Agricultural Equipment in China to 2015

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The study also considers market environment factors, details industry structure, evaluates company market share and profiles industry participants. Demand for agricultural equipment in China reached ¥135 billion in 2010, accounting for 18 % of the world market. Demand is projected to grow 10.8 % annually to ¥225 billion in 2015. Growth will be supported by favorable government policies, improved access to equipment through agricultural machinery co-operatives, and healthy expansion of agricultural activity.

Planting, fertilizing equipment to see fastest gains
Tractors are the most significant type of agricultural equipment in China, accounting for 30 % of total demand in 2010. Large, high powered tractors have greatly benefited from the Chinese government’s subsidy policies and will continue to see strong growth over the forecast period. However, small tractors, because they are more affordable and practical for the average farming household, will continue to account for a greater share of demand. The high price of harvesting machinery units has largely been responsible for it having the lowest penetration rate of all agricultural equipment, though the segment will register above average growth through  2015, driven by increases in farmers’ incomes. Planting and fertilizing equipment will see the fastest gains as Chinese farmers continue to adopt a wider range of farming equipment.

Shipments of agricultural equipment are projected to rise 12.2% annually to ¥258 billion in 2015. China’s trade surplus will expand to ¥33 billion, primarily due to improvements in the quality and technology of domestic products, as well as low tariffs on exports.

Northeast region to exhibit most rapid demand growth
While all six regions in China will see strong demand growth through 2015, the terrain, climate, and economic condition of each region will play a significant role in relative growth. The core agricultural regions of the Central-North, Central- East and Central South, which together accounted for 74 % of agricultural equipment demand in 2010, will continue to benefit from higher income levels and better developed infrastructure. Although it is one of the smaller regional markets for agricultural equipment, the Northeast will continue to see the fastest growth in demand through 2015. Part of the reason is that the Northeast -- while representing just over eight % of China’s total land area -- has nearly 20 % of sown land. More importantly, the Northeast has one-third of national plain areas. Because many areas of the Northeast are flat, farms have sizable expanses of level land, making the application of large agricultural equipment practical.

Company Profiles
This report profiles 34 players in the Chinese agricultural equipment market.

Additional Info: Agricultural Equipment Demand in China, 2015 (225 billion yuan)
  • Farm Tractors - 28%
  • Harvesting Machinery - 26%
  • Plowing/Cultivating Machinery - 9%
  • Planting/Fertilizing Machinery - 7%
  • Other Agricultural Machinery - 12%
  • Parts/Attachments - 18%
Excluded from the scope of the study are original equipment diesel engines (used in the production of tractors and other motored agricultural machinery), farming transportation vehicles such as light trucks, low-speed farm vehicles, forestry machinery and certain other tangentially related products such as lawn and garden equipment and commercial lawn and turf care equipment. The Special Administrative Regions of Hong Kong and Macau are excluded from the scope of this study. Both Hong Kong and Macau remain, to a great extent, economically independent from the rest of the country, even though they returned to the People’s Republic of China in the late 1990s. Taiwan, which is economically independent from the rest of China and not under the administration of the central government, is also excluded from the scope of this study.
Historical data (2000, 2005 and 2010) and forecasts to 2015 and 2020 are provided in current yuan for each product. Volume data (in units) is also provided. The term “sales” -- used interchangeably with “market,” “demand” and “consumption” -- is defined as all shipments from Chinese plants, plus imports minus exports. The renminbi (or RMB) is the official currency of the People’s Republic of China, and the base unit of the renminbi is the yuan (¥). The term “yuan” is used throughout this report when referring to currency amounts.
In addition, major agricultural equipment manufacturers active in China are identified and profiled, and the key competitive variables are discussed. The entire report is framed within the Chinese agricultural equipment industry’s economic and market environments, and variables affecting agricultural equipment supply and demand in the country (such as government plans and regulations, personal income levels and consumer expenditures, population trends, and overall economic performance) are emphasized. Agricultural equipment market share data by enterprise presented in the “Industry Structure” section is estimated based on consultations with multiple sources. Tabular details may not always add to totals due to rounding.
Economic and demographic indicators presented in this study were obtained from the Freedonia Group China Composites dated June 2011. A wide variety of primary and secondary sources were also used in the compilation of this report. They include the China Agricultural Machinery Distribution Association, the China Association of Agricultural Machinery Manufacturers, the China Industrial Machinery Association and Chinese government statistical agencies (principally the National Bureau of Statistics, the Ministry of Agriculture and the Ministry of Commerce).
In addition, data and background information were obtained from various news and trade publications, including Agricultural Machinery Market, Chinese Agricultural Mechanization, Contemporary Farm Machinery and Modern Agricultural Equipments. Corporate annual reports, product literature and unpublished data obtained through personal contacts were also used in framing the industry and market environments, and as input for market size assessments. Statistics from various sources were carefully examined during the preparation of this study, and contradictions and discrepancies among data sources were noted. The accuracy and reliability of figures from each source were evaluated, and adjustments were made where deemed necessary. This was done in order to arrive at a consistent set of agricultural equipment industry statistics, based on the best available information at the time of publication. As a result, the data presented here may differ, sometimes substantially, from figures issued by official governmental sources.
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