A Look at China: A huge market with enormous potential

By: NaanDanJain – Sales Department (September 2014) 

China is the fourth largest country in the world, covering more than 9.5 million square kilometers. China has diverse landscapes, with mountains in the west and plains in the east.  
The Chinese government has recently concluded that the country is headed for a water shortage, especially in the arid northern and western provinces. 
 
As in other countries, Israel is perceived here too as a strong agricultural and irrigation brand.

Chinese growers are aware of the advantages of Israeli technology. At the same time, professionals visiting China find a developed country open to new ideas, a country that invests in R&D and promotes modern agriculture and irrigation. 

The scope of micro-irrigation in China is still small compared to its potential, but in numbers, this is a huge domain with annual sales of about one billion dollars, currently controlled mainly by Chinese manufacturers of irrigation products that are generally basic, simple and cheap.

Therefore, international companies, led by Israeli companies, are competing for the premium domain: unique and high-quality solutions for complex problems. 
 
NaanDanJain has a significant presence in China, with a sales manager in Beijing and an operational warehouse at Guangzhou port. 

NaanDanJain recently decided to increase its activities in China, focusing on pressure compensating drip equipment and greenhouses sprinklers: advanced solutions for the extraordinary challenges in the country.  
 
For example, the Company is focusing on sales to the banana market in the Nanning region and in southern China, in regions that require PC drippers. NaanDanJain’s PC driplines cover hundreds of hectares in these regions. 

The Company has also signed an agreement with FuTeSen Ltd., a fertilizer manufacturer in Shandong Province, which made a strategic decision to increase its irrigation activities as a growth engine. The two companies recently signed a multi-annual supply agreement amounting to USD 8 million.  

This agreement is an example of the cooperation between Israel and China, and in this context, NaanDanJain held an event attended by the Israeli ambassador in China, Matan Vilnai.

Initial projects under this agreement have already been installed are being used routinely.  
 
As part of the financial protocol between Israel and China, an announcement was made recently about an irrigation project in five provinces in northwest China, with Israeli financing, also known as “the agricultural protocol”.

In this project, the first tender was held in Qinghai province, and NaanDanJain was chosen to supply Israeli equipment for a project covering approximately 6,000 hectares, worth tens of millions of dollars.  
 
After winning the tender, the management of the province’s water department recently visited Kibbutz Naan to learn the production capabilities, technologies and application of the Company has advanced irrigation products.