Agricultural Equipment in China

Industry forecasts for 2012 & 2017

Publication Date	July 2009
Publisher	Freedonia Group
Product Type	Report
Pages	188
ISBN Number	not applicable
Product Code	FED00482

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Summary

Demand in China to grow 6.8% yearly through 2012
Demand for agricultural equipment in China is projected to increase 6.8 percent annually to 118.0 billion yuan in 2012, outpacing growth in most other parts of the world. Gains will be supported by healthy expansion of agricultural activity as agricultural mechanization efforts continue and income levels rise in rural areas. Increased government subsidies for agricultural equipment purchases and technological improvements in part due to sustained foreign direct investment will also contribute to product gains. In addition, a rise in demand for highervalue large tractors, transplanters and
computerized harvesting machinery will boost overall market value. However, advances will be constrained to some degree by short-term declines in agricultural product prices and improvements in the quality of domestically made equipment (reducing replacement demand). In addition, the reduced profitability of grain farming and the constant small size of household farms will prevent agricultur all equipment demand from growing at a faster pace through 2012.

Tractors, harvesters, parts among best prospects

Tractors are the largest product category, accounting for 34 percent of overall Chinese agricultural equipment demand in 2007. Tractor demand will grow 7% annually through 2012, spurred by rising demand for large tractors from larger farms and collectives and increasing affordability of small tractors for household farms in China. In addition, improving technological capabilities, particularly for large tractors, will contribute to market advances in this category. Sales of parts and attachments will outpace those of agricultural equipment as a whole, driven by fast growth in agricultural equipment production and the rising use of large agricultural equipment. Demand for harvesting machines will also grow at an above average pace, stimulated by government subsidies aimed at promoting their use as well as purchases of higher priced combines. Sales of plowing and cultivating machines will grow at a healthy pace, fueled by government efforts to increase mechanized cultivating levels. Demand for planting and fertilizing machinery is projected to grow at a respectable rate, driven by higher priced transplanters and rising product replacement in large farms and collectives. Demand for other agricultural equipment -- such as irrigation equipment, sprayers, separators, haying machines, milking machines and poultry-related equipment -- will also grow at a solid pace, driven by fast growth in

Content

INTRODUCTION

I. EXECUTIVE SUMMARY

II. MARKET ENVIRONMENT
        General
        Economic Overview
          Recent Economic Performance
          Economic Outlook
        Demographic Overview
          Population
          Urbanization
        Currency Exchange Rates
        Industrialization & Manufacturing Trends
        Arable Land Outlook
        Labor Force Productivity in Agriculture
        Agricultural Sector Outlook
          Agricultural Output
          Agricultural Value Added
        The Eleventh Five-Year Plan

III. OVERVIEW
        Supply & Demand
        Pricing Trends
        Policies, Regulations & Standards
        Product Development & Technology
        International Environment
          World Outlook
          Foreign Trade

IV. PRODUCTS
        General
        Farm Tractors
          Large Farm Tractors
          Small Farm Tractors
        Harvesting Machinery
          Combine Harvesters
          Other Harvesting Machinery
        Plowing & Cultivating Machinery
          Plowing Machinery
          Cultivating Machinery
        Planting & Fertilizing Machinery
          Planting Machinery
          Fertilizing Machinery
        Other Agricultural Equipment
          Seed Processing Machines
          Irrigation Equipment
          Haying Machines
          Sprayers
          All Other
        Parts & Attachments

V. REGIONAL TRENDS
        General
        Regional Demographic & Economic Trends
          Population Patterns
          Economic Outlook
        Regional Manufacturing Production Outlook
        Regional Agricultural Outlook
        Regional Arable Land
        Regional Demand for Agricultural Equipment
          Central-North
           Overview
           Agricultural Equipment Demand
          Northeast
           Overview
           Agricultural Equipment Demand
          Central-East
           Overview
           Agricultural Equipment Demand
          Central-South
           Overview
           Agricultural Equipment Demand
          Southwest
           Overview
           Agricultural Equipment Demand
          Northwest
           Overview
           Agricultural Equipment Demand

VI. INDUSTRY STRUCTURE
        General
        Industry Composition
        Market Share
        Product Development & Manufacturing
        Marketing & Distribution
        Financial Issues & Requirements
        Mergers & Acquisitions
        Cooperative Agreements
        Foreign Participation in the Chinese Market
          Legal & Regulatory Issues
          Joint Ventures
          Wholly Owned Foreign Enterprises
          Representative Offices

Company Profiles
          Anhui Changjiang Agricultural Machinery Company
          Changfa Group
          Changzhou Dongfeng Agricultural Machinery Group
          China National Harvester Machinery Corporation
          Chinese Academy of Agricultural
           Mechanization Sciences
          Chishan Group Company Limited
          Chongqing Hesheng Industry Company Limited
          Deere & Company
          Fiat SpA
          First Tractor, see YTO Group
          Foton Lovol International Heavy Industries Company
          Guangxi Qinzhou Lishun Machinery Company Limited
          Jiamusi Jialian Harvesting Machinery Company Limited
          Jiangsu Jianghuai Engine Company Limited
          Jiangsu Lianyungang Huaxuan Machinery Company
          Jiangsu Tong Yang Machinery, see Tongyang Moolsan
          Jiangsu World Agricultural Machinery, see WORLD Group
          Jiangsu Yueda Yancheng Tractor Manufacturing Company
          John Deere Jialian Harvester, see Deere
          John Deere Ningbo Agricultural Machinery, see Deere
          John Deere Tiantuo, see Deere
          Kubota Corporation
          Luoyang Sida Agricultural Machinery Company Limited
          Nanning Wuling-Guihua Vehicle Company Limited
          Nantong Liannong Agricultural Machinery Company
          Ningbo Benye Tractor & Automobile Manufacture,
           see Deere
          Nonghaha Group
          Shandong Changlin Machinery Group Company Limited
          Shandong Dafeng Machinery Company Limited
          Shandong Huaxing Group Company Limited
          Shandong Jinyi Machinery Manufacture Company
          Shandong Juming Group
          Shandong Shifeng Group Company Limited
          Shandong Wuzheng Group Company Limited
          Shantuo Agricultural Machinery Equipment Company
          Shijiazhuang Agricultural Machinery Company Limited
          Tongyang Moolsan Company Limited
          WORLD Group
          Yanmar Company Limited
          YTO Group Corporation
          Zhejiang Sanlian Combine Manufacturing Company
          Zhejiang Sifang Group Corporation

LIST OF TABLES


        SECTION I -- EXECUTIVE SUMMARY
        Summary Table

        SECTION II -- MARKET ENVIRONMENT
      1 Gross Domestic Product of China
      2 Population of China
      3 Urban Population in China by Region
      4 Chinese Currency Exchange Rates, 1997-2007
      5 Manufacturing Value Added in China
      6 Arable Land Trends in China, 1997-2007
      7 Labor Force Productivity in Agriculture in China
      8 Selected Agricultural Product Output in China
      9 Agricultural Value Added in China

        SECTION III -- OVERVIEW
      1 Agricultural Equipment Supply & Demand in China
      2 Selected Agricultural Equipment Pricing in China
      3 World Agricultural Equipment Demand by Region
      4 Chinese Foreign Trade in Agricultural Equipment

        SECTION IV -- PRODUCTS
      1 Agricultural Equipment Demand in China by Type
      2 Farm Tractor Demand in China
      3 Large Farm Tractor Supply & Demand in China
      4 Small Farm Tractor Supply & Demand in China
      5 Harvesting Machinery Demand in China
      6 Combine Harvester Supply & Demand in China
      7 Other Harvesting Machinery Supply & Demand in China
      8 Plowing & Cultivating Machinery Demand in China
      9 Plowing Machinery Supply & Demand in China
     10 Cultivating Machinery Supply & Demand in China
     11 Planting & Fertilizing Machinery Demand in China
     12 Planting Machinery Supply & Demand in China
     13 Fertilizing Machinery Supply & Demand in China
     14 Other Agricultural Equipment Demand in China
     15 Seed Processing Machine Supply & Demand in China
     16 Irrigation Equipment Supply & Demand in China
     17 Haying Machine Supply & Demand in China
     18 Sprayer Supply & Demand in China
     19 All Other Agricultural Machinery
          Supply & Demand in China
     20 Agricultural Equipment Parts & Attachments
          Supply & Demand in China

        SECTION V -- REGIONAL TRENDS
      1 Population of China by Region
      2 Gross Domestic Product of China by Region
      3 Manufacturing Value Added in China by Region
      4 Agricultural Value Added in China by Region
      5 Gross Sown Area in China by Region
      6 Agricultural Equipment Demand in China by Region
      7 Central-North Region of China:
          Agricultural Equipment Demand
      8 Northeast Region of China:
          Agricultural Equipment Demand
      9 Central-East Region of China:
          Agricultural Equipment Demand
     10 Central-South Region of China:
          Agricultural Equipment Demand
     11 Southwest Region of China:
          Agricultural Equipment Demand
     12 Northwest Region of China:
          Agricultural Equipment Demand

        SECTION VI -- INDUSTRY STRUCTURE
      1 Revenue Data: Selected Agricultural Equipment
          Companies, 2007
      2 Selected Cooperative Agreements

LIST OF CHARTS

        SECTION II -- MARKET ENVIRONMENT
      1 Population of China by Age, 1997-2017
      2 Chinese Currency Exchange Rates, 1997-2007

        SECTION IV -- PRODUCTS
      1 Agricultural Equipment Demand in China by Type, 2007

        SECTION V -- REGIONAL TRENDS
      1 Agricultural Equipment Demand in China by Region, 2007
      2 Central-North Region of China
      3 Northeast Region of China
      4 Central-East Region of China
     5 Central-South Region of China
      6 Southwest Region of China
      7 Northwest Region of China

        SECTION VI -- INDUSTRY STRUCTURE
      1 Agricultural Equipment Market Share in China
          by Company, 2007