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Four new characteristics of agricultural machinery industry in China


According to the analysis of relevant people of China Agricultural Machinery Industry Association, China's agricultural machinery market presented five main characteristics in 2010

First, the growth rate slowed down. One of the remarkable characteristics of agricultural machinery industry in 2010 is that the growth rate slowed down, and the market performance is difficult to compare with the same period before 2009. In the first seven months, the growth rate of gross output value of agricultural machinery industry showed a downward trend month by month, with a growth rate of 34.29% from January to February at the beginning of the year, and then went downhill month by month. In July, the growth rate dropped to 22.26%, with a drop of 12.13 percentage points in seven months. Although it began to stop falling and pick up in August, the year-on-year growth rate still dropped by 7.93 percentage points compared with the beginning of the year. Not only that, the agricultural machinery market is also contrary to the traditional law. Not only did not appear the high market expectations of most production enterprises at the beginning of the year, but also the traditional peak season of agricultural machinery products such as spring ploughing is not prosperous.

Second, the production volatility is enhanced, and digestion of inventory has become the main task of enterprises. From the end of 2009 to the beginning of 2010, the vast majority of production enterprises expanded their production capacity to cope with the arrival of the sales season in the first half of the year. However, the expected hot market turned into inventory. Or a considerable number of products are overstocked in circulation. It can be seen from the statistical data of tractor enterprises in the first half of the year that by the end of June, the total inventory of 17 enterprises mainly producing large and medium tractors was 18444 units, up 56.58% year on year. Accounts receivable amounted to 7.276 billion yuan, up 32.12% year on year. The same is true for combine harvesters. Therefore, the agricultural machinery market in the first half of 2010 is actually dominated by enterprises digesting inventory.

The third is the adjustment of large agricultural machinery products in the hot market in recent years. In the first seven months, the negative growth of the production and sales of the combine has been maintained at more than 10%. In the first half of the year, the sales of the main production enterprises decreased by more than 30%. After the enterprises took a series of promotion measures, the situation improved and began to pick up slightly since October. Due to the growth of corn machines, new products and small machines in the second half of the year, the annual cumulative output reached 158300 units, but the year-on-year growth rate decreased by 19.22 percentage points compared with 2009. The sales of large and medium-sized tractors began to decline gradually. Since the implementation of the subsidy policy in 2004, large and medium-sized tractors have continued to grow at a high speed. In 2010, the sales volume reached a record high, reaching nearly 300000 units. As a key product of agricultural mechanization, large and medium horsepower tractors have been the focus of subsidies for purchasing machinery every year since 2004, and the market share has increased rapidly in the past six years. 150000 in 2005, 200000 in 2007 and 300000 in 2009. An average of 50000 units per year. However, it will remain at a high level from this year, and it is estimated that there will be no breakthrough in the next few years. This indicates that the market has entered a new round of adjustment.

Fourth, the new products of small tractors, rice transplanters and subsidy catalogue achieved rapid growth. The growth of small tractor market is obviously accelerated. The cumulative output in 2010 increased by 19.14% year on year, while the growth rate in 2009 was only 9.8%. Rice transplanters are growing rapidly. Rice transplanter production and market convergence in 2010 is stable, market performance is very eye-catching. Some enterprises even stopped the business of combine harvester in the first half of the year, specializing in the production of transplanter. Rice transplanter is a kind of machine which has been popularized in recent years. At present, the level of rice transplanter in China is still very low. In 2010, especially in the first half of the year, when the growth rate of agricultural machinery market slowed down, the production and sales of rice transplanter market set a record, especially the blowout of high-speed riding rice transplanter. It is estimated that the annual sales in 2010 will be about 60000 units, an increase of more than 47.5% over the previous year. Agricultural and sideline products processing machinery, feed processing machinery, etc. have expanded into the scope of subsidies, stimulating some potential demand, and the growth of production and marketing has accelerated significantly. The effect of subsidies on the market is particularly obvious. In the whole year, 636200 sets of field operation machinery were produced, with a year-on-year increase of 31.21%; 3.6201 million sets of grain processing machinery were produced, with a year-on-year increase of 50.88%; 41500 sets of cotton processing machinery were produced, with a year-on-year increase of 15.92%; 80.9626 million sets of pumps were produced, with a year-on-year increase of 15.67%. It has become an important factor to support the growth of agricultural machinery market in 2010.

Fifth, the export of agricultural machinery products rebounded. Affected by the international financial crisis, China's agricultural machinery exports continued to decline in 2009, with a year-on-year decline of 22.13% by the end of the year. Since April 2010, the export volume has rebounded month by month, and the total import and export volume and export amount of the whole year have exceeded the historical good level of 2008, but the trade surplus has decreased by 649 million US dollars compared with 2008.