VITALYIELD: A Partial Impact of Novel Coronavirus (COVID-19) on Humic Acid International Business in Black Swan 2020
On the eve of Chinese Spring Festival in 2020, affected by a novel coronavirus (COVID-19), China implemented a wide range of control measures, resulting in enterprises unable to produce, goods in stock could not be transported, Chinese major sea ports could not operate. Although the 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 the 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 the people. No matter what the epidemic situation is, we cannot live without food. If agricultural production is seriously affected, it will increase the food prices, which will lead to various uncertainties and crisis events.
Humic acid, potassium humate, fulvic acid products as a special product in agricultural production, can significantly improve the utilization rate of fertilizers, improve soil, enhance the resistance of crops in many aspects, increase crop yield, reduce pesticide residues. It plays an important role in ensuring global food production and security. However, according to the outbreak control measures in each country, humic acid international business may also be affected 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, 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 ofEconomic depression, humic acid international business will be 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.
VitalYield humic acid series products' raw materials selected from Kunlun Mountains of Xinjiang. Our group has a number of coal chemical products factories, and the exclusive possession of abundant high quality, high content humic acid open pit coal mine. Responsible persons of technology, production and sales in our humic acid products' factory and trade company all have more than 20 years 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.