In 2018, the agricultural machinery industry became particularly difficult. Regardless of financial statements or corporate feedback, the situation is not optimistic. Not only is the traditional pillar industry – tractors and harvesters selling down sharply, but once the dominant area – dryers, The rice transplanter and so on also encountered an unprecedented Waterloo.
The downturn in this stage of the Chinese market has caused concern in the European agricultural machinery sector. The German Machinery Manufacturers Association said in its 2017 annual report that the Chinese market is affected by the decline in food prices, and the short-term development situation remains unclear, and members are reminded to be cautious. Investment behavior in the Chinese market.
This is in stark contrast to the optimism that foreign companies have entered China in the past two years.
The domestic agricultural machinery industry is even more worried. Is the current market downturn a short-term phenomenon caused by sudden factors, or is it a long-term status quo caused by essential factors?
2018 China Agricultural Machinery High-end Forum Roundtable Dialogue
At the '2018 China Agricultural Machinery High-end Forum' hosted by Agricultural Machinery Magazine, Alistair Global Vice President and China Managing Director Alistair McLelland, General Manager of Agricultural Machinery Trading (Beijing) Co., Ltd. Lin Qionghua, First Tractor Shares Zhu Weijiang, deputy general manager of the company, and Yu Shuai, president of the Agricultural Machinery Magazine, discussed the current situation and development expectations of the Chinese market.
Alistair McLelland, vice president and global managing director of Aike, believes that China's agricultural machinery market still has great development prospects in the future.
As the world's agricultural machinery giant, Alistair McLelland said that Aike is still optimistic about the Chinese market.
From the perspective of the global agricultural machinery market, bulk commodities have a downward impact on the agricultural market, but as the global population's demand for food quantity and quality increases, the future trend will continue to develop.
Similarly, although the Chinese market is experiencing a decline, the Chinese government's emphasis on food security and food safety will promote mechanization and high-tech applications. Therefore, Alistair McLelland believes that China is still a very promising market.
Lin Qionghua pointed out that the decline of the Chinese market is not a big impact on global enterprises.
This is due to the different market conditions in different regions of the world. Despite the poor market situation in China, the demand in Russia, Ukraine and other Eastern European countries is strong.
However, China's local agricultural machinery enterprises are weak in their ability to resist risks because they are concentrated in a single market.
How can Chinese companies get on the world stage? Lin Qionghua believes that focusing on product quality and pursuing technological development is the ultimate way out.
Zhu Weijiang, deputy general manager of First Tractor Co., Ltd. believes that the low market operation will continue for a long time.
As the eldest son of the Republic, Yituo experienced the ups and downs of China's agricultural machinery development for more than 60 years. Zhu Weijiang believes that the current market situation will become the new normal.
In the short run, the downward adjustment of food prices and the adjustment of subsidy policies have affected market sales; in the long run, the agricultural machinery market has changed from a stock market to a more market, and with the influence of large-scale equipment, the market will operate smoothly at a low level.
However, this does not mean that the prospect of the agricultural machinery industry is bleak. The mechanized weak link will bring a new blue ocean market, and technological changes such as intelligent trends will also bring new opportunities.
For this round of market downturn, they all believe that they will end in the new stage after the market cycle of 3 to 5 years.