Agricultural machinery industry rigid + policy "bull market" ahead of schedule

Kubota, John Deere, and New Holland and other internationally-renowned agricultural machinery brands have expanded their territories in China's agricultural machinery market by implementing "localization" strategies. The power of the brand has shown great vitality. On the other hand, some state-owned agricultural machinery enterprises that used to be spokesmen for Chinese agricultural machinery brands gradually lost their “speech power” in a new competitive environment.

At present, only 20% to 28% of China's products have reached the international level and the international advanced level. About 70% of the remaining products are equivalent to foreign developed countries in the 1970s and 1980s. "Able to use, love to be bad, and always repair" is the overall evaluation of domestic agricultural machinery by farmers for many years. This shows that China's agricultural machinery products still have much room for improvement.

The industrial environment of the agricultural machinery manufacturing industry has undergone fundamental changes. Due to the end of full market competition and privatization, there is no room for speculative investment in the agricultural machinery industry. Next is the technology and brand that reflect the strength of the enterprise. The contest, as well as the wave-like differentiation of waves, is turning more and more clearly before us.

Look at the "bull market" of the agricultural machinery industry

First, rigid demand

The application of agricultural machinery has promoted the scale, intensification and industrialization of production, increased land productivity, resource utilization and labor productivity, which has reduced the labor intensity of farmers, improved the production and living conditions of farmers, and improved agricultural products. Yield, quality and benefits. Agriculture needs to continuously increase its output and adapt to the diversified needs. This imposes higher requirements on the standardization and precision of agriculture, and on the scale of production and production efficiency of agriculture. More and more agricultural production must rely on agricultural machinery operations. The continuous advancement of modern agriculture will bring lasting impetus to the development of agricultural machinery.

Second, policy support

The Chinese government has always attached importance to the development of the agricultural machinery industry. In 2004, the "Agriculture Mechanization Promotion Law" was promulgated and implemented. In order to promote industrial restructuring and transformation of the agricultural machinery industry, the Central Document No. 1 in 2010 clearly stated that accelerating the development of agricultural mechanization, vigorously promoting the deep-rooted machinery preparation, and supporting agricultural machinery operations such as straw returning and rice transplanting. Further increase subsidies for the purchase of farm machinery, expand the types of subsidies, and incorporate animal husbandry, forestry, drought-resistant and water-saving machinery and equipment into the subsidy.

Agricultural mechanization is a technological progress process for the transformation of traditional agriculture. Technological progress can promote a virtuous cycle of economic growth in the agricultural economic system, thereby advancing the process of agricultural modernization and promoting long-term economic growth. This can be achieved in No. 1 document: 'Improving modern agricultural equipment. Level, to promote the transformation of agricultural development mode 'target. Agricultural machinery may usher in a decade of rapid development.