In 2017, China will usher in the consolidation stage of the agricultural machinery market.

In 2017, China will usher in the consolidation stage of the agricultural machinery market.

The decline in food prices, the reduction of the quota for the purchase of single agricultural machinery, and the difficulty in upgrading the country III have been intertwined, and all the colleagues in the agricultural machinery industry have resorted to the “power of the wilderness”. Whether it is a large and medium-sized enterprise that has long been famous, or a small business that has just started, it has strived to leave its own figure in the retrograde through various strategies such as upgrading, upgrading services, and promoting goods. During the year, corn harvester companies were particularly difficult to enter and entered the “downward turning point”, which will usher in a new round of “shuffle”. Most experts believe that the agricultural machinery industry may not be smooth in 2017, but we believe that only continuous innovation and upgrading are the fundamentals for agricultural machinery enterprises to get out of the dilemma.

Look at one:

National III upgrades for the first year

"As a year when the products of China III were introduced to the market in large quantities, has repair and after-sales service been really solved? And where is the country II agricultural machinery and equipment that has not been digested?"

After a year of National III events, the dust finally settled on December 1, 2016. Looking back at the country II upgrade country III, it is also necessary to start with the decision of the National II to upgrade the country III issued by the Ministry of Environmental Protection in April 2014. The introduction of this decision made the agricultural machinery enterprises unable to take precautions. There are many problems with the installation and maintenance of the National III engine and the whole machine. How to deal with the National II machine on the production line, so that the agricultural machinery entrepreneurs do not know how to be good. Subsequently, with the strong appeal of most agricultural machinery enterprises and the efforts of the China Agricultural Machinery Industry Association, on January 14, 2016, the Ministry of Environmental Protection decided to delay the period of the National II upgrade country III by 8 months, which made most of the agricultural machinery with inventory in stock. Enterprises, engine manufacturers and dealers have greatly breathed a sigh of relief, but at the same time they also told companies that they must take the initiative to upgrade their technology, quickly improve product quality, and further help the industry's technological progress.

After a "three summers" training, the reporter found that only a small number of National III wheat harvesters have been recognized by users. After the intense upgrade, the "three autumns" that followed will allow enterprises to seize the time to find a "good mother" for the National II machine, paving the way for the National III market. In the blink of an eye, by the end of 2016, the National II machine is not allowed to reproduce and sell. For the farmers, when they purchase the National II machine in December 2016, they will no longer enjoy the state subsidy. In 2017, as the year of the National III product being introduced to the market, has the repair and after-sales service been really solved? And where is the country II agricultural machinery and equipment that will not be digested? let us wait and see.

Aspect 2:

Agricultural machinery industry growth rate will slow down or will become the new normal

"China's agricultural machinery industry is experiencing the challenges, including the macro factors such as the reduction of the subsidy quota for agricultural machinery, as well as the conversion of market demand hotspots, and some markets tend to be saturated."

According to relevant statistics, as of October 2016, the income from the main business of China's agricultural machinery industry increased from 362.126 billion yuan in 2015 to 383.969 billion yuan in 2016, an increase of 6.03% year-on-year, but lower than the average growth rate of machinery industry by 1.19 percentage points. This is also the emergence of the agricultural machinery industry growth rate is lower than the overall average development level of the machinery industry. Compared with 2014 and 2015, the growth rate of the agricultural machinery market in 2016 under the influence of multiple factors has increased sharply, and many sub-markets have experienced different degrees of decline. Some experts predict that in the coming period, single digit growth will become the new normal of the agricultural machinery industry. Looking at the trend of the agricultural machinery market, China's agricultural machinery industry is experiencing challenges. This includes not only the upgrading of the country II country III, the reduction of the subsidy quota for agricultural machinery, and the decline of food prices, but also the conversion of market demand hotspots, the saturation of some markets, and the lack of motivation in some markets.

It is understood that as of October 2016, China has sold a total of 1,452,700 tractors of various types, of which large and medium-sized trailers and small trailers sold 460,600 units and 9,920 units respectively, down 4.62% and 3.82% year-on-year. Small drag still accounts for nearly 70% of the share. Although the domestic market has declined, we are gratified that the export volume of hand-held tractors has risen sharply, with a total export of 120,000 units, an increase of 67.31% year-on-year. This undoubtedly indicates that the export miniaturization trend is gradually becoming more prominent.

Compared to the tractor market, the harvester market is more ups and downs. The decline of the corn machine market has become an indisputable fact. Compared with previous years, the 2016 corn harvester sold a total of 53,500 units, down 19.08% year-on-year. In the decline of the harvester market, the crawler-type full-feed combine harvester has grown against the trend, with sales reaching 91,400 units, an increase of 10.34% year-on-year. Jiangsu Wode’s rice production and sales in 2016 exceeded 36,000 units. Created a historical record of rice production and sales of Chinese companies. In addition, the demand for wheat wheel harvesters is gradually concentrated on 7kg/s, an increase of 271.37%, accounting for up to 64.43%, an increase of 36.53 percentage points compared with the same period of 2015, indicating the market of wheeled grain combine harvesters. It is stepping forward to the big feed.

Aspect 3:

Who will be the master of the agricultural machinery market in the future?

"With the upgrading of consumer demand, in 2017 and even in the next few years, China's medium, large and medium-sized, composite agricultural machinery and equipment will become the main driving force for the development of agricultural machinery."

In 2016, China's agricultural machinery purchase subsidy policy implemented the nine-character policy of “shrinking scope, reducing quotas, and promoting openness”, further accelerating the pace of China's agricultural restructuring. Under the condition that the total subsidy funds have not increased and some funds have been transferred to operation subsidies, the main products of agricultural machinery still maintain high output, indicating that China's agricultural machinery industry is still an industry worth looking forward to. With the upgrading of consumer demand, in 2017 and even in the next few years, China's medium, large and medium-sized, composite agricultural machinery and equipment will become the main driving force for the development of agricultural machinery. At the same time, the Ministry of Industry and Information Technology, the Ministry of Agriculture, and the National Development and Reform Commission jointly issued the "Agricultural Machinery Equipment Development Action Plan (2016-2025)" and the previous purchase subsidy policy can be described as a combination of the Pearl River, which indicates the road for the development of agricultural machinery enterprises and the entire industry, and proposes to gradually realize The improvement of agricultural machinery equipment manufacturing capacity and the promotion of modern agricultural development strategic goals.

In addition to the relevant policies issued by the state to help China's agricultural machinery and equipment develop to a higher and faster direction, in the face of the depressed market, how should agricultural machinery enterprises go next? Industry experts said that in 2016, some areas in China will increase the income of farmers through the method of changing the paddy fields. This will cause about 30% of the rice machine to be sold to some wheat producing areas, and the market structure will undergo minor changes. At the same time, due to the problems of large surface moisture and sloping land in the hilly area, the crawler harvester market is active to a certain extent. In the 2016 International Agricultural Machinery Exhibition, the two-line crawler harvester launched by Ju Ming Group may be for this reason.

In addition, in 2016, the grain-to-feeding pilot program was further expanded to 17 provinces and autonomous regions in the “Shovel Bend” area and the Huanghuaihai Maize Main Production Area, with the target task increased to 6 million mu and other policies, corn grain machine and green fodder. The development of harvesters is particularly important, or will create a second wave. However, some experts admit that although China's grain machine is still in the window period, many companies are also researching and developing. However, at present, no company can master all the technologies, and it will still be prone to the reliability of the grain machine and overcapacity. The bleak situation of serious product homogenization. We believe that everything is ready, and the speed of product replacement is increasing. With the corn planting mode and further adjustment of planting varieties, the corn grain machine market will have a huge breakthrough.

In short, with the increasing competition pressure on China's agricultural machinery and equipment, the surplus of low-end products, the product is difficult to fill the gap in the market, transformation and upgrading is the only way for enterprise development. As far as the whole agricultural machinery market is concerned, short-term adjustment will definitely bring pain to the industry. In 2017, the consolidation stage of the agricultural machinery market will also be ushered in. This means that the survival space of enterprises without research and development capabilities will gradually shrink and even be eliminated. Out of the market, as a strength-oriented enterprise that is committed to technology reserves and constantly upgrading and upgrading, it will survive the cold winter and will usher in a brighter future.