The agricultural machinery market may usher in a new opportunity for development

After rapid development in recent years, the Chinese agricultural machinery market has entered a new phase. As of 2012, the total output value of China's agricultural machinery industry exceeded 300 billion yuan for the first time, becoming the world's largest agricultural machinery manufacturing country. The rapid development of the level of agricultural mechanization, the huge changes in many key elements, impact on the traditional agricultural machinery market consumption patterns, detonated new demand, the agricultural machinery market is about to enter the transition period.

Market demand presents "dumbbell type"

With the concentration of land in our country and the low level of agricultural mechanization in the hilly areas of the mountainous regions, we will spawn a new “dumb-bell” model for demand patterns in China's agricultural machinery market. That is, from the analysis of demand, there are two forms that are big at the ends and small in the middle.

First, market demand tends to increase. This change mainly takes place in the plain area where land resources are abundant. With the rapid advancement of land concentration and large-scale operations, and the rapid rise of agricultural cooperatives and family farms, in some economically developed regions, similar economic patterns to the European manor will emerge. The new rural model, which directly promotes the development of large-scale and multi-purpose agricultural machinery in China, will completely return to the role of field management.

Secondly, from the analysis of the development of China's agricultural mechanization, with the gradual realization of mechanization in the Central Plains region, the mountainous hilly region, which is the weak link of agricultural mechanization, will surely become the focus and hot spot of our government's attention. The beneficial agricultural policy will be further tilted and these regions will welcome In the period of rapid development, small machinery adapted to the needs of the region has entered a period of rapid development.

Economic crop machinery will become the market for the future Blue Ocean

In the coming years, the focus of China's agricultural machinery market will begin to shift from the three major crops to cash crops. The mechanization of economic crops will surely become the focus of government attention, especially the mechanization of harvesting of economic crops, including sugar cane, cotton, potatoes, rapeseed, sugar beets, etc., and mechanization of harvesting of sugar cane, which is a large planting area, will become one of the focuses.

Taking the level of sugar cane mechanization as an example, in terms of the overall level, China's sugarcane production has a mature model for arable land preparation, planting, field management, transportation, etc., and has been promoted and used, and the harvest is still artificial labor, using manual cutting. The work flow of cutting, stripping, and bundling shipments can only take 0.5 to 0.6 tons per day for labor, and 8 to 10 labors for 1 mu. The cost of artificial cane cutting has accounted for more than 40% of the sugarcane production cost. Mechanization of harvest has become a key factor that restricts sugar production.

Products shift from "mass" to "niche", shifting from common needs to individual needs

From the analysis of the future development direction of the agricultural machinery market, the personality characteristics of China's agricultural machinery market will be more prominent, and it will be highlighted as the transfer of niche products from the past mass products to the individuality. This demand feature is highlighted by:

First, the demand is relatively small, not as few as tens of thousands in the past, and as many as hundreds of thousands, and millions, but it may be tens of thousands or even thousands, but the quality, performance, support, etc. All have special requirements.

Secondly, the configuration is high, the degree of automation is high, and the operation efficiency is high. For example, a large-scale compound operation machine suitable for large-scale farms needs to perform functions such as deep loosening, repression, sowing, fertilization, and spraying, and plays a protective role in cultivation. .

Third, high prices and lucrative profits. At present, the profit gap of China's agricultural machinery production companies is relatively large. The profitability of ordinary small-sized products is less than 10% or even lower. The profit rate of high-end products is as high as 20% or more, and some are even higher. This gap will change in the future agricultural machinery market. It is more common and prominent, and the differences between Blue Ocean and Red Sea will be further highlighted.

Fourth, large-scale, with the concentration of rural land, agricultural large-scale, intensive management will become a historical choice, and the corresponding demand for agricultural machinery market will further develop in the direction of large-scale, such as large tractors, harvesters and other products.

Fifth, energy-saving products will be supported by the government. China’s per capita energy resources are at a relatively low level in the world, and energy consumption has already ranked second in the world. Energy conservation will become a long-term strategic task for China in the future. This determines that energy-saving products will be in line with China’s basic national conditions and will become a government. Key promotion products.

Sixth, the market for deep-steam and post-harvest processing machinery, such as drying equipment, will develop rapidly. The long-term chemical operations in rural areas in China have resulted in serious land consolidation, single production decline, and land improvement and deepening become inevitable, which will drive the rapid development of the subsonic machine market. With the rise of large-scale farms and family farms, food will be stored in large numbers in the hands of a small number of people at one stage, and grain drying is a necessary condition for storage. This will drive the rapid growth of the food drying equipment market.

From low-end products to high-end products

In large farms and family farms, high-end products will become more popular. The so-called high-end products will be highlighted by high-end products. For example, tractors will further integrate electromechanical and hydraulic systems, computer intelligence, fault diagnosis and monitoring systems, automatic land management systems, and GPS positioning systems. Gearboxes, full-load power shifts, and cruise systems—can automatically adjust speed, gear, throttle, and high-pressure common rail systems. With the improvement of economic living conditions, consumers are paying more attention to comfort besides paying attention to the high-end products. For example, in the course of operations, it is necessary to minimize the operations that are easy to consume, such as bending and walking, and the cab should be comfortable and luxurious. There is air conditioning and so on. These changes are not years of dreams, and they are increasingly approaching reality.

The increasingly fierce competition will bring the market to reshuffle

It is the industry competition that changes simultaneously with the agricultural machinery market. With the changes of many elements of the agricultural machinery market, China's agricultural machinery market competition will undergo major changes.

First, technology research and development capabilities will become the focus of competition. The rise of the agricultural machinery market in hilly and mountainous regions will require new agricultural machinery products corresponding to it. This requires manufacturers to increase the research and development of such models, and shift the market demand to the direction of economic crops. The company researches and develops relevant products, but it is difficult to research and develop the general technology of cultivation and collection of economic crops, especially the sowing and harvesting machinery. This also requires a strong R&D capability that matches it. Second, the brand competition will be the key market competition. Thirdly, the level of market competition will be further improved. In recent years, the agricultural machinery market has become a hot market for China's machinery industry. Whether the expansion of capacity of domestic enterprises or the entry of international agricultural machinery giants, whether it is the participation of non-agricultural machinery industries such as the automobile industry or the construction machinery industry, involved in financial capital markets, both enhance the market competitiveness of the agricultural level, the quality of competition in the agricultural industry upgrade will further promote agricultural industrial structure upgrading, the market more competitive, increase market concentration will become inevitable.