In the first half of this year, China’s livestock machinery market has risen sharply. The R&D and manufacturing level of domestic animal husbandry machinery has gradually matured, solving the dilemma of imported machinery being too expensive and poor quality of domestic machinery affecting market demand growth and expansion. Experts believe that China’s livestock machinery has ushered in a period of strategic opportunities.
In the case of a significant decline in the agricultural machinery market, the livestock machinery market continued to show a “blowout” development, which became a highlight of the agricultural machinery market. The China Agricultural Machinery Circulation Association recently released a market survey showing that the livestock machinery market has risen sharply in the first half of this year. As of the end of June, a total of 19,400 sets of various livestock machinery were sold, a substantial increase of 148.92% year-on-year.
“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 China Agricultural Machinery Distribution Association. In recent years, China’s animal husbandry industry has developed rapidly. However, the level of animal husbandry mechanization is very low. Many small or large-scale farmers still stay in the stage of artificial breeding. The rigid demand for livestock machinery is huge. The rapid development of animal husbandry machinery is closely related to the national policy orientation. In recent years, China has vigorously promoted structural reforms in the supply side of agriculture, adjusted the planting structure, promoted “grain to feed”, promoted comprehensive mechanization of agricultural production, increased subsidies for livestock machinery, and injected strong power and macro policy guarantees for the livestock machinery market; Market transformation generates demand for replacement. In 2012, the livestock machinery market entered the replacement lane, and the demand for large-scale livestock machinery increased, resulting in a continuous decline in the small livestock machinery market. In 2018, the market was basically replaced, and large-scale high-end livestock machinery became the development direction. In addition, the R&D and manufacturing level of domestic livestock machinery has gradually matured this year, solving the dilemma of imported machinery being too expensive and poor quality of domestic machinery affecting market demand growth and expansion.
Zhang Huaguang believes that China’s livestock machinery market has ushered in a period of strategic opportunities. Statistics show that the livestock machinery industry is developing rapidly, the market is growing steadily, and the livestock machinery export market is also showing rapid growth. From the trend of the main business of the special equipment manufacturing industry for livestock production in recent years, after a substantial increase in the past three years, the livestock machinery has experienced a three-year low growth rate. In 2017 and 2018, the livestock manufacturing industry has renewed its strength for two consecutive years. Showing a double-digit increase.
“In the future, China’s livestock machinery market has a lot of room for growth.” Zhang Huaguang said. From the perspective of the development environment, China’s natural grassland, artificial grass, and crop straw are rich in forage materials, which provides a broad space for the development of herbivorous animal husbandry. However, the level of animal husbandry in China is low, and the key technologies and equipment such as animal husbandry machinery are highly dependent on foreign countries. The market share of foreign companies in China is over 90%.
The huge gap is the vast space for the development of livestock machinery. From the perspective of market space, the overall level of mechanization of forage harvesting in China is still quite low. The amount of lawnmowers and mowers is only 1% in the United States, and the amount of balers is only 0.1% in the United States. There is still much room for market growth. Since last year, livestock machinery, especially forage harvesting machinery, has developed “blowout”. From the perspective of aquaculture production cost and production efficiency, compared with developed countries, the annual yield level of lactating cattle in China is 2 to 3 tons lower, and the weight of beef and meat sheep slaughter is about 100 kg and 10 kg respectively. Production of milk, beef, and lamb. The cost is more than 1 times higher than the international average, which seriously affects the competitiveness of China’s herbivorous livestock products. Improving the mechanization level of animal husbandry is an important factor in reducing production costs.
“In terms of comprehensive factors, the livestock machinery market is undoubtedly a sunrise market, facing good development opportunities and prospects.” Zhang Huaguang said. The national industrial policy of developing animal husbandry will continue to be a powerful driving force for the development of the livestock machinery industry. The adjustment of planting structure, the changing diet structure, and the supply-side reform will become important factors in promoting the stable growth of the livestock 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 may constrain the transformation and upgrading of the livestock machinery market, requiring the industry to plan ahead and respond well.