Opportunities in China's Green Technology Sector

Robert Hsu, September 22, 2009

In this Issue:

A Closer Look at China's Green Technology Sector
Helping Solve China's Water Pollution Problems
China's Organic Agriculture Revolution
Two Bets on China's Green Fertilizer Industry
Cleaning Up China's Pollution Problems

China's Organic Agriculture Revolution

Along with China suffering from a shortage of clean drinking water, the country is also dealing with a lack of arable land. Not a good sign considering that China has 1.3 billion mouths to feed.

Because of strong demand in China, farmers often double- and triple-crop their farmland in order to produce more rice, fruits and vegetables -- all of which are heavy users of fertilizers. Currently, China uses 60 million tons of fertilizer annually. And since more farmers have overused traditional fertilizers over the years, soil quality has dropped dramatically on Chinese farms.

There's no denying that Chinese farmers have their hands full in trying to keep up with China's growing population while losing acreage yearly.

Much like the water shortage issues, the Chinese government understands the problems facing its farmers and food industry. So Chinese policymakers have once again stepped up to the plate and are now restructuring China's fertilizer industry.

Currently, China is the largest producer of fertilizer products, manufacturing 33% of the world's supply. And over the years, the majority of the fertilizers produced where chemical based, which wreak havoc on farmland. But now, China's National Development and Reform Commission recently announced that it would eliminate chemical-based fertilizers in the next five years.

Instead, most Chinese farmers will be using organic fertilizers. The Chinese government is already supporting China's organic fertilizer industry, promising to boost the development of it. That means China's organic fertilizer industry now has a huge market and strong growth potential.

In fact, China's organic fertilizers only accounts for 30% of the fertilizers used in China today. So China is in the early stage of its organic agriculture revolution. But with China's rapid economic growth and growing demand for green food products, China's organic fertilizer industry is expected to grow more than 30% per year.

And you can bet there are incredible ways to profit from this immense trend.

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