Demand For Farm Equipment In China

Luke Gakstatter, president of John Deere China, believes his company’s 36-year investment in China will continue to provide opportunities in the fast-changing and increasingly competitive market, according to a report from China.org.cn.

Deere has said it plans to greatly expand its presence in China and move its cotton picker production to the world’s second-largest economy.

“The market in China is advancing very quickly and we as a company need to continue to get very good at moving quickly, reacting and developing and planning for that rapid change,” said Gakstatter.

To achieve steady growth, China will continue to expand domestic demand and develop the real economy to stabilize economic growth this year, according to a government work report delivered by Premier Wen Jiabao, setting the tone for policies this year. Data from the Ministry of Commerce showed that China attracted 116.01 billion U.S. dollars in foreign direct investment (FDI) last year, up 9.72% year-on-year despite external uncertainties.

The Chinese central government spending on agriculture, rural areas and farmers is said to have exceeded 1 trillion yuan (158.73 billion U.S. dollars) last year, or 183.9 billion yuan more than a year before.

“All of that is a clear indication to us… that the prospects for agriculture here in China are tremendous,” said Gakstatter.

He noted that the Chinese government understands China will continue to undergo significant urbanization and be very focused on food security and the overall development of agriculture. What differentiates China from any of the other markets is not only the speed of change, but the pace of growth, Gakstatter said, adding, “Pace of growth is very phenomenal in China over the past couple of years.”

Spring Clinic Note: We are very pleased that Russell A. Meade, President of China Business Network (CBN) will be addressing our members on Thursday, March 29. His session will discuss how members can best assess current opportunities in China. Those not able to attend the Spring Clinic can look forward to an article from Meade in the next issue of Ag Innovator, the Association’s quarterly magazine.