Farming opportunities are cold, but animal husbandry machinery welcomes "blowout"

The dilemma of too expensive imported machinery and poor quality domestic machinery has been resolved this year

In the first half of this year, my country's livestock machinery market has risen sharply. The level of R&D and manufacturing of domestic animal husbandry machinery has gradually matured, which has solved the dilemma that imported machinery is too expensive and poor quality of domestic machinery affects market demand growth and capacity expansion. Experts believe that my country’s livestock machinery has ushered in a period of strategic opportunity——

In the case of a substantial decline in the entire agricultural machinery market, the livestock machinery market continues to show a "blowout" development, becoming a highlight of the agricultural machinery market. The China Agricultural Machinery Circulation Association recently released a market survey showing that in the first half of this year, the livestock machinery market has risen sharply. As of the end of June, a total of 19,400 units of various livestock machinery were sold, a substantial increase of 148.92% year-on-year.

"The two-wheel drive of market and policy is an important reason to support the rapid development of the livestock machinery market." said Zhang Huaguang, director of the information department of the China Agricultural Machinery Circulation Association. In recent years, my country’s animal husbandry has developed rapidly. However, the level of mechanization of animal husbandry is very low. Many small or large farmers are still in the artificial breeding stage. The rigid demand for animal husbandry machinery is huge; the rapid development of animal husbandry machinery is closely related to the national policy guidance. In recent years, China has vigorously promoted the structural reform of the agricultural supply side, adjusted the planting structure, promoted the "grain reformation", promoted the full mechanization of agricultural production, increased subsidies for animal husbandry machinery, and injected strong momentum and macro policy guarantees into the animal husbandry machinery market; The market transformation generates a demand for replacement. In 2012, the animal husbandry machinery market entered the replacement lane, and the demand for large-scale animal husbandry machinery increased, which led to the continued decline of the small-scale animal husbandry machinery market. In 2018, the market basically completed the replacement, and large-scale high-end animal husbandry machinery became the development direction. In addition, this year's domestic animal husbandry machinery R&D and manufacturing level has gradually matured, solving the dilemma that imported machinery is too expensive and the poor quality of domestic machinery affects market demand growth and capacity expansion.

Zhang Huaguang believes that my country's animal husbandry machinery market has ushered in a period of strategic opportunities, the animal husbandry machinery industry is developing rapidly, and the market is growing steadily. Statistics show that in 2018, the accumulated main business income of the animal husbandry machinery industry was 15.76 billion yuan, a year-on-year increase of 12.46%, and its growth rate ranked second among the 11 sub-sectors of the agricultural machinery industry. Realized a profit of 707 million yuan, 15.5 percentage points higher than the average of the agricultural machinery industry. The feed processing equipment manufacturing industry, which is closely related to animal husbandry manufacturing, achieved a profit of 188 million yuan in 2018, a significant year-on-year increase of 97.14%. Moreover, the export market of livestock machinery is also showing a rapid growth trend. From the perspective of the main business trends of the animal husbandry production equipment manufacturing industry in recent years, after experiencing a sharp rise in 2013, animal husbandry machinery has shown a low growth rate for three consecutive years. In 2017 and 2018, the animal husbandry manufacturing industry renewed its efforts for two consecutive years. Shows a double-digit increase.

"In the future, my country's livestock machinery market has a lot of room for growth." Zhang Huaguang said. From the perspective of development environment, China is rich in natural grassland, artificial grass and crop straws and other forage resources. According to estimates, the available resources can meet the production needs of at least 50 million tons of milk, 8 million tons of beef and 5 million tons of mutton. It provides broad development space for the development of herbivorous animal husbandry. However, my country's animal husbandry mechanization level is low, animal husbandry machinery and other key technologies and equipment are highly dependent on foreign companies, and foreign companies have a market share of more than 90% in my country. For example, in China's large-scale dairy farms, domestic machinery such as mixers, automatic feeding vehicles, conveyor belt feeding systems, and calf feeding carts in the feeding machinery account for 35%, and imports account for 65%; among the environmental control machinery, Domestic production accounts for 40%, and imports account for 60%.

The huge gap is the vast space for the development of animal husbandry machinery. From the perspective of market space, the overall level of forage harvesting mechanization in China is still quite low. The number of lawn mowers and rakes is only 1% of that of the United States, and the number of balers is only 0.1% of that of the United States. There is still a lot of room for market growth. . Since last year, animal husbandry machinery, especially forage harvesting machinery, has experienced a "blowout" development. From the perspective of breeding production cost and production efficiency, compared with developed countries, the annual yield of lactating cows in China is 2 to 3 tons lower, and the carcass weight of beef cattle and sheep slaughtered is about 100 kg and 10 kg lower, respectively. Milk, beef, and mutton production The cost is more than one time higher than the international average, which seriously affects the competitiveness of China's herbivorous animal products. The improvement of the mechanization level of animal husbandry is an important factor in reducing production costs.

"In view of various factors, the livestock machinery market is undoubtedly a sunrise market, facing good development opportunities and prospects." Zhang Huaguang said. The national industrial policy for the development of animal husbandry will continue to be a strong driving force for the development of the animal husbandry machinery industry. The adjustment of planting structure, the continuous change of diet structure and supply-side reforms will become important factors to promote the stable growth of the animal husbandry machinery market. At the same time, it should also be noted that China’s overall economic growth rate has slowed down, especially the decline in agricultural product prices, which directly affects purchasing power and market confidence. These factors that may restrict the transformation and upgrading of the livestock machinery market require the industry to take precautions and respond well. ready. (Economic Daily News reporter Liu Hui)

Source: Economic Daily