The Market

With 1.3 billion people, China is struggling to improve its agricultural yield and make the country less dependent on imports. One of the problems it faces is that years of intensive farming combined with the use of poor agricultural methods have reduced yields significantly. The government is encouraging the private sector to introduce organic farming to improve yields and lower soil toxicity. For years Bodisen has been developing a full line of organic fertilizers and pesticides that improve yields by 10% to 35%. In a short time the Company has gained a reputation for producing "green" products that address farmers' concerns in a market that is growing exponentially. With over 60 products today and an ongoing R&D effort, Bodisen is well positioned to assert its leadership and capture market share.

Competition

The compound fertilizer industry is largely fragmented with most competitors operating small regional factories, serving local requirements. Most companies are product specific and typically do not promote their products through brand names, unlike Bodisen which is widely accepted in western China as a recognized brand. Bodisen has not yet identified any significant direct competition in Shaanxi province that operates in all three segments (compound, liquid fertilizer and pesticide) of the organic fertilizer business. Bodisen sells its products in twenty provinces throughout China and is expanding into additional areas while penetrating more deeply in its existing markets. Its location in Shaanxi Province, "the gateway to the west", positions Bodisen to capture this market as it matures.

Growth Strategy

The size of the market continues to grow exponentially and Bodisen is growing its manufacturing and distribution capabilities accordingly. In order to further penetrate its home province, as well as expand into new markets, Bodisen will franchise its distribution to wholesalers. This will give the company a much larger footprint while controlling costs. Bodisen has allocated significant sums for R&D, with the purpose of developing new products such as bacteria-based pesticides and creating fungus-resistant crops. A new manufacturing technique to improve the quality of its fertilizers is among these projects. The company's team of scientists continues to work closely with the universities to develop new techniques and products. The sheer size of the agricultural market in China, combined with a growing demand for "green" products that can improve crop yields will drive Bodisen's growth for years to come.