Yang Sen: Got the predicament right, but misfocused on the issue—A Reflection on the 2018 Agricultural Inputs Market under the New Policies

　　The rain has been falling, and falling… Some places welcome it, while others loathe it. The land of Jiangxi and Poyang has finally received the long‑awaited life‑giving downpour; yet for the Qilu region, it has brought flooding unseen in years. In Shouguang, the disaster only drew attention after vegetable prices surged, exposing to the public the heartbreaking sight of fields submerged by floodwaters. Such outcomes could have been avoided—after all, early warnings and preparedness measures could have mitigated the damage—but instead, complacency and carelessness led to this grave catastrophe. Who should reflect on this, and who should bear responsibility? In fact, it’s much like this year’s agricultural‑input market: a typhoon is like… Pesticide Under the new policy, the aftermath of the typhoon has left widespread devastation. Reflecting on this year, many enterprises, lulled into complacency, have suffered catastrophic losses, and one can almost feel the autumn wind sweeping away fallen leaves. As for the challenges facing the agricultural inputs market this year, numerous experts proved spot‑on in their assessments—yet too many companies focused on the wrong issues.
　　Issue One: Overtaking on the Curve
　　The plethora of eye‑catching industry summits, high‑profile keynote sessions, and dubious ranking contests have left many entrepreneurs who’ve never ventured far from home thoroughly confused. They seek shortcuts, eager to apply “correct nonsense” to corporate management and master the art of quick fixes. Only when traffic backs up on a curve do they realize there’s no turning back; as long as the road is right, distance matters little. For every company, having the right direction is a matter of life and death—indeed, in 2018, many firms stumbled precisely because they misjudged their course. Some assumed the environmental regulatory landscape was severe but didn’t anticipate traceability requirements or the intensified oversight and accountability measures; only after being caught did they discover that environmental inspections can—and do—lead to actual arrests. Others believed adding hidden ingredients was merely a way to boost efficacy and address real‑world production challenges, rationalizing noncompliance as harmless. But once enforcement kicked in, they finally understood: under the new regulations, such violations are subject to criminal prosecution. The days when companies cut corners by secretly discharging pollutants to lower costs and enhance price competitiveness, or by surreptitiously introducing third‑party additives to improve drug efficacy and gain market share, are over. In 2018, the standard greeting shifted from “How’s your year going?” to “Did you avoid getting caught this year?” Disrespect for the law, inward‑facing manipulative management, and outward‑looking boastful sales strategies will inevitably come back to haunt you. Be the director of your own life: safety must always come first. Don’t turn your vibrant reality into a punchline or become the laughingstock of your industry. When contemplating overtaking on a curve, remember to consider the vehicle’s performance. The boss is like the driver, steering the course; the car represents the enterprise. The choice of chassis, framework, and engine determines the pace of growth, while the smoothness of the turn depends on the leader’s skill behind the wheel. A curve carries risks: if the car is wrecked, people are put in danger too.
　　Issue Two: Channel Abandonment
　　This year’s trend: The times have abandoned you—without even saying goodbye! I’ve beaten every competitor, yet I’ve lost to the times. This year, we’ve seen many companies cast aside by distribution channels; friendships built over years have turned on a dime. Such abandonment stems from self‑serving price hikes, stop‑loss‑driven production of large inventories of old products without QR codes, irregular and prolonged stockouts, and the explosive buildup of performative, superficial grassroots service. From the perspective of products and services: if a product lacks technological substance, its documentation is outdated, its quality and efficacy are mediocre, its price is low yet it offers no real service; or if the price is high but the accompanying service fails to keep pace, sales become difficult and scaling up proves unprofitable. When products are overly homogeneous, even with decent performance, prices remain stuck in a depressed market, leaving no margin—and scaling up still yields no profit. The reason distributors dare to abandon a brand lies in its products and services. Today, agribusinesses are all touting “service,” but most of it is hollow—promises that sound impressive but deliver little. For agribusinesses, service is simple: winning over farmers is what counts. Solving problems is the primary pain point, and putting farmers first must be the top priority. Only when companies invest deeply in their products can they ease the burden on frontline sales staff, enabling them to do their jobs more effectively. At present, the agro‑chemical market is dominated by personal and terminal brands, with no strong manufacturer‑level branding. Whether customers choose your products over others hinges on who’s selling in the store. “Having someone sell in the shop” marks the starting point; “having villagers praise it” is the journey; and “farmers coming back for more” is the ultimate goal. Using superior products to lower the difficulty of grassroots service is an art every agribusiness must painstakingly hone.
　　Question 3: No prospect of growth
　　Sales have declined, and hairlines are receding—this is the reality for many agro‑input business owners this year. In a zero‑growth environment, expanding within an existing market is truly challenging; despite their best efforts, they are still outpaced by the facts. In 2018, growth in the agro‑input sector was driven by price hikes; even now, active‑ingredient prices remain on an upward trajectory, trading volumes are sluggish, supply‑demand imbalances persist, and there seems to be no ceiling—only higher. Across the industry, price increases have generally exceeded 15%; any growth below that threshold amounts to negative growth. This year’s performance hinges on companies’ ability to coordinate their supply chains—leveraging strong procurement capabilities, swift responsiveness, and timely delivery to showcase systemic advantages. “Growth cures all ills; stagnation breeds them.” If an organization fails to grow, its performance will not improve, and all management risks devolving into micromanagement. At the heart of effective management lies a unified stance: the leader must act as chief educator, reshaping employees’ mindsets and cultivating and refining their character. As the saying goes: “More important than getting the job done is nurturing the person doing it.” Without execution capability, a company lacks competitiveness; there are no “ifs” in execution—only outcomes. Under a accountability‑for‑growth framework, all progress stems from energizing the team and elevating its collective capacity.
　　Question 4: Organizational Design
　　The direction must be right, the organization must be vibrant, and organizational design should be both strategic and artful. This year, the companies that have posted significant growth are those where employees are in good spirits and highly motivated; for instance, a certain agrochemical firm in southern China achieved a 400-million‑yuan increase over the same period last year—breaking with the trend. Yet this year, many teams found themselves losing hope just after the Qingming Festival, as negative sentiment spread rapidly, sapping overall morale. Most attribute these challenges to market headwinds, insufficient team dedication, or poor self-discipline, without addressing the fundamental issues of top‑level organizational design, well‑crafted compensation frameworks, or the genuine care leaders can offer their people. A human‑centered management culture—one that makes the team feel empowered and unlocks each individual’s potential—is essential. Together, we should refine our systems, crafting practical, down‑to‑earth policies that operate within a framework broadly accepted by employees. Competitive mechanisms, goal‑oriented approaches, and a relentless focus on results can help drive performance. This empowers teams to proactively excel in field marketing and customer service, independently seek out the plant‑protection knowledge they need, and actively consult experts. By mastering crop‑specific cultivation practices in their own regions, they come to view plant‑protection technical services as the very foundation of their livelihoods. Looking ahead, organizational design should place greater emphasis on the post‑90s and post‑95 generations, recognizing that they are not driven by palace intrigue but by a desire to thrive in an environment free from undue pressure. They resonate with elements like Peppa Pig motifs on clothing and appreciate the emotional fulfillment that comes from social recognition. At the heart of this approach lies a “light‑management model,” leveraging the mindset of the younger generation to craft effective organizational structures. In terms of performance evaluation, happiness indices should be integrated into cadre assessments, and corporate organizational design ought to include measures of employee well‑being and satisfaction.
　　When fortune favors, heaven and earth join forces; when fate turns against, even heroes are no longer free! Reflection: Today’s agribusinesses are all dancing on the edge of a blade. A sigh: From “trendy” to “out of favor.” A realization: If success comes without incident, there seems to be no reason behind it; but if success follows a setback, it still defies logic. The real issue lies with the midwife—she can help new ideas take root. We look forward to fresh thinking leading the way in the agri‑input sector. Consider what Sinochem’s Ning Gaoning has proposed: “Science above all, unity of knowledge and action”; Adama’s vision: “The path of surpassing oneself, a transformative leap forward, putting agriculture first, and daring to be different”; and Bayer‑AgriFly’s Future Farm initiative, which builds agricultural demonstration sites based on innovative concepts, striving to maximize efficiency while safeguarding the environment and achieving sustainable coexistence between agriculture and natural ecosystems. We also see industry forecasts pointing to profound transformations—changes in marketing models, … Pesticide Adjuvants, application equipment.
　　At this juncture, we are focusing more on opportunities than on challenges, fostering a sense of urgency—“time waits for no one; every moment counts”—and summoning the resolve to “stay firmly committed to our goals.” We must diligently ensure that every task under the “Autumn-Winter Offensive” is implemented effectively and yields tangible results, working in unison to secure victory in this critical winter‑storage campaign.
　　Under the new policy, a large-scale reshuffle has already begun, bringing both opportunities and challenges to the market. The future is here—but it’s unevenly distributed, reserved only for those who keep pace with the times. Agrochemical companies exist to address the needs of large-scale farmers; the more problems they solve, and the bigger those problems are, the greater their profits will be. By deeply understanding the demands of these key growers and adopting their mindset, we can create real value for them. In terms of corporate strategy: maintain a steady, pragmatic approach, choose to do what’s right, and find ways to execute it flawlessly. On the marketing front: consistently repeat the same actions, refining them until they reach the highest standards. In management: shift from a centralized “super‑brain” model to a distributed system where multiple individuals think independently and operate on an equal footing. And in service: go above and beyond—serve until the customer feels almost embarrassed by how much care you’ve given. For growing companies and those under constraints, what truly matters on the road ahead is staying on the right path—only then can lasting success endure.

Source: Marketing Director, Jiangxi Zhonghe Chemical Co., Ltd.