Abstract:In recent years, with the increasing awareness of environmental protection, the development of chemical fertilizer and agrochemical industry has received more and more attention. The state has issued a number of policies to guide the optimization of the structure of the fertilizer and agrochemical industries and promote the green transformation of the industry. In this context, the fertilizer and agrochemical industry maintained a steady development trend.
1. Definitions and Classification
Fertilizers and agrochemicals play an important role in agricultural production, and they play a vital role in improving the yield and quality of crops. Among them, chemical fertilizer refers to fertilizer made by chemical and/or physical methods that contains one or more nutrients needed for the growth of crops. It is mainly used to improve soil fertility and increase crop yield per unit area. There are many types of chemical fertilizers, which can be divided into simple fertilizers and compound fertilizers according to the types of nutrients. Agrochemical industry is an integral part of the chemical industry, mainly referring to the production of various chemical substances used in agricultural production. These chemicals include pesticides, veterinary drugs, plant growth regulators, and other agrochemicals.
Second, industry policies
As important agricultural inputs, the production and use of chemical fertilizers and agrochemicals are related to the healthy and stable operation of agriculture and rural economy and the quality of the ecological environment. Therefore, the mainland implements a strict supervision and management system for the fertilizer and agrochemical industries. In order to strengthen the supervision and management of the production, operation and use of agrochemicals, ensure the quality of chemical fertilizers and pesticides, ensure agricultural production, protect the ecological environment, and maintain the safety of people and animals, the competent departments of the mainland have issued a series of laws and regulations to continuously improve and improve the supervision and management system of chemical fertilizers and pesticides. Taking the "Measures for the Administration of Pesticide Production Licenses" promulgated by the former Ministry of Agriculture in 2017 as an example, the measures implement the management of one enterprise and one certificate for pesticide production licenses, and further standardize the behavior of pesticide production enterprises. Through this system, the competent authorities can more effectively supervise pesticide production enterprises, ensure the quality and safety of pesticide products, and also promote the healthy development of the pesticide industry.
At the level of industrial policy, the state has also actively introduced a number of policies and measures to guide the fertilizer and agrochemical industries to achieve sustained, stable and healthy development. These policies mainly focus on adjusting the industrial layout and product structure, promoting technological innovation and industrial transformation and upgrading, and reducing environmental pollution. For example, policy documents such as the "Chemical Pesticide Reduction Action Plan by 2025" and the "Chemical Fertilizer Reduction Action Plan by 2025". These programs have pointed out the direction for the development of the fertilizer and pesticide industry, and put forward specific goals and measures to promote the reduction and green development of the industry and promote the sustainable development of agricultural production.
Third, the development process
China's fertilizer and agrochemical industry has a long history of development, and has gone through many key stages along with the country's economic progress and agricultural modernization. In the early days of the founding of the People's Republic of China, in order to solve the problem of grain production and let the people have enough to eat, the mainland actively promoted the development of the chemical fertilizer industry. In 1935 and 1937, nitrogen fertilizer plants were built in Dalian and Nanjing, marking the beginning of China's fertilizer industry. After 1949, the development of the fertilizer industry was further accelerated. China began to build a fertilizer industry, mainly focusing on the production of nitrogen fertilizers. A number of nitrogen fertilizer plants have been built and put into operation in various places, providing initial support for agricultural production. In the 80s of the 20th century, with the advancement of reform and opening up, China's agrochemical industry entered a period of rapid development. The production capacity of chemical fertilizers and pesticides has been greatly improved, and the product varieties have gradually been enriched. In the 21st century, China's agrochemical industry has begun to focus on technological innovation and industrial upgrading. Through the introduction of foreign advanced technology and the strengthening of independent research and development, the technical level of the industry has been significantly improved. At the same time, with the enhancement of environmental awareness, the industry has also begun to develop in a green and low-carbon direction. In recent years, with the country's emphasis on agricultural modernization and the improvement of environmental protection requirements, the agrochemical industry has begun to pay more attention to sustainable development and high-quality development. At present, chemical fertilizers and agrochemical industries have entered the stage of transformation and upgrading, and industrial upgrading and green environmental protection have become important directions for the development of the industry.
Fourth, industry barriers
1. Barriers to entry
As important agricultural production materials, the production and use of chemical fertilizers and agrochemicals are directly related to the national economy and people's livelihood, so the state has been relatively strict in controlling the production of such products. Among them, the mainland implements a strict administrative licensing system for the pesticide industry. According to the "Pesticide Management Regulations", newly established pesticide enterprises need to apply for a pesticide production license from the agricultural department of the provincial people's government in accordance with the provisions of the Ministry of Agriculture and Rural Affairs. If a pesticide manufacturer expands the scope of production or changes the production address, it shall re-apply for a pesticide production license. According to the "Pesticide Production License Review Rules", the competent authorities need to review the basic situation, personnel status, site layout, production technology, production equipment, workshop, quality assurance system, management system and whether it conforms to the industrial policy of pesticide production enterprises.
2. Technical barriers
The fertilizer and agrochemical industry is a technology-intensive industry, which requires a comprehensive combination of chemistry, plant protection, pesticide science, biology, environmental science, toxicology and other disciplines. Among them, the technical barriers of pesticides include new drug creation and production process barriers. Leading foreign large-scale enterprises have the first-mover advantage in the creation of new drugs for many years, which is the main element of their core competitiveness, and the barriers that have been formed are difficult to break through in the short term;
3. Capital barriers
The fertilizer and agrochemical industry is a capital-intensive industry, and enterprises need to invest a lot of money in the construction of production sites, the purchase of production equipment and the investment of environmental protection facilities. Especially in the field of pesticides, for active ingredient manufacturers, the scale effect of production capacity is particularly prominent in reducing costs. In order to be competitive in product technology, talent introduction, equipment investment, etc., enterprises must form a certain scale advantage. Therefore, the capital barriers of the industry are high.
4. Brand barriers
After years of deep cultivation and development, the fertilizer and agrochemical industry has given birth to a number of large-scale enterprises with significant brand effect, such as Syngenta, Yuntianhua and other well-known enterprises. After long-term operation and development, these enterprises have not only established a solid sales network and deep customer relationships, but also occupied the vast majority of the market share by virtue of long-term business accumulation and excellent market insight. Their brand influence and market position set an insurmountable barrier for new entrants. It is more difficult for new entrants to gain market share in a short period of time.
Fifth, the industrial chain
1. Analysis of the industry chain
After years of development, the fertilizer and agrochemical industry in mainland China has formed a relatively complete and huge industrial system including scientific research and development, raw materials, intermediates, raw material production, and preparation processing, covering the whole process from raw material mining and supply to final product application. Among them, the upstream link mainly involves the mining and supply of raw materials. The fertilizer and agrochemical industries rely on a wide variety of raw materials, including coal, natural gas, phosphate rock, pyrite, potash and organic raw materials, which provide the necessary material security for the midstream sector. The midstream link is the core of the fertilizer and agrochemical industry, mainly including the production and processing of fertilizer and agrochemical products. The downstream is mainly involved in the circulation and application of fertilizers and agrochemical products. These products enter the market through distributors, agricultural material stores and other channels, and are eventually sold to farmers.
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