Agricultural Equipment in China

Demand will benefit from favorable government policies, improved access to equipment through agricultural machinery co-operatives, and healthy growth in agricultural activity.

Demand to register doubledigit growth through 2015

Demand for agricultural equipment in China reached ¥135 billion in 2010, accounting for 18 percent of the world market. Demand is projected to grow 10.8 percent 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 post fastest gains

Tractors are the most significant type of agricultural equipment in China, accounting for 30 percent 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 an increasing 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 register the most rapid gains as Chinese farmers continue to adopt a wider range of farming equipment. Shipments of agricultural equipment are projected to rise 12.2 percent 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 post 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 percent 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 exhibit the fastest growth in demand through 2015. Part of the reason is that the Northeast -- while representing just over eight percent of China’s total land area -- has nearly 20 percent 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.

Study Scope

This study analyzes the 134.6 billion yuan agricultural equipment market in China. It presents historical demand data for the years 2000, 2005 and 2010, and forecasts for 2015 and 2020 by product (e.g., farm tractors, harvesting machinery, plowing and cultivating machinery, planting and fertilizing machinery) and region (e.g., Central-North, Northeast, Central-East).

The study also considers market environment factors, details industry structure, evaluates company market shares and profiles 34 market participants, including China National Machinery Industry, Foton Lovol International Heavy Industries, and Deere & Company.

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Purchase Agricultural Equipment in China by the Section

  1. Agricultural Equipment in China

    $5,400.00

    1. 1 INTRODUCTION

      $261.00

    2. 2 EXECUTIVE SUMMARY

      $237.00

      1. Table | AGRICULTURAL EQUIPMENT DEMAND IN CHINA (billion yuan)

    3. 3 MARKET ENVIRONMENT

      $2,542.00

      1. 3.1 General

        $116.00

      2. 3.2 Economic Overview

        $513.00

        1. 3.2.1 Recent Economic Performance

          $176.00

        2. 3.2.2 Economic Outlook

          $287.00

          1. Table | GROSS DOMESTIC PRODUCT OF CHINA

      3. 3.3 Demographic Overview

        $279.00

        1. 3.3.1 Population

          $150.00

          1. Table | POPULATION OF CHINA (million persons)

        2. 3.3.2 Rural Population

          $102.00

          1. Table | RURAL POPULATION IN CHINA BY REGION (million persons)

      4. 3.4 Currency Exchange Rates

        $158.00

        1. Table | CHINESE CURRENCY EXCHANGE RATES, 2000-2010 (Chinese yuan per foreign currency)

      5. 3.5 Industrialization & Manufacturing Trends

        $206.00

        1. Table | MANUFACTURING VALUE ADDED IN CHINA (billion yuan)

      6. 3.6 Arable Land Outlook

        $275.00

        1. Table | ARABLE LAND TRENDS IN CHINA, 2000-2010

      7. 3.7 Agricultural Land Usage

        $116.00

        1. Table | AGRICULTURAL LAND USAGE BY CROP (million hectares)

      8. 3.8 Labor Force Productivity in Agriculture

        $222.00

        1. Table | LABOR FORCE PRODUCTIVITY IN AGRICULTURE IN CHINA (million persons)

      9. 3.9 Agriculture Sector Outlook

        $435.00

        1. 3.9.1 Agricultural Output

          $123.00

          1. Table | SELECTED AGRICULTURAL PRODUCT OUTPUT IN CHINA (million tons)

        2. 3.9.2 Agricultural Value Added

          $113.00

          1. Table | AGRICULTURAL VALUE ADDED IN CHINA (billion yuan)

      10. 3.10 The Twelfth Five Year Plan

        $220.00

    4. 4 OVERVIEW

      $1,353.00

      1. 4.1 Supply & Demand

        $163.00

        1. Table | AGRICULTURAL EQUIPMENT SUPPLY & DEMAND IN CHINA (billion yuan)

      2. 4.2 Pricing Trends

        $168.00

        1. Table | SELECTED AGRICULTURAL EQUIPMENT PRICING IN CHINA (000 yuan/unit)

      3. 4.3 Policies, Regulations & Standards

        $407.00

      4. 4.4 Agricultural Machinery Co-Operatives

        $148.00

      5. 4.5 Product Development & Technology

        $134.00

      6. 4.6 International Environment

        $332.00

        1. 4.6.1 World Outlook

          $99.00

          1. Table | WORLD AGRICULTURAL EQUIPMENT DEMAND BY REGION (billion US dollars)

        2. 4.6.2 Foreign Trade

          $128.00

          1. Table | CHINESE FOREIGN TRADE IN AGRICULTURAL EQUIPMENT (billion yuan)

    5. 5 PRODUCTS

      $2,598.00

      1. 5.1 General

        $207.00

        1. Table | AGRICULTURAL EQUIPMENT DEMAND IN CHINA BY TYPE (million yuan)

      2. 5.2 Farm Tractors

        $600.00

        1. Table | FARM TRACTOR DEMAND IN CHINA

        2. 5.2.1 Small Farm Tractors

          $203.00

          1. Table | SMALL FARM TRACTOR SUPPLY & DEMAND IN CHINA

        3. 5.2.2 Large Farm Tractors

          $143.00

          1. Table | LARGE FARM TRACTOR SUPPLY & DEMAND IN CHINA

      3. 5.3 Harvesting Machinery

        $518.00

        1. Table | HARVESTING MACHINERY DEMAND IN CHINA

        2. 5.3.1 Combine Harvesters

          $203.00

          1. Table | COMBINE HARVESTER SUPPLY & DEMAND IN CHINA

        3. 5.3.2 Other Harvesting Machinery

          $123.00

          1. Table | OTHER HARVESTING MACHINERY SUPPLY & DEMAND IN CHINA

      4. 5.4 Plowing & Cultivating Machinery

        $360.00

        1. Table | PLOWING & CULTIVATING MACHINERY DEMAND IN CHINA

        2. 5.4.1 Plowing Machinery

          $111.00

          1. Table | PLOWING MACHINERY SUPPLY & DEMAND IN CHINA

        3. 5.4.2 Cultivating Machinery

          $111.00

          1. Table | CULTIVATING MACHINERY SUPPLY & DEMAND IN CHINA (million yuan)

      5. 5.5 Planting & Fertilizing Machinery

        $336.00

        1. Table | PLANTING & FERTILIZING MACHINERY DEMAND IN CHINA

        2. 5.5.1 Planting Machinery

          $140.00

          1. Table | PLANTING MACHINERY SUPPLY & DEMAND IN CHINA (million yuan)

        3. 5.5.2 Fertilizing Machinery

          $91.00

          1. Table | FERTILIZING MACHINERY SUPPLY & DEMAND IN CHINA

      6. 5.6 Other Agricultural Equipment

        $493.00

        1. Table | OTHER AGRICULTURAL EQUIPMENT DEMAND IN CHINA (million yuan)

        2. 5.6.1 Seed Processing Machines

          $87.00

          1. Table | SEED PROCESSING MACHINERY SUPPLY & DEMAND IN CHINA (million yuan)

        3. 5.6.2 Irrigation Equipment

          $100.00

          1. Table | IRRIGATION EQUIPMENT SUPPLY & DEMAND IN CHINA (million yuan)

        4. 5.6.3 Haying Machinery

          $98.00

          1. Table | HAYING MACHINE SUPPLY & DEMAND IN CHINA (million yuan)

        5. 5.6.4 Sprayers

          $82.00

          1. Table | SPRAYER SUPPLY & DEMAND IN CHINA (million yuan)

        6. 5.6.5 All Other

          $82.00

          1. Table | ALL OTHER AGRICULTURAL MACHINERY SUPPLY & DEMAND IN CHINA (million yuan)

      7. 5.7 Parts & Attachments

        $84.00

        1. Table | AGRICULTURAL EQUIPMENT PARTS & ATTACHMENTS SUPPLY & DEMAND IN CHINA (million yuan)

    6. 6 REGIONAL TRENDS

      $2,410.00

      1. 6.1 General

        $190.00

      2. 6.2 Regional Demographic & Economic Trends

        $277.00

        1. 6.2.1 Population Patterns

          $107.00

          1. Table | POPULATION OF CHINA BY REGION (million persons)

        2. 6.2.2 Economic Outlook

          $92.00

          1. Table | GROSS DOMESTIC PRODUCT OF CHINA BY REGION (billion yuan)

      3. 6.3 Regional Manufacturing Value Added Outlook

        $98.00

        1. Table | MANUFACTURING VALUE ADDED IN CHINA BY REGION (billion yuan)

      4. 6.4 Regional Agricultural Outlook

        $158.00

        1. Table | AGRICULTURAL VALUE ADDED IN CHINA BY REGION (billion yuan)

      5. 6.5 Regional Sown Land

        $87.00

        1. Table | GROSS SOWN AREA IN CHINA BY REGION (million hectares)

      6. 6.6 Regional Agricultural Equipment Demand

        $1,600.00

        1. Table | AGRICULTURAL EQUIPMENT DEMAND IN CHINA BY REGION (million yuan)

        2. 6.6.1 Central-North

          $301.00

          1. Table | CENTRAL-NORTH REGION OF CHINA: AGRICULTURAL EQUIPMENT DEMAND (million yuan)

        3. 6.6.2 Northeast

          $289.00

          1. Table | NORTHEAST REGION OF CHINA: AGRICULTURAL EQUIPMENT DEMAND (million yuan)

        4. 6.6.3 Central-East

          $220.00

          1. Table | CENTRAL-EAST REGION OF CHINA: AGRICULTURAL EQUIPMENT DEMAND (million yuan)

        5. 6.6.4 Central-South

          $251.00

          1. Table | CENTRAL-SOUTH REGION OF CHINA: AGRICULTURAL EQUIPMENT DEMAND (million yuan)

        6. 6.6.5 Southwest

          $226.00

          1. Table | SOUTHWEST REGION OF CHINA: AGRICULTURAL EQUIPMENT DEMAND (million yuan)

        7. 6.6.6 Northwest

          $216.00

          1. Table | NORTHWEST REGION OF CHINA: AGRICULTURAL EQUIPMENT DEMAND (million yuan)

    7. 7 INDUSTRY STRUCTURE

      $5,434.00

      1. 7.1 General

        $90.00

      2. 7.2 Industry Composition

        $161.00

        1. Table | REVENUE DATA: SELECTED AGRICULTURAL EQUIPMENT COMPANIES, 2010 (million yuan)

      3. 7.3 Market Share

        $221.00

      4. 7.4 Product Development & Manufacturing

        $102.00

      5. 7.5 Marketing & Distribution

        $105.00

      6. 7.6 Financial Issues & Requirements

        $182.00

      7. 7.7 Mergers & Acquisitions

        $82.00

      8. 7.8 Cooperative Agreements

        $101.00

        1. Table | SELECTED COOPERATIVE AGREEMENTS

      9. 7.9 Foreign Participation in the Chinese Market

        $525.00

        1. 7.9.1 Legal & Regulatory Issues

          $193.00

        2. 7.9.2 Joint Ventures

          $147.00

        3. 7.9.3 Wholly Owned Foreign Enterprises

          $82.00

        4. 7.9.4 Representative Offices

          $82.00

      10. 7.10 Company Profiles

        $4,177.00

        1. 7.10.1 Anhui Changjiang Agricultural Machinery Company Limited

          $82.00

        2. 7.10.2 Changfa Group

          $195.00

        3. 7.10.3 Changzhou Dongfeng Agricultural Machinery Group Company Limited

          $126.00

        4. 7.10.4 China National Machinery Industry Corporation

          $278.00

        5. 7.10.5 Chinese Academy of Agricultural Mechanization Sciences

          $143.00

        6. 7.10.6 Chishan Group Company Limited

          $115.00

        7. 7.10.7 Chongqing Hesheng Industry Company Limited

          $105.00

        8. 7.10.8 Deere & Company

          $199.00

        9. 7.10.9 Fiat Industrial SpA

          $168.00

        10. 7.10.10 Foton Lovol International Heavy Industries Company Limited

          $142.00

        11. 7.10.11 Guangxi Qinzhou Lishun Machinery Company Limited

          $94.00

        12. 7.10.12 Jiangsu Jianghuai Engine Company Limited

          $93.00

        13. 7.10.13 Jiangsu Lianyungang Huaxuan Machinery Company Limited

          $88.00

        14. 7.10.14 Kubota Corporation

          $115.00

        15. 7.10.15 Liuzhou Wuling Motors Company Limited

          $113.00

        16. 7.10.16 Luoyang Sida Agricultural Machinery Company Limited

          $102.00

        17. 7.10.17 Mahindra Yueda Yancheng Tractor Company Limited

          $111.00

        18. 7.10.18 Nantong FLW Agricultural Equipment Company Limited

          $82.00

        19. 7.10.19 Nonghaha Group

          $94.00

        20. 7.10.20 Shandong Changlin Machinery Group Company Limited

          $115.00

        21. 7.10.21 Shandong Dafeng Machinery Company Limited

          $149.00

        22. 7.10.22 Shandong Huaxing Group Company Limited

          $82.00

        23. 7.10.23 Shandong Jinyi Machinery Manufacture Company Limited

          $82.00

        24. 7.10.24 Shandong Juming Group

          $82.00

        25. 7.10.25 Shandong Shifeng Group Company Limited

          $120.00

        26. 7.10.26 Shandong Wuzheng Group Company Limited

          $176.00

        27. 7.10.27 Shijiazhuang Agricultural Machinery Company Limited

          $103.00

        28. 7.10.28 Tong Yang Moolsan Company Limited

          $103.00

        29. 7.10.29 WORLD Group

          $169.00

        30. 7.10.30 Xi'an Yaao Agricultural Machinery Company Limited

          $82.00

        31. 7.10.31 Yanmar Company Limited

          $228.00

        32. 7.10.32 Zhejiang Sanlian Combine Manufacturing Company Limited

          $82.00

        33. 7.10.33 Zhejiang Sifang Group Corporation

          $121.00

        34. 7.10.34 Zhengzhou Sanzhong Harvesting Industrial Company Limited

          $82.00

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