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LED agricultural light market pain points and way out

May 26, 2017

LED agricultural applications can be said that the current hot spots, often mentioned will be interesting. Whether it is vertical agriculture, urban agriculture, the development of modern agriculture, the relationship with the artificial light more closely, with a variety of advantages of LED light source has a lot of room for development, the upgrading of the agricultural sector is also considered a major opportunity for LED. However, the market is not always so people want, and now the LED agricultural lighting market, pain points still exist, a variety of exploration is also ongoing.

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Where is the pain point?


LED agriculture lighting market, and the development of modern agriculture is closely related, however, at this stage of plant plants and other facilities of agricultural development itself is still a lot of difficulties, the application of LED light source is not very full.


"At present, the pain of LED agricultural light application is profitable, the establishment of sustainable profit business model is very important," Xiamen Tong Technology Co., Ltd. Chief Technology Officer Xu said. Although the safety and environmental protection, food quality is very important, but the domestic spending power is still limited, LED applications in the agricultural sector tend to focus on high value-added, such as nursery, ornamental flowers, Chinese herbal medicine and other high economic crops, limited to the domestic environment, many related businesses Turned abroad.


Suzhou Newark Lighting Co., Ltd. Deputy General Manager Pu Min said, Newcastle has been very concerned about the field of plant light equipment, in recent years has been trying to enter the field of domestic light, in contact with domestic and foreign customers, visit a lot of planting areas , Including some agricultural products sales network companies, as well as the study of plant factories in the local, will find some differences in domestic and international agricultural development.

On the one hand, the lack of domestic agricultural products some good, innovative marketing system, in the market competition, in fact, agricultural and sideline products did not put the brand, the concept of quality introduced. "If you can have a new sales system, this system can be such as certification, quality, brand introduction, improve the value of agricultural products, distinguish between vegetable grade, the market environment is very important.


On the other hand, the domestic also need to improve the modern farm management technology. Compared with the mature farm management system abroad, such as agricultural cooperatives, such as agricultural management is still in the stage of extensive management, from the output link to the sales link, the middle there are few fresh and some other deep processing. Some foreign plant factories, such as greenhouse crops, are very large, but still profitable or low-profit, due to land privatization, their land costs are low, can continue to operate, put the light source equipment and so on. In contrast, the domestic is still in the initial stage of farm management, management technology also need to improve, many of the farm land is contracted form, many farms do not spend much effort to invest, compared to continuous operation, more hope to see Product varieties of a year, one season will be able to recover the cost, so the development of facilities agriculture disadvantage, the product will reduce the cost of the process will be more narrow, the future is the industry needs attention.


Cost price, input and output disproportionate is the current pain point. In terms of investment, the domestic investment is not high, foreign greenhouse cultivation is often very high, the management system is also very mature, from deep processing to sales, including transport storage, and no additional cost. Domestic process, the middle part of the cost of many, but also caused the high cost of crops, in fact, the end of the farmer income is not very high, there may be the lowest part of the profits. In this situation, although the cost of LED light source is declining, compared to traditional light sources, still belong to the high point.


Insiders said that the current plant and other current profit margins have a great relationship with the cost of early high input costs, and high operating costs, such as electricity, winter heating, the cost of summer cooling and labor costs. In addition, the logistics cost is also high, different from foreign countries, the domestic cold chain system is not perfect, intermediate links and more, the loss rate is high, the price is high, the cost reduction, but also the entire chain of various links intentions.

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How is the way out?


Obviously, LED agricultural lighting market shine, depends on the need for artificial light of the development of modern agriculture. In the LED technology continues to improve the level of continuous decline in the price of the situation, how to better develop the agricultural market, as well as business model to explore, to achieve sustainable profit and so become the industry enterprises concerned about the direction.


Plant plants are one of the main areas of LED agricultural lighting applications, and now the number of large and small scale plant plants are also many, Xu Hong that from the plant factory development point of view, to take small-scale, distributed close to consumers, while precise positioning And product mix, saving intermediate links, is an important way to develop the agricultural market.


At present, the high value-added vegetables and medicinal products are "profitable". For product positioning, there are people in the industry who believe that plants planted products can not be compared with field products, otherwise they will become narrower. In addition, the plant plant products can be combined with some restaurants, will help to improve the commercial value of plant plants.


For the light filling facilities products, technology upgrading, the cost of decline is a long-term inevitable trend, Pu Min believes that this trend is difficult to solve short-term plant and other profitability of the state, the new marketing model is conducive to upgrading the agricultural products Value, and changes in the agricultural market environment, in fact, will be home to the plant plant to open up some new roads, the current innovative marketing model, such as Jingdong, car owners have some new sales, worthy of attention.


Liu Yongyin, China Environmental Protection Foundation, said that if the business model to achieve sustainable profit of the plant plant, there are several angles of the problem need to think, one is not simply planting vegetables, with high economic value such as Panax, Dendrobium and other medicinal plants to get through, the combination of products; Second, in the structural design, you can use eco-, mobile, small-scale plant plants can be linked, so the supply chain can do more full; Crowd positioning, to have accurate users, to ensure profits.


"In the technical level in a certain state of stability, compared to consider the technological breakthrough, the business model is actually very critical" Liu Yongyin said. Today, semiconductor lighting technology has developed to a certain stage, agriculture and LED industry, the advent of cross-border era, and industry enterprises need to adhere to the industrial chain and insist on cross-border value for customers to create deep value, adhere to technological innovation, Rapid development.

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