Sulfur-Coated Urea (SCU) is a kind of slow-release fertilizer improved by sulfur coating technology, which has received wide attention in recent years for its environmental friendliness and high efficiency in the agricultural field.

First, the practical application of sulfur-coated urea

Yield increase of field crops

Sulfur urea is suitable for field crops such as corn, wheat, rice, etc. Its slow-release characteristics can extend the nitrogen supply cycle to meet the needs of the whole life cycle of the crop. For example, trials in corn growing areas in northeast China have shown that the use of sulfur-coated urea can reduce the number of fertilizer applications (from the traditional three to one) and increase yields by 8%-12%.

Improving quality and efficiency in cash crops

In high value-added crops such as vegetables, fruits and tea, sulfur-coated urea can accurately match nutrient demand and avoid the risk of seedling burning. The case of vegetable base in Shouguang, Shandong Province shows that the use of sulfur-packed urea in tomato planting can reduce nitrate content by 15%, while increasing fruit sugar.

Soil improvement and ecological restoration

Sulfur can acidify alkaline soil, promote phosphorus, iron and other trace elements activation, in the southern red soil area and saline and alkaline land improvement in the effect is remarkable. In addition, sulfur urea reduces nitrogen volatilization and leaching, which can reduce the risk of agricultural surface pollution.

Second, the core advantages of sulfur urea

Outstanding environmental benefits

Nitrogen utilization rate is increased from 30%-40% to 60%-70%, ammonia volatilization is reduced by more than 50%, and the risk of nitrate pollution in groundwater is reduced, which is in line with the global carbon reduction policy guidance.

Remarkable economic benefits

Farmers' side: Reduce the labor cost of fertilizer chasing by 20%-30%, and increase the average yield by about 30-90 USD per mu (depending on the type of crop).

Production side: large premium space for sulfur-packed urea, market price is usually 30%-50% higher than ordinary urea (about 400-500 USD/ton vs 300-350 USD/ton).

Policy support

Several countries encourage the use of low-emission fertilizers through carbon tax policies, and the market potential for sulfur-coated urea is huge.

Why now is the golden time to start the sulfur coated urea production business?

1. Initial investment and cost structure

Equipment investment: annual output of 50,000 tons of production line requires about 1 million U.S. dollars (including core equipment such as coating machine, fluidized bed, temperature control system, etc.).

Raw material cost: urea (60%-70% of the cost) + sulfur (20%-25%) + coating additives.

Comprehensive production cost: about 300-350 USD/ton (ordinary urea production cost is about 200-280 USD/ton).

2. Profit cycle forecast

Construction period: 6-12 months (including equipment procurement, commissioning and trial production).

Market introduction period: Year 1-2, focusing on expanding the network of agricultural dealers, capacity utilization rate of 50%-70%, break-even point of about 60% capacity utilization rate.

Profitability period: from year 3 onwards, assuming 80% capacity utilization, annual profit of about US$2.76 million based on a net profit of US$70 per ton.

3. Key profitability drivers

Scale production: Capacity of 100,000 tons or more can reduce unit cost by 15%-20%.

Policy subsidies: some regions subsidize slow-release fertilizer production by US$15-40 per ton.

Technology iteration: developing high-end products with multi-layer coating or adding trace elements can increase the premium to more than 50%.

Risks and coping strategies

Raw material price fluctuations: urea and sulfur prices are greatly affected by the energy market, and it is necessary to sign long term contracts with upstream suppliers.

Technical threshold: uniformity of coating and stability of controlled release cycle are key, it is recommended to cooperate with research institutes to optimize the process.

Conclusion

Sulfur-packed urea production business has both social value and commercial potential, supported by policy dividends and technological maturity, stable profitability can be achieved in about 3 years. Enterprises need to focus on large-scale production, channel cultivation and product innovation, long-term ROI is expected to exceed the average level of traditional fertilizer industry (15%-20%).