How big is the profit margin of fertilizer (how much profit is there in selling a bag of fertilizer)

What is the profit margin of the fertilizer industry?

Many people think that the profit of fertilizer is very high or violent, but it is also limited, and the profit of various fertilizers is also different. The concept of fertilizer is very broad, and it is divided into macroelements, secondary elements and trace elements.

Among the fertilizers in the entire market now, the most widely used ones are bulk fertilizers such as compound fertilizers.

The profit of such fertilizers generally remains at around 30%, which is not as lucrative as ordinary people imagine .

Shandong is the largest province in China in terms of compound fertilizer production. The operating rate of these large fertilizer enterprises is generally less than 50%, and most manufacturers mainly focus on volume, so the profit is not as high as expected.

The most profitable products on the market now are medium and trace elements. These elements are used in small quantities, and if the profit is low, no one will sell them, so they have the highest profit during the planting process. Generally, the profit will remain at around 50%~100%.

In order to be better absorbed, these trace elements require more advanced processing. Most of these trace elements are in chelated form so that they can be better absorbed by plants.

The most profitable fertilizers on the market now are the more niche fertilizers. The more difficult it is for ordinary people to understand the fertilizers, the higher the profit. For example, some amino acid compound fertilizers and humic acid compound fertilizers.

There are also some foliar fertilizers with special effects and trace elements. Such fertilizers are the most profitable, with an average profit of 100% to 300%.

In recent years, water-soluble fertilizers containing a large number of elements have been recognized by farmers due to their high absorption and utilization rate, low residue and good effect.

The profits of the newly launched macro-element water-soluble fertilizers are also relatively high, usually at 80~100%.

However, with the popularity of fertilizers in recent years, the price profit is gradually decreasing. Generally speaking, the profit of water-soluble fertilizers containing a large number of elements from big brands is about 50%, while that of water-soluble fertilizers from small companies is about 30% to 50%.

In fact, this expression will offend many dealers, because such profits belong to gross profits. In fact, many dealers cannot make so much money.

The main reason is that there are also various costs such as credit, distribution, warehousing, technical guidance, etc. Excluding these costs, under normal circumstances, for fertilizers containing a large number of elements, the general profit is maintained at 30%~50%, which is already very good.