It was learned from the China Petroleum and Chemical Industry Federation that the “National Conference on the Promotion of Controlled-release Fertilizer Extension in 2011†was recently held in Linyi City, Shandong Province. According to the information disclosed at the meeting, the Ministry of Agriculture has for the first time applied the new coating slow-controlled release fertilizer technology as the main agricultural technology of this year and promoted and applied it throughout the country. At the same time, the National Agricultural Technology Extension Service Center will extend the demonstration of controlled-release fertilizers to 25 crops in 23 provinces, which means that slow-release fertilizers are expected to usher in a major development in the “Twelfth Five-Year Planâ€. Slow-release fertilizers enter the scale to promote the first year
The so-called slow and controlled release fertilizer refers to a new type of fertilizer with slow nutrient release rate, long release period, and can meet the needs of crop growth during the whole growth period of the crop. China has more than 30 years of R&D history in the field of controlled-release fertilizers, but it has been in the R&D and laboratory stages for quite a long period of time.
In recent years, with the increasing pressure of agricultural non-point source pollution, food hygiene and safety, consumption of social resources, and increase of agricultural income, the slow-release fertilizer has ushered in rare market opportunities, and the development of related technologies in R&D and industrialization continues to accelerate. . At present, China has established a controlled-release fertilizer technology research and development and industrialization production system, obtained more than 30 technological research and development patents, and has achieved or surpassed the international advanced level in key technologies such as coating materials and process flow, and has succeeded in easing Controlled-release fertilizer prices have fallen sharply.
Previously, one of the major obstacles to the promotion of controlled-release fertilizers was the high price, which was even called “noble fertilizerâ€. With the decrease in prices and the increase in environmental protection and other requirements, the time is ripe for China to promote slow-release fertilizers.
The "2011 National Conference on Controlling and Releasing Fertilizer Extension" held in Shandong was considered by the industry as a "mobilization meeting" for China to promote slow-release fertilizers. Xia Jingyuan, director of the National Agricultural Technology Extension Service Center, said at the meeting that during the "12th Five-Year Plan" period, China's slow-release fertilizer will be able to accelerate its development.
“The Ministry of Agriculture for the first time adopted slow and controlled release fertilizer as the main push technology, and called on local governments to organize the construction of national agricultural technology promotion demonstration counties, organize experts and technical instructors, and carry out demonstration demonstrations of controlled-release fertilizer technology in key agricultural production and key technology production links. Training, to guide the promotion and application of science and technology demonstration households. National Agricultural Technology Extension Service Center will extend the demonstration and extension of slow-release fertilizer control to the country's 23 provinces. This indicates that slow-release fertilizer will enter the large-scale promotion and application stage." Xia Jingyuan said.
During the "Twelfth Five-Year Plan" period, it will receive policy support
As early as 2008, the National Agricultural Technology Extension Service Center has conducted demonstration and extension of controlled-release fertilizers in six crops in five provinces. By 2010, it has expanded to 20 provinces, covering almost all major grain-producing provinces. The crop has achieved good demonstration results. The results of the three-year demonstration and promotion show that the effects of slow-release fertilizers on fertilizer production, production increase, and efficiency increase are significant. Compared with fertilizers commonly used by farmers, slow-release fertilizers increase production on all crops, with an average increase of 10% and a maximum of over 40%. The economic benefits have also been significantly improved. The average income per mu is about 120 yuan, and the highest is achieved. 240 yuan.
“One of the key development goals during the “Twelfth Five-Year Plan†period in the national phosphorus and compound fertilizer “Twelfth Five-Year Plan†is to promote slow- and controlled-release fertilizers.†A person familiar with the situation told this reporter that the country may Give subsidies to enterprises that focus on the development of controlled release fertilizers to further reduce the promotion cost of controlled release fertilizers.
It is understood that due to the slow and controlled release fertilizer in the increase in production, energy conservation, emission reduction, environmental protection and other aspects of positive significance, all countries have attached great importance to support the development of controlled-release fertilizer industry. In October 2009, the United States introduced a state subsidies incentive policy for controlled-release fertilizers, which was implemented through the Natural Resources Protection Center (NRCS) of the US Department of Agriculture. The subsidy level is about US$12-22 per acre, and each farmer can apply for subsidies for five consecutive years. The maximum subsidy per household per year is up to 40,000 U.S. dollars.
Industry sources pointed out that China's annual investment of 40 billion yuan to encourage fertilizer production and low-cost supply, in addition to each year it will also take out 100 million yuan for Taihu Lake, Chaohu Lake and the Yangtze River, Yellow River Basin water pollution. If part of the funds can be used to subsidize farmers to purchase slow-release fertilizers, it will be beneficial to the development of the controlled-release fertilizer industry and product promotion, and it can solve the problems of resource consumption and environmental pollution at the source.
Related companies are expected to share industry growth
As a new industry, slow-release fertilizers currently have a relatively small share of the overall market. According to public information, its total output only accounts for approximately 0.7% of the 150 million tons of China's total physical fertilizer production, which accounts for approximately 2% of the total 50 million tons of China's total physical production of compound fertilizer.
However, the current small proportion also means that the future growth space is large. Analysts pointed out that as the country's efforts to promote slow-release fertilizers continue to increase and the introduction of related supportive policies, the prospects of this market are considerable, and the listed companies are expected to share the benefits of slow-release fertilizer development.
As the leading enterprise of China's controlled-release fertilizer, Jin Zhengda (002470) currently has an annual production capacity of 600,000 tons of controlled-release fertilizer. It has built Asia's largest production base for controlled-release fertilizers, and it has cooperated with the National Agricultural Technology Extension Service Center in the country. The demonstration and promotion of controlled-release fertilizers in the range greatly promoted the application of slow-release fertilizers in China.
Xia Jingyuan also stated at the 2011 National Conference on Promotion of Slow-Release-Release-Fertilizer-Released Fertilizers, "The development of slow- and controlled-release fertilizers requires more companies like Kim Jong-tah to play a leading role, through increasing independent innovation and promoting the model. Promote the popularization and application of slow and controlled release fertilizers in China."
Analyst Wei Tao of Guotai Junan Securities pointed out that Jin Zhengda’s products were in short supply in the first half of last year, and the utilization rate of the products was as high as 113.5%. With Heze Kim Jung-taung's second 300,000-ton/year ordinary compound fertilizer put into operation, the production bottleneck is expected to ease. The company plans to raise investment projects 600,000 tons/year of controlled-release fertilizer for new crops is expected to be completed and put into operation by the end of this year. By then, the company's controlled-release fertilizer production capacity will reach 1.2 million tons, which is the biggest bright spot for future growth.
It is worth noting that the National Controlled-Releasing Fertilizer Engineering Research Center is located at Jin Zhengda, which is also responsible for drafting the national standards for controlled-release fertilizers.
"It is expected that with the increase in promotion efforts and the gradual release of new production capacity, the company's controlled-release fertilizer will dominate the market in 2012 and its market share will reach over 70%," said Yang Ruomu, an analyst at Dongxing Securities.
According to Han Jian, an analyst from China Chemical Industry Network, domestic urea companies are also actively involved in the production of controlled-release fertilizers. However, the appellations are different, such as the "energy urea" of Luxi Chemicals and Huachang Chemical (002274). "Gold peptide urea", heart-linked "convergence net urea" and so on can be classified in this column.
"Compared to ordinary urea, the price of new urea per ton is 50-80 yuan higher, while the cost increase is only about 30 yuan / ton." Han Jian said.
He said that Kim Jung-taung has been using slow-release fertilizers for a long time and is well-known in the industry. His products are also more expensive than Luxi's slow-release compound fertilizers, but there are slow-release peptide ureas in Luxi's products. It is Kim Jong Da.
According to statistics, Six Countries Chemicals has successfully produced 46% of the built-in net slow-release compound fertilizers through the introduction of the patented technology of the Hefei Institute of Physical Science of the Chinese Academy of Sciences, filling the gaps in the high-end fields of the slow-release fertilizer fertilizer market. At present, the first 7,000 tons of controlled-release fertilizer has been put on the market.
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