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Indonesia Agricultural Machinery Market Outlook to 2020: Ken Research

Posted on 13 October 2016 by KenResearch Agriculture and Animal Care ,

The report titled Indonesia Agricultural Machinery Market Outlook to 2020 - Integration of Small Farm holding Structure and Government Support to Foster Growth” provides a comprehensive analysis regarding the performance of the agricultural machinery and equipment market in Indonesia.  The revenues of the industry have been segmented on the basis of agricultural machinery including Tractors, Combine Harvesters, Rice Transplanters and Tractor Implements. Under each segment, aspects such as market size on the basis of revenue and sales volume have been computed. The report also covers market share in each segment along with the competitive landscape of major agricultural machinery manufacturers, country overview on the basis of macro-economic variables, pricing analysis, agricultural overview and business model of major agricultural machinery manufacturers.

 Market for Agricultural Machinery

The sale of 2 wheel tractors/power tillers was evaluated at ~ in 2010. This generated sales revenues worth USD ~ million during the same year. The sales of 2 wheel tractors/power tillers reached ~ in 2015, generating revenues amounting to USD ~ million during the same year. 2-wheel tractors are used throughout the country but majority of this demand comes from Java, Sulawesi and South Sumatra. The sales of hand tractors ranging from 5 hp to 8.5 hp contributed ~% to overall sales volume in 2015. Conversely, the sale of hand tractors ranging from 9 hp to 15 hp contributed ~% to overall sales volume during the same year. CV Karya Hidup Sentosa (Tractor Quick) sold ~ hand tractors in 2015, garnering a share of ~% in terms of sales volume in the two wheel tractor sales market. Yanmar accounted for a share of ~% in the two wheel tractor market in terms of sales volume in 2015. Two wheel tractors are the most demanded agricultural machinery in Indonesia and this trend is expected to continue in the future. The sales volume of hand tractors is estimated to reach ~ units in 2018 and ~ units by 2020.

The agriculture sector in Indonesia witnessed an upward trajectory, from subsistence and mixed farming towards semi-commercial and commercial farming. This resulted in an increased demand for farm machinery, leading revenues from the sale of 4 wheel tractors to enhance from USD ~ million in 2010 to USD ~ million in 2015. The total number of four wheel tractors sold in the country increased from ~ units in 2013 to ~ units in 2015. Tractors ranging from 81-100 HP are primarily demanded by commercial farmers and large agricultural cooperatives indulging in palm oil, sugar and rubber cultivation. Kubota and Yanmar sold ~ units and ~ units respectively in 2015. New Holland accounted for a share of ~% in the four wheel tractor market. Commercial farmers in Indonesia have mainly demanded high horsepower (81-100 hp) Massey Ferguson and John Deere tractors due to which they accounted for a share of ~% and ~% respectively for the overall four wheel tractor sales in 2015. The sale of four wheel tractors is estimated to increase to ~ units in 2018 and ~ units by 2020.

The revenue from the sale of combine harvesters augmented from USD ~ million in 2010 to USD ~ million in 2015, with sales volume posted at ~ during the same year. The sales of combine harvesters of 35 hp and below contributed ~% to sales volume in 2015. Combine harvesters ranging from 35 hp to 55 hp contributed ~% to overall sales volume in 2015. CV Karya Hidup Sentosa (Tractor Quick) had garnered a share of ~% in the combine harvester market in 2015 with total sales of ~ units. Kubota manufactures and sells three models (35 Hp, 60 Hp and 70 Hp) of combine harvesters in Indonesia and has helped the company to achieve a market share of ~% in terms of sales volume during the same period. Yanmar has managed to sell ~ units of its combine harvesters during the same period. The sale of combine harvesters is anticipated to increase from ~ units in 2018 to ~ units by 2020. During the same period, revenue generated by this market is projected to increase from USD ~ million during 2018 to USD ~ million by 2020.

The overall sales of rice transplanters in the country increased from ~ units in 2010 to ~ units in 2015, achieving a CAGR of ~% during the review period. The revenue generated from the sale of rice transplanters increased from USD ~ million in 2010 to USD ~ million in 2015, achieving a CAGR of ~% during the review period. Yanmar has total sales of ~ units in 2015. During the same year, Kubota sold ~ units of their Rice transplanter. The sales of rice transplanters are projected to increase from ~ units in 2018 to ~ units by 2020. The demand for these machines is expected to arise from certain areas in Java and Sulawesi by agricultural cooperatives and large/commercial farmers.

Majority of farmers that procure new 2 wheel and 4 wheel tractors purchase them with tractor implements. The revenue generated from the sale of tractor implements augmented from USD ~ million in 2010 to USD ~ million in 2015, achieving a CAGR of ~% during the review period. The total sales of tractor implements enhanced from ~ units in 2010 to ~ units in 2015, reporting a CAGR of ~% during the review period. Rotavators accounted for the share of ~% with respect to the sales of new tractor implements in 2015. The sale of tractor implements has been estimated to reach ~ units in 2018 and augment to ~ units by 2020.

Key Topics Covered in the Report:

 Gross Domestic Product of Indonesia, Distribution of GDP by Agriculture, Manufacturing, Services

Population Demographics, GDP Per capita and GDP Per Capita (PPP) in Indonesia

Logistics Cost

Total Land under Cultivation and Distribution by Major Crops

Changes in Cropping Patterns of Major Crops and Factors Driving Change

Farm Holding Structure

Agricultural Practices

Snapshot on Irrigated and Non-Irrigated Land In Indonesia

Existing Problems in Agricultural Development in Indonesia

Government Policy Impacting The Agricultural Machinery Market in Indonesia

List of Agriculture Universities in Indonesia

Indonesia Agricultural Machinery Market Size on the basis of Revenue and Sales Volume

Indonesia 2 Wheel Tractor/Power Tiller Market Size on the basis of Revenue and Sales Volume

Indonesia 4 Wheel Tractor Market Size on the basis of Revenue and Sales Volume

Indonesia Combine Harvester Market Size on the Basis of Revenues and Sales Volume,

Indonesia Rice Transplanter Market Size on the basis of Revenue and Sales Volume

Indonesia Tractor Implements Market Size on the basis of Revenue and Sales Volume

Snapshot on Power Threshers Market in Indonesia

Price Range at Category- Customer Price/ Dealer Price (USD)

Region Wise Channel Points of Major Players in Indonesia

After Sales Support Policies

Market Share and Competitive Landscape of Major Players in Indonesia Agricultural Machinery Market

Business Model Adopted by Major OEM’s in the Tractor Market

Tractor and Implement Channel Strategies in Indonesia

Status of Custom Hiring in Indonesia

Geographical Distribution of Category wise sales for Tractors and Other Machinery in Indonesia

Indonesia Agricultural Machinery Market Future Outlook and Projections

Customer Insight on Indonesia Agriculture Equipments

What Farmers Consider Before Purchasing New Agricultural Machinery in Indonesia

Usage Patterns for Major Agricultural Equipments in Indonesia

Analyst Recommendations

For more information on the report, refer to the link below:

https://www.kenresearch.com/agriculture-and-animal-care/agriculture-equipment/indonesia-farm-tractor-market-report/53418-104.html

Related Reports:

Vietnam Agricultural Machinery Market Outlook to 2020 - Government Initiatives to Increase Mechanization and Enhancing Credit Availability to Drive Future Growth

Thailand Agricultural Machinery Market Outlook to 2020 - Changing Labour Force Pattern and Improving Credit Conditions to Foster Future Growth

India Agricultural Equipment Industry Outlook to 2018 - Growing Potential of Rice Transplanters Market

Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-901537824

...

Read more…

Rising Dominance of Estate Crops and Varied Usage Patterns for Agricultural Machinery in Indonesia to Drive the Demand for Agricultural Equipments: Ken Research

Posted on 12 October 2016 by KenResearch Agriculture and Animal Care ,

  • To upgrade industries and climb the technological ladder, a strong partnership with the private sector will be crucial for the country.
  • The growing GDP, improving investment in infrastructure and low labor costs will provide a significant thrust to the manufacturing sector over the coming years.
  • The agricultural machinery market in Indonesia is estimated to reach over USD 740 million by 2020

Ken Research announced its latest publication on “Indonesia Agricultural Machinery Market Outlook to 2020 - Integration of Small Farm holders and Government Support to Foster Growth” provides a comprehensive analysis of the agricultural machinery market in Indonesia. The report covers aspects such as the market size on the basis of sales volume and revenue for Tractors, Combine Harvesters, Rice Transplanters and Tractor Implements. The segmentation for Tractors, Combine Harvesters and Rice Transplanters has been created on the basis of Horsepower while the segmentation for Tractor Implements has been showcased by products. The report also covers the market share, competitive landscape and working business model of major manufacturers, along with warranty policies and distribution channels of agricultural equipments. The report also covers farm ownership by different food and estate crops with expected changes in cropping pattern in the coming years. In addition to this, the report also covers the country overview, government regulation and agricultural overview of Indonesia. GDP, Per Capita Income and Population Demographics are analyzed in country overview. Land under cultivation, Changes in cropping patterns, farm holding structure and scale of mechanization are covered in agricultural overview. Regulatory policies, the import duty structure, subsidies and financing options are covered in government regulation. This report will help industry consultants, agricultural machinery manufacturers and dealers, retail chains, potential entrants and other stakeholders to align their market centric strategies according to the ongoing and expected trends in the future.

The sales of agricultural machinery and implements are projected to reach over 230,000 units by 2020. 2 wheel tractors market in terms of revenues is likely to dominate in the future. 4 wheel tractors market is anticipated to report second position in the market in terms of revenues in 2020. This will be followed with Tractor implements, combine harvesters and rice transplanters.

In rice growing and in other small size farms, small scale two wheel tractors are most popular due to its adaptation to the local economic conditions and management scales. The sustained popularity of hand tractors for land preparation and ideal soft soil conditions will augment its sales in future. Java will continue to be the area with the highest demand and sales of hand tractors in the country.

The demand for four wheel tractors will continue to arise from Sumatra and Kalimantan in the future, due to the above average farm holding size in these regions. Moreover, the higher production for palm oil, rubber and sugarcane in these regions has also boosted the demand for 4 wheel tractor sales

The level of mechanization in harvesting in Indonesia is still very low as a majority of farmers still use manual methods. Combine harvesters are mainly demanded by a limited target audience and farmers and agricultural cooperatives and this trend is expected to continue in the future. The level of mechanization with respect to transplanting is still very low as farmers prefer to engage in manual methods of transplanting as this involves only cost of labor been employed on the farm. The sale of rice transplanters is projected to increase in the coming years. Indonesia is on the path towards self-sufficiency in terms of rice production and consumption due to which a majority of farmers in the country are expected to continue rice farming. The growth in sales of two wheel and four wheel tractors is complemented with the growth in tractor implements as a majority of farmers purchase tractor implements along with new tractors. The sale of tractor implements has been estimated to reach is anticipated to grow in tandem with the sales of 2 wheel and 4 wheel tractors.

“It is advisable for new entrant to provide great after sales support services such as on site mechanics support even during the peak seasons or timely commitment of services or otherwise free spares. Moreover, the farmers in Indonesia have lower credit worthiness due to limited farm income, which refrain them to purchase farm machinery. In lieu to this, the farm equipment companies should instigate separate leasing department that can provide farm machinery to the farmers with limited finance”, according to Research Analyst, Ken Research.

Key Topics Covered in the Report:

Country Overview: Gross Domestic Product (GDP) of Indonesia, Key Factors Driving Growth in GDP, Contribution to GDP: Agriculture, Manufacturing and Service Sector, Population Demographics, Logistics Cost

Agricultural Overview: Total Land under Cultivation, Distribution by Major Crops, Rice, Sugarcane, Cassava and Rubber, Palm Oil and Maize, Changing Cropping Patterns in Indonesia and Factors Driving Change

Farm Holding Structure in Indonesia: Number of Farms and Farm Holding Size, Nature of Ownership, Food and Estate Crops

Regulatory Policies Impacting Farm Holding Structure: Regulatory Structure, Import Duty Structure, Certification Requirements, Subsidies, Government Taxes, Finance Options

Agricultural Practices: Extensive and Intensive Farming, Scale of Mechanization, Irrigated and Non-Irrigated Land

Market for Tractor and Agricultural Implements: Indonesia Agricultural Equipment Market, Tractor Market, Rice Transplanter Market, Combine Harvester Market, Tractor Implements Market

Key Factors Driving Growth of Agricultural Equipment Market

Market Share and Competitive Landscape of Leading Manufacturers in Indonesia Agricultural Equipments Market

Competitive Landscape of Leading Manufacturers in Indonesia Agricultural Equipments Market

Price Range for Agricultural Equipments

Geographical Distribution of Category Wise Sale of Tractors and Combine Harvesters

Working Model of Major OEM’s in Indonesia Agriculture Equipment Market

Custom Hiring Market

Export-Import of Agricultural Equipments in Indonesia

Future Projections for Indonesia Agricultural Equipment Market

Customer Insight:Decision Making Process for Procurement of Agricultural Equipments, Usage Pattern for Major Agricultural Equipments in Indonesia

Analyst Recommendations

Key Products Mentioned in the Report

Four Wheel Tractors

Power Tillers

Combine Harvesters

Rice Transplanters

Tractor Implements (Rotavator, Disc Plough, Disc Harrow, Land Leveler, Sprayers/ Spreaders)

Companies Covered in the Report

PT Kubota Machinery Indonesia

Yanmar Indonesia

Quick Tractors (CV. Karya Hidup Sentosa)

PT Rutan (Agrindo)

Traktor Nusantara (Massey Ferguson and Tym)

PT Satrindo Mitra Utama (John Deere)

Altrak 1987 (New Holland)

Maxxi

Galaxy

Tanikaya

For more information on the report, refer to the link below:

https://www.kenresearch.com/agriculture-and-animal-care/agriculture-equipment/indonesia-farm-tractor-market-report/53418-104.html

Related Reports:

Vietnam Agricultural Machinery Market Outlook to 2020 - Government Initiatives to Increase Mechanization and Enhancing Credit Availability to Drive Future Growth

Thailand Agricultural Machinery Market Outlook to 2020 - Changing Labour Force Pattern and Improving Credit Conditions to Foster Future Growth

India Agricultural Equipment Industry Outlook to 2018 - Growing Potential of Rice Transplanters Market

Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-901537824

...

Read more…

Government Support to Boost Rice Production and Improving Credit Availability to Drive Growth in Indonesia Agricultural Equipment Market: Ken Research

Posted on 12 October 2016 by KenResearch

The report titled "Indonesia Agricultural Machinery Market Outlook to 2020" provides an inclusive analysis of the Agricultural Equipment Market in Indonesia and will help a reader to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will help industry consultants, agricultural equipment manufacturers, dealers, retail chains, potential entrants and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.

 

Agricultural tractors are the most durable agricultural machinery. An agricultural tractor in Indonesia can efficiently perform up to 10-15 years on an average. In many cases, the owners could only operate the tractor in a limited radius due to fragmented fields and inadequate access to users’ fields due to consequence of poor infrastructure conditions. As tractor annual use increases, the repair and variable costs per hectare tend to slightly decrease. Hence many farm owners focus on maintaining the tractors to increase its life

The Indonesian Economist Association (ISEI) and Indonesia Chamber of Commerce and Industry have laid down a new scheme PISAgro, which stands for Partnership for Indonesia’s Sustainable Agriculture. The scheme has been devised to create more effective associations between institutions and small farmers in order to optimize production methods and overcome issues of insufficient access to high quality seeds and fertilizers. Moreover, in 2014, the agricultural tools and machineries support was formed as a grant and was given to farmer groups/farmer associations/UPJA in the form of hand tractors, water pumps, transplanters, choppers and cultivators.

Farms under food crops on the other hand are owned by farmers and cooperatives. Majority of agricultural land under food crop is owned by small farmers due to which 56% of farms are below or equal to 0.5 hectares. The current situation has been changing with the consolidation of farm land by cooperatives and contractors. Indonesia has been experimenting with new machines in specific pilot areas both on operational capabilities and testing procedures. To promote agricultural mechanization, the Ministry of Agriculture (MOA) formulated a strategy called “Custom Hiring for Rental Services of Agricultural Machinery (CHRSAM) in 1998.As a result of a strong governmental support, Indonesia has more than 12,000 institutions that support the rice production by custom hiring. The number of agricultural machinery increased very slowly with utilization under 35% of its optimum capacity. This raises the demand for custom hiring in Indonesia because the usage of agricultural machinery goes underutilized in Indonesia, leading to losses to the farmers.

There are other rental hiring methods as well which are popular in Indonesia such as Farmers owning agricultural machinery also receive contracts for hiring from neighboring farmers. The contractual work between tractor owner and hiring farmer is made directly and agreed on in advance at the beginning of the season

 

"According to Research Analyst at Ken Research, there are multiple agricultural events which are organized in Indonesia that allows farm equipment manufacturers to display their products in the market. These events offers a great opportunity to build a business to network with both the local and the overseas palm oil industry and other related industries right on the spot. Moreover, the farmers in Indonesia have lower credit worthiness due to limited farm income, which refrain them to purchase farm machinery. In lieu to this, the farm equipment companies should instigate separate leasing department that can provide farm machinery to the farmers with limited finance"

 

For more information on the report, refer to the link below:

https://www.kenresearch.com/agriculture-and-animal-care/agriculture-equipment/indonesia-farm-tractor-market-report/53418-104.html

 

Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

...

Read more…