Chinese Government Sets Goals for "Sound and Fast" Farm Mechanization Development

20 May 2011 • by Natalie Aster
Chinese Government Sets Goals for

Despite the global economic downturn, which negatively affected the largest as well as developed markets for agricultural implements and machinery, demand remained upbeat in Asia-Pacific emerging markets. Over the past 6 years, Chinese agricultural machinery sector has maintained a growth rate of over 20%. China's farm machinery industry achieved a total output value of CNY283.81 billion in 2010, and its total profits for the year are estimated at CNY15.5 billion. According to analysts, growing mechanization in the agricultural sector is expected to bestow significant growth and profits for the Chinese farm implements and machinery industry in the near future.

Since the foundation of the People's Republic of China, the agricultural machinery industry has supplied many different kinds of agricultural machines, including diesel engines, tractors and implements such as combine harvesters, agricultural products processing machinery, animal husbandly equipment, irrigation and drainage pumps, and plant protection machinery.

The total power of China’s agricultural machinery was 525.7 million kW in 2000, 684.0 million kW in 2005, 821.9 million kW in 2008, as well as 875.0 million kW in 2009.

Dynamics of total power of agricultural machinery, 2000-2009 (10 000 kw)


The mechanization of China's agricultural production has reduced the annual need for around 10 million farm labors. Around 52% of Chinese farm jobs are now performed by machines, against 36% in 2006, and the government targets a 70% rate by 2020.

Realizing the importance of agricultural modernization, the Chinese government has strongly supported the increased use of farm equipment through tax breaks and subsidies. Subsidies represent up to 30% of the price of high-technology machinery.

The Government sets goals for "sound and fast" development of the country's farm mechanization. By 2015, the total power of China's agricultural machinery will reach 1 billion kW, of which irrigation machinery power should total 100 million kW. The figures are expected to rise to 1.2 billion kW and 110 million kW respectively by 2020.

The People’s Republic of China is the world’s largest economy after the United States and is the world’s fastest-growing major economy, with average growth rates of 10% for the past 30 years. The Chinese economy as well as its farm machinery sector in particular, is likely to remain on a strong growth trajectory over the next decade.

More information on farm machinery market in Сhina may be found in the report Farm Machinery Market in China: Business Report 2011 recently published by The Market Publishers, Ltd.


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