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 Industry Outlook |
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| In the future, there will be enormous space for the development of organic compound fertilizer for the following reasons: |
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| Shrinking Arable land and Exploding Population |
In 2005, per capita farmland in China was only 940 square
meters, approximately 40% of the global
average, according to the PRC ministry of Land and Resources. It
is predicted that by the middle of the 21st century, China¨s
population will reach 1.6 billion and arable land will decrease to
half of the current size. This implies that by the middle of this
century, per capita farmland in China will be only 16% of world
average levels. Moreover, it is estimated by the China State
Meteorological Administration that by 2030, global warming will
further reduce China¨s current grain production by 5-10%. Because
of these combined factors, high yielding and environmentally
sustainable fertilizers will be crucial to China¨s agricultural
production. |
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| Environmental Concerns |
According to the Chinese Statistics Bureau, in 2005, Chinese
farmers used 47.66 million metric tons of chemical fertilizers or
about 400 kg per hectare of farmland, which far exceeds the
acceptable safe limit of 225 kg per hectare in developed
countries. After a long period of chemical fertilizer overuse on
China¨s farmland, accumulated heavy metals have hardened the soil
and reduced its fertility. Surface water has and is being
eutrophicated (an increase in chemical content resulting in severe
reductions in water quality and in fish and other anima l
populations). However, balanced ＾green￣ fertilizers which contain
humic acid reduce the amount of traditional chemical fertilizers
needed per hectare. They also cleanse soil of the existing
chemical residue and stimulate crop growth, thus further improving
the stability of the soil¨s ecosystem. Also, the general public as
well as agriculture professionals are increasingly aware of the
need for high-quality green agricultural products. Consequently,
non-polluting, residue-free green fertilizer is in growing demand
in order to satisfy the market for safe and green food. |
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Industry Trends |
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In 2003, only 25% of the fertilizers used in China¨s agricultural
industry were organic (Source:
 Agriculture
Technology Promotion Centre), however, agriculture specialists
suggest that the optimal ratio of organic versus chemical
fertilizer should be around 50% as it is in developed countries
(Source: Chinese Chemical & Industrial Technology Research
Institute). In 2005, compound fertilizer accounted for 27% of the
total fertilizer consumed in China, however the quality is
generally very low leading to ecosystem degradation (Source:
Ministry of Agriculture). 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 the organic ones, hence ensuring
vast room for its future development in the Chinese agricultural
production system.
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