Overview

Our vision for the fertilizer business is “becoming the world-leading supplier for agro-inputs and agronomic services”. We embrace a global perspective in developing the resources, production, technologies, marketing and services, adopt science and technologies to serve the society, and serves as a role model in the industry. Centering on the upstream and downstream sectors that take fertilizer as the core and aim to serve farmers, we make great efforts to shape and promote the industry.

We are implementing six major strategies to develop our fertilizer business, namely the marketing service strategy that is customer centered; the industrial development strategy that has advanced production style; the resource acquisition strategy that embraces a global vision; a technology innovation strategy that serves the industry development; a supporting IT strategy that helps to our industrial transformation; a talent attraction strategy that propels our future growth. We are integrating mineral and fertilizers, fertilizers and chemicals, production and sale, production and service, transforming Sinofert from a trade company into an agro-input manufacturer and agronomic service provider that is market-oriented and seeking industrial development, and laying the foundation for Sinofert to become a world-class enterprise.

The sales volume of our fertilizer business reached 14.63 million MT, which helped us to maintain the leading position in China’s fertilizer market.

Organizing Resources

In recent years, as the driving force of China’s agricultural materials industry, the company has developed its capacity of producing fertilizers by getting aggressively involved in the reasonable exploitation and utilization of mineral fertilizers in China. Meanwhile, by creating diversified purchasing channels in the global markets,. the company has comprehensively boosted its ability of integrating resources, thus acquiring quality fertilizer resources in a sustainable and steady way.

As one of the largest fertilizer producers in China, we control and patcipated 14 fertilizer production companies. Their products include nitrogen fertilizer, phosphate fertilizer, compound fertilizers, potash fertilizer, as well as new fertilizers With an annual capacity of over 12 million tons, these enterprises are distributed reasonably in resource sources and consumer markets, supplying fertilizers conveniently to all parts of the country.

In addition, Sinochem is also a fertilizer manufacturer with the most extensive product range, covering primary nutrient elements fertilizer, secondary nutrient elements fertilizer, microelements fertilizer, BB fertilizers, organic and inorganic composite fertilizer, specialized fertilizer, and other new type fertilizer.

China’s largest fertilizer importer--- While strengthening our own productivity, we also enhance our ability to develop more overseas supply to guarantee the availability of the scarce fertilizer resources. As China’s largest fertilizer importer, by drawing upon our 60 years of international trade experience, we have formed strategic alliance with the major international fertilizer suppliers. We keep a relatively strong market position with good bargaining ability, market share and brand recognition.

In terms of the import for potash, we distribute the potash products for major potash suppliers of the world, including Potash Corp., APC, and BPC. We also play an active and important role in the joint negotiation of importing potash, making contribution to maintaining a relatively low price for China’s potash import, making up for the potash shortage of China, and alleviating the burden of Chinese farmers. Regarding the phosphate import, we have been the exclusive distributor for DAP from Morocco and Tunisia, making contribution to balancing the bilateral trade and maintaining China’s diplomatic economic relationship with these countries. As to the import of compound fertilizers, we have established a long-term strategic partnership with Yara International of Norway, and served as the exclusive distributor for Yara composite fertilizers for over 20 years in a row, providing Chinese farmers with high-quality and great-efficiency composite fertilizers and building the No. 1 brand for import composite fertilizers in China.

Every year, we shoulder the responsibility to keep fertilizer reserve in offseason for the country, playing a significant role in stabilizing the fertilizer supply in spring and autumn planting seasons to avoid price fluctuation.

Distribution Network

We have set up a comprehensive sales network, composing of 17 branches, over 2,100 distribution outlets, and more than 140 cooperative stores. At the same time, we are exploring the direct sale model in the retail market. Our distribution network spreads over all the provinces except Tibet, covering 95% of China’s arable land.

Based on our distribution network, we have direct sale and direct supply to customers, so as to save the wholesale and reduce the circulation links, lower the cost of fertilizer consumption, and alleviate farmers’ burden.


In addition, through nearly 10 years of development, we have owned a multi-tiered storage network constituted by 500 distribution hubs and delivery centers with a total storage capacity of over 2 million metric tons. We have built a safe, convenient, low-cost integrated logistic system for agricultural material through ensuring product quality and safety, providing fast and convenient distribution service, and reducing logistic cost.

Click for details of our distribution network in China.

R&D

We keep sharpening our edge in technology innovation, and enhance its support for the industrial upgrading. Focusing on the need of agricultural production, we carry out three work: the building of the innovation system, the development of the new products, and the development and application of new technologies.

We have set up a technology innovation system that contains management structure, innovation platform and team, institution, and capital investment. We have established a company R&D center for phosphoric compound fertilizer, and three province-level company technology centers. At the same time, we are preparing to build a nitrogen R&D center as well as a crop nutrition and protection R&D center. Our R&D investment in fertilizer reaches over RMB 100 million per year, majorly used to reduce the energy consumption of the production process, to develop key technologies and new products, and to promote new technology.

In terms of new technology R&D, we have developed many advanced technologies in China, such as wet-process refined phosphoric acid, and filed over 30 patent applications.

Agricultural Service

We are building an agronomic service system that is composed of an agronomic science dissemination system, an on-site instruction service system, and a soil testing and formulated fertilization system to serve the farmers.

We have taken the lead to open the “800 free service hotline” and “400 customer service hotline” in China’s agricultural material industry. Throughout the year, we invite the experts and professors from China Agriculture University and Chinese Academy of Agriculture to answer farmers’ questions related to crop planting and fertilization online. In addition, we also cooperate with the China National Radio to broadcast a nonprofit program called “Sinochem Agriculture Square”, which is the first of its kind in the domestic agricultural material industry and the only one directly targeting at the farmer listeners. The radio program disseminates the knowledge of scientific fertilization and planting, and insect prevention. It opens an “air classroom” for farmers, with an audience of over 1.6 billion person times since 2004. We cooperate with such publications as Farmers’ Daily and Agricultural Material Guidelines, and have a special page for the agronomic services by drawing upon our expert pool and the fresh information collected through our hotline, which has become "the instruction manual" for farmers to farm scientifically.

We have set up over 5,000 pilot villages for scientific fertilization demonstration in China’s major agricultural counties. Through such a program, we provide service on scientific fertilization and balanced fertilization, bringing benefit to tens of millions of Chinese farmers on more than 100 million Mou of arable land.

We keep rendering service on soil testing and formulated fertilization. Since 2006, by leveraging the experts and lab facilities of the Chinese Academy of Agriculture, as well as the labs of our plants and more than 2,100 distribution outlets, we have established a three-tier service system consisted of “technology center, lab, and service station (embedded in the distribution centers)” to conduct a service procedure as follows: our staff at the service stations collect the soil sample on spot; later the soil sample is delivered to the lab to be tested; then the experts provide a fertilization formulation according to the soil testing results and crops planned to be planted.