Fertilizer utilization in China has a big gap compared with developed countries. Fertilizer utilization remains to be improved

Fan Xiaojian, the Deputy Minister of Agriculture, highlighted on the 16th that China's fertilizer market prices have surged significantly since last year, with an average increase of over 20%, and remain at a high level. He pointed out that one of the main reasons behind this situation is the imperfection of China's scientific fertilization system, which results in a significant gap between the efficiency of chemical fertilizer use and that of developed countries. Many aspects of fertilizer production, sales, and application are not aligned with the goals of building a resource-saving and environmentally friendly society. These remarks were made during a seminar titled "Scientific Fertilization and Fertilizer Enterprises" organized by the Ministry of Agriculture. Fan noted that in 2004, China used 46.37 million tons of fertilizers, making it the world's largest consumer. However, the utilization rate of chemical fertilizers remains low, and five key factors hinder the development of a scientific fertilization system: First, high production costs and energy consumption. The fertilizer industry in China consists largely of small-scale enterprises, with low industrial concentration. Over 20% of the more than 2,500 licensed compound fertilizer producers are small companies with annual outputs of less than 20,000 tons. Second, the structure of fertilizer types is not well balanced. In 2004, the ratio of nitrogen, phosphorus, and potassium in China’s chemical fertilizer production was 1:0.30:0.06. While nitrogen fertilizer is self-sufficient and phosphate fertilizer meets most domestic demand, potassium fertilizer is limited due to resource constraints, leading to insufficient supply for agricultural needs. Although the production capacity of NPK compound fertilizers has exceeded 10 million tons, most of them are general-purpose products, lacking specialized formulas tailored to different soil types and crops, with imbalanced nutrient ratios. Third, the fertilizer market lacks effective regulation. Despite government policies aimed at supporting the industry, the recent sharp rise in fertilizer prices has undermined the benefits of the "two reductions and exemptions, three subsidies" policy, dampening farmers' enthusiasm for grain production and affecting their income. Fourth, fertilizer use is often irrational. There is a common imbalance in fertilization practices, such as overuse of chemical fertilizers and underuse of organic ones, excessive nitrogen and phosphate, and neglect of potassium and trace elements. Many farmers apply fertilizers without understanding the specific needs of their soil or crops, leading to over-application and inefficiency. Fifth, there is a lack of legal framework for fertilizer management. With an imperfect product access system and no strict regulations on fertilizer use, the market is plagued by counterfeit and substandard products, misleading consumers through deceptive labeling. Fan emphasized that scientific fertilization is crucial not only for agricultural productivity and farmer incomes but also for the long-term development of the fertilizer industry. Under the new system, enterprises must take the lead, working closely with research and extension departments to develop appropriate products. Fertilizer sales companies should ensure quality while providing application guidance to end users. Additionally, companies must invest in technological innovation, comply with regulations, and guarantee the quality of their products.

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