With the emerge of larger farms in China, the country's largest agricultural drone manufacturer, XAG, predicts that the company's sales will double next year.
XAG Co-founder Justin Gong said in an interview with Bloomberg that it is expected that by 2020, its drone sales in the domestic market will increase from 25,000 this year to 50,000. Agricultural drones are mainly used for sowing, fertilizing and spraying pesticides.
Founded in 2007, XAG is one of the world's leading UAS (Unmanned Aerial System) R&D manufacturers and a smart agriculture solution provider.
(Photo: XGA website)
“More farmers are transforming their small plot of land into large farms,” said Gong. “That makes drones more popular.”
To increase food production efficiency, China is encouraging small farmers, who make up the majority of the rural population, to integrate and become part of large collective farms.
“We’ve seen a big decrease in the rural population, especially as the younger generation are leaving the countryside for cities,” Gong said. “We have to find a solution for farmers to produce better food for our urbanization demand.”
XAG also launched an autonomous driving multi-purpose vehicle, which is about 20% cheaper than drones, and plans to expand its business to rural areas so that small farmers can easily learn how to use these vehicles. The company's CEO Peng Bin said that this multi-purpose vehicle can be used in orchards and farmland in northern China, where the terrain is relatively flat.
At the company’s smart agriculture conference held in Beijing last week, Peng Bin said that this type of multi-purpose vehicle is also easier to penetrate into overseas markets, so the company’s sales in overseas markets may also increase.
Gong said that China's subsidies to farmers who purchase XAG products will also promote the company's sales growth. He said subsidies account for about a third of the price of drones and utility vehicles.
