Subsidy strongly boosts the growth of harvesting machinery in China

Since the beginning of this year, the harvesting machinery market in China has shown strong growth momentum under the stimulation of various favorable factors, especially agricultural machinery subsidies. From January to April of this year, 77 harvesting machinery manufacturers in China produced and sold 249,700 various harvesting machines, an increase of 51.51% over the same period last year. The cumulative sales of combine harvesters reached 50,500 units, an increase of 67.5% year-on-year.

From the month-on-year analysis, China's harvesting machinery market has always maintained a relatively high growth rate, which increased by 48.8%, 68.3%, 29.4%, and 54.1% year-on-year in January, February, April, and April, respectively, after a month-on-month slowdown in January. In February, March and April, there was a strong rebound for three consecutive months, with an increase of 68.3%, 29.4%, and 31.2% respectively.

Strong recovery of wheat harvesting machinery China's wheat harvesters have entered a strong rebound since the end of last year's sluggish market. Market research shows that in the first quarter of this year, China has sold 21,000 wheat combine harvesters, an increase of more than 109% year-on-year.

From the same month of the previous year, China's wheat harvester saw a sharp rise for the third consecutive month, with both the January and March increases exceeding three digits. In February, the growth rate was slightly less, but it also reached 45%, showing that the first quarter began to be hot. Features. From the previous quarter's analysis, after experiencing a large increase of 270% in January and a "Great Leap Forward" of nearly 60% in February, there was a negative growth of 10% in March and a strong rebound of 23% in April.

The reasons for its substantial growth are analyzed in the following aspects: First, cyclical changes have driven the rapid development of wheat self-propelled harvesters. According to the trend of China's wheat combine harvester market trend in recent years, it shows the outstanding characteristics of rapid changes in market demand and short-term cycle. Generally, there will be a cyclical change in 1 to 2 years. In the first quarter of this year, self-propelled wheat combine harvesters are at the turning point of cyclical rotation. Its growth was a year-on-year decrease of 35.24% over the same period of last year, and the growth on the basis of the “depression” demand was the release of market demand energy.

Second, the gradient update stimulated market growth. After the mechanization of wheat in our country, there is no gap in the market, and the rigid demand has been greatly reduced, and it has become the main driving force for the market. There are three salient features of this kind of update: The first is the gradient update of the internal demand structure of the market. In other words, self-propelled combine harvesters have replaced backpacks. In recent years, with the gradual increase of subsidies for agricultural machinery in China and the increase in consumer purchasing power, consumers have become increasingly demanding operational efficiency in the operation of agricultural machinery (cross-regional operations). The higher the market, the greater the demand for the wheat combine harvester market in China, which was highlighted by the gradual decline of the knapsack harvester market and the rapid growth of self-propelled combine harvesters. The second is the updating of the old one. The lifespan of wheat machines is generally about 5 years. Looking back at the 2005 and 2006 wheat harvester market, it coincided with the peak demand period, which determined that there was a huge amount of updating of the wheat machine market in China this year. It also promoted the rapid development of China's wheat combine harvester in the first quarter of this year. Third, China's wheat harvester market has a large quantity and a large amount of updates, which determines the high level of market demand for such harvesters.

Third, expected earnings stimulate market growth. Market surveys have shown that the machine harvest price in many regions has increased by 10 yuan/mu. Many cross-regional operators have achieved better results and stimulated market demand this year.

Fourth, the rise of farm machinery cooperation organizations and large agricultural machinery manufacturers has greatly increased the purchasing power of consumers, especially the purchasing capacity of large-scale self-propelled vehicles, and activated the potential demand of the market. In addition, fierce market competition has led to declining market prices and the early operation of some regional agricultural machinery subsidies have become an important factor in stimulating market demand.

The rice harvester has a strong rebound. In the first four months of this year, China has sold more than 21,000 rice harvesters, an increase of 52% year-on-year. From the monthly trend analysis, after a 118% increase in January, the growth rate quickly fell back to 23% in February, and rebounded in March and April, with the increase rate rising to 43.5% and 32% respectively.

In recent years, China's full feed into the rice harvester market can be described as ups and downs. After going through two consecutive years of decline in 2006 and 2007, it began to take the road of recovery from 2008 to 2010. It increased by 31% year-on-year in 2008, increased by 72% year-on-year in 2009, and only increased by 2.2% year-on-year in 2010, according to its cycle characteristics. , It is expected that this year will show a slight increase. From the analysis of semi-feeding rice harvesters in our country, after experiencing a 12.7% decline in 2010, there will be a rebound this year.

First, rigid demand will lift the market. China's rice yield is low, preliminary statistics show that in 2010 the country's newly added rice machine harvested more than 2750 acres, 60% of rice harvester level. However, its growth is still huge, which determines that the rigid demand for rice harvesters in China is still huge.

Second, the market development cycle has determined that this year's rice harvesters may experience slight growth. In 2010, the growth rate of China's fully fed rice machines was only 2.2%. Half-fed rice machines experienced a sharp decline, and the entire market was in a state of low-lying growth. Stagnation or stagnation is the process by which the market accumulates energy. According to the development law of rice harvesters in China, its development period is generally 1 to 2 years. From this we expect that China's rice harvesters will end this year and enter a slight increase.

Third, the update will stimulate market demand. From the life cycle of rice harvesting machinery (6 to 7 years), most of the products in 2004 and 2005 entered the renewal period, and these two years coincided with the peak period of the rice machine market. The renewal will drive market growth.

Fourthly, with the increase in the subsidies for agricultural machinery, the southern provinces and regions where the yields of some aircraft in China are relatively low, the government will increase subsidies for rice harvesters and become one of the main drivers of market demand.

Fifth, the purchasing power of Chinese consumers has gradually increased. The rise of agricultural machinery cooperation organizations and large agricultural machinery manufacturers in particular has greatly increased consumer purchasing power, and potential demand will be stimulated to stimulate market demand.

The corn harvesting machinery market is poised for development In the first quarter of this year, China's corn harvesters are still mainly production-oriented. Before the nationwide subsidies are gradually rolled out, various production enterprises are in full swing with their supply reserves and market sales have just started. According to the sales statistics of authoritative organizations for a few corn harvester manufacturers from January to May, the major manufacturers cumulatively sold 10,716 sets of self-propelled corn combine harvesters, which showed a slight decline year-on-year. The main reasons are as follows: First, China's corn harvester market is mainly Relying on subsidies for agricultural machinery, the subsidy operation of agricultural machinery in various provinces and regions in China this year lags behind that of last year for more than one month, resulting in the inability to release the effect of subsidies; second, the time for the outbreak of corn harvesters in China is generally in the second half of the year, and the seasonal factor is also a cause of the decline of corn harvesters. important reason.

In recent years, driven by subsidies for agricultural machinery, China's corn harvester market has experienced a rapid leap forward. Especially after 2006, with the gradual maturity of China's products and the vigorous promotion of local governments, double-digit growth has occurred for eight consecutive years. However, compared with wheat and rice, the mechanization of corn production in China is still low. Preliminary statistics show that in 2010 China's corn planting area was 32.5 million hectares, ranking first in the three major crops, but the machine yield was only 25%. Although the growth rate was 5.09 percentage points higher than that in 2009, there was a wide disparity between wheat and rice yield, which was one of the focuses of China's "12th Five Year Plan" agricultural work.

The survey and analysis showed that the market demand for corn harvesters is expected to continue in 2011 under the stimulation of agricultural machinery subsidies and strong demand from traditional demand provinces (such as Shandong and Henan provinces) and emerging markets (such as Jilin, Heilongjiang and Shanxi provinces). Will maintain a high growth. Among them, the second quarter corn harvester sales will increase significantly, the market will appear hot trend of growth, especially the self-propelled combined corn harvester will show rapid growth; the second half of the corn harvester market will achieve rapid development.

With the continuous efforts of the company, the performance of China's self-propelled corn harvesters has gradually stabilized and the quality has been greatly improved. Some models have become more mature, and will fundamentally change the characteristics of demand waited for by consumers in the past, especially in corn. In the northeast region where the planting area is relatively large, self-propelled corn combine harvesters will become mainstream demand models.