Three ways of fertilizer winter storage

Three ways of fertilizer winter storage

1, self storage. That is, the products produced by the fertilizer production enterprises are all stored by themselves, and then sold when the peak sales season arrives in the second year. The greatest advantage of this method is that the ownership of the goods and the sales initiative are completely in their own hands and can absolutely guarantee the goods. The security is the most secure way to save the winter. The biggest drawback is that companies need to prepare large amounts of winter storage funds, while companies also need to prepare a large number of warehouses. From a risk point of view, this is a kind of winter storage with high risks and high returns. If the market situation is good in the second year of the sales season and the price rises are large, enterprises can obtain maximum economic benefits. On the contrary, enterprises must bear greater losses. 2, he stored. That is, selling the product to a distribution company such as an agricultural company with a price determined by both parties, the ownership of the product will also be transferred. Compared with self-storage, this method will transfer all products to others for storage, and the market risk for the second year All of this is passed on to the buyer. To a certain degree, it is a way that the manufacturer is most willing to adopt. 3. The Federal Reserve. It refers to the cooperation between chemical fertilizer production companies and distribution companies. Formally, there are mainly the following three ways: First, the market cooperation type. Refers to the warehouse provided by the distribution unit, production companies to provide products, joint winter storage, the second year of sales season, the two sides jointly determine a price for sales, sales profit divided by a certain percentage. The second is the type of financial cooperation. Refers to a sum of money provided by the distributor to the manufacturer in the name of advance payment, margin, loan, etc., which is then deducted from the loan in the second year of the sales season. The third is the three-way cooperation type. The production enterprises supply the products to the fertilizer distribution units and the chemical fertilizer distribution units use the chemical fertilizers as collateral to bank loans. The banks directly transfer the funds to the production enterprise accounts. When the sales season peaks in the second year, the bank sends personnel to sell the fertilizer distribution units. On-site collections to ensure full recovery of bank loans and interest.

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