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Through interviews with relevant associations and companies, China's fertilizer production and distribution companies have already had the ability to participate in market competition. The relatively complete sales and service network that has been formed is the most important competitive advantage. The circulation of agricultural capital forms a diversified business entity, business model, and business channel. Modern circulation methods such as chain operations show more and more vitality. With the approaching of market opening, most domestic fertilizer companies have made various preparations, especially the construction of marketing networks.
However, although it is widely believed that foreign investment in China's fertilizer industry is not a simple matter, and the formation of its sales network in China will take some time, but people in the industry point out that in today's market, anyone who has mastered the Internet will have the market initiative. Therefore, foreign companies will inevitably take advantage of management, capital, and sales models to increase competition for the distribution network of fertilizers in China. The main supply and marketing cooperatives of existing domestic fertilizer distribution companies are all cooperative, and they are divided by region and they often fight for each other. Once foreign capital enters, existing distribution companies are easily defeated by each.
According to relevant sources from the Department of Economic Affairs of the National Development and Reform Commission, foreign-funded enterprises have set up fertilizer companies in some provinces in China, and some have even set up chemical fertilizer wholesale companies. Cargill companies in the United States, Russia Akon and other large foreign fertilizer companies have begun to infiltrate into China. At the same time, with the opening of China's fertilizer distribution system, low-cost sales models with few links and high efficiency in foreign countries will surely enter China. This requires domestic fertilizer circulation companies to seize the time to "build a healthy body," enhance their marketing technology, strengthen the construction of networks and marketing channels, and do a good job of agrochemical services. The reporter learned that some companies such as Anhui Huilong Agricultural Group, Zhejiang Agricultural Resources Group, and Sichuan Agricultural Resources Group are all strengthening the building of agricultural capital chain networks.
It is understood that in the five-year transitional period that the Chinese government has opened up for the fertilizer market, the fertilizer industry has developed rapidly under the support of national policies. At present, China is the world's largest producer and consumer of fertilizers. Except that potassium fertilizer still needs to be imported due to resource constraints, the quantity and varieties of domestic fertilizer can basically meet domestic needs.
The fertilizer market is now open to the outside world
According to the WTO accession commitments, China will fully liberalize the wholesale and retail business of fertilizers and related services to foreign investors from December 11. According to industry analysts, after a five-year transition period, China's fertilizer industry has been able to face the entry of foreign capital. In the future, Chinese and foreign companies will first compete in the competition for the distribution network.