Weifang Legion is staring at the hay baler, can copy the tractor industry that the thousands of machines compete to dominate?

Release Date:2021-07-02 enlarge

  Weifang Legion is staring at the hay baler, can copy the tractor industry that the thousands of machines compete to dominate?


  Straw feed hay baler, also called feed straw kneading hay baler, straw feed pickup hay baler, is a few agricultural machinery products which made in China. The biggest feature of such products is to remove the dust and debris from the straw while collecting it. Cattle and sheep like to eat, and the method is to blow with a fan with large, So this kind of machine is carried a long "Tail" behind it, which is spectacular. This kind of machine was first invented by SHUNBANG company of Siping, Jilin Province. Once it was listed, it was recognized by users and farmers. It was sold after almost no publicity and promotion. It is just the old saying that "Taoli self-evident, and make a new way".


  In the past five years, straw feed hay baler, no tillage planter and plant protection drone have become the most popular agricultural machinery kinds in China. With strong demand, it will naturally become the target. In the past three years, at least 30 enterprises have entered the sub industry, but Weifang Legion is the most notable . It is well know that all businesses that Shandong Agricultural machinery enterprises are staring at will be soon popular and will be "dove occupied magpie nest". What is most impressive should be tractors. Then, will the feed straw baler copy the thousands of machines compete to dominate?


  1、 Confirmed that Weifang Legion is staring at the feed straw baler


  From the WeChat official account of agricultural machinery, the satin agricultural machinery in the largest tractor industrial cluster in Weifang, Shandong, has introduced a new type of binding machine called "sanjipao". From the poster, the so-called new bundling machine is actually a straw feed binder. The name is "sanjipao should be inspired by the the Great Wall's "the Great Wall gun" pickup truck. Sading is a new emerging agricultural machinery industry in recent years. It is located in Weifang tractor industry cluster in Shandong Province. In 2020, sading and jihe brands together sell nearly 10000 sets. It is a first-line brand of Weifang system, which is an important force for domestic tractor industry.


  Weifang tractor brand entering into straw feed baler is not the first one and will never be the last. In fact, sading is not the first one. In Weifang system, there are many ones in advance



  At the spring agricultural machinery exhibition in Shenyang in early March this year, we first saw two sets of Chinese green straw feed balers displayed in Weifang Huaxia tractor factory. At that time, I had a sense that Weifang Legion wanted to push such products,  it was unexpected that when I entered Weifang area to investigate the brand of tractor, I found Baili (Hanwo), and Ruike and other six tractor enterprises launched the straw feed baler.


  After sading entered, Weifang is the most famous first-line tractor brands Huaxia, Hanwo and sading all join in. These three enterprises have strong appeal, and the small brands are following only three major brands, which means that in a sense, the internal of Weifang Legion has formed a unified opinion: enter  straw feed baler Market!


  2Its originated from Siping, northeast phenomenon  agricultural machinery category


  Weifang is the largest and most famous large and medium-sized tractor industry cluster in China. There is also a domestic largest famous straw feed baler industry cluster in Northeast China, which is unique in China.


  Siping is located in the world's three gold corn belts at 45 degrees north latitude. 80% of Jilin corn is produced in Siping area. Large-scale planting brings great demand for a variety of machines related to corn planting, and also brings the comprehensive utilization equipment of corn straw, mainly the demand of straw feed baler adjacent to Neimenggu.


  Therefore, the straw feed baler is based on the demand of Siping local comprehensive utilization of straw. Based on the study and reference of domestic and foreign balers, feed harvesters, forage harvesters, forage balers and other related products, Siping local enterprises have developed a new category learning from many factories.


  The difference between straw feed bundling machine and traditional binding machine is that the straw is crushed and rolled up. After processing into filaments, it is thrown to a certain height by wind in the machine, and then centrifuged by wind and eddy. The soil and straw are separated. After the dust is separated and removed completely, then wrapped and bagged. It breaks the traditional saying that cattle do not eat ground feed, but can be fed directly. Cattle and sheep prefer to eat, which has become an important source of economic, convenient and quantity guarantee for increasing forage.


  The emergence of this machine changed the income structure of planting corn, and the treated corn straw can be sold to 100 yuan / ton. Its burden for farmers planted corn straw before, and it was not easy to corrupt in the ground. If burning, the government would not allow it. The emergence of straw feed binding machine turned waste straw into cheap and high-quality forage material, which is a typical waste changing into treasure, It was the right word "rubbish is the resource of the place that was misplaced".


  The demand of products is good, and the enterprises producing straw feed baler are increasing. Siping has unconsciously developed an industrial cluster of straw feed baler with SHUNBANG as the leading point. Only Siping has about 15 overall production enterprises. In addition, Changchun, Haerbin, and Jiamusi corn main production areas or near the main corn production areas are also scattered with more than ten straw feed baler enterprises. In Northeast of China, the Siping corn no tillage seeder and straw feed baler industrial cluster led by SHUNBANG and Kangda are phenomenon existence, breaking the current situation of Northeast of China without agricultural machinery industry cluster and no agricultural machinery leading enterprises.


  3Strong demand and profiteering: to lead a wolf into the room


  Northeast of China has grown up a straw feed industry cluster, but there will never be exclusive business in China. The technology of straw feed baler spreads from Siping to northeast, and it also spreads from northeast to the whole country. Enterprises in three major agricultural machinery industrial clusters, Shandong, Henan and Hebei, of course, are the most noteworthy enterprises in Shandong, especially Weifang Legion.


  So what is the reason  Weifang Legion  switch to the straw feed baler market?


  The answer should be demand and profits, "in the world, all for profit, the world is bustling, all for profit". Because of the large scale and rich profits, it will attract more than 100 enterprises to flock in.


  Analyze the demand first. Overall, the demand of domestic straw baler is influenced by environmental protection policy and livestock husbandry. The former is policy as the driving force, the latter is the market, which is mainly reflected in the subsidy policy for agricultural machinery purchase. The demand between push and pull has been in a high growth trend. The straw feed baler is mainly driven by animal husbandry, In 2020, 15000 balers are sold. On one hand,Heilongjiang, Neimenggu, Liaoning and Jilin, which have the largest sales of straw feed balers, are corn producing areas, on the other hand, large-scale local cattle and sheep farms or close to breeding areas. In 2019 and 2020, the demand for beef and mutton with relatively low price increased due to the rise of pork price , accompanied by the surge in demand for cattle and sheep feed, For two consecutive years, the supply of corn straw in Northeast China is short of demand and the price has increased rapidly. In some places, even selling straw makes money than corn, which directly drives the hot sale of corn straw feed baler. Of course, not only corn straw, but also other wheat, peanut, soybean, sorghum and other agricultural products, including cotton stalk, are very high in price, which can be used as coarse feed or feed additive, The straw feed baler of SHUNBANG system have many functions. Therefore, from Siping, the straw feed baler has been sold in the whole country, such as Ningxia, Xinjiang, Hebei and other animal husbandry development areas.


  And then look at the profits. Tell you a secret that agricultural machinery products together by all enterprises in China must have three characteristics: high product price, large profit  and high subsidy.


  Price of straw feed baler. Currently, there are 1.7-2.2 m header, 2.2m and above header. In Jilin, subsidy is RMB 40190 and RMB 30360. Because of the high subsidy of the latter, 80% of the products are 2.2m header, and the market price of SHUNBANG 2.2m pickup is RMB 150000-200000, Tianlang is between RMB 100000-18000, and SHUNBANG has the highest price, and other brands are between 100000 and 18000.


  RMB 100000-200000, equivalent to the price of 120-250HP Weifang seriestractor. If the two kinds of products are compared, the price of straw feed baler is obviously higher than that of the cost of materials, complexity of components and product technical content, which is the reason why agricultural machinery enterprises in Shandong, Hebei and Henan are fighting for such products.


  Look at the subsidy limit of single machine. The highest national general standards subsid  is 31600 yuan, while the local subsidy is often increased for single machine. For example, Jilin subsidizes 30360 yuan for 1.7-2.2 pickup baler in 2020, 40190 yuan for 2.2m and upper pickup baler. Heilongjiang subsidizes 34500 yuan and 44000 yuan for these two products, which is equivalent to the subsidy limit of 120-160 horsepower tractor, As a subsidy for agricultural machinery, it is very high.


  The fundamental reason for the existence of a large number of competitive brands in a subdivision industry is that the price of leading enterprises in the industry is high, which reserve enough profit space for the industry. The price difference between the top brands of the industry and the brand products with the weakest strength is the space for the survival of small brands. The space shrinks, and the number of enterprises will be reduced, If there is no space basically, or the price of head brand is even lower than that of small enterprises, there is no space for small brands to survive.


  We believe that based on the above analysis, we can understand why Weifang Legion will "invade" the straw feed baler market on a large scale.


  4Is it a repeat of tractor competition for thousands of machines?


  We all know that there are 226 brands of 209 production enterprises in the domestic tractor industry, 80% of them are Shandong enterprises, 80% of them are brands in Weifang and surrounding areas, and the leading role of the thousand machine competition in tractor industry is Weifang Legion.


  Everyone may be very curious, why Weifang  Legion will turn to straw feed baler?


  In addition to the vigorous demand and high profit space analyzed above, there are two other reasons: one is that the tractor industry is getting poor day by day, Weifang  Legion is facing the crisis of collective withdrawal, the other is "herd effect". Many enterprises do not know why to do it, but it is Huaxia, Baili and sading who have done , and I will do it, This is the common feature of many domestic industrial clusters, and the root of homogenization.


  So what changes will Weifang Legion bring after they come in, and where will the straw feed baler go? As the best fortune teller in agricultural machinery industry, I makes forward-looking prediction here,let time verify:


  First, more enterprises enter, and Weifang will form a second industrial cluster.


  It is almost certain that, after Huaxia, Baili and sading, Weifang will have a large number of tractor manufacturers launching straw feed baler products in the next two years. I predict that there will be no less than 20, and the host enterprises will drive the growth of supporting enterprises. In the past 1-2 years, another straw feed baler industry cluster will appear in Weifang District, Shandong Province, This industrial cluster will become a competitor with Siping industrial cluster.


  Of course, this industrial cluster is not from grow out of nothing. Weifang is originally the industrial cluster of balers. At present, there are more than 20000 square balers and round balers in the region. Lovol, Huachuang robot, Ruike, Chuanguo and are strong, among which, Ruike is a representative of several famous brands in China.


  Second, the product is rich, upgrading and reducing the distribution of two directions.


  The entry of Weifang Legion will bring two big changes: first, the product optimization, upgrading and serialization promoted by the powerful enterprises, such as the products of Baili and sading are unique, which can enable users to use better things and increase selectivity, because the manufacturing capacity of Weifang industrial cluster is beyond Siping, which is a good side.


  Second, the bad competition of small brands. We all know that the homogenization competition in agricultural machinery industry is not who does better, but who is lower. When the price is lower, there will be various means of inferior to be used to fill up, reduce allocation and fake , which is bad competition.


  Third, the fierce price and the shuffle of the industry.


  It can be almost certain that the entry of Weifang Legion, the domestic straw feed baler industry pattern will be reshaped, price war is inevitable. At present, the high profit of Shunbang, Tianlang and other first-mover enterprises will not be sustainable, the profit structure and profit and loss line of the industry will move up, and the situation of 1000 machine competing like tractor industry will be staged again.


  Fourth, it is difficult to judge who will win the final victory.


  Siping Legion has the advantage of first development. At present, it has laid a good market foundation in the main animal husbandry and breeding areas in Northeast China. Especially, the market foundation of Northeast China is very deep. It is difficult for Weifang Legion in Shandong to shake in a short time, but it is hard to tell in near future.


  Weifang Legion has always been characterized by price butcher, industrial cluster and fast ,accurate and ruthlessness. If they are targeted by Weifang legion, they are almost invincible. Besides, the advantage area of Siping Legion is mainly outside the guanwai, and the foundation is still shallow in the guannei.


  The biggest charm of market economy is in thousands of changes and huge uncertainty. If the subsidy policy is adjusted greatly, such as reducing the subsidy of straw feed baler, the industry will be another situation.


  Facing Weifang legion, the author gives the suggestions to Siping legion. First, we should attach importance to both strategy and tactics. We should not be careless or despised. After all, the strength of Weifang legion is real; Second, we should keep the northeast  market. The rise of Siping straw feed baler industrial cluster has its historical and geographical location, which will determine that the industrial cluster will have special competitiveness, which is not replicable, and must not be possessed by other regional competitors. As long as Siping legion do its advantages, It can effectively block competitors, as long as the Northeast does not lose, it is also a regional market like an independent kingdom.