A Partial Impact of Novel Coronavirus (COVID-19) on Humic Acid International Business in Black Swan 2020
On the eve of the Chinese Spring Festival in 2020, affected by a novel coronavirus (COVID-19), China implemented a wide range of control measures, resulting in enterprises being unable to produce, stock goods could not be transported, and Chinese major sea ports could not operate. Although production gradually resumed after the Chinese Spring Festival, the workers were affected by the control measures and could not return to the factory on time, which also caused a shortage of goods supply. For a time, foreign clients were worried about the delivery time.
April is coming, China's domestic novel coronavirus (COVID-19) situation has been brought under control, and the factories have almost returned to normal production capacity. But the epidemic has spread rapidly in some regions and countries except China, which directly caused airlines to reduce flights and shipping companies to reduce sailings. Many regions and countries began to implement control measures to ease the spread of the epidemic.
Based on the current global situation, we predict that global demand will fall sharply, and some demand for light industrial goods and non-essential goods will be pessimistic. Many countries have begun to restrict their exports of food, indicating that agriculture has become a major concern. Food is the most important thing for people. No matter what the epidemic situation is, we cannot live without food. If agricultural production is seriously affected, it will increase food prices, which will lead to various uncertainties and crisis events.
Humic acid, potassium humate and fulvic acid products as special products in agricultural production, can significantly improve the utilization rate of fertilizers, improve soil, enhance the resistance of crops in many aspects, increase crop yield, and reduce pesticide residues. It plays an important role in ensuring global food production and security. However, according to the outbreak control measures in the country, the humic acid international business may also be affected shortly by the following,
- Due to the curtailments of international aviation, humic acid samples may not be guaranteed to be sent from China on time, and foreign recipients may not receive them on time. Air orders may also be delayed or by sea instead.
- The shipping companies reduce the sailings, and most of the routes are hot. It is difficult to book the shipping space in time and the goods cannot be guaranteed to ship on time. The sea freight has increased and pushed up the transportation cost, thus raising the arrival price of goods.
- The consignee at the destination port may not be able to pick up the goods on time or delay the order, or cancel the order in the worst case.
- Global humic acid consumption may be reduced in the context of economic depression, humic acid the international business will have a certain negative impact.
- Demand for high-grade agricultural products is likely to decrease. So demand for high-grade, high-priced humic acid products is likely to shrink slightly. Farmers and factories prefer high-quality humic acid products with high-cost performance.
According to VitalYield's research, too cheap sources in China and some small factories cannot guarantee the quality and supply of humic acid products in the current environment. Some factories and traders use coal gangue as humic acid powder, or mixed with humic acid raw ore to crush into powder or make into humic acid granular fertilizer at low prices sold to foreign clients.
We have possession of abundant high-quality, high-content humic acid raw materials sources. Responsible persons of technology, production, and sales in our humic acid products factory and trade company all have more than 20 years of humic acid field experience. We hope to produce cost-effective products and provide efficient - quality services for all global clients.
We look forward to global cooperation and an early victory over COVID-19.