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Who decides the composition of compound fertilizers? China Agri-Materials Network. A few days ago, I called Sun Yueyao, a professor at the School of Economics at Shandong University. He had just returned from an inspection of the market, and when I asked him about his impressions from that trip, he said to me with deep emotion, “Do you know who decides the composition of compound fertilizers?” It’s not the farmers; it’s the costs and the market – that’s putting the wrong things first. Let me tell you about the most obvious phenomenon: a few years ago, when the price of potassium fertilizer was low, the compound fertilizers we produced had a potassium content of 3×15%. But starting last year, due to the sharp increase in the price of potassium fertilizer, compound fertilizer manufacturers, under market pressure, have begun to reduce the amount of potassium in these fertilizers. From a market perspective, the potassium content in most compound fertilizers is below 10%, and some even produce compound fertilizers containing only nitrogen and phosphorus. This is abnormal. A disconnect and discrepancy have emerged between the behavior patterns of compound fertilizer companies and the needs of farmers. What will be the outcome if this continues? ”Professor Sun was a bit excited. Following his question, the author also fell into deep thought. Who exactly should decide the composition of compound fertilizers? Theoretically, it should be determined by the nutrient status of the soil and the needs of the crops. Following Professor Sun’s line of thought, the author raised doubts about compound fertilizer companies. The response from the compound fertilizer companies was: the purpose of business operations is to pursue profits. While it is certainly condemnable to mislead consumers in the pursuit of profits, it is not wrong to adjust the product structure based on market demand. This year, the price of potassium fertilizer is so high; the price per unit of potassium nutrient is almost 50% higher than that of phosphorus and nitrogen. It is for this reason that, in the first half of this year, the compound fertilizer market was largely replaced by phosphate fertilizers. If compound fertilizers with a high potassium content continue to be produced as in previous years, it will be even more difficult to sell them. “Moreover, compound fertilizer manufacturers do not simply reduce the potassium content in all their compound fertilizers; for example, the potassium content in fertilizers intended for tobacco cultivation must be maintained at a certain level. Similarly, the potassium content in compound fertilizers sold in regions such as Hunan cannot be too low, otherwise consumers will refuse to use them. ”Li Haofeng, head of the marketing department at Jiangsu Huachang Chemical Co., Ltd., said, “It represents an advancement in fertilization when companies are able to combine economic benefits with scientific fertilization practices.” ” Theoretically, the purpose of fertilization is to boost agricultural production and incomes, thereby ensuring a steady increase in food production and an adequate supply of agricultural products. Therefore, a formulation approach centered on crop needs should of course be adhered to; however, in reality, theory is always influenced by many external factors. Take the composition of compound fertilizers in the first half of the year as an example: potassium fertilizer is much more expensive than nitrogen and phosphorus fertilizers. First of all, do ordinary people have enough financial capacity to bear this cost? ; Secondly, people also keep an economic account in mind; when the profits generated from increased agricultural yields are lower than the cost of investing in potassium fertilizers, they may naturally give up high-potassium products and seek another balance. This is also something mentioned in the guidelines for spring fertilization issued by the Ministry of Agriculture in the first half of this year, which call for encouraging people to use \"cost-effective fertilizers\". As a compound fertilizer company, with farmers as the core, this is also something that must be taken into consideration. At this point, the author is confused – it seems that everyone has a valid point. Professor Sun questions social morality, while businesses follow business principles ; Consumer farmers, on the other hand, consider economic factors. It is still the invisible hand of the “market” that ultimately makes the decision. So what is the root cause of the phenomenon described by Professor Sun in the current market? It is the imbalance in potassium fertilizer prices that has caused problems with farmers’ ability to afford them; as a result, compound fertilizer manufacturers have reduced the amount of potassium included in these fertilizers, with the ultimate goal of bringing the price of potassium fertilizers to a more reasonable level. Perhaps by then, the formulation of compound fertilizers will be able to achieve its true goal: focusing on crops in order to increase yields and incomes. In such an unbalanced situation today, the proportions can only be distorted by economic factors.
The pursuit of surplus value—profit—is the nature of enterprises. In order to increase sales and survive, and driven by their own interests, they promote products that are beneficial to them, which is not necessarily suitable for farmers or agricultural production.
Working with compound fertilizers is a bit like trading futures. . It’s all about keeping the heart rate up! ! !
At present, all major fertilizer companies are driven by profit motives; the composition of fertilizers is closely related to the prices of their raw materials. When the price of potassium fertilizers rises, the fertilizer formula becomes one with high nitrogen and phosphorus levels and low potassium levels, while when the price of phosphorus fertilizers rises, the formula shifts to one with high nitrogen and low phosphorus levels and high potassium levels. These decisions are not made with the needs of farmers and the land in mind, and it is ultimately the farmers who suffer as a result!