government-controlled municipalities in China, who sell our products to retail stores scattered in villages and townships all across China. We work closely with distributors, with whom we generally have long term partnerships. We train distributors to educate the market about the benefits of using our products and their positioning in the market place. We also regularly hold info-seminars with them and rely on their feedback from the market place.

We do not grant provincial or regional exclusivity because there are currently no individual distributors sufficiently strong enough to warrant this. We enter into non-exclusive written distribution agreements with chosen distributors who demonstrate their ability in local market experience that have sufficient regional sales networks. Distribution agreements do not dictate distribution quantity because changes in local market conditions and weather can dramatically affect quotas.
　
In addition, Our sales department works closely with our distributors in the various provinces to promote our products, maintain our profile and to continue to cultivate partner relationships.

China Green Agriculture also manufactures HA organic liquid compound fertilizer for export to foreign countries including India, Ecuador, Pakistan and Lebanon through contracted distributors. This is expected to increase dramatically as our foreign distributorships continue to mature and grow.