Analysis on the Status Quo and Development Prospect of China's Agricultural Machinery Industry

Agricultural machinery refers to various machinery used in the production process of crop planting and animal husbandry, as well as in the initial processing and processing of agricultural and animal products. Agricultural machinery includes agricultural power machinery, farmland construction machinery, soil tillage machinery, planting and fertilization machinery, plant protection machinery, farmland irrigation and drainage machinery, crop harvesting machinery, agricultural product processing machinery, animal husbandry machinery and agricultural transportation machinery, etc.

China is a big country with basic agriculture. In recent years, the rapid development of China's agricultural production, rural infrastructure construction, farmers' safe water use and rural environmental protection has driven the development of various domestic agricultural machinery industries and the domestic water-saving irrigation machinery industry. Rapid development.

This year, the domestic agricultural machinery industry has generally shown a good performance. The agricultural machinery market presents a new feature that the strong are getting stronger and the weak are getting weaker. Some large companies are riding the wind and waves and keep making progress, while small companies are frequently delisted. The concentration of the agricultural machinery industry continues to increase and brand influence Strength continues to increase. However, the supply chain security of the domestic agricultural machinery industry chain still faces severe challenges. In the future, the agricultural machinery industry will need to find ways to strengthen the construction of the industrial chain and supply chain, and promote the agricultural machinery industry to become bigger and stronger.

The biggest variable encountered by the agricultural machinery industry this year is the sharp rise in raw material prices, which not only affects the market demand for agricultural machinery, but also intensifies market competition. The sharp rise in the price of raw materials has directly led to a sharp increase in product costs, which has diluted corporate profits. Although most companies have increased the sales price of agricultural machinery accordingly, the price increase is far from being able to absorb the substantial increase in manufacturing costs caused by the increase in raw material prices, and many companies have experienced a decline in sales growth and profits.

In the face of rising raw material prices, the performance of domestic agricultural machinery manufacturing enterprises is differentiated. Some small enterprises are unable to bear the huge pressure of rising costs caused by rising raw material prices, and are caught in the dilemma of raising prices and losing their price competitiveness, and maintaining the original price will result in a large loss of profits or even losses. Small brands that rely on low prices to survive have to abandon the market. Well-known brand enterprises are less negatively affected by the increase in raw material prices. On the one hand, most large enterprises have prepared enough raw materials before the price increase. On the other hand, well-known brand enterprises take the opportunity to make efforts in multiple market segments to seize the market. In the first half of the year, the large-brand agricultural machinery enterprises increased significantly year-on-year, the concentration increased, and the small brand collapsed across the board. "Rising prices of raw materials trigger the Matthew effect, the stronger the stronger and the weaker the weaker." A relevant person said.

The competition in the agricultural machinery market is ultimately the competition of product quality. The rise of Jiufu in the Rice Transplanter market, Wode dominates the crawler-type grain combine harvester, Yinghu dominates the corn harvester market, Shunbang and Tianlang feed balers make rapid progress, and Debang Dawei develops rapidly in the seeder market. Product quality occupies the high ground in the market.

The reporter learned from interviews in various places that farmers now pay more attention to product quality and brand reputation when purchasing agricultural machinery. A sample survey by the China Agricultural Machinery Circulation Association shows that among various factors that users pay attention to in the process of purchasing decisions, brand attention reaches 90.45%, which is also the main reason why the strong brands in the agricultural machinery manufacturing industry have become stronger in recent years.

For agricultural machinery manufacturers, having a strong ability to self-manufacture parts and components can ensure the security of the industrial chain and supply chain to a certain extent. At present, domestic companies that are doing well basically have relatively strong self-control capabilities, and the depth of self-control is more than 50%. For example, World, which occupies half of the harvester market, is almost entirely self-made, except for parts such as engines, bearings, chains, tapes, tracks, and filters. Industry insiders believe that the key to self-made parts is to ensure the quality of parts and thus the quality of the whole machine.

However, my country's agricultural machinery industry is at the middle and low end of the global industrial chain, and many core components such as engines, traditional systems and hydraulic systems of domestic well-known brand enterprises rely on imports, which has become an important factor affecting the security of the domestic agricultural machinery industry industrial chain supply chain.

With the call of the country to build a new countryside, many relevant policies have been issued to encourage the development of rural economy. At present, China is also aware of the huge difference between the unit output of agricultural products and that of European and American countries. As a traditional agricultural country, we are also trying to bridge the current huge gap. The policy of transfer and contracting of agricultural land is conducive to the development of intensive agriculture by concentrating the agricultural land distributed in the southern region in dots and blocks. Therefore, in this context, the prospect of agricultural machinery is very broad.