How to break through when the development of the h

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The development of rotary cultivator has entered a critical period how to break through the encirclement

"due to the rapid rise in the price of raw materials such as steel, and the fact that enterprises can not adjust the product price by themselves, the situation faced by the rotary cultivator industry is very severe, and it has reached a state of survival." Gao Yuanen, chairman of China Agricultural Machinery Industry Association, said in an interview with China industry news recently

he said that this is definitely not alarmist. Several rotary tiller manufacturers have reported the situation to them and asked the association to find a way. However, as trade associations, they have no function of coordinating prices. What they can do is to report problems to relevant departments in a timely manner. They also hope that relevant departments will take practical actions as soon as possible to help the rotary tiller industry out of its difficulties

last year, the average gross profit margin of the agricultural machinery industry was only 4%. Due to the low added value of products, the rotary cultivator was even more affected by the price rise. If this situation is allowed to continue, the entire agricultural machinery industry will face no small impact. Gaoyuanen said that the purpose of paying attention to the rotary tiller industry from now on is to find and solve problems faster. At present, straw returning machines and other products similar to rotary tillers have also encountered the same problems. It will be too late to solve these problems when the whole agricultural machinery industry has been severely damaged

it is reported that the sharp rise in raw material prices at the beginning of this year, as well as the increase in related costs, gave a blow to China's agricultural machinery enterprises. A considerable number of agricultural machinery enterprises' profits declined to varying degrees in the first quarter, and some even suffered large losses

the rotary cultivator industry is facing the test of life and death. In the past two years, the price of rotary cultivators is generally maintained between 3000 yuan and 4000 yuan. Well done enterprises can earn about 200 yuan per unit, and the gross profit margin is only about 5%. While the vast majority of enterprises' profits are only 80~100 yuan/set, and the gross profit margin is around 3%

the profit margin is compressed, and the price rise of raw materials such as steel bears the brunt. According to the introduction of several major manufacturers, the steel used in the production of rotary cultivators has increased steadily from 3800 yuan/ton to 5800 yuan/ton, an increase of 53% The high manganese steel hammer increased from 4300 yuan to 12500 yuan per ton in 2016, which is nearly twice as high. The rise in labor costs should not be underestimated. Labor costs in the whole industry increased by 14 percent over last year, and in some regions reached 25 percent These two items add up to a 33% increase in the cost of rotary tillers

if you want to deal with the surge in costs caused by various factors, just raise the price? But the problem is far from so simple. According to Gao Yuanen, first of all, the price setting power of agricultural machinery products is not entirely in the hands of enterprises. In order to effectively protect the interests of farmers, the price setting and increase range of agricultural machinery products are guided by the relevant local agricultural machinery management departments. This year, the price increases given to enterprises by relevant localities are 5%~10%, and the maximum price increases in some regions can reach 13%, but this is far less than the cost increase for the cases that have been placed for more than two months

secondly, due to the limited purchasing power of farmers, enterprises do not dare to raise prices easily out of consideration of the market. In order to maintain market share, many enterprises have to bear the pain to sell their products at a price lower than the cost. Some enterprises have a net loss of 800 yuan for every machine they sell

Gao Yuanen said that most enterprises producing products with relatively low scientific and technological content such as rotary cultivators are private enterprises. They rarely get the government's capital investment. If they continue to operate at a loss for a long time, it will inevitably lead to the bankruptcy of the enterprise. The arrival of the peak sales season has added a bit of anxiety to their expectation of Zhongping. How to help enterprises out of difficulties? As rotary cultivator is one of the most important supporting products of tractors, the market demand is very large. It is conservatively estimated that the market stock is more than 1million. For the universal experimental machine loading, it is a machine that often has problems. If this situation continues, small enterprises will be eliminated, large enterprises will also be hit hard, and the social problems caused by enterprise bankruptcy can not be ignored. Even if some enterprises can survive the trauma, how to start will become a difficult problem when the market is booming again in the future

although many rotary cultivator enterprises have full production tasks and their products are in short supply, in order to reduce losses, many enterprises have begun to adjust their production plans accordingly. A person in charge of the enterprise said that this was also a helpless move. It would be better to reduce the production scale and find ways to preserve the vitality of the enterprise than to lose one. Even in the peak sales season, the sales volume can only be reduced on the basis of inability to supply. It is reported that the main reason why enterprises can supply a large number of goods at present is that they have a certain amount of raw material inventory. After this part of inventory is consumed, the production situation in the second half of the year will not be optimistic

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