In the past, small fertilizer companies often struggled to compete with large enterprises due to limited resources and market reach. However, the nationwide implementation of soil testing and formula fertilization has opened up new opportunities for these smaller players. This shift was highlighted in recent interviews conducted by a reporter with several fertilizer companies in Hebei province.
Soil testing and formula fertilization were launched nationwide in 2004. Today, over 1,200 county-level pilot projects are supported by the state, along with nearly 200 local initiatives, making more than 1,400 pilot counties across the country. According to data from the Ministry of Agriculture, the program has delivered impressive results: grain output has increased by 5%, fertilizer use efficiency has improved by 3%, and per-mu benefits have risen by over 25 yuan. As a result, most fertilizer companies now integrate soil testing into their operations. Some even have in-house soil testing equipment, signaling a growing role for companies in this area. Yet, some large firms have found it challenging to develop tailored fertilizers based on soil tests.
The main challenge for larger companies lies in the mismatch between the localized, small-batch nature of formula fertilizers and their need for mass production and mechanization. This conflict raises costs and sales risks. Li Yuejin, director of Langfang’s Soil Fertilizer Station, noted that once a company enters the soil testing and formula fertilization field, it must continuously adjust its production processes and packaging, which increases both costs and complexity. Large enterprises struggle with such flexibility, especially when regional products face slow sales. Unlike general-purpose fertilizers, which can be sold widely, formula fertilizers are often tied to specific areas, limiting their market reach.
This challenge has created a window of opportunity for smaller, previously overlooked companies. Jia Baoxiang, director of Hebei Baozhou Yinong Fertilizer Factory, explained that in developed agricultural regions, many counties once had nitrogen fertilizer plants. These small companies had advantages in producing compound and BB fertilizers. Despite losing scale advantages over time, many still survive, especially in areas like Langfang, where 80% of counties produce compound, BB, and bio-organic fertilizers. These firms have established local production, distribution networks, and deep knowledge of farmers’ practices, making them well-suited for formula fertilization.
Sanhe City-based Xiangfeng Fertilizer Co. has embraced soil testing and formula fertilization as part of its marketing strategy. Gao Huifeng, the company’s general manager, said they shifted from waiting for customers to coming to them. Their dealers and technicians travel rural areas, conduct soil tests, and offer personalized fertilization advice. By leveraging local agricultural data and building a grassroots sales network, Xiangfeng has reduced distribution costs and met the demand for small-batch, region-specific fertilizers.
Similarly, Jinfeng Biotechnology Fertilizer Co. in Yongqing County has been actively involved in soil testing since early on. They provide free soil analysis, produce customized fertilizers, and guide farmers on proper application. The company has set up over 300 agrochemical service centers and maintains a team of nearly 100 part-time technicians to support users. These efforts have earned praise from agricultural departments, distributors, and farmers alike.
Currently, over 280 fertilizer companies nationwide supply products for soil testing and formula fertilization. Most of them are small-scale, flexible, and able to adapt quickly. With the national demand for tailored fertilizers still growing, there is ample room for small companies to thrive in this evolving market. For them, embracing soil testing and formula fertilization is not just an option—it's a strategic move toward long-term success.
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