Event:
On January 5, 2022, the Ministry of agriculture and rural areas officially issued the national agricultural mechanization development plan in the 14th five year plan.
Comments:
Effective policy planning and high-quality mechanization have supported the formation of the pattern of agricultural and rural modernization. The national agricultural mechanization development plan of the 14th five year plan points out that during the 13th Five Year Plan period, China’s agricultural mechanization is transformed and upgraded to comprehensive, high-quality and efficient, and agricultural production has changed from mainly relying on human and animal resources to mainly relying on mechanical power. The state attaches great importance to the development of the industry, continues to optimize the industry management mechanism and adjust the planning for transformation and upgrading, and has achieved remarkable results in agricultural mechanization. During the 13th Five Year Plan period, the total power of agricultural machinery in China was 1.056 billion kw, an increase of 17% over the end of the 12th Five Year Plan; The comprehensive mechanization rate of crop cultivation and harvest was 71.25%, 7.4pct higher than that at the end of the 12th Five Year Plan. The state has set goals for the development of the industry. At the end of the 14th five year plan, the total power of agricultural machinery in China was stable at about 1.1 billion kw, and the comprehensive mechanization rate of crop cultivation and income was 75%. Looking forward to 2035, China’s agricultural mechanization will make phased and decisive progress, advance with the goal of basically realizing the full coverage of mechanization in agricultural production, and mechanization will help the high-quality development of agricultural and rural modernization.
The overcapacity and homogenization of products in the middle and low-end markets are serious, and the coordination and supporting policies and management services need to be strengthened. At present, the challenges faced by the industry are as follows: (1) R & D and manufacturing of agricultural machinery products need to be strengthened. As some key core technologies, core parts and manufacturing processes of Chinese enterprises still lag far behind those of developed countries, they fail to meet the needs of agricultural personnel. Chinese enterprises mainly focus on medium and low-end products, with serious overcapacity and homogenization, and high-end products rely more on imported products. (2) Coordination needs to be strengthened. The disharmony between agricultural machinery, agronomy, farmland and mechanized production is obvious, which restricts the quality and efficiency of agricultural machinery R & D, popularization and application and operation, and has not yet been able to meet the needs of high-quality agricultural development. The construction of agricultural machinery operation, storage and other infrastructure still lags behind, which affects the service efficiency and service life of agricultural machinery and equipment to a certain extent. (3) Agricultural Mechanization policy support and management services need to be improved. The supporting policies and measures for supporting agricultural machinery R & D and innovation and mechanization development are still not rich enough. There are still deficiencies in the management service of agricultural mechanization, and the informatization level of management service needs to be strengthened.
Further promote the reform of agricultural mechanization, and the development of the industry is expected to accelerate. The plan proposes to further promote the structural reform of the supply side of agricultural mechanization, strive to make up for weaknesses, strengths and weaknesses, promote coordination, vigorously promote the integration and adaptation of mechanization with agronomic system, intelligent information technology, agricultural management mode and farmland construction, lead and promote the innovative development of agricultural machinery equipment, and expand and strengthen the industrial chain of agricultural mechanization industrial clusters, Accelerate the high-quality and efficient development of agricultural mechanization. The plan emphasizes four basic principles, including: (1) adhering to the central task and serving the overall situation; (2) Adhere to policy support and market leading; (3) Adhere to innovation driven and coordinated development; (4) Adhere to systematic planning and coordinated promotion. At the same time, we will increase and strengthen support for development policies and measures, strive to improve the whole process mechanization of grain crop production, vigorously develop the mechanization of cash crop production, accelerate the development of livestock and poultry aquaculture mechanization, actively promote the mechanization of Shenzhen Agricultural Products Group Co.Ltd(000061) primary processing, accelerate the completion of the shortcomings of Agricultural Mechanization in Hilly and mountainous areas, accelerate the intelligent and green agricultural mechanization Expand and strengthen the industrial chain of agricultural mechanization industrial cluster and earnestly strengthen the safety management of agricultural machinery.
Investment suggestion: the Ministry of agriculture and rural areas issued the national agricultural mechanization development plan in the 14th five year plan, pointing out that the 13th five year plan has obvious effects on the industry, and put forward the future development goals of the industry. At present, the agricultural machinery industry urgently needs to improve its R & D and manufacturing capacity, collaborative supporting measures and policy and management services for the agricultural machinery industry. The state will further promote the supply side structural reform of agricultural mechanization, make up for weaknesses, strengths and weaknesses and other measures, and also emphasize the four basic principles as the market orientation. Suggestion: China’s first AI agricultural equipment manufacturing enterprise, leading the intelligent development of the industry Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) (000157); Relying on its own technical advantages, accelerate the pace of transformation and upgrading, and continuously improve its performance First Tractor Company Limited(601038) (601038).
Risk tips: macroeconomic downturn, industry prosperity decline, deterioration of overseas trade environment, policy change risk, etc.
