Speculation for 2025: Agricultural machinery going abroad to seek opportunities

With the increasing maturity of heavy-duty tractors in our country, they will soon occupy the domestic market, and it is inevitable to enter the foreign market at the same time. The cotton picking machine market is a precedent. After occupying the domestic market, it will inevitably enter the foreign market. This time, let's talk about the opportunities for agricultural machinery to go global in 2025.

Going global with agricultural machinery is not only about exporting agricultural machinery products, but also about combining China's agricultural machinery production capacity with foreign demand. From the perspective of tractor exports in our country, there have been around 140000 units per year recently, with the highest export value being less than 7 trillion yuan. Among them, hand guided tractors account for a considerable proportion, and tractors with 180 horsepower or more are rare. Obviously, this export structure only reflects the mid to low end level of tractors in China.

In 2025, with the maturity of power shift and continuously variable transmission heavy-duty tractors in China, not only will they quickly occupy the domestic market, but the export of large tractors will also achieve rapid growth, thereby changing the model structure of exported tractors. In a few years, with the maturity of China's new energy hybrid continuously variable transmission heavy-duty tractors, a large number of heavy-duty tractors will go abroad and contribute the wisdom and strength of China's tractor industry to the international community.

So, how our agricultural machinery can go abroad has become a concern for people. Although I do not have much experience in this area, I have witnessed the process of multiple multinational agricultural machinery enterprises entering China over the years, which should provide reference for China's agricultural machinery to go abroad.

Multinational agricultural machinery enterprises entering China generally need to go through the process of finding agents in China, establishing offices to bring agricultural machinery products into China, and then seeking joint ventures, mergers and acquisitions, or independent factory construction with Chinese enterprises. John Deere, New Holland, Aiko, Kolesui, Yangma, Kubota, and Kuhn have all gone through this process.

Advertising products on professional media in agricultural machinery export or cooperation target countries can be a trial method. If the target country's users or companies are interested in the product, they must contact the contact information on the advertisement to negotiate cooperation; If no one is interested, then give up to avoid causing significant losses to the company.

Back then, South Korea's Datong wanted to enter China by adopting this approach. They contacted the magazine 'Agricultural Machinery', and I answered the phone. We agreed to advertise our products on the second page of 'Agricultural Machinery' for the whole year and have been doing it for two consecutive years. As they do not have an office or distributor in China, we contact them by phone and fax every year, make pre publication payments, and settle in US dollars. So I remember this very clearly.

In addition, in order to enter the agricultural machinery market of a certain country, it is common for multinational enterprises to build spare parts warehouses in advance while entering the product market. If the accessory service cannot keep up after the product is sold, it will affect the experience of the first batch of users and have a very adverse impact on subsequent work.

In order to increase publicity efforts, foreign companies usually invite media or industry leaders to visit. For example, in 2004, he was invited to France to participate in the 175th anniversary celebration of Kuhn Company.

In October 2008, Chen Yingli, Secretary General of the Tractor Society, was invited to visit the ZF factory and heavy-duty tractor field demonstration activities in Germany. In April 2009, the magazine and Tractor Society held an international seminar on heavy-duty tractor supporting technology in Qingdao, promoting the technology of power shift heavy-duty tractors in China. A team of four people from ZF attended the seminar to introduce the product technology.

The above measures have effectively strengthened the promotion of enterprise products in destination countries. Domestic agricultural machinery enterprises that intend to go global can learn from or imitate.

In 2025, we hope that more agricultural machinery enterprises will go abroad and achieve success!

Author: Shushuo Agricultural Machinery

Source: Agricultural Machinery News Networ