Market "zero growth in fertilizer" and "fertilizer and pesticide reduction and efficiency" and many other such news frequently appear, which releases what signal? According to incomplete statistics, China's fertilizer output has gradually declined since 2015. By 2017, China's fertilizer output was 62.275 million tons, down 18.35% compared with that in 2015. In the first half of this year, the output of chemical fertilizer was 28 million 363 thousand tons, down 6.5% from the same period last year.

At the same time, China's grain output continues to show an upward trend, according to statistics in 2017, China's grain output was 618 million tons, up 0.27% year-on-year. The decline in fertilizer production and the stabilization of grain production mean that the overall fertilizer application rate will achieve zero growth, and the trend of fertilizer consumption is expected to be stable in the future.

_At present, the contradiction of excess capacity in the industry has not been completely resolved, some zombie enterprises survive in the cracks, stolen construction in peak season and other phenomena still exist, and the situation of repetitive construction of the plant has not been curbed. For fertilizer enterprises with low concentration of the industry, if this situation is not improved, then the contradiction between supply and demand will be solved. It's hard to ease. In the latter stage, the industry will tend to increase concentration, speed up industrial restructuring, introduce high technology and develop large-scale enterprises, which will force some substandard products to withdraw from the market.

Moreover, in recent years, as the preferential policies of the state to the industry gradually narrow, the operating costs of fertilizer enterprises have increased significantly, and the terminal income affected by the low prices of agricultural and sideline products is not ideal. On the premise of the same results, most farmers do not pay for high-priced fertilizers. This means that the traditional fertilizer enterprises must be transformed and upgraded, and it is inevitable to increase technological innovation and improve service quality in the later period.