Three undesirable biases in the fertilizer market

Judging from the current fertilizer market, there are three undesirable biases, which need to be paid attention to and overcome: First, the price war has caused low corporate efficiency.
??? First, companies are "setting the price" in order to gain market share.
The fertilizer industry itself should be a low-profit industry.
In order to promote their products, some companies do not seek ways to expand sales by improving product quality and service quality, but simply rely on lowering prices to compete with others.
In order to monopolize the market, some even dumped at a price below cost, causing the company to lose money.
In this way, the more they sell, the bigger the company loses.
??? Second, in order to survive, some companies see other people's price cuts, and they are afraid that they will not sell if they don't lower their prices, so they also cut their prices in desperation.
In this way, if you drop me, he will drop again when he sees me drop.
I see him drop and keep up, forming a vicious circle.
The price cuts have made some companies that were previously more profitable can only maintain production and pay wages; those companies that can only maintain production have fallen back and forth, and the payment for goods is not returned in time, and they are already unable to operate.
??? The third is the balance of supply and demand of chemical fertilizer varieties, and the prices of merchants and farmers are layered when purchasing.
??? The current fertilizer prices have reached a trough.
Due to repeated construction, some regions have multiple phosphate fertilizer plants, and some regions and counties have nitrogen fertilizer plants, so that some distributors sell fertilizers of the same specification to several manufacturers.
In this way, farmers have a lot of choice.
The price is low, of course it sells quickly.
In turn, the merchants gave the manufacturers a message: "If you don't cut prices, you won't be able to sell.
" In this way, merchants and farmers "united" to force manufacturers to lower prices.
??? Second, the counterfeit and inferiority continue, which seriously affects the rights of farmers and the normal production of enterprises.
??? First, the manufacturers do not strictly control the products leaving the factory, and the content is not up to the standard phenomenon from time to time.
According to relevant reports, the pass rate of small and medium-sized enterprises is 15%-20% lower than that of large and medium-sized enterprises on average.
In order to protect their own interests, farmers are struggling to obtain imported fertilizers even though the price of imported fertilizers is higher than that of domestic fertilizers.
This directly affects farmers' enthusiasm to use domestic fertilizers and the economic benefits of domestic fertilizer companies.
??? Second, the manufacture of fake and inferior products still occurs in some places.
According to related reports, the total value of counterfeit and inferior agricultural products seized by the quality and technical supervision department last year was nearly 600 million yuan.
Some counterfeit and inferior products are produced by enterprises that do not have the basic conditions, scale, qualified raw materials and qualified craftsmanship, or even produced by hand-made local methods.
The more famous-brand and high-quality products, the more counterfeiters will follow.
.
Cracking down on fakes year after year and endlessly disrupting the normal economic order has severely disrupted the normal economic order, not only entrapped the farmers, but also caused serious effects on the reputation of some manufacturers, and even made them unable to carry out normal production.
??? Third, local lockdowns make it difficult for manufacturers to conduct direct sales.
??? With the reform of the fertilizer distribution system, the original sales partners of manufacturers have also undergone great changes.
At present, some agricultural resources departments are reorganized and restructured, some are leased, and some are contracted to individuals.
In order to do a good job in the off-season storage of chemical fertilizers, to avoid wholesale bargaining by dealers, and to pay attention to the timely return of loans, according to the spirit of the relevant documents of the State Council, in addition to continuing to play the intermediary role of the agricultural resources department, many manufacturers have established their own businesses in rural areas and market towns.
The direct selling point of the product not only reduces the price difference of the three-level wholesale, but also avoids counterfeit and inferior products, which is very popular with farmers.
However, due to local protectionism, in order to protect local fertilizer plants or maintain the benefits of local agricultural resources departments, some localities have formulated local policies, requiring local business administration departments not to issue licenses to factory direct sales outlets, or requiring supervision departments to visit frequently.
Inquiry, you have no intention of operating.
In some places, personnel are even organized to set up cards, intercept, and detain direct sales products of non-local enterprises, causing great difficulties to the production and operation of enterprises.
With the reform of the fertilizer distribution system, the original sales partners of manufacturers have also undergone great changes.
At present, some agricultural resources departments are reorganized and restructured, some are leased, and some are contracted to individuals.
In order to do a good job in the off-season storage of chemical fertilizers, to avoid wholesale bargaining by dealers, and to pay attention to the timely return of loans, according to the spirit of the relevant documents of the State Council, in addition to continuing to play the intermediary role of the agricultural resources department, many manufacturers have established their own businesses in rural areas and market towns.
The direct selling point of the product not only reduces the price difference of the three-level wholesale, but also avoids counterfeit and inferior products, which is very popular with farmers.
However, due to local protectionism, in order to protect local fertilizer plants or maintain the benefits of local agricultural resources departments, some localities have formulated local policies, requiring local business administration departments not to issue licenses to factory direct sales outlets, or requiring supervision departments to visit frequently.
Inquiry, you have no intention of operating.
In some places, personnel are even organized to set up cards, intercept, and detain direct sales products of non-local enterprises, causing great difficulties to the production and operation of enterprises.
With the reform of the fertilizer distribution system, the original sales partners of manufacturers have also undergone great changes.
At present, some agricultural resources departments are reorganized and restructured, some are leased, and some are contracted to individuals.
In order to do a good job in the off-season storage of chemical fertilizers, to avoid wholesale bargaining by dealers, and to pay attention to the timely return of loans, according to the spirit of the relevant documents of the State Council, in addition to continuing to play the intermediary role of the agricultural resources department, many manufacturers have established their own businesses in rural areas and market towns.
The direct selling point of the product not only reduces the price difference of the three-level wholesale, but also avoids counterfeit and inferior products, which is very popular with farmers.
However, due to local protectionism, in order to protect local fertilizer plants or maintain the benefits of local agricultural resources departments, some localities have formulated local policies, requiring local business administration departments not to issue licenses to factory direct sales outlets, or requiring supervision departments to visit frequently.
Inquiry, you have no intention of operating.
In some places, personnel are even organized to set up cards, intercept, and detain direct sales products of non-local enterprises, causing great difficulties to the production and operation of enterprises.