The total industrial output value of China's agricultural machinery industry reached 338.2 billion yuan ($53.8 billion) in 2012, ranking first globally, a senior official said Tuesday.

Zhang Taolin, vice-minister of agriculture, said the sector has been growing by about 20 percent annually for the last six years.

The sector's output surpassed that of the EU and the United States for the first time last year, according to the China Association of Agricultural Machinery Manufacturers.

China needs to improve quality, safety and technology in the sector and produce more mid- and large-sized high-end agricultural machinery, according to the official.

China produced more than two million tractors and one million harvesters last year, more than any other country.