Entrepreneurship
Introduction
Our company's name is Itelli-P. We devote ourselves to creating future crops. We believe that we can improve the environment and solve the hunger problem through our efforts. There are a variety of green-agricultural products in our company and the most essential product is the bio-intelligent fertilizer. Traditional fertilizer pollutes and destroys the environment a lot. In contrast to the traditional fertilizer, our bio-intelligent fertilizer can solve the pollution in soil and water bodies by secreting gluconic acid dissolving the accumulated unsolvable phosphorus salt, and reusing the phosphorus to provide nutrition to the plants to achieve the sustainable development goals. The consumers of our products are farmers and we also trying to afford our products to the crop planting base.
Company Description
About us
Intelli-P, promoting the innovation and progress of the agriculture area, is committed to the research of a phytosensor to gauge crop phosphate needs and a smart phosphate bio fertilizer, and also aims to build a stronger connection with SDG.
Our phytosensor empowers plant caregivers to efficiently monitor phosphate levels without costly analytical devices. We have engineered bacteria to release insoluble phosphate from the soil, addressing the challenge of phosphate depletion. These bacteria respond to salicylic acid released by plant roots during low-phosphate stress by producing and secreting gluconic acid. This action enhances the solubility of calcium salts in the soil, gradually converting insoluble phosphate salts into soluble forms, thereby improving phosphate utilization. Therefore, we aim to offer an efficient, sustainable path to manage phosphate fertilizer in agriculture, helping secure a more sustainable future for all.
The company and industry are set in Henan which is the largest supplier of crops and it can be the biggest consumer of our company. This action can reduce our transportation costs. The first year's goal is to reach a net profit of 1,000,000 RMB and become popular in the fertilizer field. The goal of Intelli-P in the first five years is to build a high-quality biomass fertilizer brand and become a leading supplier in the field of fertilizer nationwide. Then we move the company to Shanghai which is the most flourished and international place in China and explore the international market, selling our products to the world and creating an international brand.
Products/services
About us:
Our company, Intelli-P, sells various agricultural products including fertilizer and machines. The core product is the bio-intelligent fertilizer. We add pTsal which is a salicylic acid promoter to the plasmids of the e.coli making it able to be activated by the salicylic acid secreted by plants under the condition of low phosphorus. Next, adding T7 polymerase promoters to the plasmid to amplification the circuit and enhances the expression intensity. Finally, the plasmid expresses the acid-producing protein GDH empowering the e.coli to secrete gluconic acid to dissolve insoluble phosphorus salt in the soil and used by the plants.
Here is the table that shows the advantages of our bio-intelligent fertilizer:
| Objects | Traditional phosphorus fertilizer | Bio-intelligent fertilizer |
| Soil and water | A large number of chemical components will flow into the depth of the earth through soil infiltration, groundwater flow, and rainwater leaching, affecting soil quality and causing pollution to the land, increasing the difficulty of plant growth. | Dissolving the accumulated phosphorus in the soil reduces soil and water pollution |
| Climate | In the process of use, a large amount of carbon dioxide and other greenhouse gases will be released, leading to climate change. | Dissolve the accumulated phosphorus in the soil. Do not need to use extra phosphorus; no greenhouse gases are produced. |
| Extra use |
It can easily lead to green and yellow leaf loss of crops.
Crop respiration greatly enhances the consumption of stored sugar and energy in the body but also lets the reproductive organs develop in advance, resulting in premature crops, small grains, and low yield. |
Only secrete salicylic acid dissolving phosphorus salt in the soil when the plant needs phosphorus. We do not need to worry about the negative impacts of extra uses. |
| Utilization rate | 10%-20% (Li, H., Hu, Y., Liu, G. et al., 2023) | 60%-70% |
Marketing analysis
1. Market history of phosphorous fertilizer
2. Factors that promote market development
- Increase in food demand As the global population grows, the demand for food also rises. This can lead to an increased need for phosphorus fertilizers to boost crop yields.
- Soil depletion Over time and with continuous farming, solids can lose their natural fertility. Restoration of phosphorus levels in soil through fertilizers can become crucial.
- Awareness of balanced fertilization The concept of balanced fertilization- using the right amount of N-P-K is essential for optimal plant growth. As awareness about this increases, the demand for phosphorus fertilizers can rise.
3. Factors that reduce the market size
- Price volatility High demand can lead to volatile prices if the supplier cannot follow up.
- Economic factors A global economic downturn or reduced spending power in key markets can reduce the demand for crops and, by extension, for fertilizers.
- Environmental concerns Mining and processing phosphate rock can lead to environmental degradation. This can result in stricter regulations or the shutting down of mines. Additionally, excessive use of phosphorus fertilizers can result in eutrophication of water bodies, causing algal blooms which can harm aquatic life and degrade water quality.
4. Transportation
The most common form is granular or prills, and the two forms exhibit differences in attributes, some of which are related to shipping and storage claims. Granular fertilizers are easy to apply mechanically.
There are two different types of granulation: dry or wet. Granular and granular have different physical and mechanical properties, the key difference being their crushing resistance (i.e., hardness), as well as their size. The difference in hardness between granular and prills: Particles are harder and therefore less likely to break than granular.
5. Key competitors
| Companies | Advantage | Size | Marketing |
| Phosagro (Figure 1) | Well-established company, the early player in this market. The reputation of this company is high. This company has many sectors to spread out risks. The main focal point is probably the eco-efficient fertilizers | According to the Q1 financial report of this company, the total revenue experienced a 5.5% increase from Q4 2022 to Q1 2023. This is a competitive competitor in this market. | According to the production strategy of this company, the current hot product is phosphate-based fertilizers, which are similar to ours. The production has increased from Q4 2022 to Q1 2023, which indicates the increased importance of this product to the company, also the demand for the fertilizer has increased as well. |
| Nutrien (Figure 2) | This company has a stable supply chain for its many sectors which can spread out the risks. Differing from the first analyzed company, this company is focused on the Nitrogen process. However, there is a small gap between the production of phosphate and nitrogen. | This company was established in 2015, so the size cannot exceed Phosagro which was established in 2011. According to its annual report by Nutrien, the total revenue for 2023 is lower than that of 2022, which is a shared trend in the market. | Differing from Phosagro, this company decides to manufacture a source of fertilizer rather than fertilizer itself. For example, they have manufactured more processed nitrogen than nitrogen fertilizer. |
| Yara international ASA (Figure 3) | It is an ancient company which was established back in 1905. The long company history gave them a higher potential to stay active in the markets. | This is evidenced by the annual financial report of this company. The mass is quite big with 4,161 million USD for Q1 2023. The production of NPK fertilizer 1, 322 kt in the first quarter. | This company is focusing on both the production of NPK and nitrate fertilizer which are stated in the graph below. Similar to Nutrien, they also produce ammonia more than fertilizers. So we can say that the marketing of this company is producing both raw materials and products. |
6. Target consumers
| Possible consumers | Why? |
| Commercial crop farmers | Large-scale farmers cultivate major crops like wheat, corn, and rice. They rely heavily on fertilizers to ensure consistent and high yields. |
| Gardening | People involved in the cultivation of fruits, flowers, and ornamental plants also need phosphorous fertilizers, especially during the growth phases when the root is established. |
| Foresters | In reforestation projects, phosphorous fertilizers might be applied to assist the growth of young trees |
| Greenhouse | The people managing greenhouse projects, especially those growing fruits and vegetables, would require phosphorous fertilizers to ensure healthy growth. |
Commercial crop farmers, gardeners, foresters, and those managing greenhouses are potential consumers of phosphorous fertilizers. Commercial farmers, who grow wheat, corn, and rice, use these fertilizers extensively to get high and consistent yields. To summarize, commercial farmers are the biggest audience for our product. Meanwhile, gardeners, who cultivate fruits, flowers, and ornamental plants, require phosphorous, especially when their plants' roots are established. This group of people creates a smaller demand for our product due to smaller production than the farmers, but this does not prevent them from becoming potential buyers of our company. On the other hand, foresters use phosphorous fertilizers in reforestation projects to help young trees grow. This group of people is the second largest customer of the product since the area of the forest is costly in terms of phosphorous fertilizer. Similarly, greenhouse managers, particularly those producing fruits and vegetables, also depend on phosphorous fertilizers to ensure their plants' healthy growth.
7. Barriers to entry
| Barriers | Explanations |
| Resource availability | Access to high-quality phosphate rock is limited because existing companies often have long-term contracts to mine these rocks. Newcome company is more likely to find lower quality rocks. |
| Capital intensity | Production facility for phosphorous fertilizer requires significant capital investment in terms of mining equipment, and distribution networks. |
| Economies of scale | Old players in this market benefit from EoS, producing large volumes which reduces the cost of production per unit. New entrants must start with lower volumes, which might experience high per-unit costs. |
| Brand and reputation | Farmers often rely on trusted brands with a proven track record. Building a reputation in a well-established market can take time. |
| Research and development | Established companies often have improved product efficiency and reduced production costs. New entrants would need to catch up in terms of innovation. |
Firstly, the best quality rock resource that is used to fabricate the fertilizer is already taken by existing companies. This means a new company might employ rocks of lower quality. Secondly, starting a production unit is costly because you need a high fixed cost to sell the product. Older companies that have been around for a while produce in big amounts, which makes their average cost lower. But, new companies starting out can't achieve this goal, so their costs might be higher. Also, farmers like to buy from brands they know and trust. So, a new brand will need time to gain farmers' trust. Lastly, the companies that have been around for a long time have also invested in research to make their products better and cheaper. New companies would have to spend on research to catch up.
Company analysis
1. SWOT analysis
| Strength | Weakness | Opportunities | Threats |
| Essential nutrient: Phosphorous is one of the three primary nutrients required by plants, making its application essential for production. | Environmental concerns: Over-application or misapplication of phosphorous fertilizer may lead to phosphorous runoff into water bodies, which can cause eutrophication that boosts the growth of algae. This will block the sunlight from reaching the sea bed. | Innovative application techniques: Development of agriculture and other techniques can ensure optimized phosphorous application, reducing environmental impacts. | Regulations: Government or environmental organizations may enforce regulations on phosphorous fertilizer usage because of environmental concerns. |
| Improved crop yields: Phosphorous fertilizer enhances root development, energy transfer, and protein synthesis, which subsequently improves crop yields. | Limited reserves: High-quality rock phosphate is the primary source of phosphorous fertilizer, which is finite and is being depleted. | Recycling and sustainable sources: Exploring some ways to recycle phosphorous or extract it from sustainable sources - bones - can supplement traditional sources - rocks. | Global market: Issues in major phosphate rock-producing countries can disrupt the supply chain of phosphorous fertilizers. |
| Well-established market: Phosphorous fertilizers have a longstanding history of use in agriculture, so it is accepted among farmers. | Fluctuated price: Fluctuations in the global phosphate rock market can impact the cost of production of phosphorous fertilizers since it is the supplier of fertilizer production. | Education and training: Educate farmers on the correct application methods of phosphorous fertilizer. | Climate change: Changes in rainfall patterns, increasing droughts due to climate change can impact the demand and effectiveness of phosphorous fertilizers. |
| Diverse product range: Different forms and compositions of phosphorous fertilizers fulfill many soil types and crops. |
2. Marketing mix
- Filmed promotional videos and placed adverts on TV stations: Television is a highly viewed public platform. A good promotional film is easily remembered. Placing promos on such platforms can enhance the awareness of our company and products. People will think of our fertilizers as a priority when they need them.
- Invite a small group of target customers to try our products: Customers may not buy directly without fully understanding our products. A small trial will allow them to see the effects of our products. This will make them trust our products more and buy them.
- Invite authoritative and well-known experts to promote: People usually trust people they know more, so our direct sales pitch may not work very well. However, the words of a known expert are more trustworthy in the mind of the client.
- Advertise our products and some easy-to-understand principles in agriculture-related newspapers and magazines: Agricultural paper media corresponds to customer groups more in line with our target groups and is a more simple and efficient way of publicity. Simply clarifying the principle will make customers understand the benefits of our fertilizer.
3. Supplier
Since our fertilizer products are in granular form, large equipment is essential for the production of fertilizer. In order to reduce unnecessary additional costs (high transportation costs), we chose Shande Machinery Co., LTD., which has most of the machines we need.
Connection with sustainable development goals
The Sustainable Development Goals (SDGs) are a set of 17 global goals designed to address various social, economic, and environmental challenges facing the world. They were established by the United Nations in 2015 as part of the 2030 Agenda for Sustainable Development.
Our products, bio-intelligent phosphate fertilizer, can achieve the SDGs by solving the pollution in soil and water bodies through the process of secreting gluconic acid dissolving the accumulated unsolvable phosphorus salt, and reusing the phosphorus to provide nutrition to the plants.
Here are the SDGs that our company build strong connections on:
SDG 12-Responsible Consumption and Production:
Sustainable use of phosphate fertilizers is important to minimize their environmental impact, reduce waste, and promote efficient and responsible production and consumption patterns. Reuse phosphate salt in the soil, reducing the harm of chemicals to the environment and the human body.
SD 13- Climate Action:
Phosphate fertilizers can contribute to greenhouse gas emissions, such as nitrous oxide. Sustainable agricultural practices, including responsible fertilizer use, can help mitigate climate change and reduce carbon emissions. Reutilize phosphate in the soil and cut the use of traditional phosphate fertilizers, reducing greenhouse gas emissions from the utilization of phosphate fertilizers.
SDG 14 - Life Below Water and SDG 15 - Life on Land:
Phosphate mining and fertilizer runoff can have negative impacts on aquatic ecosystems and terrestrial biodiversity. Sustainable practices in the production and use of phosphate fertilizers can help protect these ecosystems. Using up the accumulated phosphate salt in the soil prevents the phosphate from washing into the water body, providing nutrients to the plankton and algae in the water, which blooms and will kill fish in water bodies, like a lake.
Conclusion
By and large, our product bio-intelligent fertilizer and phosphorus sensor system can not only make a contribution to the increase of yield but also reduce the pollution of soil and water bodies. We will target our goals - “we create future crops”- through our effort and enthusiasm. Our company will keep working around the value of SDG including No poverty, Zero hunger, Good health and well-being, etc.
References
Li, H., Hu, Y., Liu, G. et al. Responses of biomass accumulation and nutrient utilization along a phosphorus supply gradient in Leymus chinensis. Sci Rep 13, 5660 (2023). https://doi.org/10.1038/s41598-023-31402-4
Rahmanian, N., Naderi, S., Supuk, E., Abbas, R., & Hassanpour, A. Urea Finishing Process: Priling Versus Granulation. Retrieved April 9, 2015, form https://doi.org/10.1016/j.proeng.20152
Bulk Chemicals. (2021). Phosphate Fertilizer Market Size, Share & Trends Analysis Report By Product (Monoammonium Phosphate, Diammonium Phosphate), By Application, By Region, And Segment Forecasts, 2022 - 2040. Retrieved from https://www.grandviewresearch.com/industry-analysis/phosphate-fertilizers-market
Zhao, M. (2023). What's China fertilizer market trend in 2023—An important conference on China's phosphate and compound fertilizer industry was held in end of March. Retrieved from https://www.linkedin.com/pulse/whats-china-fertilizer-market-trend-2023-an-important-michael-zhao
PhosAgro. (2023). PhosAgro Reports Operating and Financial Results for 1Q 2023. Retrieved from https://www.phosagro.com/investors/reports_and_results/#accordion-2023
Nutrien. (2023). Nutrien Q1 2023 Earnings Release. Retrieved from https://www.nutrien.com/investors/financial-reporting
Yara International ASA. (2023). 1Q 2023 report. Retrieved from https://www.yara.com/investor-relations/reports-presentations/
Wenhan Dai. The tips for transportation of fertilizer and the suggestion of preventing loss. (2022) fromhttps://xindemarinenews.com/data/baoxianjinrong/2022/0823/41201.html