Arabfields, Farah Benali, Economic Correspondent, China — China’s push to modernize sugarcane harvesting is creating new opportunities for domestic agricultural machinery makers, with one Chinese manufacturer expanding from a small local operation into an exporter serving markets across Asia and Latin America.

Luoyang Chenhan Agricultural Equipment Technology, based in central China’s Henan Province, now accounts for about half of the country’s sugarcane harvester market by volume, according to the company. Its machines are increasingly being sold overseas as sugar producers look for ways to reduce labor costs and improve productivity.

The company’s development reflects a broader challenge facing China’s sugar industry. In the 2024/25 marketing year, China produced about 11.2 million tonnes of sugar while domestic consumption reached roughly 15.7 million tonnes. Imports stood at about 4.6 million tonnes, highlighting the gap between local production and demand.

For Chenhan founder Zhang Changxian, the business was built through years of trial and error. He began developing a sugarcane harvester in 2008, but it took eight years before the first commercial machines reached the market.

At the time, China relied heavily on imported harvesting equipment. Local conditions made the development of domestic machinery particularly difficult because much of the country’s sugarcane is grown on smaller, fragmented plots and sloping terrain rather than the large plantations common in Brazil and Australia.

Labor costs have since strengthened the case for mechanization. Zhang estimates that harvesting one tonne of sugarcane cost about 25 to 30 yuan per worker when he entered the sector. Today, the same work can cost between 180 and 250 yuan, while harvested cane sells for around 500 yuan a tonne.

A modern Chenhan harvester can cut more than 100 tonnes of cane a day, roughly matching the output of 100 workers, according to the company.

That productivity gap is likely to remain a major driver of demand. If labor expenses continue rising while cane prices remain comparatively constrained, growers will have stronger incentives to replace manual harvesting with machinery. This could accelerate mechanization in China’s main sugar-producing regions over the coming years, particularly where labor shortages are becoming more pronounced.

Chenhan completed its first harvester in 2015 and entered the commercial market the following year, selling more than 30 machines in 2016 and over 150 in 2017. Its international expansion began in 2019, with exports later reaching Vietnam, Thailand, Indonesia, Costa Rica and Venezuela.

Overseas sales now account for about one-fifth of the company’s revenue. The share could increase further if demand from emerging sugar-producing markets continues to grow and Chinese manufacturers maintain their price advantage.

Customization has also become an important part of the company’s international strategy. Buyers in Reunion, for example, sought machinery capable of operating on volcanic terrain. Chenhan responded by developing tracked harvesters designed to reduce ground pressure and adapting cooling systems for the island’s tropical climate.

The company is now looking beyond conventional diesel-powered equipment. Zhang said Chenhan is exploring smarter control systems, hybrid power technology and measures to reduce fuel consumption.

Those developments could become increasingly important as agricultural producers face pressure to control operating costs while improving environmental performance. For Chinese machinery manufacturers, the combination of rising domestic labor costs, demand for greater productivity and growing overseas interest could provide a larger market for specialized harvesting equipment.

Chenhan’s trajectory also illustrates how a niche agricultural machinery segment can develop into an export business when local manufacturers adapt technology to difficult field conditions.

For Zhang, the transformation represents the culmination of nearly two decades of work. What began as an attempt to replace imported machines has become a business increasingly competing in international markets.

If China’s sugar industry continues to invest in mechanization and overseas demand for affordable harvesting technology expands, the company’s export business is likely to become an increasingly important part of its growth in the years ahead.