Corn Harvester Industry Reshuffle: 150 Companies Lost In One Year

In just three years, the corn harvester industry suddenly emerged from three to four hundred small businesses, and almost half of them disappeared overnight. What is going on?

Although in this era of princely secession, people had long anticipated the arrival of the "price war", after all, the corn harvester had just been hot for two years, and the arrival of the "price war" still caught people by surprise. What makes people even more surprised is that John Deere, who has been famous for producing agricultural machinery, actually provoked this "battle"!

Why does this foreign giant, which has always been beyond the reach of Chinese companies, adopt such a strategy to seize the market? Is it not enough to stand firm in the Chinese market with its strength? This is the second consecutive year that John Deere corn harvesters have lost money in the Chinese market.

In the field of corn harvesters, annual losses of up to 100 million yuan make John Deere incompatible with the booming Chinese corn harvester market. "Their corn harvester market is mainly in the three northeast provinces, which is too limited!" Said Zhang Huaguang, deputy secretary-general of the China Agricultural Machinery Circulation Association. "In 2012, the Chinese corn harvester industry has grown explosively, and it has caught up with the Heilongjiang harvest. The products sold are quite good. But in the next two years, Heilongjiang suffered a severe natural disaster, and the growth rate of the corn harvester industry also gradually declined. However, John Deere has been making production plans according to the market in the previous year. Not losing money? "

The large amount of inventory has brought John Deere a huge operating risk. This time the price reduction and selling looks more like a self-redemption decision. However, in the period of market fluctuations, any turbulence will disturb the industry, and no one had thought that there were three or four hundred small businesses swarming in two years ago, but disappeared within one year due to the "price war". 150 corn harvester plants!

Looking at the entire industrial field, I am afraid that no industry can get a "roller coaster" in such a short time as a corn harvester. What is even more amazing is that in 2014, after ending the double-digit growth for ten consecutive years, the entire agricultural machinery The industry ended bleakly with an increase of 9%, and its total profit fell by 3.42%. However, the corn harvester has become a sub-industry of contrarian growth. Take Yongmeng Machinery. At the end of 2014, Yongmeng Machinery achieved a historical record of production and sales of 3500 corn harvesters and achieved zero inventory. In the fierce agricultural machinery market, Yongmeng Machinery resolutely kept the four rows of corn harvesters in China status. In addition, the corn harvester market in Shandong, Jilin, Inner Mongolia and other regions has grown by three digits!

A first-class dealer of a well-known brand revealed to reporters that because the wheat harvester has matured, the earliest domestic "self-propelled" corn harvesters have evolved from wheat harvesters. As long as you change the harvester, immediately Turned into a "self-propelled" corn harvester. But this is just a change in form. There was a year when the state gave more subsidies to corn harvesters, so many wheat harvester factories changed their harvesters and sold the machines as corn harvesters. After the subsidies were handed over, they helped farmers change the harvesters to wheat harvesters. of. Although the published data showed that the "self-propelled" corn harvester achieved a certain scale of growth that year, in fact, the true sales volume was almost negligible. "The" self-propelled "corn harvester is a type of grain harvester that integrates harvesting and threshing. Its key components are the gearbox and the header. In those years, the overall level of the gearbox in the corn harvester factory is relatively backward and the failure rate is very high. And the farmers' harvest period is limited, they would rather buy a more mature 'piggyback type' rather than 'self-propelled'. "The dealer explained.

For the Northeast region, which is ripe once a year, the length of the harvest time is not very important. Farmers can wait for the corn to dry in the field before harvesting, so achieving grain harvesting is not a problem. However, for the Huanghuaihai region, which is two crops a year, it is necessary to harvest the crops within a short period of time because of the need to grow the next season crops. The problem is that the freshly-grown corn has too much water to harvest the grain. "Once the threshing stage, the loss rate is quite high, and the harvested corn kernels cannot be sold at any price." Said a distributor who is deeply cultivating Huanghuaihai. In 2012, the owner of a corn harvester factory in Henan was pleased to announce to the world that he had developed a grain harvester. As a result, when testing in the Huanghuaihai region, not only the corn leaves were cut off, the juice leaves of the leaves also stained the corn kernels green.