The state promotes fertilizer companies to formulate fertilizers

China is set to break traditional industry boundaries by implementing a range of strategies aimed at boosting business involvement in soil testing and fertilizer application. According to a press conference held by the Ministry of Agriculture's Press Office on April 1, this year’s focus will be on encouraging enterprises—particularly chemical fertilizer companies—to become key players in the soil testing and formula fertilization initiative. Currently, soil testing and fertilizer application efforts in China are largely confined to agricultural technology systems and soil fertilizer institutions. Major fertilizer companies have not been actively involved. From a policy perspective, most subsidy programs for soil testing and formula fertilization have targeted agricultural departments, especially those responsible for promoting agricultural technology and soil fertilizer services. Fertilizer companies, however, often miss out on financial support when participating in such projects. In practice, tasks like soil sampling, formula development, field trials, performance evaluation, and technical services are mostly handled by agricultural technology departments. Even when it comes to fertilizer processing, much of the work remains under the control of the soil-fertilizer system, leaving little room for fertilizer companies to get involved. To address this, Chen Mengshan, director of the Crop Management Division at the Ministry of Agriculture, announced new measures to encourage large fertilizer companies to take the lead in soil testing and formula fertilization. First, the government will provide free formula information to help companies develop customized fertilizers. This will guide production and supply based on soil test results. Second, companies will be supported in expanding their production scale and establishing agrochemical service systems suitable for China’s conditions, such as building distribution networks for fertilizers. Third, market supervision will be strengthened, with simplified fertilizer registration processes and incentives for increased production and supply of formula fertilizers. Efforts will also be made to crack down on illegal activities, counterfeiting, and fraud to create a fairer market environment. Since its launch in 2005, the soil testing and formula fertilization project has received a total of 1.6 billion yuan in central government subsidies over three years. It has reached 1,200 counties and 140 million farmers, promoting soil testing and formula fertilization across 900 million mu of farmland. The initiative has significantly boosted crop yields, efficiency, and quality. In 2007 alone, it helped reduce irrational fertilizer use by 1.1 million tons, equivalent to saving 1.45 million tons of crude oil and 150 million cubic meters of natural gas, while cutting carbon dioxide emissions by 3.5 million tons. This year, the central government will allocate 1.15 billion yuan for the same purpose, aiming to further expand the area covered by soil testing and formula fertilization and include more crop types in the program.

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