On 12 October 2007, Sinochem Fertilizer Co. Ltd. (Sinochem Fertilizer) signed agreement with relevant state departments concerning 2007/2008 year fertilizer buffer stock program in Beijing. According to the agreement, Sinochem Fertilizer will set up 1.2m ton buffer stock in 11 main agricultural provinces, including at least 60% nitrogen fertilizer. The fertilizer stock is to be setup from October to next April.
Sinochem Fertilizer has successfully fulfilled the task of previous three consecutive rounds of national fertilizer buffer stock. The buffer stock area the company can operate in is expanded by Shandong and Hebei provinces this year.
This is the second round of national fertilizer commercial buffer stock program jointly organized by National Development and Reform Commission (NDRC) and the Ministry of Finance. The tender of 8 million ton target stock has been awarded to over 40 domestic large and medium sized agricultural input commodity trading companies and some nitrogen fertilizer producers after fierce competition.
Fertilizer buffer stock program plays a positive role of securing agricultural production in the spring and summer seasons, meeting farmer’s fertilizer consumption, stabilizing agricultural input commodity market and reducing fertilizer price during the peak season. Attending the program is also an important reflection of Sinochem fulfilling its social responsibility of big state enterprise.