The state promotes fertilizer companies to formulate fertilizers

China is set to break traditional industry boundaries by implementing a range of strategies aimed at increasing corporate involvement in soil testing and fertilization programs. According to a press conference held by the Ministry of Agriculture's Press Office on April 1, this year marks a significant shift in China’s approach, with "corporate participation" becoming a core objective. The government is actively encouraging chemical fertilizer companies to take on a more central role in soil testing and formula fertilization, transforming them into key players in the sector. Currently, soil testing and fertilization efforts are largely confined within agricultural technology systems and soil fertility institutions. Major fertilizer companies have not been fully engaged in these initiatives. From a policy perspective, existing implementation plans for soil testing and formula fertilization subsidies primarily target agricultural systems, especially those focused on promoting agricultural technologies and soil fertility solutions. Fertilizer companies, however, do not receive financial support for their participation in such projects. In practice, most aspects of soil testing and formula fertilization—ranging from soil analysis and formula development to field trials, evaluation, management, and technical services—are handled by agricultural departments. Even when it comes to fertilizer processing, much of the responsibility falls on the soil-fertilizer system. As a result, fertilizer companies remain on the periphery of these efforts. To address this, Chen Mengshan, director of the Crop Management Division at the Ministry of Agriculture, announced that new measures will be introduced to encourage fertilizer companies, particularly large-scale ones, to become major participants in soil testing and fertilization. First, the government will provide free formula information based on soil testing to help companies develop customized fertilizers. This will guide production and supply strategies. Second, the government will support companies in expanding their production scale, helping them establish agrochemical service systems tailored to China’s conditions, such as building distribution networks for fertilizers. Third, market supervision will be strengthened, with simplified registration processes for fertilizers and incentives for companies to increase the production and supply of formula fertilizers. Efforts will also be made to crack down on illegal activities, counterfeiting, and fraud to foster a healthier market environment. Since its launch in 2005, the soil testing and formula fertilization project has seen remarkable progress. Within three years, the central government allocated a total of 1.6 billion yuan in subsidies. The program has reached 1,200 counties and 140 million rural households, promoting soil testing and formula fertilization over 900 million mu. This has led to significant improvements in crop yield, efficiency, and quality. In 2007 alone, the project reduced 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 has allocated 1.15 billion yuan in subsidies to further expand the scope of soil testing and formula fertilization, covering more crops and areas across the country. These efforts reflect a broader strategy to integrate industry players into sustainable agricultural practices and enhance national food security.

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