New Report Analyses China’s Rapid Economic Growth in the Fertiliser Industry

PRLog (Press Release) – Feb 29, 2008 – Report Buyer, the online destination for business intelligence for major industry sectors, has added a new report showing that China maintained a rapid economic growth in 2006 under the national macro-control policy. This was in the first year of the 11th five-year period (2006-2010) of the national economic development.

“China Fertiliser: Market Review & Outlook 2006/2007”(http://www.reportbuyer.com/go/BOA00007) reports that the 11th five-year plan for the Chinese Economic and Social Development (announced in March 2006) requires that the per unit GDP energy consumption and pollution discharge are to be reduced by 20% and 10% in five years. This is against the backdrop of an expected annual 7.5% GDP growth. The policy is expected to bring about a new round of technical innovation, distribution of production and product-mix readjustment in the fertiliser industry.

Authors of the report note that the 11th five-year plan for National Agricultural & Rural Economic Development (announced in August 2006) sets up a goal of annual 0.65% increase in comprehensive grain productive capacity in five years under the condition of annual 0.18% decrease in planted grain acreage.

They further say that the 11th five-year plan for the Fertiliser Industry (announced in October, 2006) puts forward a fertiliser productive capacity of 63.5 million MT and a production of 60 million MT a year by 2010, in order to guarantee fertiliser supply. The study shows that the specific goals of nitrogen, phosphorus and potassium production are 42 million MT, 15 million MT and three million MT respectively. Domestic fertiliser self-sufficiency should reach 90%.

The report shows that the conflict between the government's policy to practice macro-control and the policy of increasing farmers' income and the conflict between fertiliser price growth and government's control remained unsettled in 2006. Complaints from farmers and fertilisers producers led to a government decision to lift fertiliser price control, withdraw preference policies for fertiliser producers and give direct cash subsidy to farmers from 2007 on. But fertiliser production cost keeps increasing on account of the reform of coal, power and natural gas price toward market economy.

“China Fertiliser: Market Review & Outlook 2006/2007” is available from Report Buyer.
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Report Buyer product ID: BOA00007