Market Trends of china fertilizers Industry
China's expanding cultivation area is driven by increased food demand and goal to achieve self-sufficiency in staple food
- In China, the cultivation area for field crops decreased from 130.5 million hectares in 2017 to 127.8 million hectares in 2021, representing 71.4% of the total cultivated area. Corn dominated the field crop landscape with a share of 34.2%, followed by rice and wheat at 23.6% and 18.3%, respectively. This expanding cultivation area is projected to drive up fertilizer demand in the country.
- China typically divides its field crop production into two seasons: summer/spring (April-September) and winter. Spring crops encompass early corn, early rice, early wheat, and cotton, while winter crops focus on winter wheat and rapeseed. Rice and corn, however, take precedence in China's agricultural landscape, accounting for a third of the nation's grain output. As the world's leading rice producer, China allocated 30 million hectares for rice farming in 2022, yielding a harvest of 210 million tonnes. Key rice-producing regions span Heilongjiang, Hunan, Jiangxi, Hubei, Jiangsu, Sichuan, Guangxi, Guangdong, and Yunan. China's corn production for 2022-23 is projected to hit 277.2 million tonnes, up by 4.6 million tonnes from the previous year, primarily due to improved harvests. The Northeast provinces of Heilongjiang, Jilin, and Inner Mongolia stand out as major corn-growing regions.
- While spring remains the primary cropping season, it faces some challenges, particularly during the hotter months of June and July. Rice, a staple for millions in China, is particularly affected. The combination of high temperatures and low precipitation exacerbates mineral depletion in the soil, necessitating higher fertilizer application. These dry weather conditions also pose a risk to crop yields.
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About 28% of nitrous oxide emissions from cropland in the world are from China's agricultural lands
- Primary nutrients enhance biochemical processes, such as enzyme activity, and foster plant cell growth. Deficiencies in these nutrients can significantly impact plant health, development, and crop yields. In 2022, the average application rate for nitrogen, potassium, and phosphorus combined in field crops stood at 159.9 kg/hectare. Specifically, nitrogen accounted for 65.23%, phosphorus for 28.07%, and potassium for 6.68% of this average.
- Nitrogen takes the lead among primary nutrients, playing a vital role in plant metabolism as a constituent of chlorophyll and amino acids. Its average application rate in 2022 was 279.65 kg/hectare. Potash followed with 105.3 kg/hectare, and phosphorus trailed slightly at 94.9 kg/hectare. The contamination of surface and groundwater with nitrogen and phosphorus has been attributed to inadequate guidance on fertilizer application rates for farmers. Notably, around 28% of global nitrous oxide emissions from croplands originate from China.
- In 2022, cotton, wheat, corn, and rice emerged as the crops with the highest average nutrient application rates, with figures of 255.41 kg/hectare, 232.25 kg/hectare, 198.44 kg/hectare, and 157.76 kg/hectare, respectively. China led the world in cotton production, with a staggering 6.4 million metric tons in 2022. It also held the title of the largest consumer and importer of cotton. Impressively, China accounted for about 20% of global cotton consumption, with a significant 84% of its production hailing from Xinjiang.
- Given the imperative to meet the needs of a growing population, there is an anticipated increase in the application of primary nutrients in field crops between 2023 and 2030.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The growing interest in fruit and vegetable cultivation due to better market opportunities
- According to the Chinese Ministry of Agriculture, more than 48.6 million hectares of soil are deficient in zinc and manganese
- Magnesium, being highly soluble, is prone to leaching in acidic and sandy soils
- In China, irrigated croplands occupy a major portion, constituting about half of the total cropland area
- In China, rapeseed or canola is applied with large amounts of micronutrients compared to other field crops
- Cabbage, a nutrient-intensive crop, rapidly exhausts the soil's nutrients, necessitating a consistent supply nutrients
- Calcium is applied in large quantities as it is crucial for the development of plant tissues and plant growth
