Tractor Market In 2009, "crises" And "machine"
Financial crisis of 2009 tractor market is bound to be more difficult year
, while domestic and international macroeconomic environment will be more tight. Cyclical changes in world economic growth and the overlay of domestic cyclical factors, the economy in 2009 increased the pressure for further downward adjustments. On the other hand, long-term economic growth in China has not changed the internal conditions, macroeconomic policies may become neutral and loose. In particular, the Chinese Government to ensure the steady development of the rural economy, issued a series of preferential agricultural policies benefit farmers, the tractors will bring favorable factors in the market.
Tractor industry was facing a good opportunity for development
2009 XXL, China's government continues to support and benefit agriculture policy efforts to significantly increase over the level of minimum grain purchase prices, increasing agricultural subsidies, raising prices of agricultural materials and agricultural resources and general direct subsidies linkage mechanism, proposed a substantial increase in agricultural investment program. This tractor market in 2009 created a favorable macro environment for development. First, the further introduction of
preferential agricultural policy. 2009, the Central further efforts to increase agricultural subsidies, continue to increase infrastructure investment. Vigorously promote the comprehensive grain production capacity and continue to increase the quality of food industry, engineering, plant protection project, seed project implementation efforts. But also to speed up agricultural science and technology and vigorously promote the reform of primary agricultural extension system, and construction.
Second, agricultural subsidies will drive tractors billion industry on the volume. Arranged 10 billion yuan in 2009 the central agricultural subsidies, increased by 1.5 times compared to the previous year, together with local government matching funds, its stimulating effect on the agricultural market will be very significant. Especially for large and medium tractors will pull the market an unprecedented situation.
Third, food prices rose, driving farmers income growth, rising purchasing power of farmers. 2008 Zongchandadao 10 570 billion jin of grain, yield 538 billion kilograms over the previous year, an increase of 5.4%. Rural incomes over the previous year is up sharply, rural per capita net income increased 8%, to achieve faster growth for 5 consecutive years. National Development and Reform Commission has informed the grain price increase in 2009. Meanwhile, the state to support the development of food processing companies, recently introduced a number of national support policies. The ultimate expression of the peasants in 2009 revenue growth.
4 diesel prices continue to lower the cost of reducing the use of tractors. Entities by the world financial crisis and the impact of economic downturn, oil prices in 2009 will continue to hover in the low price. This will reduce the means of production of our tractor manufacturing costs rise and consumers to use tractors to increase pressure on the stability of our 2009 tractor pulling market prices and a favorable impact on demand.
Fifth, lower prices of raw materials, companies reduce costs possible. Chinese steel market in 2008 really experienced a "roller coaster" type of ups and downs, in response to financial turmoil shrinking demand in all sectors, the Chinese government launched 4 trillion yuan of investment plans to meet expanding domestic demand and stimulate the economy, ensure the economic growth objective. The domestic steel market in 2009 will continue to be fluctuated correction mainly out of the "order box" the probability is relatively large. There is no indication that the steel smelting material prices during the year 2009 there will be a strong rally and return to the previous high. In this case, even if the price of metallurgical materials, the chain is no longer falling, maintain the existing price, the 2009 China's total steel oversupply situation even more intense market competition, which will further alleviate China's tractor manufacturing high cost pressures, increased its profit preset more space.
Tractor Market In 2009, "crises" And "machine"
By: blairzhang
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