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The virtual fire in the agricultural material industry dissipates and the market is becoming more and more rational.

Published: 2024-11-21 Author: mysheen
Last Updated: 2024/11/21, The virtual fire in the agricultural material industry dissipates and the market is becoming more and more rational.

The development of an industry will not only improve the production capacity of the whole industry itself, but also have a more extensive impact on the capital market. For example, when the price of garlic is high, more people will naturally invest in growing and selling garlic. The emergence of "garlic ruthlessly" and "Jiang your army" before is actually an extreme manifestation of the role of capital. So is there any hidden worry behind the investment boom in the field of agricultural materials? Zhang Ziyu, a special commentator of China Village Voice, said:

Zhang Ziyu: in the field of agricultural materials, there has also been an upsurge of investment in recent years. In recent years, with the continuous improvement of the level of agricultural development, the demand for fertilizer is also increasing, so fertilizer enterprises have to expand production capacity, looking for opportunities to go public.

However, there are ups and downs in prices of agricultural products and ups and downs in industrial development. Judging from the situation in the first three quarters of this year, most of the more than 30 listed fertilizer companies are losing money.

Why do fertilizer companies lose money? There are many reasons. On the one hand, the price of international agricultural products has been relatively low recently, and there is also a lot of uncertainty in the international economic situation. For fertilizer enterprises, if the business is not easy, the strategy will tend to be conservative. On the other hand, the competition in the domestic chemical fertilizer market is becoming more and more fierce, which also brings pressure on the R & D and sales of enterprises. the combination of the two factors leads to the stagnation of the development of fertilizer enterprises and the flow of funds to more active industries. resulting in poor performance of fertilizer enterprises.

The same situation also exists in the field of agricultural e-commerce. It is estimated that many friends still have the impression that all kinds of fresh e-commerce have developed rapidly in the past few years, and many farmers have a better income as a result. However, in just one or two years, these fresh e-commerce companies have closed down one after another. A careful analysis of the business model of these fresh e-commerce companies can be found that, in fact, many of these enterprises are burning money, once the funds of investors can not keep up, there will be problems in the whole industry.

Both chemical fertilizer and e-commerce are inseparable from the support of capital. appropriate investment can make the whole industry enter a stage of rapid development. overheated investment or too little investment will have a negative impact on the development of the industry. Judging from the previous situation, there is a lot of hot money in both areas, that is, financial capital in pursuit of short-term profits. Now we are seeing a decline in industrial growth, but this is actually a return.

For agriculture, due to the long industrial cycle, it is not easy to rise and fall sharply, but the rapid fluctuations of agricultural materials, e-commerce and other related industries will still bring uncertainty to agricultural development. We should also be prepared for this.

Agricultural materials such as chemical fertilizer are related to the production of every household, which requires the management department to have an accurate grasp of the macro policy. In fact, China has a sound chemical fertilizer collection and storage mechanism, this macro-control mechanism can effectively stabilize the price of chemical fertilizer, when the industry fluctuates greatly and the external factors are complex, the management department can consider starting the relevant mechanism if necessary.

For e-commerce, which is directly related to the sales of agricultural products, it is necessary to understand that the ups and downs of the industry is a normal phenomenon. In the face of industry fluctuations, you might as well slow down a step, the effect may be better.

As the saying goes: capital is a good thing, can add vitality to the industry, adjustment and decline is also normal, the industry do not worry about ups and downs.

 
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