Fertilizer: The price mechanism reform is imperative. In the past two years, the price of fertilizers has risen again. The farmers complained that the benefits brought by the preferential policies of the country have been swallowed up by the prices of chemical fertilizers. The fertilizer companies are under double pressure of cost increases and national price limits. The profit margin continues to shrink. It is imperative to reform and improve the fertilizer price adjustment mechanism.
The relevant departments of the State Council have put reforms on the market economy as the main mechanism for reforming and improving the fertilizer price control mechanism. The basic idea is to adhere to the orientation of market-oriented reforms and fully release chemical fertilizer prices in a timely manner; and gradually cancel the price of chemical fertilizer production enterprises in the country. Preferential policies: Strengthen and improve macro-control, establish a balance mechanism for fertilizer supply and demand that meets the requirements of a market economy, and establish a long-term mechanism for the benefit guarantee of direct subsidies for farmers' fertilizer use.
The reform of the fertilizer price adjustment mechanism will promote the survival of the fittest and improve the overall competitiveness of the fertilizer industry in China. It will promote the adjustment of fertilizer production layout, and change the production layout that is determined mainly in the era of planned economy to be close to the market and most factories are far away from raw material production areas. The enterprises are encouraged to work in accordance with the economic laws. If conditions are met, there will be no conditions, and even conditions may be more. Through further reforms, the expansion of manufacturers' production capacity and the establishment of new factory sites will not only have to take into account the current situation, but also have long-term strategic considerations, and can pay attention to the unification of energy advantages, market advantages, and scale advantages. At the same time, it will also promote the energy-saving transformation of the fertilizer industry.
This reform will also accelerate the increase of chemical fertilizer utilization. The utilization rate of chemical fertilizers in China is only 30% to 40%, and the nitrogen fertilizer utilization rate is only 30% to 35%. In 2004, the production of nitrogen fertilizer was 33.04 million tons, and the nitrogen fertilizer utilization rate was about 30%. If it was increased to 70%, it would save 18.88 million tons of nitrogen fertilizer, if it was converted to 61.56 million tons of coal.
The reform will straighten out the state's direct subsidy mechanism for peasants, reduce the losses caused by the price increase of chemical fertilizers to farmers, and transform enterprises and departments “supporting agriculture†into national finance “supporting agricultureâ€. This is also the common practice of mature market economy countries.
Pesticides: not only to do more, but also to do more. After more than 20 years of development, China has become a world leader in the production and use of pesticides. A batch of pesticide products has reached the advanced level of similar products in the world, in addition to basically ensuring the safety of agricultural production in China, there are a large number of Export. In 2004, the export volume reached 391,000 tons, accounting for about 40% of the total pesticide production in the current year, and the number of varieties with export amounts over 10 million US dollars reached 26.
In recent years, the domestic and international environment has increasingly stricter requirements for the production and use of pesticides in China. On the one hand, it is required to reduce the discharge of pollutants in the production process as much as possible; on the other hand, it is required that the used pesticides be green and environmentally friendly, and the use process should be free of pollution. The relevant international conventions and regulations put forward higher requirements for the export of pesticides in China. The Rotterdam Convention imposes many restrictions on the export procedures of pesticides on the list. There are more than 450 pesticides listed on the EU “black listâ€, including more than 60 varieties that China is producing, using, and exporting.
With the development of economic globalization and the need of adjustment of industrial structure in developed countries, the trend of transnational corporations shifting pesticide production to emerging market countries, especially to China, is becoming more apparent. Nearly all of the world's largest pesticide manufacturers have established production bases in China. The world's pesticide giants such as Bayer, Syngenta, and DuPont have established 15 pesticide production companies in China with a total investment of more than 100 million U.S. dollars, and China may become the world's leading manufacturing base for pesticide products. However, China's domestic pesticide companies are small in scale, disperse in distribution, and face reintegration.
Therefore, China's pesticide industry must first speed up industrial restructuring and product structure adjustment. We should strengthen macro-control, raise the threshold for pesticide production, strictly withdraw from the system, and encourage pesticide companies to develop into a grouped and chained approach through integration, mergers, and restructuring, and foster large-scale enterprise groups; accelerate the development of new and highly efficient pesticides as alternatives to high toxicity. Pesticide varieties, supporting pesticide production companies adopt cleaner production processes, develop environmentally friendly water-based formulations, and improve the efficiency, effectiveness and safety of pesticide application. Secondly, it is necessary to establish and implement the GLP (Good Laboratory Practice) system for pesticide safety evaluation in China as soon as possible and achieve international mutual recognition. Third, not only should pesticide production enterprises implement standardized operations, but they must also conduct comprehensive assessments and certifications of environmental protection, safety, and hygiene in the entire production process. Fourth, the establishment of pesticide production facilities should be properly centralized in areas where the concentration of pesticides is concentrated, which can exert industrial agglomeration effects and greatly reduce costs.
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