Saturday, February 5, 2022

Smart Irrigation and Fertilization - Next Top Investment Opportunity?

Agriculture relies on soil, thrives on fertilization and irrigation. For a long time, the utilization rate of agricultural water and fertilizer in China has been at a low level. At the same time, the unreasonable application of fertilizer has caused a series of problems such as soil fertility destruction and soil pollution, etc, which seriously affected the sustainable development of agriculture.

Promoting water-saving irrigation, reducing the use of chemical fertilizers, applying fertilizers reasonably, and improving the utilization rate of water resources and chemical fertilizers are not only necessary conditions for building China's modern agriculture, but also strategic requirements for ensuring national water supply and food security and promoting sustainable development.

In recent years, with the increasing interest in the agricultural field, smart irrigation and fertilization equipment has gradually become a hot term in agriculture.

Integrated Irrigation & Fertilization

Smart Integrated Irrigation & Fertilization System

Smart irrigation and fertilization systems actually refer to the integration of water and fertilizer, which is a new agricultural technology that combines irrigation technology with fertilization technology. Its technical principle is to use the pressure system or the natural drop of the terrain to blend the soluble fertilizer with the irrigation water, and irrigate and fertilize at the same time through the pipeline system, which can meet the needs of crops for water and nutrients in a timely and appropriate amount, and has the advantages of saving fertilizer and water. The advantages of saving labor and effort, reducing humidity, reducing diseases, and increasing yield and high efficiency will effectively improve the efficiency of water and fertilizer utilization.

Huge Potential for Irrigation and Fertilization Equipment Market with Support from National Policies

At this stage, the irrigation water utilization coefficient of China's farmlands is about 0.54, lower than the world's advanced level (0.7-0.8), it is imperative to improve water resource utilization efficiency through water-saving irrigation.

The "14th Five-Year Plan" clearly proposes to build a water-saving society, promote water-saving irrigation, add 60 million mu of high-efficiency water-saving irrigation area, and create 200 water-saving irrigation areas. By 2025, 1.07 billion high-standard farmland will be built nationwide. mu.

On January 17, 2021, the Ministry of Agriculture and Rural Affairs issued a document stating that it will strengthen measures and strive to increase the utilization rate of chemical fertilizers and pesticides by another 3 percentage points by 2025 to promote a comprehensive green transformation of agricultural production methods. On September 6, the Ministry of Agriculture and Rural Affairs issued the "National High-standard Farmland Construction Plan (2021-2030)" document, which clearly pointed out that high-efficiency water-saving irrigation and high-standard farmland construction should be planned and implemented simultaneously. Mu added high-efficiency water-saving irrigation construction tasks.

According to the data analysis of Guanyan Report Network, from 2015 to 2020, the market size of China's water-saving irrigation equipment industry has increased from 60.44 billion yuan to 115 billion yuan, with a compound annual growth rate of 13.7%. In the future, based on the support of national policies and growers With the gradual improvement of water-saving awareness, it is estimated that the market size of China's water-saving irrigation equipment industry will reach 238.46 billion yuan by 2024. 

China irrigation equipment industry

China Water-saving Irrigation Equipment Market Size, 2015-2024 Prospect

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