In the past just “Spring ploughing and selling fertilizer” tug of war, many provinces and channel enterprises and agricultural production enterprises “defeated.” Among them, has always been favored by farmers in the East three provinces market more “Waterloo”, some dealers to reduce sales almost equal to 30% or more. In addition, according to industry sources, due to market downturn, some companies reluctantly will be transferred to the Northeast three provinces.
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And the strange thing is, in a reporter interviewed a number of three provinces and farmers in the process of farmers, they feedback the local farmers with the total amount of fertilizer has not drastically reduced, the planting structure has not been a substantial adjustment. So, why business and dealer sales plummeted? This phenomenon, the reporter conducted an in-depth investigation.
Phenomenon: sales sharp drop 20% -50%, profits dropped!
Shenyang Jinqiu Real Agriculture Co., Ltd. General Manager Wang Yanmin with “unprecedented plain” to describe just past the spring plowing fat situation. “Although years ago, after the year were two batches of goods, but take a crop as a stubble before the sale of fat there is a small climax, this year is extremely flat on the end.” Wang Yanmin predicted, according to this year , The best annual sales will be more than 40,000 tons, which compared to last year will be reduced by about 34%.
And this phenomenon, Liaoning Gaoyuan Jinjie source of agricultural limited liability company general manager Xu Guilong is even more pessimistic. “Last year before the Spring Festival began to ship, and this year until the market in March to start in previous year sales of more than 10,000 tons, according to this sign, this year I am afraid to play on the sale of the fold.” According to Xu Guilong said that the local with him There are a few resembling resellers.
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Channel sales were tragically “Waterloo”, agricultural production enterprises have not been spared. Jilin Huilong Fertilizer Co., Ltd. General Manager Chen Hu sigh, in recent years, especially in the first quarter of this year, the formal compound fertilizer and mixed fertilizer manufacturers in the three northeastern provinces of the living conditions are extremely difficult: “early raw material prices are relatively low But on the whole, most of the ex-factory prices are very low pressure, profit meager. “According to Chen Hu introduced, although the first quarter of Jilin in the first half of the year, the company’s profits, City Huilong fertilizer industry rely on mature outlets and grasp of the market, the performance does not drop increase. But indeed some agricultural production enterprises in the first quarter sales reduction of more than about 20%.
Reporters initially inferred, resulting in this year’s agricultural channels and manufacturers of sales decline in the reasons may be due to the Northeast three provinces to adjust the structure, as well as peasant fertilizer caused by a sharp drop. However, through interviews found that this judgment does not stand very well. According to Liaoning and Heilongjiang farmers say, most of the local counties and cities of corn acreage has not been a huge reduction. Farmers have not plummeted fertilizer, but only a limited reduction. This can not help but wonder, those who decline in the performance of dealers and manufacturers of sales, where to go? How is it not change it?
Deep digging: who is squeezing the channels and the living space of the business?
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According to the reporter to understand, the new business main body climbing, land transfer and custody business scale, foolishness group serious outbreak, food prices downturn and planting structure adjustment and other issues, this year farmers recognized the important impact of agricultural market.
Among them, the rapid increase in the cultivation of large, co-operatives, the number of family farms, and they directly to the manufacturers bargain model, the most pressure to increase the channel operators. According to Liaoning Anshan Zhongtai fertilizer distribution office to allow observation, although so far, the local real scale of the new business is not too much, but from this year’s development trend, very rapid. At the same time, a large area of land management business is also forming. I would like to let this year, a friend of Taian County, breathtaking 4,000 acres of land. The land supply of these land, as well as from the kind of income to the work, by the land management company package. An acre of land to friends 400 dollars. In addition, there is a Guangdong company this year in Italy Fuyuan County contract 100 million mu of rice, agricultural products are also directly related with the agricultural production enterprises. Will let the emotion, the involvement of foreign capital and the rise of big, so that more and more difficult to do channel operators.
In addition, due to a serious outbreak of this year’s flicker group led to regular manufacturers and channel operators by the impact of the phenomenon, but also become the most agricultural farmers Tucao point. “In the first quarter of this year, the light in the Gongzhuling investigated and dealt with more than 10.” According to an industry source, this year in the East three provinces have a kind of (18-15-12), but carefully found only 50 kg of mixed fertilizer, 80% are amino acid particles, that is to say , Nitrogen, phosphorus and potassium and sulfur and other elements of nutrients only 20%. But the people do not understand, immersed in the less spent more than 20 dollars to buy and the content of formal mixed fertilizer like the joy. In addition, according to Wang Yanmin said that these small manufacturers of the distribution speed is also very fast: “local places are not regular logo small manufacturers, they turned the tricks to cheat farmers with fertilizer this year we went to the grassroots distribution when found , These fat has long been quietly paved into a lot of villages. This is really give us the impact of the formal channel is not a little leeway.
In addition, the food price downturn and planting structure adjustment on the adverse effects of agricultural sales can not be ignored. “The original price of corn is not high, let the people do not love farming, the results of this year, Liaoning is also drought, farmers this year’s harvest more heart drums in previous years will generally catch up with urea, this year probably also hung.” Liaoning open eight trees Town Xia Jiacun growers Xu Hualong said that this year’s cheap fertilizer sales in the local can, but the big brands because the price is no advantage, by the impact of great. In addition, for the planting structure adjustment, Heilongjiang Jixi City co-owner Yang Sihua said that some of the cold areas of the northeastern part of the corn area is relatively large, the original acres of fertilizer with 0.6-0.7 tons of fertilizer, soybean varieties, With 0.2-0.3 tons of fertilizer, (to verify whether to send cool) This is indeed some parts of the dealer sales have an impact.
“Now the agricultural business can be said to be tasteless, abandoned the pity. Fought so many years, I could not bear to give up, but do not give up also do not earn any money. This is not a person I feel, a lot of people are Have the same feeling. “Xu Guilong feeling.
Measures: the market is difficult, how to break through the dilemma!
Will let the words, not far from the future, purely focused on “low buy high and sell” agricultural distributors, will die. Modern agriculture needs advanced production technology + advanced agricultural products. And when the agricultural technology services to become the standard of agricultural channels, Xu Guilong that the contents of the competition will be upgraded to the scope of services, as well as the length of service time.
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For the new business entities across the middle channel business this problem, Chen Hu said that as a manufacturer, do not want to benefit for a moment and over the local dealers, unless the dealer’s operating capacity is indeed a problem, will take the initiative to dock large households. We hope that relying on dealers docking downstream market, through planning activities together to jointly develop the market. For enterprises how to break the market, Chen Hu believes that to continue “innovative marketing model, upgrade product category, enhance technology, improve service capabilities.”
In addition, for the flicker group and logo does not regulate the impact of small manufacturers, Chen Hu said that with the land transfer and custody business development, the future of the land will be more professional and young. This is absolutely positive for the development of formal enterprises and channels. Wang Yanmin said that the off-season, many companies will be free to teach farmers how to distinguish between true and false fertilizer. While calling on the Government to continue to increase crackdown efforts, so that the flicker groups and illegal enterprises nowhere to hide.
“Although this year I think the market is the most difficult to do a year, but I think the blacksmith also need their own hard! Many aspects of the bit, and get the market is not a big problem.” Chen Hu told reporters.
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