Summary of 2024 International Agricultural Machinery Exhibition: Top enterprises are all pressing in, domestic rice transplanters need to replace main force?
At the national conference, outsiders watch the excitement, experts watch the tricks, and more importantly, they watch the changes. Exhibitions and markets are mirror images of
each other. Exhibitions can fully reflect the market, and traces of the market's ups and downs can also be seen at exhibitions. This is also why so many companies spend money
to participate in exhibitions and so many people spend time to see them every year.
At the China International Agricultural Machinery Exhibition held in Changsha, Hunan this year, more than 2600 companies participated, including more than 20 rice transplanter
companies. Currently, there are about 35 rice transplanter companies in China that can achieve sales through the subsidy system. More than 20 companies can attend the
exhibition, indicating a high level of enthusiasm from the companies. On the other hand, it shows that the survival status of the companies is still good, and they have the ability
and energy to participate. So, what kind of performance did the rice transplanter companies have at this year's Changsha Conference, and what new changes did the industry
have?
Is the rice transplanter the last shortcoming that needs to be addressed as the army of large enterprises is overwhelming?
At this year's Changsha Conference, viewers who are concerned about rice transplanters will notice an unusual phenomenon, which is that several top domestic brands with
strong comprehensive strength have also exhibited rice transplanter products. In the impression of many people, rice transplanters are mainly patented by specialized companies
such as Jiufu, Xingyueshen, and Linhai. There must be important reasons behind large companies entering the rice transplanter market.
Weichai Lovol, currently the largest and strongest enterprise in China, exhibited two high-speed passenger self-propelled rice transplanters, YA6 PLUS and YA8 PLUS. Of course,
this is not the first time Lovol has exhibited rice transplanters at a national conference, but it is obvious that the products have formed a series; Zoomlion exhibited the 2ZGQ-825
passenger high-speed rice transplanter. In previous years, Zoomlion mainly focused on seedling throwing machines, hoping to create a new track. This year's exhibition of rice
transplanters indicates that Zoomlion will either adopt a dual track layout or adjust its focus and direction to the rice transplanter; Wode Agricultural Machinery has been deeply
cultivating rice transplanters for many years, and has a complete product line from handheld machines to high-speed machines, with an annual sales volume of about 5000 units.
At the Changsha Conference, the Snapdragon 2ZGF-6E, 2ZGQ-8F, and intelligent unmanned rice transplanters were showcased; Changfa Agricultural Equipment has been
laying out rice transplanters for many years, and its brand is Changfa Housheng. This time, 2ZG-6C and 2ZG-8C25 were also exhibited. Changfa Agricultural Equipment has a
deep ability to self produce, and its rice transplanters are equipped with Changfa's own engine, which is paired with Changfa's 27 horsepower and 30 horsepower three cylinder
engines; In my impression, Dongfeng Agricultural Machinery also exhibited rice transplanters, but there were no photos taken at the time, so I couldn't find the proof.
So why are some large domestic enterprises still persevering in the rice transplanter industry despite years of persistent losses and low profits? I believe there are the following
reasons:
One is the need to find a second growth curve. Weichai Lovol, Yituo Dongfanghong, Dongfeng Agricultural Machinery, Changfa Agricultural Machinery and other leading
enterprises all specialize in tractors and combine harvesters, which are the two largest agricultural machinery categories in China. However, they have entered a saturation
period, and there are hundreds of domestic and foreign competitors, making competition extremely fierce. It is difficult for enterprises to maintain their existing market share, let
alone grow. But companies must find a path of growth, otherwise standing still while competitors are striving for excellence will be a step backwards. In this case, top companies
will naturally have diversified demands, and entering the rice machine market is a natural extension of their business.
The second is the extension of diversified markets. The major aspects of the domestic agricultural machinery market can be divided into northern dryland areas and southern
paddy fields. As mentioned earlier, the main sales market of several large enterprises is northern dryland areas, and their products are also biased towards the north. However,
the maturity of the northern market is high, and competition is fierce. To increase business scale, the only way is to penetrate the southern paddy field areas. When entering the
southern paddy field market, the largest demand is for fully fed rice machines and transplanters.
Thirdly, rice transplanters have a large scale and high profits. All the hustle and bustle in the world is for profit, and all the bustle is for profit. Enterprises have entered the rice
transplanter industry in large numbers because on the one hand, there is an annual demand of nearly billions, and on the other hand, Kubota and Yangma have raised the profit
margin of the industry, making domestic brands also profitable. Therefore, brands that have the ability to make transplanters will enter this industry.
So, due to subjective and objective needs, several major brands have been patiently cultivating their rice transplanter businesses in recent years. Currently, only Wode's rice
transplanter function may be profitable on a large scale, but other companies are cultivating it as a strategic business,
Kubota and Yangma are still role models for domestic reference and learning
Unfortunately, despite a decade of strong attacks, domestic brands have not yet taken over the main battlefield of high-speed rice transplanters, and the case of fully fed rice
combine harvesters has not been staged in the high-speed rice transplanter industry, as can be seen from the popularity of exhibitions.
At present, the rice transplanters of Japan Kubota Company and Japan Yangma Company still have absolute advantages in terms of the progressiveness of technology, the
performance and quality of rice transplanters and other soft and hard indicators, as well as the reputation and influence of users. Domestic brands have certain advantages in
walking machines, but they are still in the position of learning and catching up on high-speed rice transplanters.
On the one hand, the three major Japanese brands are in an absolute leading position in terms of technology. The value of rice transplanters is not high, but their structure is very
complex and their technical content is not low. Japanese brands Kubota and Yoma still lead in engine technology, HST hydraulic transmission technology, intelligent control
technology for the whole machine, and artificial planting technology.
Secondly, Kubota and Yangma are also in a leading position in the new product market. At this year's Changsha Conference, it is evident that domestic brands lack innovation.
When communicating with industry insiders, they also believe that it is rare to see truly innovative and invented products this year. Kubota has launched new products such as
the 10 row kA10N and 25cm row spacing SPV-8AD25.
KA10N is the first 10 row rice transplanter in China. In products such as wheat, rice, and corn transplanters, the advantage of domestic production is the continuous introduction
of faster and more efficient models, in order to achieve a differentiated competitive strategy that cannot be surpassed in technology and quality in the short term, but can lead in
machine efficiency. However, I don't know why domestic production has always been very conservative in rice transplanters, never daring to cross the threshold set by Japanese
brands.
Thirdly, Japanese brands are still far ahead in terms of product quality. The competition between rice transplanter companies is no longer a technical competition. Currently, the
technology of rice transplanters is publicly available and not opaque. Domestic and Japanese products are on the same level, and it is only about who is willing to use more
automated and intelligent components.
The real difference between domestic rice transplanters and Japanese brands lies in quality. On the one hand, Japanese products have higher prices and greater profit margins,
allowing for the use of better quality accessories. On the other hand, in terms of production organization and management, Japanese companies excel in lean manufacturing,
which means that products made from the same components have better stability than those made in China. In this regard, domestic companies need to learn humbly and catch
up in the long run.
Domestic brands enhance product strength and seek differentiation
An obvious change in domestic brands is the increasing number of large enterprises, with Wode and Xingyue Shen being the top three giants in the industry in terms of
comprehensive strength, and the other being industry newcomers with deep backgrounds and powerful group companies. Although these enterprises have not yet achieved
absolute victory and have not fully replaced Japanese brands, they have been making progress and searching for ways to overtake them.
From the Changsha meeting, it can be seen that in response to the demand characteristics of domestic paddy fields, market changes such as the improvement of scale and the
increase of organized users in recent years, domestic rice transplanter brands have made a lot of innovation and adaptive improvements in their products.
One is to increase the engine power. The common power of domestic high-speed rice transplanters is 25 horsepower, 27 horsepower, and 30 horsepower, with some companies
even increasing it to 35 horsepower, while Japanese brands currently dare not exceed 25 horsepower.
This is a bit like "a big horse pulling a small car", but rice transplanter companies increase horsepower to improve the efficiency of the machine's operation, not maliciously in
exchange for more subsidies. However, as the engine power increases, energy consumption will also increase, and the cost of use will increase, which is a contradiction.
The second is to enhance the strength of the aircraft body. From the promotion of domestic brands at the exhibition, it can be seen that the common practice of enterprises is to
use thicker steel or materials with higher hardness, and to increase the thickness of the front axle, wheel rims, gearbox housing, etc., in order to improve reliability.
The third is to improve the level of automation and intelligence. Mainly in the areas of electric drive systems, automatic navigation, and autonomous driving systems, domestic
brands are more willing to try them. In the case of outdated hardware, improving the cost-effectiveness of machines through intelligence is a strategy and progress for domestic
manufacturers.
The fourth is to promote innovative planting modes such as bowl carpet seedling transplanting, wide narrow row transplanting, and film transplanting. In this regard, domestic
brands such as Jiufu, Jiushun, and Linhai do not have the burden of success and can make bold innovative attempts. In turn, Kubota and Yangma can learn from the practices of
domestic brands.
Overall, in the context of outdated technology and quality, domestic brands have shown more proactive and innovative spirit. Whether effective or ineffective, they have carried
out a lot of innovative work in differentiation.
Domestic brands are going to 'replace birds with cages', and the main players have already taken the stage
Products such as rice transplanters currently have a maximum horsepower of only 35 horsepower. In terms of power products, they belong to small agricultural machinery. Many
people believe that rice transplanters are simple and have mature technical routes, so they will rush into them.
But the rice transplanter is actually not simple at all, because the operation of transplanting rice is very complex. The machine has to imitate human hands to transplant rice, and
behind it is a large amount of electromechanical and hydraulic technology and the coordination between technologies. Therefore, we can see that the rice transplanter has many
gearboxes, transmission shafts, and hydraulic components.
Objectively speaking, the complexity of the transmission system and electro-hydraulic system of high-speed passenger rice transplanters far exceeds that of tractors. Therefore,
in terms of technical and manufacturing difficulties, rice transplanters have a high threshold, which determines that not small and medium-sized enterprises can do a good job in
rice transplanters.
Not to mention domestic small and medium-sized enterprises, such as multinational corporations like John Deere, AGCO, and Klaas, they are dominant in tractors, combine
harvesters, and silage machines. They have all entered the rice transplanter industry but have not done well in rice transplanters. The exhibition center of Klaas' German
headquarters has a 6-row rice transplanter.
On the other hand, compared to agricultural machinery such as tractors, combine harvesters, and seeders, the working environment of rice transplanters is much more complex
and harsh. Rice transplanters work in paddy fields, which are characterized by deep mud feet, uneven water surfaces, and even large pits or stones. It is difficult to walk in very
complex paddy fields, and it is very challenging to insert seedlings neatly and uniformly, while pursuing comprehensive indicators such as efficiency, survival rate, and high yield.
So although the rice transplanter is small, it is not simple. Producing rice transplanters has a high threshold and difficulty. In fact, for enterprises, there are also thresholds. From
the reality, the three giants of Japan, Kubota, Yangma, and Inoue, are all real giants with global influence. Their internal research and development capabilities and manufacturing
capabilities are world-class, so it is reasonable for them to do well in rice transplanters.
But currently, the vast majority of small and medium-sized enterprises engaged in the rice transplanter business in China are from the south. At the time of entry, these
enterprises may not have had a sense of awe or the psychological preparation to face huge difficulties. However, after entering, they realized that it was extremely difficult to do
this business well and to compete with Japanese counterparts.
Therefore, it is necessary for domestic rice transplanters to undergo "cage replacement". Companies such as Wode, Lovol, Zhonglian, and Changfa have comprehensive
strength in technology, manufacturing, promotion, and service, which is a necessary condition for a product with complex structure and high dependence on service; On the other
hand, the enterprise has strong strength and abundant resources, and can fight a long-term battle. If it can't win in one year, it will take two years, and if it can't win in two years,
it will take ten years. One day, it will master the technology, polish the products, and make products that are like Kubota and Yangma, or even surpass Japanese brands.
Conclusion: Whether we want to admit it or not, Kubotian and Yangma are still in the leading position in the domestic rice transplanter industry, and domestic brands are still in
the position of learning and catching up. At present, the gap between domestic and Japanese rice transplanters is still obvious in terms of progressiveness of technology, product
quality and operation reliability, but the progress of domestic rice transplanters is great, and the determination of domestic brands is also great. In addition, Weichai Lovol, Ward
Agricultural Machinery, Changfa Agricultural Machinery, Zoomlion Heavy Industries and other heavyweight players have already appeared, so the development speed of
domestic rice transplanter industry is expected to speed up, and the gap between domestic and Japanese rice transplanters is expected to quickly narrow.
Author: Agricultural Machinery Spray
Source: Agricultural Machinery Information Network
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