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Zhang Huaguang: the mainstream regional development is strong The growth of the seeder market has become a foregone conclusion The performance of ice and fire in the same furnace The mainstream regional market is still strongly competitive and presents five major characteristics The industry pattern has not yet taken shape The market growth has become a foregone conclusion The industry development has ushered in opportunities

author:China Industry News

■ China Industry News Li Fanglei

In the past two years, no-tillage seeders suitable for use in the northern spring corn planting and production areas, especially heavy-duty no-tillage planters and protective tillage technologies, have been welcomed by users with their outstanding advantages of yield and economic benefits, and have maintained an upward trend in the downturn of the agricultural machinery market. Recently, Zhang Huaguang, director of the Industry Information Department of the China Agricultural Machinery Circulation Association, used a large number of detailed data analysis to analyze the development of China's seeding machine market in the special report of "Agricultural Machinery Market Status and Countermeasures", and predicted the trend of the seeding machine market under the epidemic situation.

Zhang Huaguang: the mainstream regional development is strong The growth of the seeder market has become a foregone conclusion The performance of ice and fire in the same furnace The mainstream regional market is still strongly competitive and presents five major characteristics The industry pattern has not yet taken shape The market growth has become a foregone conclusion The industry development has ushered in opportunities

<h1 class="pgc-h-arrow-right" > item performance ice and fire in the same furnace Mainstream regional market is still strong</h1>

From January to September this year, China's seeder market has grown significantly. According to market surveys, as of the end of September, the cumulative sales of various seeders were 117,100 units, an increase of 16.41% year-on-year. At present, China's sowing machinery market performance of ice and fire in the same furnace. No-tillage, concentrate, rotary tillage, rhizome crops, and rice direct seeding machinery have increased significantly; in contrast, in addition to the slight decline in burrow seeders, strip seeders, small seeding, and other sowing machinery have experienced a sharp decline. The market for each product of the seeder varies from heat to heat, mainly due to policy guidance. The outstanding performance is two points: first, under the guidance of national and local conservation tillage policies in recent years, no-tillage seeders have enjoyed superimposed subsidies in many regions, which directly promotes the substantial growth of the no-till sowing machinery market; second, precision seeders are favored by users due to the high amount of subsidies.

From the perspective of the regional market, in the first three quarters, the mainstream regional market of China's sowing machinery has been a step closer on the basis of the substantial growth in the previous two years, and the top 10 regional markets in terms of sales volume have shown different degrees of growth in addition to the slight decline in the Shandong market. As of the end of September, the traditional mainstream regional market of seeding machinery had sold a total of 105,100 units of various seeding machinery, an increase of 16.65% year-on-year; accounting for 89.75%, a slight increase of 0.19% over the same period last year. Judging from the performance of the 10 mainstream regional markets, Henan, Xinjiang, Inner Mongolia, Hebei, Jilin and Shanxi increased by double digits.

<h1 class="pgc-h-arrow-right" > competition presents five major characteristics The industry pattern has not yet taken shape</h1>

Zhang Huaguang analyzed that at present, China's seeding machinery market competition presents the following five characteristics: First, new enterprises continue to pour in, the expansion of seeding machinery families, the formation of "eight hundred princes, three thousand small countries" competition situation. In 2019, the number of seeding machinery brands that only entered the agricultural machinery subsidy reached 324, an expansion of 50 compared with 2018. If the annual output of more than 1,000 units, 500 to 1000 units, 100 to 500 units, 100 units and 100 units or less four grades. Among them, the annual output of more than 1,000 units and 500 to 1,000 units, only 22 and 20 respectively, accounting for only 6.79% and 6.17%. The brands with 100 to 500 units and less than 100 units reached 90 and 192 respectively, accounting for 27.78% and 59.26% respectively. It can be seen that small enterprises in China's seeder market account for the majority.

Second, the market share concentration is high. The number of entrepreneurs with an annual production and sales of more than 500 units accounts for 12.96%, and more than 70% of the market sales share is controlled. Market survey shows that the annual output of more than 1,000 units of enterprises, the cumulative sales of 70,700 units, a substantial increase of 38.36% year-on-year, accounting for 63.41%; the annual output of 500 to 1,000 units of enterprises, sales of 14,500 units, down 20.77% year-on-year, accounting for 13%, the two accounted for more than 70%. The proportion of enterprises with an annual output of less than 500 units is only more than 30%.

Third, competition is fierce and concentration is increasing. Due to the large number of competitive brands, coupled with the non-differentiation of most brands of products, it is determined that the competition in the sowing machinery market stays at the low level of price competition, and the market concentration is scattered. In 2019, the top 10 brands in terms of sales volume sold 56,300 units of various seeding machinery, a sharp increase of 41.81% year-on-year; accounting for only 50.09%, an increase of only 7.4 percentages over 2018.

Fourth, the competition pattern has not yet formed, at present, the mainstream brands in China's sowing machinery market include Hebei Nonghaha, Renqiu City Shuangyin, Hebei Shenhe, Huaibei Huafeng, Jilin Province Kangda, Zhumadian City Zhongnong, Xinjiang Jin Tiancheng, Anhui Lingyang, Xinjiang Tiancheng and other brands. Among them, Hebei Nonghaha Group is a monopoly leading the sowing machinery industry, market survey shows that in 2019, Hebei Nonghaha accumulated sales of 21,900 units of seeding machinery, a substantial increase of 28.07% year-on-year; accounting for 19.48%, up 1.1 percentage points compared with the same period in 2018, the market share led the second place by up to 14.23 percentage points. Other brands, except for Renqiu City' double printing accounted for 5.25%, are below 5%.

Fifth, the heavy-duty sowing machinery market is booming. In recent years, under the promotion of conservation tillage policies, the heavy-duty seeder market has implemented superimposed subsidies in the northeast, and the market has developed rapidly. Jilin Kangda, Debon Dawei and other brands that produce heavy sowing machinery have risen along the trend, occupying the mainstream market in Northeast China and Inner Mongolia, and becoming a new force in the sowing machinery market that cannot be underestimated.

<h1 class="pgc-h-arrow-right" > market growth is a foregone conclusion The industry development ushers in opportunities</h1>

Zhang Huaguang believes that it is not difficult to see from the trend of the sowing machinery market in the first three quarters that the substantial growth of the sowing machinery market this year has become a foregone conclusion. It is expected that the annual sales volume of the sowing machinery market is about 140,000 units, an increase of about 20% year-on-year, and this forecast is mainly based on the following factors: First, the spring and summer of each year is the main sales season of sowing machinery, and the sales volume in the first three quarters basically represents the trend of the whole year. Second, this year's positive factors are strong, whether it is subsidy policies, or the endogenous power of the sowing machinery market, which provides strong support for the substantial growth of the market throughout the year; third, from 2014 to 2019, the trend of nearly 6 years, after experiencing a continuous decline of 4 consecutive years from 2014 to 2017, has entered a three-year growth, which is also in line with the cyclical changes in the sowing machinery market.

Zhang Huaguang believes that the agricultural machinery market is facing good development opportunities. In the next 3 to 5 years, the sequelae of the epidemic will delay the restructuring of the global supply chain, China's economy benefits from the advantages of epidemic prevention and control and social governance, and the capacity utilization rate of the agricultural machinery manufacturing industry is supported by domestic demand; secondly, it is expected that in the next few years, the global epidemic will still be repeated, and China's agricultural machinery manufacturing industry will strengthen its advantages in the global supply chain system with a complete industrial chain and enjoy the global stimulus dividend. In addition, the 14th Five-Year Plan will continue to help supply-side reforms, further promote global competitiveness, and drive "Made in China" to "Made in China". In this regard, the development prospects of China's agricultural machinery market, including the sowing machinery market, are promising.

Editor: Hu Na

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