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"You must insert 6 hectares in one day."
[China Agricultural Machinery Industry News] In order to feed 1.3 billion people, China's agriculture has ushered in a wave of large-scale operations. In China, more than 1.6 million agricultural corporations established by farmers in the country are entering a new trend. They centralized management of scattered farmland, and are rapidly advancing mechanization in order to improve production efficiency, bringing huge business opportunities to agricultural machinery manufacturers around the world.
China's agricultural scale, the business opportunities in the agricultural machinery market are frequent
On Chongming Island in Shanghai, a hand-made simple awning was placed on a rice transplanter. Although the sun was about to set, the horse was still in the field. There are two dark-skinned middle-aged women in the car. The two drove the rice transplanter in a slender paddy field 1000 meters long and 50 meters wide.
The sense of existence of cooperatives continues to increase
These two women are temporary workers employed by Shanghai Yaoquan Food Professional Cooperative. The cooperative was established by 105 farmers nearby and operates 2,700 hectares of paddy fields, the size of 132 Beijing Bird's Nest Stadium.
The cooperative has 400 rice transplanters, and it will hire temporary workers during the busy season and operate at full capacity. The average farmland per hectare can be profitable by about 300~450 yuan. The cooperative also contracted the transplanting work of 4,000 hectares of farmland in the vicinity to increase the operating rate of agricultural machinery.
The trend of large-scale agricultural operations has pushed up the demand for Chinese agricultural machinery. According to the statistics of Euromonitor, the scale of China's agricultural machinery market in 2015 increased by 24% year-on-year, about 438.6 billion yuan, eight times that of Japan, and more than the United States (about 252.5 billion yuan) became a global market.
Chinese traditional agriculture uses simple agricultural machinery such as small tractors. However, in recent years, the demand for agricultural machines such as large tractors, combine harvesters and rice transplanters has increased. In addition to Chinese manufacturers such as tractor manufacturers, overseas manufacturers such as US Deere and Japan's Kubota are also welcoming opportunities to expand sales.
Nantong Agricultural Machinery Cooperative, a cooperative in Nantong, Jiangsu Province, in the northwestern part of Chongming Island, has acquired the right to use agricultural land in about 400 households in three villages, totaling 80 hectares. The cooperative uses more than 20 agricultural machines such as tractors, combine harvesters and dryers to produce rice, wheat and rapeseed.
In 2015, the sales amounted to 8 million yuan, of which the profit was 800,000 yuan. 40% of the profits are used for reinvestment and 60% are distributed to 12 partners. The average annual income of each partner is 40,000 yuan, which is equivalent to urban residents. Co-operative representative Han Jiangang said that if the introduction of larger machinery can further increase the rate, it shows the intention of additional investment.
The sense of presence of farmers' professional cooperatives that focus on the right to use farmland and carry out large-scale operations has been continuously improved. The Chinese government grants its legal personality to help it obtain loans from financial institutions and actively use the funds raised to purchase the necessary agricultural machinery.
Global agricultural machinery manufacturers aim at China
In order to obtain strong agricultural machinery market demand, major agricultural machinery manufacturers have stepped up their offensive. Kubota, which is the No. 1 in the rice harvester market in China, will build a second plant near the Suzhou plant in the fall of 2017 to develop a farm machinery market in the field of large tractors and other dry fields.
The joint venture of Japan Jingguan Agricultural Machinery and China Dongfeng Motor Group will start production in Fuyang City, Hubei Province in early 2017, and will increase the production of rice transplanters and combine harvesters. The United States Deere also strengthened the production system with the northeast of China as the center. Nan Longyi, general manager of Kubota China, said: "Because of the labor shortage, China must promote agricultural mechanization, and the large-scale farmland and large-scale agricultural machinery must be further expanded."
(Original title: Japanese media: global agricultural machinery manufacturers stare at the Chinese market)