Agricultural Inputs and Markets – Ma Xuewen of Nongda Fertilizer: The Industry Needs to Return to Its Original Purpose

Nongda Fertilizer’s mission is to help farmers achieve greater profitability. High‑quality products are the foundation; exceptional service adds value; and robust financial support empowers them.
— Ma Xuewen, Chairman of Shandong Agricultural University Fertilizer Technology Co., Ltd.

This article is an exclusive interview with Ma Xuewen, Chairman of Shandong Nongda Fertilizer Technology Co., Ltd., featured in our “Agri‑Inputs and Market” high‑end interview series. We have compiled and present it here, hoping it will offer you valuable insights.

“Agricultural Inputs and Markets”: Mr. Ma, hello. In your view, have there been any major changes in the agricultural inputs market over the past few years—particularly in the last two years?

Ma Xuewen: Two years ago, I said the agricultural inputs industry was in the darkness just before dawn; this year, I’d say the first light is ahead. Why do I put it that way?

Because Nongda Fertilizer Industry has seen hope! In recent years, the market has undergone significant changes, yet Nongda Fertilizer’s path has grown increasingly smooth—proof that our commitment to technology‑driven products and strategies is the right one.

The entire industry is undergoing a bottom-up transformation, with shifts in the user base that are inevitably reverberating through to the corporate level. The shift from product‑centric thinking to customer‑centric thinking means that farmers now seek high‑quality fertilizers to maximize their returns; accordingly, companies must prioritize cost‑effective solutions that deliver strong value for money.

Why do we say that dawn is ahead? It turns out that many voices in the market once complained that Nongda Humic Acid was expensive. Now, those concerns are gradually fading—though they still persist. Nevertheless, the number of customers who accept and recognize this product is growing year by year, and more and more farmers are turning to Nongda Fertilizer Industry.

I’ve said before that agricultural inputs are not ordinary commodities—they are investments, and they demand a clear return on investment. As long as farmers see a favorable cost‑benefit ratio, do they really care whether a product is expensive or cheap?

Moreover, in the conventional sense, “expensive” and “cheap” are compared solely on the basis of weight, without taking into account value or cost‑effectiveness. For example, if a pound of gold and a pound of copper weigh the same, would their values be identical? Of course not.

Therefore, I believe that, from a value perspective, our new‑generation fertilizers are actually quite affordable; the better the fertilizer, the more cost‑effective it is in terms of value.

“Agri‑Inputs and Markets”: This year, the market has essentially shifted: for companies that lead in technology and products, dawn is breaking, and they can now see the light at the end of the tunnel. With market recognition, these tech‑ and product‑driven firms are no longer pessimistic. However, it remains an undeniable reality that profit margins across the industry are under pressure—so what should companies do?

Ma Xuewen The agricultural inputs industry has reached a stage where every link and every component is starkly transparent, leaving no room for differentiation—this is the red‑ocean phase. For companies to thrive, they must focus on end‑users; only by boosting per‑acre profitability can businesses capture a share of the value. Our company should aim to profit from the incremental value added, rather than competing in this transparent, already‑saturated market.

Enterprises should position themselves as I’ve described, rather than engaging in price wars upstream. Such a strategy creates a vicious cycle: the more companies fight on price, the lower the quality of their products becomes in an effort to win, leaving farmers with reduced yields and prompting yet another round of price competition—this is the very essence of a downward spiral. That’s why my approach is simple: by providing high‑quality fertilizers, we help farmers improve their inputs and boost field productivity, while Nongda Fertilizer captures 10% of the value added.

“Agricultural Inputs and Markets”: Indeed, over the past period, our magazine has been actively discussing green agricultural development. What you just mentioned aligns closely with this approach: achieving maximum income while minimizing input and environmental impact.

Ma Xuewen: Although our company sells fertilizers, we advocate reducing fertilizer application rates. Running a business means not only balancing the books for ourselves but also accounting for farmers and for society at large. We must proactively shoulder our social responsibilities and refrain from letting ordinary people fall into hardship simply because the company seeks to turn a profit.

At present, the composition of inputs used in cultivation is imbalanced: organic products account for a small share, while inorganic ones dominate, resulting in an environment that lacks harmony between organic and inorganic practices. Humic acid, by contrast, helps to restore balance to the soil—reducing the need for chemical fertilizers, improving soil health, and fostering microbial colonization. This, in turn, establishes a healthy soil ecosystem, paving the way for sustainable, environmentally friendly agriculture.

It is precisely on the basis of these factors that I have observed Nongda Fertilizer’s standing has been steadily rising in recent years. Many experts agree that we are committed to ecological sustainability, and this is reflected in the market: more and more customers are seeking out our products and recognizing their value, while fewer and fewer people complain about their price.

After all, a standard product and a technologically advanced one simply don’t belong on the same playing field—what’s there to compare? We’ve also been committed to helping more distributors and growers clearly understand what kind of brand Nongda is, emphasizing that it can’t be judged solely by price.

“Agri‑Inputs and Markets”: Mr. Ma, this year the industry has witnessed numerous new developments and significant changes. Do you believe this signals the collapse of the old order and the emergence of a new one? And how would you define this new order?

Ma Xuewen Perhaps our understanding of the new order differs.

Most troubled companies suffer from unclear strategies, lack of focus, and impulsive decision-making—issues that are not industry-wide phenomena.
They have failed to stay true to their roots and to the original mission of producing fertilizer, straying from the初心 of “meeting farmers’ needs and helping them achieve greater benefits.”

In recent years, Nongda Fertilizer faced significant challenges, but we gritted our teeth and persevered, proceeding steadily and solidly. Although our progress has been somewhat slower—unlike the leap‑frogging growth of some other companies—we have kept moving forward, taking small, deliberate steps that have made us increasingly stable and firmly established. That’s why I believe the industry today is not about forging a new order; rather, it is about returning to its roots, with the original vision shining ever more brightly.

From the end-user perspective, consumer behavior has evolved: there are more professional growers, who have a deeper understanding of technology and increasingly sophisticated skills in identifying and evaluating fertilizers.

From a channel‑management perspective, distributors remain a formidable force, even though their influence is expected to diminish over time. For now, they continue to wield significant clout, as fertilizer products are inherently technology‑driven while farmers often lack the requisite expertise. This creates a clear need for education and outreach, and in this process, intermediaries—namely, distributors—serve as an indispensable bridge. As differing business philosophies take hold, the fragmentation of the distributor base will only become more pronounced—a trend that is entirely consistent with market dynamics.

How can we effectively connect with end‑consumers? Isn’t Nongda Fertilizer’s mission to help growers achieve greater profits? With a shared sense of purpose and aligned values, we must also partner with distributors who are equally committed to maximizing growers’ returns, building a collaborative community and delivering exceptional service at the point of sale.

Together, we will deliver the company’s “Three‑Good” marketing model: great products, excellent service, and robust financial support. Great products are the foundation; exceptional service adds value; and sound financial support empowers our customers.