Where will China's agricultural machinery industry go in the future


2022-12-05 16:03

The agricultural machinery purchase subsidy started in 2004 has been fully accounted for for 14 years this year. In this 14 years, from the "golden decade" of 2004 to 2014, to the current downturn of the entire industry, where should the agricultural machinery industry go in the future?
Where will agricultural machinery users go?
The "Golden Decade" has sold out agricultural machinery for the next 20-30 years!
According to statistics, during the golden decade from 2004 to 2014, the central government allocated 120 billion yuan of subsidies for the purchase of agricultural machinery, and subsidized the purchase of more than 35 million sets of agricultural machinery. The national level of mechanization of crop farming income increased from 33% in 2003 to 61% in 2014.
Subsidies for agricultural machinery have indeed stimulated the purchase of agricultural machinery and improved the comprehensive mechanization rate of crops, but the elimination rate and scrap rate are far lower than the purchase rate, leading to the overall regional saturation of the current agricultural machinery market, especially tractors and harvesters. Too much agricultural machinery has led to excessive agricultural machinery ownership in some regions. In some regions, vicious cross regional operations have occurred, leading to disputes and even fights to injuries!
Whether to buy or not, how long will the purchased agricultural machinery get back to its original cost? This has become a worry for agricultural machinery users!
Where will agricultural machinery manufacturers go?
During the "golden decade" of the agricultural machinery industry, part of the high agricultural machinery subsidies led to a lot of unfair competition. Many manufacturers did not focus on the quality of agricultural machinery and production after-sales, but all wanted to split up the big cake of agricultural machinery subsidies. A variety of agricultural machinery in several major agricultural machinery production areas, such as Luox District, Weix District Various agricultural machinery products such as nanjing x district have been developed and sold in accordance with the subsidy policy.
For example, in 2012, a manufacturer found that the 1204 subsidy in a province was high, so it adjusted the fuel supply of its original 904 tractor to 120 horsepower, and sold it as 1204, making a lot of money. In 2017, the 150 horsepower tractor subsidy in a province was high, and some manufacturers subsequently issued 1504 tractors with the same chassis as 1204 tractors, which also enjoyed agricultural machinery subsidies.
Production or not, product positioning has become a factor that agricultural machinery manufacturers need to reconsider!
Where will agricultural machinery dealers go?
In the peak period of agricultural machinery sales in 2009, some agricultural machinery circulation enterprises made a lot of money through listing financing, integrating resources and capital operation, and half of them became millionaires one after another. The magnificent and dignified turn caused many people to join the agricultural machinery distribution industry.
From renting a shop front, registering a company can sell agricultural machinery. Now, agricultural machinery dealers who have to do sales, service and accessories have to pay subsidies in advance. The pressure on purchasing funds, manufacturers' policies and after-sales service has been like a mountain of pressure on dealers. It is understood that the profit of agricultural machinery sales has dropped to about 8%, and some even about 5%, Some agricultural machinery dealers even withdrew from agricultural machinery sales!
To sell or not to sell, to exit or to stick to, has become an urgent problem for agricultural machinery dealers!
The fundamental way out for agriculture lies in mechanization! In fact, the agricultural machinery subsidy policy issued by the state is not targeted, but also has certain objective economic laws. The golden decade of agricultural machinery industry has been quietly completed. The national policy advocates land transfer. Farming and scale will become more and more popular in the future. A variety of large-scale agricultural machinery and equipment are the main force that is not necessary. Continuous development and adaptation to the needs of agriculture. It is understandable that the development of agricultural machinery industry has some bumps and even detours. I believe that China's agricultural machinery will have a better development!

Hebei Chungeng Machinery Manufacturing Co., Ltd

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