From March 27 to March 29, we participated in the "2014 National Agricultural Machinery and Parts Exhibition" and specially compiled the summary for investors.
Investment Key Points 1. China's agricultural machinery industry experienced rapid development for more than ten years. The total output value of the agricultural machinery industry increased from 69.79 billion yuan in 2004 to 380 billion yuan in 2013, and achieved a 5.5-fold increase in 10 years. It is estimated that in 2014, the output value of agricultural machinery can achieve a 9% increase and exceed 400 billion yuan.
2. Compared with developed countries, China's agricultural machinery manufacturing technology and equipment levels are about 20 to 30 years apart; the company's equipment newness coefficient is very low, and the gap is very large; the equipment is obsolete and the product quality is difficult to control; the manufacturing technology is backward, and the agricultural machinery in China. The per capita production efficiency of the manufacturing industry is low.
4. The development of China's agricultural machinery industry chain is not perfect. Mechanization mainly focuses on the cultivation and collection of food crops, and the mechanization rate of other links is relatively low. Loss of key equipment such as forest fruit, cash crops, breeding, hilly mountains. The economic crop yield is low, peanuts are less than 20%, and rapeseed and cotton are less than 10%, which has great market potential.
5. During the transition period, we focused on links with low levels of mechanization but with great market potential. “Plant protection†and “drying†are the key points: (1) In terms of grain drying equipment, China’s annual mechanical drying of grains accounts for only 1 %, while the proportion of developed countries in the world is around 90%. If the proportion of mechanical drying reaches 30%, at least 8,000 sets - 10,000 sets of drying equipment are needed, and the annual output value of the market is more than 20 billion yuan. According to incomplete statistics, there are 581 dry companies in China with an annual output value of about 4 billion. The vast majority are small and medium-sized enterprises and mainly private enterprises. 60% of dry companies are concentrated in Jiangsu, Zhejiang, Changzhou, Jiangyin, Suzhou, and Guangzhou. The blue ocean in this market is characterized by outstanding characteristics and competition is not intense. The actual competitors are mostly small and medium-sized enterprises. The technology, production and marketing capabilities are relatively weak, and the integration of the market is relatively easy. (2) For agricultural UAVs, 250 UAVs are required for hybrid rice to achieve mechanization of seed production. The market capacity is 50 million yuan. The rice planting area in China is 467 million mu. If 30% of UAV protection is achieved, 22,350 units will be needed and the market capacity will be 4.47 billion yuan.