BEIJING, Nov. 6 /Xinhua-PRNewswire/ -- Market analysts at China's leading B2B search platform, Himfr.com ( http://www.himfr.com/ ), with more than 10 B2B industry websites to its name, pointed out that the close relationship between chemical fertilizers
( http://www.cheaponsale.com/buy-chemical_fertilizers/ ) and crops dictates that the growth rate of fertilizer sales will maintain –- or surpass –- its current 5.9% pace into the future.
Himfr's analysts forecast that in 2010 the domestic use of chemical fertilizers will reach 60.7 million tons, while in 2007 the domestic fertilizer ( http://www.cheaponsale.com/buy-fertilizer/ ) use rate was only 51 million tons. So in the next three years, domestic demand for fertilizer will at least maintain the growth rate of 5.9.
Cultivation industry's changes dictate fertilizer industry's future
As market changes have caused domestic plantation structures to change, the ratio of land used for crops has declined, and the proportion of cash crop area has increased. Cash crops have become the main reason for fertilizer consumption. The four major food crops (wheat, rice, maize
( http://www.cheaponsale.com/buy-yellow_maize/ ) and soybeans
( http://www.cheaponsale.com/buy-soybeans/ )), saw ther proportion of fertilizer consumption drop to 47%, while cash crops' fertilizer consumption proportion rose to 53%. Among these, vegetables and orchards are the main consumers of fertilizer, accounting for 34% of total consumption.
Total fertilizer consumption shows solid growth, and both phosphorus and potassium ( http://www.cheaponsale.com/buy-potassium/ ) demand is increasing, but nitrogen has dropped off recently.
Nitrogen fertilizer
( http://www.cheaponsale.com/buy-_Nitrogen_fertilizer/ ) currently has a surplus in its production capacity, so the profitability of the industry shows a downward trend.
In 2007, China had 190 enterprises producing urea
( http://www.cheaponsale.com/buy-Urea_N46/ ), with an output of 22 million tons, accounting for 53.2% of the gross domestic production of nitrogen fertilizer. At present, the excess production capacity and the output of supply is exceeding demand, becoming a serious problem within the industry.
For more information, please contact:
Himfr.com
Room 610, Ximen commercial Building, 256 Xinhua Street
Tong Zhou district, Beijing 100110, China
Tel: +86-10-5211-8138
Email: cs@himfr.com
