China is betting on fertilizers
Fertilizers production is a leading sector of the chemical industry in China. The country is also a primary consumer of those products. The reason could not be more obvious, with the population of People’s Republic of China approaching 1,5 billion people.
Thanks to widespread use of fertilizers from 2006 to 2012, China managed to acquire yields whose volume was 150% of the previous results, while the total scale of agricultural production increased by 30% in that period of time. Rapid progress in agriculture triggered the development of small and medium enterprises dealing with fertilizers trade. Thanks to their large number and the fact that such businesses are located near their clients, new distributors may ensure the uninterrupted flow of fertilizer supply on the market, which translates into stimulating agricultural production.
Upon realizing how fast fertilizers industry had been developing, the Chinese government decided to merge big enterprises from this sector, with a view to secure even better market supply of fertilizers. Among others, the consolidation of installations producing phosphorous-based fertilizers is progressing quickly. With this policy, China is taking decisive steps to become self-sufficient and to ensure food supply safety for the nation. Witnessing the speed of the development of the sector, we might call this target a challenge, but the consistent implementation of such strategy has already set an example for other markets.