The market is relatively stable, the enterprise suffers from unevenness --- report from the spring plowing in Yunnan

Yunnan is located in southern China, but it is at a higher altitude. There are both tropical and plateau mountains. Therefore, there are great differences in the areas of spring plowing.

According to Wang Jian, the vice president of the Yunnan Chemical Industry Association, and the Secretary-General Wang Huizhong, overall, during the period of spring plowing this year, the supply of fertilizers, pesticides, and agricultural plastics in Yunnan was sufficient and timely. The Yunnan provincial government requires the cadres to enter the village to solve the problems encountered by the peasants. The agricultural resources department has done everything possible to organize fertilizers, pesticides and other agricultural resources to ensure that the varieties are full and in sufficient quantity, and they directly send fertilizers to the fields. The relevant agro-technical service departments will intensify the promotion of major scientific and technological measures, expand the scale, scope, and crop varieties of fertilization for soil testing and technology, and increase the coverage of improved varieties and the availability of technological measures.

In general, the price of urea in Yunnan is low compared with the surrounding provinces. The rise in prices is still in an affordable range. This benefits from fertilizer reserves. It is said that the main channel fertilizer reserves reached 1.08 million tons, an increase of 20% over the same period of last year, and the inventory also increased in varying degrees. However, some companies also reflected that some light-storage companies have been reluctant to act, so that the reserve operation only stays in the winning bid.

The price of compound fertilizers is relatively small. Some companies report that the government has repeatedly managed to add trouble to the company. The details are: Before last year, companies could apply for a fertilizer registration certificate to the agricultural department. However, in September 2005, the State Council promulgated the Regulations of the People's Republic of China on the Production of Industrial Product Licensing Regulations, and the compound fertilizer production enterprises had Obtain a license to produce and sell. This split management pattern has caused many companies to still fail to complete the two certificates, affecting the company's production and operation.

At present, the days of small-scale fertilizer companies are still sad. In recent years, small nitrogen fertilizers, small phosphate fertilizers, and small-scale compound fertilizers have become somewhat difficult to manage. However, this difficulty has eased due to the adjustment of the agricultural structure. Because they found business opportunities in the specialty fertilizer market. In the province of Yunnan, a major province of flue-cured tobacco, some small businesses have introduced special fertilizers for flue-cured tobacco, which is very popular. Yunnan is still a large province of flower production. Some chemical fertilizer products introduced by some enterprises are welcomed with “high efficiency, pollution-free, and meet the needs of green agriculture”.

The days of big fertilizer companies are getting more and more prosperous. Among the companies we visited, Yuntianhua and Yunnan Sanhuan Chemical Co., Ltd. are the most powerful companies. Yuntianhua Co., Ltd. has the ability to design an annual output of 500,000 tons of synthetic ammonia, 760,000 tons of urea, and 110,000 tons of ammonium nitrate. The Yuntianhua Group behind it has acquired and absorbed many provinces with the support of the Yunnan Provincial Government. The enterprise has now been considered by many in the industry as China's largest fertilizer company. Sanhuan Chemical now has a production capacity of 120,000 tons of monoammonium phosphate and 660,000 tons of diammonium phosphate. A production plant with an annual output of 1.2 million tons of ammonium phosphate is also under construction. After the project is completed, the production and sales volume of Phosphate Compound Fertilizer will reach more than 2 million tons, which will become the largest and internationally influential and well-known phosphate fertilizer compound production enterprise.

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