20 March 2009
China: Chinese Government subsidies on agricultural machinery and increased farm investment from Chinese dairy companies may offer new opportunities for New Zealand agritech exporters.
For 2009, China’s Ministry of Agriculture has allocated RMB 900 million in subsidies to raw milk collection stations in 13 major dairy-producing provinces. These subsidies will cover the purchase of milking machines, milk cooling tanks and milk transport tanks. The Chinese Government will subsidise up to 30% of the equipment cost with the milk stations paying the balance. The maximum subsidy per equipment item is RMB 120,000 for milking machines and RMB 50,000 for milk cooling / transport tanks. It is anticipated that the subsidies will boost equipment sales.
Since late 2008, a number of large dairy companies in China have increased their investment in establishing new dairy farms. For example, Huishan Dairy Ltd is investing RMB 2 billion to build new dairy farms in northeast China, while Sanyuan Group plans to invest RMB 1 to 1.5 billion in farm establishment in Hebei Province.
These developments may interest New Zealand agritech exporters who are interested in selling dairy cattle, milking equipment, milk tanks or other agritech products to the China market.
For more information contact Alan Young, Trade Commissioner, New Zealand Trade and Enterprise (NZTE), Beijing.
