Titel-Trader 2.2009.indd - Agritechnica Trader

COMPANIES AND MARKETS
In Focus:
The fi rst fi ve years of the fi rst
decade in the 21st century
were still characterised
by largely stagnating agricultural
machinery markets. These
were years of corporate consolidation
– for example addressingthe
consequences of the Case
IH and New Holland merger to
form the CNH Group, the takeover
of Valtra by Agco, the entry
of Claas into the former Renault
tractor production segment, and
many vigorous consolidation activities
by progressive mediumsized
manufacturers of agricultural
machinery in Europe.
Greater momentum came into
the EU markets (the number
of member States has now increased
to 27, including 10
Central East European countries)
after the new EU agricultural
policy was adopted, with
a considerable rise in planning
certainty for European farmers
up to the year 2013.
22 TRADER | 2 | 2009
Agricultural machinery industry
Big tigers,
little tigers
The present decade has so far been characterised by branch consolidation and enormous growth
of leading agricultural machinery manufacturers – 2008 was the record year. In the current year
2009 agricultural machinery production in Europe has dropped back to the 2006/2007 level.
Three exciting boom years
for agricultural machinery then
followed from 2006 to 2008,
fuelled by the growing demand
for agricultural food products
and production of renewable
raw materials for the energy industry.
In these boom years the
production value of agricultural
machinery in the EU Member
States increased from 20.5 billion
euros in 2005 to 27.7 billion
euros in 2008:
Production volume of
agricultural machinery in
the European Union
2005 = 20.5 billion euros
2006 = 21.7 billion euros
2007 = 23.8 billion euros
2008 = 27.7 billion euros
An abrupt reversal in the
trend began as a consequence
of the global fi nancial and economic
crisis starting in the second
half of 2008, after grain and
Market volumes in Germany
Data in units related the calendar year or season year
Table 1
2005 2006 2007 2008
Tractors 23,492 29,015 28,451 31,250
Combines 2,228 2,206 1,937 2,365
Balers 2,214 1,957 2,012 2,592
Forage harvesters 481 504 499 524
Mowers 10,701 10,982 11,261 11,895
Tedders and windrowers
Source: VDMA
9,520 9,614 9,514 10,366
Market volumes in France
Data in units related the calendar year or season year
Table 2
2005 2006 2007 2008
Tractors1 37,501 35,073 35,083 40,716
Combines 1,754 1,850 1,968 2,671
Balers 6,500 5,323 5,396 6,411
Forage harvesters 340 277 303 377
Conditioner mowers 2,934 2,677 2,567 2,437
Trailers 21,420 20,900 20,700 21,300
Source: Axema, 1as of 2007 without telehandlers
milk prices dropped from their
peak values down to the level
of earlier years. For production
of agricultural machinery in Europe
this meant an estimated decline
in sales of 15 % to 23.6 billion
euros.
For some years now, under
the heading “Tigers”, we
have been observing corporate
growth of the strongest agricultural
machinery companies operating
in Europe. Before entering
this world of corporate
growth, let us cast a glance at
the absolute peak year 2008.
Our remarks are based largely
on the facts and fi gures from the
agricultural machinery industry
report for 2009 published by
VDMA (German Machinery
and Plant Manufacturing Association).
This fi rst points out
that the medium-term development
of agricultural machinery
and equipment is still viewed
in an unchanged positive light.
The demand for foods is continuing
to grow due to the unchecked
increase in world population
numbers and the higher
requirements made of food. Production
of energy plants is taking
up ever wider areas, and as
a consequence of this the FAO
(Food and Agriculture Organization)
expects that demand for
agricultural production will increase
annually by two per cent
up to the year 2050. Accordingly
the limited arable land available
must be farmed more intensively,
and this can only be
done with stronger and intelligent
use of agricultural machinery
and equipment.
Focal development
areas in the market
and technology
In Europe, the focus is on
the demand for higher performance
capacity of machinery and
Market volumes in United Kingdom
Data in units related the calendar year or season year
Table 3
2005 2006 2007 2008
Tractors (>40 hp) 13,301 13,874 15,540 17,104
Combines 640 555 730 1,065
Balers 1,533 1,510 1,770 2,000
Forage harvesters
Source: AEA
114 117 110 140
Global production estimates
Year 2008, data in units
Table 4
Coutry/Region Tractors Combines
Western Europe 240,100 16,700
Central and Eastern Europe 137,600 1 11,800
USA and Canada 163,800 9,500
Latin America 87,500 8,500
China 270,000 2
India 340,000 500
Rest 262,000
Total 1,501,000 47,000
1) 2) Incl. Turkey, larger than 25 hp; combines: not including rice harvest. Source: VDMA members
photo: fotolia.de