LONDON--(BUSINESS WIRE)--This February, China’s Ministry of Agriculture (MOA) announced plans for a fertilizer replacement program designed to reduce the use of harmful chemicals in agriculture. The government’s Number One Central Document for 2017 focuses heavily on agriculture, particularly on introducing sustainable and “green” measures. This fertilizer plan is one of the ways the country hopes to facilitate that, with the goal of piloting the program in 100 counties and districts by the end of the year.
As awareness of the toll of chemical fertilizers on the environment grows, Infiniti Research expects the demand for biofertilizers to rise as well. While the global fertilizer market is expected to grow at a CAGR of 2.4% by 2020, the global biofertilizer market will grow at a CAGR of over 14%. Infiniti Research predicts that the biofertilizer market will be worth USD 1.89 billion by 2020, helped along by initiatives such as this one by China.
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In China, the amount of chemicals used on crops is 70% greater than the global average. This volume of chemicals is not only causing pollution and harming peoples’ health, but also damaging the soil, leading to poorer crop yields. The country is therefore aiming to reduce chemical fertilizer use by at least 20% by 2020, starting with a pilot program in 2017. It is encouraging more targeted use of fertilizer, as well as other green methods.
This plan may be challenging to implement successfully, however, especially for individuals. Organic fertilizers are several times more expensive than their chemical counterparts. Government subsidies will likely be necessary to make this plan a success.
Government actions such as this one present new market opportunities, as well as new challenges. As China makes a push towards greener agriculture practices, demand for organic fertilizers will rise. However, depending on the level of government support available to farmers, it may still be difficult to make the use of these fertilizers practical and affordable. Market intelligence can help navigate these situations, identifying opportunities and providing background on unfamiliar markets.
Market intelligence solutions experts at Infiniti Research help companies, including those in the chemical industry discover these opportunities, providing insights to overcome challenges and achieve sustained growth. Infiniti’s latest project helped a leading chemicals manufacturer understand spend patterns, key sourcing destinations and competitors’ sourcing strategies specific to 6 targeted categories. After conducting a deep dive assessment, the client was to fine-tune its sourcing strategies thanks to insights provided by Infiniti’s solutions experts.
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