The development potential of the agricultural machinery market in western China is huge

At present, there are more than 6,000 agricultural machinery circulation enterprises in China scattered among cities, counties and townships across the country. There are widespread problems of “scattered, small, chaotic, weak, and lacking”. From the perspective of industry concentration, it is a typical “decentralized type”. , The concentration is very low, more than 90% of the enterprises have small business scale, poor management facilities, weak infrastructure, and poor ability to resist risks; large-scale agricultural machinery circulation enterprises are rare; vicious competition in the industry is serious, market order is disordered, and agricultural machinery and practical talents are lacking . To quickly improve the service level of the agricultural circulation industry, strengthen macro-control, guidance and support, and accelerate the integration of the industry is the only way. This article specializes in the western region as a sample to study the current status and prospects of the development of the agricultural machinery industry in the western region.

The current situation of the development of agricultural machinery market in the western region of China includes six provinces and regions in the northwest (Shaanxi, Gansu, Ning, Inner Mongolia, Xin and Qing) and five provinces and one city in the southwest (Chuan, Yi, Sui, Gui, Tibetan, and Qiang). The number of cities is less than half of the country, but the country's land area accounts for 71% of the country. It has a vast expanse of land and sparsely populated areas, and the level of agricultural mechanization is relatively backward.

Among them, the circulation of agricultural machinery in the southwestern region is more developed than in the northwestern region, which is prominent in Sichuan, Chongqing, Yunnan, Guizhou and Guangxi. Shaanxi Province is the starting point in the Northwest, Gansu, Ningxia, Qinghai and Xinjiang to the west and Inner Mongolia to the north. Gansu, Ningxia and Qinghai have agricultural machinery in the three regions because of their backward economic development, poor natural environment and geographical location. Agricultural machinery circulates most backward among the six provinces and regions in the northwest; Xinjiang, though located at the border, has adopted large-scale agricultural production methods for its production and construction corps, and the level of mechanization for cultivation and harvesting has been high. Shaanxi and Inner Mongolia have enjoyed rapid economic development in recent years. The relevant supporting policies and inputs for agricultural mechanization have also led to a rapid increase in the level of local agricultural mechanization. However, in the agricultural machinery parts market, there is not a whole country influential, large-scale and well-operated parts market in the western region. Most of the agricultural machinery parts in the western region are purchased from the agricultural machinery parts market in Hebei and Henan provinces. The rapid development of agricultural machinery circulation has a significant lag.

Agricultural Machinery Market Situation in Northwestern Provinces and Regions: Major Agricultural Machinery Distributors and Operation Status In early March 2008, the Yangling Agricultural Demonstration Area in Shaanxi Province built the first national agricultural machinery purchase subsidy supermarket. At present, Shaanxi has established four subsidized supermarkets in Yangling, Longnan, Yulin and Weibei. Zhongnong Group established a large agricultural machinery market in western Shaanxi.

Gansu Jincheng Agricultural Machinery Sales Co., Ltd. is mainly engaged in the wholesale and retail business of agricultural machinery and accessories, agricultural vehicles, mechanical and electrical products and tractors.

Haidong Changfa Agricultural Mechanization Co., Ltd. has established sales outlets and customers of more than 1400 customers in various states, cities, counties, and major townships in Qinghai Province with annual sales of 25 million yuan.

Xinjiang Agricultural Machinery Co., Ltd. is mainly engaged in the wholesale and retail business of agricultural machinery and accessories, agricultural vehicles, mechanical and electrical products (excluding cars) and tractors.

Northwest Agribusiness City, which has gathered 80% of the distributors of agricultural machinery catalog subsidies, has gathered most of the agricultural machinery and agricultural wholesalers and other wholesalers outside the region. It is the only comprehensive agricultural production logistics professional market in Ningxia.

Tongliao Ruifeng Agricultural Machinery Agricultural Material Market has a modern network system and a nationwide information network. The principle of “market-oriented and reputation-centered” is used to implement open management and closed management.

According to the survey, the items in the table appear to be in good condition, but as most of them are in the preliminary stage of development, the operation and management mechanism is not yet perfect, and because the dealers are in a decentralized state for a long time, the professional market’s industry policy and government policy-guided market The effects did not play well and restricted the further development of the market. In addition, some self-employed, unprofessional technicians and self-employed individuals who have no financial strength through landing operations have caused a large number of unqualified agricultural machinery products to enter the field of agricultural machinery circulation, seriously disturbing and impacting the normal business order of the market. Therefore, the operating environment of the western agricultural market needs to be further improved.

The opportunities and risks of the development of the agricultural machinery market in the western region coexist with a comprehensive survey of the current western agricultural machinery market environment, which can analyze the advantages and disadvantages of the current agricultural machinery market in the western region.

First, it is the national environmental advantage. In recent years, with the increase in subsidies for agricultural machinery purchases and the intensified demand from the market, the agricultural machinery industry has experienced unprecedented rapid growth, and the agricultural machinery industry has maintained an overall growth rate of over 13%.

Moreover, according to foreign experience and analysis of related data in the industry, the subsidy will be further increased in the next five years. The “12th Five-Year Plan” of the agricultural machinery industry proposes that the total output value of the agricultural machinery industry will increase from 280 billion yuan in 2010 to 400 billion yuan in 2015, with an average annual increase of 10%. Due to the lack of large-scale agricultural machinery companies in the western region, local governments have great support for the development of agricultural machinery projects. For example, in the western agricultural capital market project of Fuping County in Shaanxi, Fuping County gave great support to this project. From land use to tax policy preferences, all have provided great help.

Second, from the point of view of the geographical structure of agriculture, most of the western region is based on agriculture, and the degree of agricultural mechanization continues to increase. Therefore, the demand for agricultural machinery and agricultural machinery parts will be a strong guarantee for the initial operating income of large markets.

Third, from the perspective of market space, according to the survey, due to the lack of large-scale agricultural machinery sales companies in the western region, the demand for agricultural machinery parts is mostly purchased in the markets of Pangkou, Changge, Changzhou, etc. However, long-distance procurement costs are high and supply is not timely. . According to statistics, the demand for agricultural machinery parts in the western region is between 8 billion and 10 billion yuan each year. With the continuous development of agricultural machinery, demand will continue to increase.

Of course, there are certain risks in the development of the agricultural machinery market in the west.

First of all, the market cycle of farm machinery is fluctuating. As the market demand for agricultural machinery products has a certain periodicity, there are low seasons and high seasons each year. Most of the major farm machinery products have sales seasons that are less than three months in a year, and fall into a depression or half-depression at other times.

Secondly, affected by the planned economy and local protectionism, in the agricultural machinery market, production and distribution companies all have certain fixed customers. In particular, large and medium-sized agricultural machinery retail markets and small-scale agricultural machinery state subsidies have been monopolized by a few enterprises and occupy a certain market. Shares, market segmentation is serious.

Finally, there are price risks. The agricultural machinery market mainly sells agricultural machinery products. Due to the high prices of steel products in recent years, the cost of steel products accounts for a large proportion of the total sales cost of agricultural machinery, and there is a risk that prices will increase. Due to fierce market competition in the northwestern region, farmers are more sensitive to product prices and have lower brand loyalty. Once price fluctuations occur, market competition will be further fiercer.

In any case, with the continuous improvement of the level of China's agricultural mechanization and the promulgation and implementation of relevant national agricultural policies, the western agricultural machinery circulation system has a lot of opportunities, and at the same time it will usher in more operators influx in large quantities in the west. Establish opportunities and risks for agricultural machinery projects to coexist. Therefore, any enterprise that sets up a new agricultural machinery market in the western region must start from its own position. Only by improving its market positioning and forming scale advantages, can it cultivate and highlight its core competitiveness, and it will be possible to compete in the fierce competition in the agricultural machinery market. Invincible.