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<strong>The</strong> <strong>French</strong> <strong>market</strong> <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong><br />

December 2011<br />

Report written by Seppo H<strong>of</strong>frén Consultancy


Executive summary<br />

This report was created to provide information on the distribution channels <strong>of</strong><br />

<strong>agricultural</strong> <strong>machinery</strong> in France in order to identify the most effective sales channels.<br />

To summarize the key trends in <strong>French</strong> <strong>agricultural</strong> <strong>machinery</strong> <strong>market</strong>, we can mention it<br />

is subject to variations (-30% to +38% over the last 9 semesters) sales being affected by<br />

economy and weather conditions.<br />

SEDIMA 1 estimated the <strong>market</strong> at €6.3bn in 2010 (machines, services, used material and<br />

others). According to AXEMA 2 , the <strong>market</strong> in 2011 will increase by 14% compared to<br />

2010. Yet, Axema and SIMA 3 note that clients are waiting for their finances to be back in<br />

order before investing in 2012, as there was a drop in farming income in 2008 (-23%)<br />

and 2009 (-32%).<br />

Distributors are faced with several challenges, <strong>of</strong> which a higher degree <strong>of</strong> technicality ;<br />

a demand <strong>from</strong> farmers who are more and more informed about what they would like<br />

to buy and the need for qualified personnel in the maintenance and repair sector.<br />

CLIENTS<br />

<strong>The</strong>re are 3 main groups <strong>of</strong> clients in the <strong>agricultural</strong> <strong>machinery</strong>: farmers (326 000 farms,<br />

78 ha average size 4 ), CUMA (Cooperative <strong>of</strong> users <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong>, 13 400<br />

CUMA 5 ) and ETA 6 (rural works contractors, 23 000 companies). <strong>The</strong>ir purchases differ in<br />

terms <strong>of</strong> product; CUMAs for example buy smaller material than contractors.<br />

Farming is specialized per regions or counties, for example cereal production (corn,<br />

wheat) has a higher concentration around larger Paris’ areas, whereas fruits production<br />

tends to concentrate along the Rhone Valley.<br />

PRESENCE OF FOREIGN GROUPS<br />

Over two-thirds <strong>of</strong> all trade in farm <strong>machinery</strong> involving France is done by multinational<br />

companies. Intra-group trade (i.e. trade between companies belonging to the same<br />

industrial group), accounts for 57% <strong>of</strong> imports and 48% <strong>of</strong> exports.<br />

1 http://www.sedima.fr<br />

2 http://www.axema.fr<br />

3 http://www.planet-agri.com<br />

4 http://www.agreste.agriculture.gouv.fr<br />

5 http://www.cuma.fr<br />

6 http://www.e-d-t.org


INTEGRATION OF MANUFACTURERS IN THE DISTRIBUTION 7<br />

<strong>The</strong> most important sales channel is the dealers ‘group that represents about 85% <strong>of</strong> the<br />

sales (€5.3bn out <strong>of</strong> €6.3bn). Although there is a slight discrepancy in data depending on<br />

the sources, we can estimate the number <strong>of</strong> sales points to be around 2000.<br />

<strong>The</strong> dealership concept, where a sales company has a contract with an equipment<br />

manufacturer (tractors or harvesting machines), implies a number <strong>of</strong> constraints in<br />

terms <strong>of</strong> geographical operation and other products to be sold. <strong>The</strong> dealers can then sell<br />

additional material that is bought either directly <strong>from</strong> other manufacturers or through<br />

central buying <strong>of</strong>fices.<br />

In the dealership model, dealers sell to farmers only and there is a strong integration<br />

<strong>from</strong> the manufacturers into the distribution that can be seen as a handicap <strong>from</strong> a<br />

seller point <strong>of</strong> view.<br />

<strong>The</strong> concept <strong>of</strong> chain stores in distribution <strong>of</strong> <strong>agricultural</strong> products exists, but does not<br />

apply to large <strong>agricultural</strong> <strong>machinery</strong>. Chain stores that operate as self-service, sell for<br />

example, seeds, phyto-sanitary product and small equipment for which no sales<br />

knowledge is required.<br />

According to SEDIMA, sales companies in average do 60% <strong>of</strong> their turnover <strong>from</strong> new<br />

material, 15% <strong>from</strong> used material and 25 % <strong>of</strong> repair, parts and after sales services. Yet<br />

65% <strong>of</strong> the margin is made <strong>from</strong> services and 35% <strong>from</strong> sales <strong>of</strong> material.<br />

RECOMMENDATIONS<br />

Before deciding <strong>of</strong> a strategy to enter the <strong>French</strong> <strong>market</strong> it is essential that the Finnish<br />

manufacturers carry an in-depth approach to the features <strong>of</strong> their selling proposition:<br />

innovation, price, after sales, parts, <strong>market</strong>ing & sales support, warranty, delivery time.<br />

<strong>The</strong> <strong>French</strong> dealers will expect well-developed and fact-proven sales arguments on the<br />

innovation and quality issues. <strong>The</strong>y will also expect knowledge about the <strong>French</strong> <strong>market</strong><br />

in terms <strong>of</strong> current products being used and how new products will positively differ.<br />

Manufacturers <strong>of</strong> <strong>machinery</strong> dedicated to one specific production should first identify<br />

the region(s) <strong>of</strong> interest in terms <strong>of</strong> farming orientation.<br />

7 http://www.sedima.fr


STRATEGY OPTIONS<br />

- establish own stock and sales structures in France<br />

- work with established dealers<br />

- possibly recruit one dealer to act as stock and sales manager in order to cover<br />

the counties <strong>of</strong> interest<br />

- develop a relationship with central buying <strong>of</strong>fices<br />

- actions mentioned above can be carried directly <strong>from</strong> Finland only if adequate<br />

resources in terms <strong>of</strong> language and time are available, if not, local assistance<br />

<strong>from</strong> agent or consultant will be needed<br />

<strong>The</strong> consultant then recommends 2 approaches in parallel.<br />

1) a test approach to largest local (county or regional) dealers to check on currents<br />

products, needs and areas <strong>of</strong> interest<br />

2) approach Central buying <strong>of</strong>fices to check on approval procedures and areas <strong>of</strong><br />

interest


Contents<br />

1. Introduction and purposes <strong>of</strong> the research ................................................................. 7<br />

1.1. Aim <strong>of</strong> the research ............................................................................................... 7<br />

1.2. Scope <strong>of</strong> the research ............................................................................................ 7<br />

2. Information on <strong>French</strong> <strong>market</strong> <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong> ........................................... 9<br />

2.1. Size <strong>of</strong> the <strong>market</strong> ................................................................................................. 9<br />

2.2. Prospective in <strong>French</strong> <strong>market</strong> <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong> ...................................... 9<br />

2.3. Analysis <strong>of</strong> the major <strong>agricultural</strong> equipment product categories ..................... 11<br />

2.3.1. Agricultural tractors ..................................................................................... 11<br />

2.3.2. Combine harvesters ..................................................................................... 15<br />

2.3.3. Balers and haymaking .................................................................................. 16<br />

2.3.4. Self-propelled forage cutters ....................................................................... 16<br />

2.3.5. Soil tillage, sowing and fertilizing................................................................. 17<br />

2.3.6. Agricultural transport vehicles ..................................................................... 18<br />

2.4. Innovation trends in <strong>agricultural</strong> <strong>machinery</strong> ....................................................... 20<br />

2.5. Market entry requirements: norms, regulations in use ..................................... 21<br />

3. Trade channels for new and used material ................................................................ 23<br />

3.1. Characteristics <strong>of</strong> the sales organization <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong> ................... 24<br />

3.2. Organization <strong>of</strong> the distribution <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong> ................................ 25<br />

3.2.1. Market organization .................................................................................... 25<br />

3.2.2. Detailed analysis <strong>of</strong> sellers <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong> ................................. 25<br />

3.2.3. Ten largest <strong>agricultural</strong> wholesalers .......................................................... 27<br />

3.3. Central purchase <strong>of</strong>fices ...................................................................................... 28<br />

3.3.1. PROMODIS ................................................................................................... 28<br />

3.3.2. CAMPA – SOCODICOR .................................................................................. 31<br />

3.3.3. CAP ALLIANCE .............................................................................................. 32<br />

3.3.4. EPAGRI ......................................................................................................... 34<br />

3.3.5. DELTA FORCE................................................................................................ 35<br />

3.3.6. SCAR –UCAR SCAR (Société Coopérative des Artisans Ruraux) ................... 36<br />

3.4. Most effective sales channels ............................................................................. 38<br />

3.5. Overall feelings and trends in distribution over 2011 ........................................ 41<br />

4. Clients ......................................................................................................................... 43<br />

4.1. Farmers ................................................................................................................ 43<br />

4.1.1. Individual and collective farming ................................................................. 43<br />

4.1.2. Types <strong>of</strong> culture ........................................................................................... 45<br />

4.1.3. Farms size ..................................................................................................... 47<br />

4.1.4. Farming revenues ........................................................................................ 48<br />

4.2. CUMA : Cooperative for the use <strong>of</strong> material ...................................................... 50<br />

5. Buying <strong>agricultural</strong> <strong>machinery</strong> .................................................................................... 56<br />

5.1. Aids and financing possibilities ........................................................................... 56<br />

5.1.1. Aids and subsidies ........................................................................................ 56<br />

5.1.2. “Improved” loans ......................................................................................... 56<br />

5.1.3. Manufacturers loans .................................................................................... 56


5.2. Leasing practices in sales <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong> ........................................... 57<br />

6. Communication tools for manufacturers ................................................................... 59<br />

6.1. Fairs in <strong>agricultural</strong> <strong>machinery</strong> ............................................................................ 59<br />

6.1.1. Regional fairs ................................................................................................ 59<br />

6.2. Web portals ......................................................................................................... 60<br />

6.3. Specialized press ................................................................................................. 60<br />

7. Competitor information ............................................................................................. 61<br />

8. Imports <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong> in France .............................................................. 65<br />

9. National production <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong> .......................................................... 68<br />

10. Business culture in <strong>agricultural</strong> <strong>machinery</strong> ................................................................ 70<br />

11. Remarks and recommendations................................................................................. 73<br />

12. Annexes ...................................................................................................................... 76<br />

12.1. Annex : SEDIMA Questions asked to evaluate manufacturers ........................... 76<br />

12.2. Annex SIMA INNOVATION AWARDS ................................................................... 77<br />

12.3. Annex : <strong>French</strong> manufacturers <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong> <strong>from</strong> INSEE ............... 82<br />

12.4. Manufacturers <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong> in France ........................................... 84<br />

12.5. Annex : EU regulation <strong>of</strong> state aid in the agriculture sector ............................... 86<br />

12.6. Annex : 3 examples <strong>of</strong> aid provided to CUMA .................................................... 87<br />

13. Sources........................................................................................................................ 89<br />

14. Glossary and translated terms used in the report ..................................................... 90


1. Introduction and purposes <strong>of</strong> the research<br />

1.1. Aim <strong>of</strong> the research<br />

<strong>The</strong> aim <strong>of</strong> the research is to identify and analyze the most significant <strong>agricultural</strong><br />

<strong>machinery</strong> sellers or seller networks.<br />

1.2. Scope <strong>of</strong> the research<br />

PRODUCT<br />

<strong>The</strong> research will emphasize the following machine groups : tractors and their<br />

accessories like front loaders, plowing <strong>machinery</strong>, sowing and fertilization <strong>machinery</strong>,<br />

grass feed <strong>machinery</strong>, grain harvesters and grain processing and stocking <strong>machinery</strong>,<br />

trailers and transporting and processing <strong>machinery</strong> for liquid slurry.<br />

GEOGRAPHICAL SCOPE<br />

France is divided into 27 administrative regions, 22 <strong>of</strong> which are in Metropolitan France,<br />

and five <strong>of</strong> which are overseas. Each mainland region and Corsica are further subdivided<br />

into counties /departments (départements in <strong>French</strong>). For the purpose <strong>of</strong> the current<br />

survey, we will concentrate on metropolitan France only (Corsica included) and we will<br />

leave out the overseas regions.<br />

It is important to understand the regions and counties concepts, as these distinctions<br />

are later used when we talk about distribution channels.<br />

<strong>The</strong>se geographical categories are used by pr<strong>of</strong>essional associations, statistics institutes<br />

and other sources used in the survey.


Figure 1 : France 22 regions<br />

Metropolitan France 22 regions are then divided into 96 counties<br />

FIGURE 2 : FRANCE 96 COUNTIES


2. Information on <strong>French</strong> <strong>market</strong> <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong><br />

2.1. Size <strong>of</strong> the <strong>market</strong><br />

KEY FACTS 2010<br />

Total value €6.3bn for <strong>agricultural</strong> <strong>machinery</strong> only , services included.<br />

2 000 sales points<br />

450 manufacturers<br />

47 000 employees, as <strong>of</strong> which 25 000 in manufacturers<br />

2.2. Prospective in <strong>French</strong> <strong>market</strong> <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong><br />

AXEMA 8 (Association <strong>of</strong> manufacturers <strong>of</strong> agro-equipment) published several documents<br />

in October 2011. You will read a summary <strong>of</strong> the main documents below.<br />

“<strong>The</strong> positive trend noticed in the <strong>agricultural</strong> <strong>machinery</strong> field in April 2011 is<br />

confirmed, as the <strong>market</strong> increases by 38,6% (compared with first semester 2010) for<br />

the first semester 2011 reaching €2.32 billion.<br />

<strong>The</strong> aim <strong>of</strong> developing a sustainable growth is strong, although pr<strong>of</strong>essionals are now<br />

operating in a <strong>market</strong> where pr<strong>of</strong>itability and competitiveness are key issues.<br />

Yet, we still have to remain cautious about the trend, as the last 3 years have had high<br />

fluctuations. <strong>The</strong> positive trend <strong>from</strong> the first semester 2011 comes <strong>from</strong> an increase in<br />

both the production (+40.4%) and the imports (+21.6%), compared with the first<br />

semester 2010. <strong>The</strong> <strong>French</strong> production is drawn by the tractors sector (+46%).”<br />

8 http://www.axema.fr


PROSPECTIVE 2011-2012<br />

“<strong>The</strong>re is much uncertainty amongst pr<strong>of</strong>essionals. <strong>The</strong> fairs organizers for in 2011-2012<br />

show some optimism but pr<strong>of</strong>essional remain cautious and do not exclude a slowdown<br />

that would penalize the sales. Combined with poor weather conditions (rainy summer),<br />

it should be expected that the activity will remain stable or slightly positive in 2011-<br />

2012.”<br />

FIGURE 3 FRENCH AGRICULTURAL MACHINERY MARKET<br />

“<strong>The</strong> availability <strong>of</strong> components and the increase <strong>of</strong> price in industrial raw materials<br />

remain a source <strong>of</strong> worries for the future. Pr<strong>of</strong>essional noted that the increase in<br />

delivery times, feared in April 2011, took place. Both industrials and distributors are<br />

thinking about solutions to limit the impact <strong>of</strong> long delivery times. Market imposes<br />

shorter economical cycles and requires manufacturers to adapt to change regularly.”


2.3. Analysis <strong>of</strong> the major <strong>agricultural</strong> equipment product categories 9<br />

2.3.1. Agricultural tractors<br />

Agricultural tractors are considered to be the “flagship” product <strong>of</strong> the <strong>agricultural</strong><br />

equipment industry, both in terms <strong>of</strong> <strong>market</strong> share and technical sophistication, which<br />

rivals that <strong>of</strong> the automotive and heavy goods vehicle industries.<br />

Agricultural tractors sector consists <strong>of</strong> two major categories:<br />

Standard two and four wheel drive tractors for the traction and handling <strong>of</strong><br />

<strong>agricultural</strong> materials, which represent the majority <strong>of</strong> registrations in France,<br />

that is, 70% <strong>of</strong> the total <strong>market</strong> in 2010.<br />

Other tractors included in the <strong>agricultural</strong> tractors categories are: narrow<br />

tractors for use in vineyards and orchards, high-clearance vineyard tractors,<br />

telescopic loaders, etc. This group represented 30% <strong>of</strong> total new <strong>agricultural</strong><br />

tractor registrations in 2010.<br />

FIGURE 4: NEW TRACTORS REGISTRATIONS<br />

9 http://www.axema.fr


FIGURE 5: EVOLUTION OF HORSEPOWER SEGMENTS IN STANDARDS NEW AGRICULTURAL TRACTORS<br />

FORECAST OF TRACTORS FIELD AS OF OCTOBER 2011<br />

Manufacturers estimate that for 2011 the total <strong>market</strong> <strong>of</strong> farm tractors will be up 10 to<br />

11% to 35 100 registrations, with a year-end 2011 equivalent at the end <strong>of</strong> year 2010<br />

where recovery was already underway.<br />

Predictions <strong>of</strong> the standard tractors registrations settled in 26 500 units, i.e. an increase<br />

<strong>of</strong> 18% <strong>from</strong> 2010. Uncertainty remains with the extended introduction <strong>of</strong> Tier4 interim<br />

standard engines, which presents a significant additional cost.<br />

50% <strong>of</strong> distributors forecast an increase in sales <strong>of</strong> new tractors. Only 13% are<br />

considering a decline. In Autumn 2011, the situation improved strongly <strong>from</strong> the Spring<br />

survey. Areas <strong>of</strong> livestock meat remain very pessimistic with a fall in sales expected by<br />

85%, half <strong>of</strong> them expect decreases to be greater than 25% 10 . “<br />

10 http://www.axema.fr


MARKET SHARE PER MANUFACTURERS<br />

Terre Net 11 estimated in 2011 that John Deere was leading the <strong>French</strong> <strong>market</strong>.<br />

<strong>The</strong> drop in sales <strong>of</strong> CLAAS seem to be related to production difficulties and Massey<br />

Ferguson to late deliveries.<br />

Source : Terre Net<br />

11 http://www.terre-net.fr/materiel-agricole


DEALERS EVALUATE TRACTORS MANUFACTURERS<br />

SEDIMA carries an annual survey 12 on the relationship between tractor manufacturers<br />

and their dealers. You can read the questions asked to the distributors in Annex 12.1.<br />

Results <strong>of</strong> the survey and ranking <strong>of</strong> the tractor manufacturers.<br />

12 http://www.sedima.fr


2.3.2. Combine harvesters<br />

Sales <strong>of</strong> combine harvesters for 2010/2011 is 2 008 units, a 22% increase. Market for<br />

combine harvester dropped due to the draught, and then sales went up suddenly in the<br />

middle <strong>of</strong> the harvest season 13 .<br />

On this <strong>market</strong>, only the unconventional <strong>machinery</strong> segment (over 400 HP) has<br />

increased significantly to the detriment <strong>of</strong> less powerful and conventional machines.<br />

However, the demand for “conventional” models remains the highest in volume (65% <strong>of</strong><br />

global volumes for combine harvesters). Advances have already been made in combine<br />

capacities, so technological developments are more focused on the automatic control <strong>of</strong><br />

operations and adjustments via electronic systems.<br />

FORECASTED SALES OF COMBINE HARVESTER FOR 2012<br />

2 000 units<br />

44% <strong>of</strong> resellers in the <strong>market</strong> think the <strong>market</strong> will increase for both new and used<br />

machines and no distributor foresee a significant decrease.<br />

FIGURE 6:FRENCH MARKET FOR COMBINE HARVESTERS<br />

1294<br />

674<br />

Source : AXEMA<br />

<strong>French</strong> <strong>market</strong> for combine harvesters<br />

1802<br />

Unconventional Conventional<br />

1598<br />

869 857<br />

1046<br />

591<br />

1250<br />

2006/07 2007/08 2008/09 2009/10 2010/11<br />

Main brands present on the <strong>market</strong>, about 120 models :<br />

13 http://www.axema.fr<br />

758


Claas (30 models), Deutz (7 models), Fendt (10 models), John Deere (15 models),<br />

Laverda (11 models), Massey Ferguson (11 models) New Holland (38 models), Kubota.<br />

New brands such as YTO, FOTON are also positioned on the <strong>market</strong> as low-costs. even if<br />

they advertise for robustness and low prices, it seems they have some difficulties as they<br />

are perceived as having poor reliability and after-sales. Yet, as YTO bought McCormick’s<br />

plant in France it also develops its resellers network. It should be noted that Kubota<br />

who did not sell in 2005, achieves in 2010, 3.5% <strong>of</strong> <strong>market</strong> share. 14<br />

2.3.3. Balers and haymaking 15<br />

Round balers<br />

2010-2011 : 3 650 units, + 24.4%<br />

Forecast 2011-2012 : 3 900 units, + 6.8%<br />

Square balers<br />

2010-2011 : 392 units, +50%<br />

Forecast 2011-2012 : 370 units, - 5%<br />

Mower /packers<br />

2010-2011 : 1 750 units, + 29%<br />

Forecast 2011-2012 : 1 900 units, +8%<br />

Main brands : Class, Fellsa, Krone, Taarupkv, Lely, Pottinger, JF Stoll, Vicon, John Deere<br />

2.3.4. Self-propelled forage cutters 16<br />

2010/2011 : 300-310 forage cutters machines.<br />

Sales forecasts 2012 : 300 machines<br />

14 La France Agricole, Special Salon, n 0 3372<br />

15 http://www.axema.fr<br />

16 http://www.axema.fr


FIGURE 7: FRENCH MARKET OF FORAGE CUTTERS<br />

303<br />

Sales <strong>of</strong> self-propelled forage harvesters<br />

2006/07 2007/08 2008/09 2009/10 2010/11 2011/12P<br />

365<br />

131<br />

2.3.5. Soil tillage, sowing and fertilizing<br />

SOIL TILLAGE, SOWING AND FERTILIZING 17<br />

240<br />

305 300<br />

<strong>The</strong> soil tillage, sowing and fertilizing <strong>market</strong> in 2011 is estimated to increase by 25-35%<br />

in comparison with 2010. Manufacturers do forecast increase <strong>of</strong> 10-15% for 2012. Yet<br />

the forecasts are linked to external changes nad can be changed.<br />

Sales <strong>of</strong> soil tillage (excluding ploughs) and sowing equipment fell sharply in 2009 by<br />

around 15% to 20%, according to the product.<br />

<strong>The</strong> decline <strong>of</strong> the <strong>market</strong> for fertilizer spreaders is more notable, at around 40% over<br />

2008. <strong>The</strong>re are numerous reasons for this fall, including lower cereal prices, input costs,<br />

and high investment levels in recent years. <strong>The</strong> 2010 <strong>market</strong> is expected to stabilize at<br />

2009 levels.<br />

17 http://www.planet-agri.com


CROP PROTECTION<br />

After a slowdown in activity in 2009, crop sprayer orders began to recover in 2010.<br />

<strong>The</strong>re is a lack <strong>of</strong> visibility over 2011. For manufacturers the key issues remain the<br />

availability <strong>of</strong> their components and the increase in price in raw material.<br />

2.3.6. Agricultural transport vehicles<br />

2011 seems a better year than 2010 for transport and organic spreaders in spite <strong>of</strong> slow<br />

down due to the draught. <strong>French</strong> production <strong>of</strong> transport vehicles amounts to 4200<br />

units in firsts semester 2011 , that is a slight increase over 2010, yet well below the last 4<br />

years (-30%).<br />

Organic spreaders manufacture went down by -0.6%, and manufacturers’ suppliers<br />

continue to increase prices <strong>of</strong> parts and raw material such as steel and rubber.<br />

<strong>The</strong> drop in orders for low-capacity liquid manure tanks continued in 2009. 1000<br />

vehicles were <strong>market</strong>ed in 2009, a 19% drop over 2008 (1230 units in 2008). <strong>The</strong> <strong>of</strong>fering<br />

is still focused on the needs <strong>of</strong> <strong>agricultural</strong> works contractors, CUMA managers and<br />

major breeding facilities requiring large capacities and equipment.<br />

FIGURE 8: FRENCH PRODUCTION OF TRAILERS<br />

12 905<br />

source : Axema<br />

<strong>French</strong> production <strong>of</strong> <strong>agricultural</strong> trailer<br />

vehicles<br />

Organic spreaders Transport equipment<br />

14 606<br />

10 205<br />

7 599<br />

3305 3 413 2 543 2 892<br />

4 200<br />

1 562<br />

2007 2008 2009 2010 2011 - 6 months


FIGURE 9: ORDERS OF ORGANIC SPREADERS<br />

source : Axema<br />

FORAGE TRAILERS<br />

After strong sales in May 2011, the sales dropped sharply. Long lengths trailers were<br />

mostly sold. <strong>The</strong> <strong>market</strong> is strongly linked milk sector : in 2011 it was a better than in<br />

2009, when the weakness <strong>of</strong> hay prices led to a sharp decline in this <strong>market</strong> which is<br />

currently dominated by vehicles over nine meters long (around half <strong>of</strong> vehicles <strong>market</strong>ed<br />

in 2009). In 2010, sales are about 3000 units.<br />

FIGURE 10: ORDERS OF TRAILERS


2.4. Innovation trends in <strong>agricultural</strong> <strong>machinery</strong><br />

Excerpt <strong>from</strong> 2011 SIMA innovation report 18 . Full report in Annex 12.2.<br />

“In spite <strong>of</strong> the effects <strong>of</strong> the crisis <strong>of</strong> the last two years, the manufacturers answer the<br />

evolution <strong>of</strong> the <strong>French</strong> <strong>agricultural</strong> production. [..] 34 innovating products selected by<br />

the committee confirm the main tendencies <strong>of</strong> evolution towards a sustainable, more<br />

respectful agriculture.”<br />

AXES OF IMPORTANCE<br />

Application <strong>of</strong> antipollution standards leads the manufacturers to develop engines <strong>of</strong><br />

strong power but with new features and electronic management <strong>of</strong> the commands to<br />

value better the power <strong>of</strong> tractors and machines and limit the consumption <strong>of</strong> fuel.<br />

Automatic steering and control <strong>of</strong> the distribution elements on seed drills, spreaders for<br />

fertilizers and sprayers develop; equipment adapt themselves to the various machines<br />

and to the various uses, what increases their versatility and make them more affordable.<br />

Isobus compatibility <strong>of</strong> the equipments. Associated with the automatic steering, it<br />

facilitates the regulation <strong>of</strong> machines and improves the working quality and the work<br />

flows. This evolution contributes to the reduction in production costs, but also and<br />

especially to the ease <strong>of</strong> driving. By limiting the dangers and the risks <strong>of</strong> deterioration <strong>of</strong><br />

the materials, the safety <strong>of</strong> the driver and the machines is improved.<br />

<strong>The</strong> use <strong>of</strong> the biomass and the production <strong>of</strong> biogas also give new orientations in terms<br />

<strong>of</strong> equipment and contribute to the development <strong>of</strong> the non-food <strong>agricultural</strong><br />

productions and to the better management <strong>of</strong> the waste. “<br />

“[…] the innovation jury must not consider only the technological aspects <strong>of</strong> equipment.<br />

In fact, it is such a truism that in the future, it would be better to no longer talk about<br />

innovation, but rather about eco-innovation in the <strong>agricultural</strong> equipment production<br />

sector:<br />

ecology and sustainable development<br />

economies <strong>of</strong> energy and alternatives to all-oil energy<br />

economies <strong>of</strong> natural resources and the inputs used for agriculture (water,<br />

fertilizer and phytosanitary products)<br />

eco-design and life cycle <strong>of</strong> machines<br />

eco-recycling <strong>of</strong> input products for farms<br />

18 http://www.planet-agri.com


2.5. Market entry requirements: norms, regulations in use<br />

1) EU NORM<br />

2006/42/CE dated 17 May 2006 is active in France and <strong>agricultural</strong> <strong>machinery</strong> needs to<br />

comply with it.<br />

2) Capsizing protection - Structure de protection contre le renversement ( SPCR ) 19<br />

In 2010, any tractor over 600kg have to be equipped with a capsizing security device.<br />

<strong>The</strong> decree (3 March 2006) defines the technical rules for capsizing security devices. A<br />

rough translation and summary <strong>of</strong> the legal text is made available by the consultant,<br />

please consult a lawyer for detailed information, we shall in no case, be held responsible<br />

for the translation and its content.<br />

“Anti-capsizing security structures mentioned in the rural code, also called structures <strong>of</strong><br />

protection in case <strong>of</strong> capsizing or rolling over, guarantee a sufficient empty space to the<br />

driving position to protect workers in case <strong>of</strong> capsizing or rolling-over <strong>of</strong> the tractor.<br />

<strong>The</strong>se protection structures can be integrated into a cabin. <strong>The</strong>y may be supplemented<br />

by a system that maintains the workers on their seat.”<br />

3) Farming <strong>machinery</strong> on the road : new law in 2013 20<br />

Summary: in order to obtain a newly mandatory registration for all motorized farming<br />

equipment the owner needs to show a certification document provided by<br />

manufacturer. Tractors are not concerned.<br />

As <strong>of</strong> 1 January 2013, the motorized farming equipment will have to be granted right to<br />

drive on the roads. <strong>The</strong> law will apply to all vehicles or towed <strong>agricultural</strong> equipment:<br />

trailers and semi-trailers as well as material and machines towed, semi-mounted, and<br />

for which the PTAC (authorized loaded weight) is greater than 1.5 ton (Decree<br />

09/02/09).<br />

<strong>The</strong> registration is issued by Prefecture – local police headquarters. In order to obtain<br />

registration, the person needs to provide the several documents, amongst which a<br />

technical pro<strong>of</strong> <strong>of</strong> compliance <strong>of</strong> the vehicle.<br />

19 http://agriculture.gouv.fr (in <strong>French</strong> only)<br />

20 http://pardessuslahaie.net, http://www.planet-agri.com


<strong>The</strong> technical pro<strong>of</strong> <strong>of</strong> compliance is delivered by the formerly Regional Industry<br />

Research & Environment (DRIRE - currently merged with the regional department <strong>of</strong> the<br />

environment, development and housing, <strong>of</strong>ten better known as the “service des Mines”<br />

in France) or by the competent authority <strong>of</strong> a Member State <strong>of</strong> the European<br />

Community. <strong>The</strong>se entries are made under the responsibility <strong>of</strong> the manufacturer.<br />

“When buying a towed <strong>agricultural</strong> vehicle, whose authorized loaded weight is greater<br />

than 1.5 ton, check with the seller that the machine have the pro<strong>of</strong> <strong>of</strong> DRIRE approval, in<br />

order to be able to circulate on the road. From 2013, the DRIRE delivery pro<strong>of</strong> will be<br />

required to obtain the registration certificate. <strong>The</strong> resale <strong>of</strong> a not approved <strong>agricultural</strong><br />

equipment will be more difficult after 2013, and this material will then experience a<br />

huge value loss 21 .”<br />

For <strong>agricultural</strong> tractors, the technical pro<strong>of</strong> <strong>of</strong> compliance is the CE certificate <strong>of</strong><br />

conformity in accordance with the provisions <strong>of</strong> directive 2003/37/EC (*) issued by the<br />

manufacturer.<br />

4) It is mandatory by law that documents to be used with technical equipment such<br />

as User Manual, technical instructions, be written in <strong>French</strong> and provides enough<br />

operation information to the user.<br />

5) Speed limit by construction <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong><br />

A) Agricultural tractors: with wheels or tracks, with at least 2 powered axles.<br />

Maximum speed, by construction, is between 6 and 40km/h.<br />

B) Self-propelled <strong>agricultural</strong> <strong>machinery</strong>: machines that are autonomous, for<br />

<strong>agricultural</strong> purposes and whose working speed by construction cannot<br />

exceed 25km/h. This speed can be increased to 40km/h for machines whose<br />

width is less or equal to 2.55m.<br />

21 http://pardessuslahaie.net


3. Trade channels for new and used material<br />

Information in this chapter comes <strong>from</strong> SEDIMA 22 , (Association <strong>of</strong> distributors <strong>of</strong><br />

<strong>agricultural</strong> <strong>machinery</strong>).<br />

KEY FACTS 2010 on the distribution <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong><br />

Yearly turnover 2010 €6.3bn<br />

Out <strong>of</strong> which, dealers €5.3bn<br />

Number <strong>of</strong> dealers 1 000<br />

Number <strong>of</strong> sales points 1 500 - 2 000<br />

Employees 22 000<br />

Mechanists 14 000<br />

Sales persons 4 000<br />

Used material purchases €1bn<br />

22 http://www.sedima.fr


3.1. Characteristics <strong>of</strong> the sales organization <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong><br />

NEED OF PROXIMITY AND SERVICE<br />

As many documents point, the most important strengths <strong>of</strong> the distribution <strong>of</strong><br />

<strong>agricultural</strong> <strong>machinery</strong> is the proximity to the clients and the strong correlation with the<br />

local <strong>agricultural</strong> directions (wine, cereals, breeding...).<br />

TIME AND KNOWLEDGE<br />

Distributors always have to act fast because <strong>of</strong> weather constraints and because they<br />

face new equipment and highly technical materials for which it is important to master<br />

technicality perfectly.<br />

HIGHLY FRAGMENTED MARKET<br />

SEDIMA, INSEE and France Agricole 23 report different data on number <strong>of</strong> sales points in<br />

<strong>agricultural</strong> <strong>machinery</strong> <strong>from</strong> 1 500 to 2 800, indicating a highly fragmented <strong>market</strong> with<br />

diverse activities. INSEE’s data is based on activity code, same codes sometimes being<br />

used by distributors and manufacturers. France Agricole reports milking rooms<br />

installations. Sedima estimates the total number could be around 2 000 dealers.<br />

STRONG INTEGRATION OF MANUFACTURERS IN DISTRIBUTION NETWORK<br />

<strong>The</strong> <strong>market</strong> is dominated by large international manufacturers such as AGCO, John<br />

Deere, CNH, Claas or Kuhn. Some international manufacturers have production sites in<br />

France. Some international manufacturers have their own import <strong>of</strong>fice in France.<br />

Dealers representing a brand may represent another non-competing brand. <strong>The</strong> <strong>market</strong><br />

is characterized by a strong integration <strong>of</strong> the manufacturers in the distribution.<br />

DIVERSIFICATION<br />

Sales <strong>of</strong> material represent 65% <strong>of</strong> dealers’ turnover in average, yet it represents only<br />

35% <strong>of</strong> their margins, dealers then pay close attention to the repair and after sales<br />

services representing 65% <strong>of</strong> their margin and less sensitive to <strong>market</strong> fluctuations 24 .<br />

Sales points will keep on diversifying their activities, for example there is a trend for<br />

dealers to sell landscapes maintenance equipment.<br />

SAME COMPANIES SELL NEW AND USED<br />

With the exception on online used materials websites, most companies selling new<br />

material sell used materials, as part <strong>of</strong> their dealership contracts.<br />

23 http://www.lafranceagricole.fr Machinisme et Réseaux, Special Issue February 2011, http://insee.fr<br />

24 Michel Bombon in La France des Concessions, Special Issue February 2011


3.2. Organization <strong>of</strong> the distribution <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong><br />

3.2.1. Market organization<br />

WHO SELLS ON THE FRENCH MARKET ? SELLERS CAN BE DIVIDED INTO<br />

SHOPS SIZE<br />

independent dealers affiliated to a main brand in large equipment<br />

retail chains usually oriented towards small equipment<br />

manufacturers’ importers <strong>of</strong>fice<br />

TABLE 1: NUMBER OF SHOPS PER SURFACE<br />

in m² less 20 21 - 60 61 - 120 121 - 400 401 - 2500 2501 - 5000 + 5000 Total %<br />

Shops in % 4,07 6,96 17,10 52,55 17,58 1,64 0,09 100,00<br />

Source : Insee-ESANE 2009<br />

WHERE DO THE DEALERS BUY ?<br />

TABLE 2 : DEALERS' SUPPLIERS<br />

% <strong>of</strong> purchase<br />

Central buying centers, wholesalers, France 14.8<br />

Manufacturers, manufacturers’ branch, France 50.3<br />

Foreign wholesalers and manufacturers 29.6<br />

Others 5.2<br />

Total 100<br />

Source : Insee-ESANE 2009<br />

3.2.2. Detailed analysis <strong>of</strong> sellers <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong><br />

Sales companies usually work in double system: they have a dealership contract with<br />

exclusivity (and strong constraints in terms <strong>of</strong> distribution) and they also have balanced<br />

relationships with the huge number <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong> manufacturers outside <strong>of</strong><br />

tractor and harvesters. Agricultural <strong>machinery</strong> distributors deal with soil work, harvest,<br />

production, fertilization, protection, breeding, milling, wines and irrigation products.


Most companies are owned and managed by a private person and yet the need in<br />

capital increases regularly. <strong>The</strong> company size is about 20 persons in average and a<br />

turnover is about 6 millions, stock represents about €1.5 millions.<br />

1) Dealers: most <strong>of</strong> the material <strong>of</strong> high technicality such as tractors and selfpropelled<br />

harvesters and milking material are usually sold through dealers’<br />

network. <strong>The</strong>y buy and stock, new and used material, spare parts and they deal<br />

with after sales. Dealers’ size vary <strong>from</strong> 3 employees to more than 300<br />

employees. Most are independent companies installed near the clients. <strong>The</strong> last<br />

few years, the number <strong>of</strong> small companies (less than 5 employees) are on the<br />

decline and mergers are accelerating amongst larger companies (+50<br />

employees). Dealers have an exclusivity contract for a given territory defined<br />

with the manufacturer. In return they have to achieve a sales objectives, and<br />

commit not to sell competing products (they are then exclusive dealers)<br />

TABLE 3: PROFILE OF AN AVERAGE DEALER 25<br />

Number <strong>of</strong> clients 400<br />

Tractors sold 35<br />

Sales <strong>of</strong> used material € 1 million<br />

Number <strong>of</strong> parts referenced 35 000<br />

Employees 20<br />

Mechanists 12<br />

Sales persons 4<br />

Stock parts and material €1.2 million<br />

Total turnover €6 million<br />

TABLE 4: TURNOVER PER ACTIVITY OF AVERAGE DEALER, IN EUROS 26<br />

25 http://www.sedima.fr<br />

26 http://www.sedima.fr<br />

Per dealer € 6 million<br />

New € 3.5 millions<br />

Used € 1 million<br />

Parts € 1.1 million<br />

Workshop € 250 000<br />

Diverse € 150 000<br />

Warranty costs € 70 000


FIGURE 11: SIZE OF SEDIMA MEMBERS<br />

Size <strong>of</strong> SEDIMA members : sales companies,<br />

number <strong>of</strong> employees<br />

2) Branch plant or sales <strong>of</strong>fice <strong>of</strong> the manufacturer plant<br />

0-5<br />

6 to 10<br />

11 to 20<br />

21 to 30<br />

31 to 40<br />

41 to 59<br />

over 50<br />

3) Specialized retail chains: such as Gamm’Vert, Point Vert or Expert Rural sell small<br />

material that do not require deep technical sales knowledge.<br />

4) Independent sales points can sell any material yet they usually are oriented<br />

towards sales, maintenance and repair <strong>of</strong> small material<br />

3.2.3. Ten largest <strong>agricultural</strong> wholesalers 27<br />

As the <strong>market</strong> for tractors and combine-harvester is dominated by large international<br />

groups, that have production sites in France and integrated sellers network, they rank<br />

high in INSEE report on <strong>agricultural</strong> wholesalers.<br />

AGCO Distribution (CHALLENGER, FENDT, MASSEY FERGUSON, VALTRA,)<br />

AMAZONE<br />

ANDREAS STIHL SARL<br />

CLAAS RESEAU AGRICOLE<br />

CLAAS France<br />

CNH FRANCE SA<br />

HUSQVARNA France<br />

JOHN DEERE<br />

27 http://www.insee.fr


KUBOTA EUROPE<br />

KUHN KVERNELAND GROUP FRANCE SAS<br />

MERLO FRANCE<br />

SAME DEUTZ FAHR France<br />

3.3. Central purchase <strong>of</strong>fices<br />

As dealers represent other brands besides the one(s) they have dealership contract, they<br />

organized themselves in central buying <strong>of</strong>fices in order to acquire other equipment at<br />

negotiated prices. Central buying <strong>of</strong>fices are specialized and you will find below a<br />

description <strong>of</strong> the main central purchase <strong>of</strong>fices. <strong>The</strong> consultant selected only the<br />

relevant ones in terms <strong>of</strong> products and did not select the ones specialized in<br />

phytosanitary, seeds products …<br />

3.3.1. PROMODIS<br />

http://www.promodis.fr<br />

107 distributors, 410 sales points in France.<br />

Promodis selects, approves and references products . Promodis buys, but does not<br />

stock.


Promodis works in soil work, hay, grass, harvest material, sowing and fertilizer, vine,<br />

animal nutrition, handling, transport, spraying …<br />

Examples <strong>of</strong> Promodis products shown on its website<br />

Examples <strong>of</strong> Autumn 2011 special <strong>of</strong>fers sales in soil work material


FINANCIAL INFORMATION ON PROMODIS FROM REGISTRY OF COMMERCE 28<br />

SOCIETE PROMODIS<br />

331 631 796 R.C.S. ORLEANS<br />

Tribunal de Commerce de ORLEANS<br />

Brand : PROMODIS<br />

Head <strong>of</strong>fice<br />

PARC D'ACTIVITES DE LA SAUSSAYE<br />

RUE DES HETRES<br />

45590 SAINT CYR EN VAL<br />

Activity (NAF code) 4619A<br />

Legal form SOCIETE ANONYME COOPERATIVE<br />

Registered on 07/06/1985<br />

Key figures at 31/08/2010<br />

Revenue : 128 192 500 €<br />

Result : 408 951 €<br />

Closing date Revenue Result Headcount<br />

31/08/2009 159 497 459 € 367 010 € 22<br />

31/08/2008 168 034 756 € 600 431 €<br />

31/08/2007 135 293 494 € 459 731 € 22<br />

28 http://www.infogreffe.fr


3.3.2. CAMPA – SOCODICOR<br />

http://www.campa.net<br />

89 distributors, 200 sales points, 300 brands<br />

CAMPA specializes in<br />

Material<br />

Landscape<br />

Tractors accessories<br />

Sowing and planting<br />

Diverse equipment<br />

Breeding equipment<br />

Spreading and spraying<br />

Work soil<br />

Examples <strong>of</strong> second –hand material : Disc harrow<br />

Handling and transport<br />

Workshop tools<br />

Harvest<br />

Vineyards


FINANCIAL INFORMATION ON CAMPA-SOCODICOR FROM REGISTRY OF COMMERCE 29<br />

SOCIETE COOPERATIVE DE DISTRIBUTION DE<br />

CONCESSIONNAIRES REUNIS.<br />

328 187 620 R.C.S. MEAUX<br />

Greffe du Tribunal de Commerce de MEAUX<br />

Acronym : SO.CO.DI.CO.R.<br />

Brand : CAMPA CENTRE DISTRIB<br />

Head <strong>of</strong>fice<br />

14 RUE DE LA MAISON ROUGE<br />

77437 MARNE LA VALLEE CEDEX 02<br />

Activity (NAF code) 4661Z<br />

Legal form SA COOPERATIVE A DIRECTOIRE<br />

Registered on 21/03/1988<br />

Key figures at 30/09/2010<br />

Revenue : 79 680 730 €<br />

Result : 807 287 €<br />

Closing date Revenue Result Headcount<br />

30/09/2009 101 830 k€ 1 419 k€ 13<br />

30/09/2008 107 290 k€ 1 699 k€<br />

30/09/2007 93 470 k€ 1 280 k€<br />

3.3.3. CAP ALLIANCE<br />

http://www.capalliance.fr<br />

200 SALES POINTS IN France<br />

29 http://www.infogreffe.fr


Brands represented<br />

ACEMO<br />

ALÖ<br />

AMAZONE<br />

B3.b<br />

BABINI<br />

BECCHIO<br />

BERRY<br />

BERTHOUD<br />

BLANCHARD<br />

BRUNEAU<br />

BUGNOT<br />

COCHET<br />

COSNET LA GEE<br />

DESVOYS<br />

DONDI<br />

ECOMULCH<br />

FERRARI<br />

GASPARDO<br />

GILIBERT<br />

GREGOIRE ET BESSON<br />

GUERNET<br />

HATZENBICHLER<br />

JEANTIL<br />

JF Stoll<br />

JOURDAIN<br />

KONGSKILDE<br />

KRONE<br />

KUHN PULVE<br />

KVERNELAND<br />

LAMBERT<br />

LERIN<br />

LUCAS<br />

MASCAR<br />

MASCHIO<br />

PMP<br />

Example <strong>of</strong> second-hand tractors (3101 adverts)<br />

see brand model year hours power Price<br />

( ) ( ) ( )<br />

( ) ( ) ( ) ( )<br />

POGET<br />

QUITTE 'BOMFORD'<br />

QUIVOGNE<br />

RABAUD<br />

REIXIT<br />

RIBOULEAU<br />

RONOT<br />

RUDOLPH<br />

SATENE<br />

SEKO<br />

SUIRE<br />

SULKY<br />

THIERION<br />

TIFERMEX<br />

TOY<br />

YANIGAV<br />

location<br />

( )<br />

John Deere 6520 PREMIUM 2005 3614 110 36000 € France − 50<br />

Fendt 711 2001 4675 115 40000 € France − 50<br />

Renault 155.54 1999 7700 155 11000 € France − 76<br />

Fendt 712 2002 4500 120 52500 € France − 76<br />

Renault ARES 710 1998 8100 145 18000 € France − 76<br />

New Holland TL 100 2001 3750 100 31000 € France − 76<br />

Case IH MXM155 2003 3800 155 39960 € France − 77<br />

Mc Cormick MTX 120 2005 4000 120 42000 € France − 15<br />

Case IH 845 XL 1987 6500 80 12000 € France − 15<br />

Case IH CS 86 2002 6220 86 15000 € France − 42<br />

New Holland TG 230 2004 6300 230 27000 € France − 86<br />

Renault ARES 735 RZ 1999 7700 185 19000 € France − 86<br />

Fiat / Fiatagri 640 1980 100 60 6500 € France − 87


FINANCIAL INFORMATION ON CAP ALLIANCE FROM REGISTRY OF<br />

COMMERCE 30<br />

CAP'ALLIANCE<br />

382 408 771 R.C.S. ORLEANS<br />

Tribunal de Commerce de ORLEANS<br />

Head <strong>of</strong>fice<br />

54 RUE DES FRERES LUMIERE<br />

ZAC DES CHATELLIERS<br />

45800 SAINT-JEAN-DE-BRAYE<br />

Activity (NAF code) 4661Z<br />

Legal form<br />

SOCIETE ANONYME COOPERATIVE A CAPITAL VARIABLE<br />

Registered on 21/05/1992<br />

Closing date Revenue Result Headcount<br />

31/12/2009 10 985 728 € 117 216 €<br />

31/12/2008 13 877 178 € 236 703 €<br />

31/12/2007 8 477 249 € 211 659 € 8<br />

3.3.4. EPAGRI<br />

http://www.epagri.com/<br />

30 http://www.infogreffe.fr<br />

Key figures at 31/12/2010<br />

Revenue : 7 790 260 €<br />

Result : 50 140 €


150 sales points.<br />

Specialized in <strong>machinery</strong> and supplies for maintenance and repair <strong>of</strong> material, also<br />

selling material and equipment.<br />

INFORMATION ON CAP AGRI FROM REGISTRY OF COMMERCE 31<br />

COOPERATIVE DES DISTRIBUTEURS DE PIECES AGRICOLES<br />

391 109 550 R.C.S. NANTES<br />

Tribunal de Commerce de NANTES<br />

Acronym : C.D.P.A.<br />

Head <strong>of</strong>fice<br />

Z I DU BIGNON<br />

44110 ERBRAY<br />

Activity (NAF code) 4661Z<br />

Legal form SOCIETE ANONYME COOPERATIVE<br />

Registered on 12/05/1993<br />

Closing date Revenue Result Headcount<br />

30/09/2009 20 705 413 € 125 926 €<br />

30/09/2008 23 512 117 € 215 722 € 21<br />

30/09/2007 22 582 744 € 120 078 €<br />

3.3.5. DELTA FORCE<br />

http://www.delta-force.com/<br />

400 sales points in France, 166 referenced manufacturers<br />

31 http://www.infogreffe.fr<br />

Key figures at 30/09/2010<br />

Revenue : 18 483 896 €<br />

Result : 63 870 €


FINANCIAL INFORMATION ON DELTA FORCE FROM REGISTRY OF COMMERCE 32<br />

DELTA FORCE<br />

349 106 948 R.C.S. RENNES<br />

Greffe du Tribunal de Commerce de RENNES<br />

Head <strong>of</strong>fice<br />

167 ROUTE DE LORIENT<br />

35000 RENNES<br />

Activity (NAF code) 4661Z<br />

Legal form SOCIETE PAR ACTIONS SIMPLIFIEE<br />

Key figures at 30/06/2010<br />

Revenue : 1 386 781 €<br />

Result : 110 344 €<br />

Registered on 24/01/2006<br />

Company in the registry <strong>of</strong> RENNES on 20/12/2005. Previous head <strong>of</strong>fice at CRETEIL<br />

Closing date Revenue Result Headcount<br />

30/06/2009 1 332 083 € 143 065 €<br />

30/06/2008 1 356 214 € 30 353 €<br />

30/06/2007 1 266 434 € 20 063 €<br />

3.3.6. SCAR –UCAR SCAR (Société Coopérative des Artisans Ruraux)<br />

UCAR’s sales persons are available to advice on financial and technical issues on<br />

products.<br />

UCAR services are : stock, commercial actions, fairs, training on selected products and<br />

monthly technical meetings.<br />

32 http://www.infogreffe.fr,


FINANCIAL INFORMATION ON SCAR FROM REGISTRY OF COMMERCE<br />

SCAR UNION<br />

441 649 068 R.C.S. RENNES<br />

Greffe du Tribunal de Commerce de RENNES<br />

Head <strong>of</strong>fice<br />

ZI LA TURBANIERE<br />

35530 BRECE<br />

Activity (NAF code) 8299Z<br />

Legal form COOPERATIVE A CAPITAL VARIABLE.<br />

Registered on 17/04/2002<br />

Key figures at 30/09/2010<br />

Revenue : 1 831 849 €<br />

Result : 8 087 €<br />

Closing date Revenue Result Headcount<br />

30/09/2009 1 496 855 € 7 180 €<br />

30/09/2008 1 599 769 € 4 840 €<br />

30/09/2007 1 107 631 € 1 307 €


3.4. Most effective sales channels<br />

<strong>The</strong> most important sales channel is the dealers ‘group that represent about 85% <strong>of</strong> the<br />

sales (€5.3bn out <strong>of</strong> €6.3bn). Dealers gather 2000 sales points.<br />

<strong>The</strong> dealership concept, where a sales company has a contract with an equipment<br />

manufacturer (tractors or harvesting machines), implies a number <strong>of</strong> constraints in<br />

terms <strong>of</strong> geographical operation and other products to be sold. <strong>The</strong> dealers can then sell<br />

additional material that is bought either directly <strong>from</strong> manufacturers or through central<br />

buying <strong>of</strong>fices.<br />

In the dealership model, dealers sell to farmers only and there is a strong integration<br />

<strong>from</strong> the manufacturers into the distribution. That could be seen as an handicap <strong>from</strong> a<br />

seller point <strong>of</strong> view.<br />

La France Agricole 33 published a special issue in February 2011 on the Dealers and<br />

mentions that the largest dealers do not go over €100 million in turnover. In 2008, two<br />

dealers groups had a turnover over €100 million. Overall in 2010, the first 100 dealers<br />

saw a decrease in their turnover <strong>of</strong> 12.9% (€454 million).<br />

33 http://www.lafranceagricole.fr


Rank<br />

La France Agricole / Machinisme et Reseaux lists the top 100 dealers in 2010.<br />

Turnover is for headquarters + sales points (subsidiaries), in thousands euros<br />

Number <strong>of</strong> employees is for headquarters + sales points (subsidiaries)<br />

Sales figures <strong>of</strong> 2010<br />

<strong>The</strong> table lists companies ranking <strong>from</strong> 1-10, 41-50 and 95-100.<br />

Company name Turnover Employees<br />

Number <strong>of</strong><br />

sales points<br />

Tractors<br />

New<br />

Combine<br />

harvesters<br />

1 Blanchard 94 000 317 13 CNH CNH 320 350 36 25 12 16<br />

2 Ouvrard 91 800 324 21 CNH CNH 275 345 19 34 35 31 20 15<br />

3 Lecocq Duret 80 700 230 13 CNH CNH 220 367 43 114 3 3 2<br />

4 Depussay 76 000 178 16 Claas<br />

JCB<br />

tractors<br />

used<br />

tractors<br />

new combi<br />

harvester<br />

used combi<br />

harvester<br />

Claas 135 179 59 166 5<br />

5 Gonnin Duris 67 000 200 8 NH NH 200 290 45 200 1 1 5 5<br />

6 Casa Service 62 145 151 9 Claas<br />

Claas 146 194 24 43 11 9 43 32<br />

Fendt<br />

Fendt<br />

MF<br />

MF<br />

7 Sicadima 55 000 170 6 Deere Deere 240 280 6 8 6 14<br />

8 Breda 55 000 140 4 Deere Deere 153 265 16 38 3 5 28 24<br />

9 Rocha 53 103 206 23 Kubota<br />

MF<br />

10 Samson Service 52 800 124 4 Case IH<br />

JCB<br />

new selfpro<br />

haverst<br />

used selfpro<br />

harvest<br />

new telesco<br />

loader<br />

MF 410 116 7 12 6 7<br />

Case IH<br />

Laverda<br />

Used telesc<br />

loader<br />

109 138 11 20 131 154<br />

41 Lebaudy 29 000 83 4 Deere Deere 150 300 2 5 8 20


43 Agrivision 28 700 112 10 Deere Deere 110 150 5 5 1 2<br />

45 CRA Auvergne 28 366 83 3 Claas Claas 105 145 7 15 1 14 15<br />

47 CRA Rennes 27 903 85 3 Claas Claas 105 140 8 9 8 6 15 11<br />

49 Bernardi<br />

Bernard<br />

26 118 80 5 Case IH<br />

NH<br />

Case IH<br />

NH<br />

53 136 12 27 2 1 6<br />

50 Ducastel 26 000 95 6 NH NH 70 120 10 30 1 2 30 25<br />

95 Maison Vacher 16 978 46 3 Fendt<br />

Kubota<br />

MF<br />

Merlo<br />

Fendt<br />

MF<br />

96 Bouilloux Petit 16 900 52 3 Case IH Case IH<br />

Laverda<br />

97 Mansard<br />

Chauvin<br />

16 540 60 6 Fendt<br />

Kubota<br />

MF<br />

Fendt<br />

MF<br />

94 139 3 2 1 1<br />

37 78 14 16<br />

49 38 4 4 8 7 4 3<br />

98 AgriCentre 36 16 350 47 2 Deere Deere 68 100 6 20 5 5<br />

99 Codima 16 100 50 2 Deere Deere 70 97 3 5 2 3 2 6<br />

100 CAT SAS 16 012 35 2 Deere Deere 90 110 7 30 3 5<br />

Excerpt <strong>from</strong> Machinisne et Reseaux, La France des Concessions, Fevrier 2011 http://www.lafranceagricole.fr/


3.5. Overall feelings and trends in distribution over 2011<br />

“Distributors continue their clearance: 27% <strong>of</strong> them believe that their stock <strong>of</strong> new<br />

equipment will be less important than it was at this time last year. This very cautious<br />

approach to stocks reflects the lack <strong>of</strong> visibility on the <strong>market</strong>. Nevertheless, the pace <strong>of</strong><br />

this clearance slows down, dealers believing they have arrived at their balance point,<br />

even if one third <strong>of</strong> them continue to put effort on sales <strong>of</strong> used equipment.<br />

Stocks <strong>of</strong> spare parts will not move. In a very volatile <strong>market</strong>, the constitution <strong>of</strong> stocks<br />

becomes excessively perilous and the episode 2008-2009 <strong>of</strong> the collapse <strong>of</strong> the <strong>market</strong><br />

has cooled many distributors. <strong>The</strong> difficulty is increased by the sophistication <strong>of</strong> the<br />

equipment and the pr<strong>of</strong>essionalization <strong>of</strong> the farmers which very <strong>of</strong>ten leads to the fact<br />

that what is in stock is not what the client wants.<br />

<strong>The</strong>re is a strong need for manufacturers and distributors to talk and find a balance <strong>of</strong><br />

their complementarities; at the moment, delivery times are too long.<br />

With the improvement <strong>of</strong> the level <strong>of</strong> stocks, the liquidities are stable in 54% <strong>of</strong> dealers<br />

companies, 27% are still improving it.<br />

All regions, materials, new and used equipment combined, 84% <strong>of</strong> the<br />

distributors/dealers/retailers plan at least a stabilization <strong>of</strong> their <strong>market</strong>. <strong>The</strong>y are even<br />

34% to consider a progression. Optimism returns and there is a hope to have figures <strong>of</strong><br />

the 2006 <strong>market</strong>, last year considered "normal".<br />

2010 has been the worst year for 15 years yet it seems that<br />

distributors/dealers/retailers were able to take rigorous measures to absorb the shocks<br />

without losing their teams. Visibility on intentions <strong>of</strong> investments is nevertheless too<br />

narrow so that the distributors/dealers/retailers are encouraged to rebuild their stocks.<br />

<strong>The</strong> sector will have to think <strong>of</strong> how to answer to this situation.” 34<br />

34 http://www.sedima.fr, http://www.axema.fr


FIGURE 12 : MORALE OF DISTRIBUTION IN SECOND SEMESTER 2011, BASED ON ESTIMATES OF GROWTH<br />

FOR 2ND SEMESTER 2011/2ND SEMESTER 2010.<br />

Source SEDIMA


4. Clients<br />

Farmers, CUMA (cooperatives) and ETA (contractors) are main purchasers <strong>of</strong><br />

<strong>agricultural</strong> <strong>machinery</strong>.<br />

4.1. Farmers<br />

KEY FACTS<br />

o 500 000 farms (326 000 pr<strong>of</strong>essional farms)<br />

o 1 million workers<br />

o 25% farms : less than 6ha<br />

o 25% farms : +82ha<br />

o 10% farms : +143 ha<br />

o Revenue average per farm worker 2009 : € 11,300<br />

o Revenue average per farm worker 2010 : € 24,300<br />

o Main products : 70 tons cereals (wheat, corn), sugar, wines,<br />

dairy, fruits and vegetables.<br />

o Agriculture represents 1.7% <strong>of</strong> the <strong>French</strong> GDP and employs<br />

about 3.5% <strong>of</strong> <strong>French</strong> workforce<br />

o Value <strong>of</strong> agriculture : €70bn<br />

In 2001, <strong>of</strong> the 507,000 farms in France, almost two thirds (326,000) are<br />

pr<strong>of</strong>essional (equivalent to 8 ESU). In 20 years, their number has been reduced<br />

by about half.<br />

4.1.1. Individual and collective farming<br />

A farm can be developed under status <strong>of</strong><br />

a) Personal farm status<br />

b) Company farm status: GAEC (farming group) and EARL (limited liability farm) are<br />

most common status, they both have a maximum <strong>of</strong> 10 shareholders. GAEC needs<br />

to have 2 partners (not spouse). EARL can be one person only or 2 spouses or<br />

several associates.


TABLE 5 FARMS PER STATUS<br />

Number <strong>of</strong> farms in 2007<br />

Farms Pr<strong>of</strong>essional<br />

farms<br />

Evolution 1988-<br />

2007 in %<br />

Personal farms 364 000 192 000 -5.4<br />

Companies amongst which 143 000 134 000 +3.9<br />

GAEC 41 000 41 000 +0.4<br />

EARL 72 000 70 000 + 25<br />

Others 29 000 24 000 -0.4<br />

Total 507 000 326 000 -3.3<br />

Source INSEE 2009, essor des societes agricoles<br />

<strong>The</strong>re has been a decrease in “personal status”, farms using this status tend to be <strong>of</strong><br />

small size (57 ha in average). “Company status” increase and represent farms with 107ha<br />

in average. EARL status is the fastest developing farm status.<br />

<strong>The</strong> UAA (Utilised Average Area) is increasing: 77 ha in 2007 compared with 42 hectares<br />

in 1988. Despite their reduction in number, farms between 50 and 100 hectares<br />

continue to be the most common, representing nearly a third <strong>of</strong> the total 35 .<br />

25% <strong>of</strong> farms have less than 6 hectares, 25% more has more 82ha. 10 % <strong>of</strong> the biggest<br />

farms have more than 143 hectares. 18 % <strong>of</strong> farms sell in short-circuit or direct sales or<br />

with only one intermediary 36 .<br />

FIGURE 13 : UTILISED AGRICULTURAL AREA: 30 MILLION HA<br />

35 INSEE http://www.insee.fr/fr/default.asp<br />

36 http://www.agreste.agriculture.gouv.fr/


TABLE 6 : FARMS ACCORDING TO FARMING ORIENTATION<br />

1988 2007<br />

Number <strong>of</strong> farms<br />

in thousands<br />

UAA<br />

in thousands <strong>of</strong> ha<br />

(in %)<br />

Major crops 182 117 9 715 23,1<br />

Horticulture, <strong>market</strong> gardening 29 11 78 2,3<br />

Viticulture 123 71 1 078 14,0<br />

Fruits 34 19 279 3,7<br />

Dairy cattle 169 55 3 806 10,8<br />

Beef cattle 91 63 3 747 12,5<br />

Other herbivores 120 70 2 839 13,9<br />

Pigs, poultry 29 17 568 3,3<br />

Polyculture, mixed livestock 239 84 5 247 16,5<br />

Total 1 017 507 27 356 100,0<br />

Source : INSEE<br />

4.1.2. Types <strong>of</strong> culture<br />

FIGURE 14: CEREAL, OLEAGINOUS AND PROTEAGINOUS ,<br />

BEETS AND INDUSTRIAL CULTURES


Table 7: use <strong>of</strong> arable land in hectares<br />

2007 2008 2009<br />

Arable land 18 351 245 18 337 766 18 330 815<br />

Cereals (seeds included) 9 092 157 9 665 039 9 444 507<br />

Oleaginous (seeds included) 2 189 617 2 081 833 2 263 696<br />

Proteaginous (seeds included) 221 269 161 923 202 784<br />

Industrial beets ( seeds excluded) 393 128 349 258 372 602<br />

Sugar cane (Overseas) 43 443 43 208 42 742<br />

Fiber plants (seeds included) 84 891 76 116 68 805<br />

Diverse industrial cultures 11 170 10 801 11 791<br />

Aromatic, medicinal and perfume plants 30 715 31 373 36 164<br />

Potatoes, fresh vegetables and dry vegetables 402 194 400 051 404 894<br />

Overseas plants, roots and bulb 7 400 7 392 7 592<br />

Flowers 8 227 8 135 8 093<br />

Seeds 61 998 59 046 55 528<br />

Cabbage, roots and forage tuber 22 115 22 597 22 606<br />

Forage 1 399 750 1 476 990 1 505 561<br />

seeded and temporary grassland 3 149 082 3 174 509 3 168 003<br />

Family gardens/orchards 23 966 23 733 23 843<br />

Fallow 1 210 123 745 762 691 604<br />

Superficies in grass 10 010 672 9 959 780 9 919 776<br />

Vines, fruits, others 1 249 960 1 234 421 1 218 700<br />

Woods and forests 23 246 617 23 277 851 23 297 218<br />

Non cultivated <strong>agricultural</strong> land 2 669 118 2 649 646 2 668 608<br />

Non <strong>agricultural</strong> territory 8 313 610 8 405 613 8 414 691<br />

Total surface 63 794 579 63 794 579 63 794 579<br />

Source : Service de la statistique et de la prospective 37<br />

37 http://www.agreste.agriculture.gouv.fr


4.1.3. Farms size<br />

Average size <strong>of</strong> farms is between 55 hectares and 80 hectares for medium and large<br />

farms in 2010. Large farms tend to specialize in cereals and oleo-products. Small farms<br />

represent 36% <strong>of</strong> farms, their average size is 10 hectares and they exploit about 7% <strong>of</strong><br />

the UAA. Medium and average farms occupy 93% <strong>of</strong> the UAA : 30% are specialized din<br />

bovine, 23 in crops and 15% in vineyards. 36% <strong>of</strong> large farms are under EARL status.<br />

FIGURE 15 : EVOLUTION OF FARMS SIZE<br />

Number <strong>of</strong> farms<br />

700000<br />

600000<br />

500000<br />

400000<br />

300000<br />

200000<br />

100000<br />

0<br />

Source : Agreste 38<br />

Large farms remain strong<br />

2000 2010<br />

Year<br />

38 http://www.agreste.agriculture.gouv.fr<br />

Large farms<br />

Medium farms<br />

Small farms


FIGURE 16: NUMBER OF LARGE AND MEDIUM FARMS AND THEIR ORIENTATION<br />

Source : Agreste 39<br />

4.1.4. Farming revenues<br />

Evolution <strong>of</strong> result before taxes for head and family in farms (not including<br />

employees), value <strong>of</strong> 2010, evolution <strong>from</strong> 1990 to 2010 in yearly average<br />

39 http://www.agreste.agriculture.gouv.fr


FIGURE 17: RESULTS BEFORE TAXES : AVERAGE FOR FRANCE PER HEAD OF FARMS


4.2. CUMA : Cooperative for the use <strong>of</strong> material<br />

KEY FACTS<br />

o 13 400 CUMA<br />

o 250 000 members (+50% <strong>of</strong> farms)<br />

o € 464 million turnover<br />

o € 38 300 average turnover per CUMA (bills sent to members)<br />

o € 260 million <strong>of</strong> investments total<br />

o € 55 000 investment per CUMA<br />

o CUMA most frequent activities are slurry, transport, sowing and<br />

harvesters. Tractors and sprayers are also important activities.<br />

CUMA are <strong>agricultural</strong> cooperatives that allow farmers to put their resources in common<br />

in order to acquire <strong>agricultural</strong> <strong>machinery</strong>. CUMA have a juridical status that helps<br />

optimize team work and reduce costs <strong>of</strong> equipment 40 .<br />

CUMA are identified in the RURAL CODE. At the end <strong>of</strong> WWII, <strong>French</strong> agriculture<br />

reorganizes, and in 1945, a law is voted on CUMA. CUMA promote cooperation amongst<br />

farmers; CUMA <strong>of</strong>fer assistance, technical help, experts advices, and accounting<br />

services.<br />

From 2000, CUMA strive to <strong>of</strong>fer better services to members, to plan better collective<br />

use <strong>of</strong> materials, to improve work organization, and help calculate cost <strong>of</strong> use <strong>of</strong><br />

material. CUMA activities do not decline, in spite <strong>of</strong> the decline <strong>of</strong> numbers <strong>of</strong> farmers.<br />

New law in 2006 introduces in Labor Code the possibility for CUMA to act as an<br />

employer cooperative.<br />

<strong>The</strong> number <strong>of</strong> CUMA members is declining, along with the decline in number <strong>of</strong> farms,<br />

yet the percentage <strong>of</strong> famers belonging to CUMA remains stable.<br />

CUMA need to have at least 4 members who subscribe to social shares in the CUMA,<br />

who commit: to use the material for a specified period and quantity; to respect the<br />

material and to pay the bills linked to the use <strong>of</strong> the material. CUMA in turns will make<br />

40 Information in this chapter comes for CUMA federation website : http://www.cuma.fr/


the material available to its members. CUMA are organized around a national<br />

federation, regional and county representatives.<br />

FIGURE18 : NUMBER OF CUMA PER COUNTY<br />

MATERIAL OWNED BY CUMA in 2011<br />

12 550 sowing machines for cereals and one-grain<br />

9 150 slurry spreaders<br />

7 100 tractors<br />

3 700 combine harvesters<br />

2 600 haymakers<br />

1 700 front loaders<br />

1 350 vine harvesters


FIGURE 19: FREQUENCY OF ACTIVITIES IN CUMA<br />

60 %<br />

50 %<br />

40 %<br />

30 %<br />

20 %<br />

10 %<br />

0 %<br />

Frequency <strong>of</strong> activities in CUMA<br />

Aids available to CUMA come <strong>from</strong> 3 sources :<br />

FEADER aids<br />

FEADER and <strong>French</strong> regions co-financed aids<br />

Regional council aids<br />

FIGURE 20 : EVOLUTION OF CUMA FINANCING<br />

*MTS : improved loans


4.3. ETA - Agricultural, Forest and Rural contractors<br />

Agricultural, Forest and Rural contractors 41 <strong>of</strong>fer their services to farmers, breeders,<br />

forest managers, state or private companies such as EDF. In agriculture contractors<br />

mostly <strong>of</strong>fer services for production: soil work, sowing, fertilization, harvesting and<br />

haymaking.<br />

Material<br />

KEY FACTS<br />

o 23 000 companies<br />

o 74 000 full-time or temporary employees<br />

o Status : private companies registered with Commerce and Trade, not<br />

Agriculture<br />

Because they have to be performing and pr<strong>of</strong>itable, contractors needs to have working<br />

machines in good condition and that enables them to <strong>of</strong>fer valuable services.<br />

Contractors use state <strong>of</strong> art machines as they can then add value by extending their<br />

mission to advice and consultancy to the farmers. <strong>The</strong>y do so by collecting and analyzing<br />

information with the help <strong>of</strong> sophisticated equipment and then assist farmers in decision<br />

and management <strong>of</strong> production.<br />

Contractors do not receive any subsidies to buy their equipment. <strong>The</strong> renewal rate <strong>of</strong><br />

equipment is fast (5 -7 years in average), and much faster than farmers, where rate<br />

about 10 years.<br />

Leasing and financial amortization represent about 10-15% <strong>of</strong> contractors’ turnover.<br />

Maintenance charges also represent 10-15% and social taxes represent 25-40% . Most<br />

contractors (51%) operate within their department / county limits.<br />

Contractors can be identified on http://www.e-d-t.org<br />

41 Information for this chapter comes <strong>from</strong> the EDT website and <strong>from</strong> a telephone conversation with EDT’s<br />

representative. <strong>The</strong> person also pro<strong>of</strong>read this current chapter. http://www.e-d-t.org


Activities <strong>of</strong> contractors per type <strong>of</strong> works<br />

Agricultural 78.91%<br />

Rural 17.3%<br />

Forestry 14.93%<br />

Vine 6.4%<br />

Contractors activities: in % <strong>of</strong> the activities carried in France<br />

30% <strong>of</strong> soil work and sowing,<br />

50 % <strong>of</strong> forage harvests,<br />

50 % <strong>of</strong> vine harvests,<br />

55 % <strong>of</strong> harvest <strong>of</strong> cereals for straw,<br />

60 - 70 % <strong>of</strong> corn silage and silage,<br />

70 - 80 % <strong>of</strong> beet picking,<br />

90 % <strong>of</strong> industrial vegetable picking,<br />

40 - 60 % <strong>of</strong> forest works.<br />

Contractors turnover varies a lot : <strong>from</strong> less than €300 000 to more than €1 million.<br />

About 30% <strong>of</strong> companies that answered survey reported a turnover between €100 000-<br />

300 000. About 100 reported a turnover above €700 000.<br />

Contractors yearly investment in material in 2008, In %<br />

Less than €30 000 23.35%<br />

€30 000 - 50 000 12.03%<br />

€50 000 - 100 000 20.05%<br />

€100 000 - 300 000 30.19%<br />

€300 000 - 700 000 12.03%<br />

+ €700 000 2.36%<br />

Investments are linked to turnover <strong>of</strong> the company. In 2008 the total investments is less<br />

than in the past. It seems there is a link between turnover and manager level <strong>of</strong><br />

education, as people with a specialized degree after High school usually achieve a higher<br />

turnover. Yet, people with long experience and no diploma also managed to make<br />

turnover <strong>of</strong> +€1 million.<br />

Contractors say they<br />

invoice<br />

Monthly 66 %<br />

Quarterly 20 %<br />

Annually 14 %<br />

Average payment terms<br />

30 days 41.15%<br />

60 days 43.54%<br />

+ 90 days 12.2%<br />

+ 120 days 3.11%<br />

Who are contractors<br />

competitors?<br />

1. Other contractors<br />

2. Farmers<br />

3. CUMA<br />

4. Illegal work


Who are contractors’ clients? Ranked per order: farmers, private persons, local public<br />

entities, farmers cooperatives, partnership with other ETARF, National Forest Office,<br />

forest managers, and industrial companies.<br />

Farms established as companies tend to use more contractors because <strong>of</strong> their size and<br />

their specialties.<br />

FIGURE 21 : AVERAGE NUMBER OF DAYS WORKED BY CONTRACTORS FOR CLIENTS<br />

3,4<br />

0,4<br />

Average number <strong>of</strong> days worked by contractors<br />

0,5<br />

4,6<br />

ETA CUMA Temp. Work<br />

6,7<br />

5,8<br />

1,3<br />

1 0,9 1<br />

0,9<br />

Personal farms GAEC EARL one person EARL +1 person<br />

Source : INSEE, June 2009, Essor des Societes Agricoles<br />

1,5


5. Buying <strong>agricultural</strong> <strong>machinery</strong><br />

5.1. Aids and financing possibilities<br />

5.1.1. Aids and subsidies<br />

Although there is no direct aids to acquire materials some subsidies targeting farms in<br />

difficulty, mountain farming, environmental friendly farming … are available. None<br />

targets direct purchase material with the exception <strong>of</strong> CUMA in mountains areas.See<br />

Annex 12.5 on EU regulation.<br />

CUMA (Cooperative for the use <strong>of</strong> <strong>agricultural</strong> material), is considered as a farmer<br />

association as such is the only body that receives aids, in order to reduce over-equipping<br />

farms and limit farm indebtedness. Yet aids are conditioned by type <strong>of</strong> material that<br />

should meet challenges <strong>of</strong> local interest (organic culture, orientation, resources<br />

management … ) and <strong>of</strong> the CUMA location itself (mountain, poor or plain area). CUMA<br />

are eligible for aids, whether they are European, Regional or County levels. See Annex<br />

12.6.<br />

5.1.2. “Improved” loans<br />

According to Banque de France, there are 3 types <strong>of</strong> “improved” loans in agriculture :<br />

1- MTS-JA ´(foryoung farmer)<br />

2- MTS<br />

3- MTS - CUMA (for CUMA )<br />

<strong>The</strong>se loans are granted with rate inferior to the <strong>market</strong> thanks to state aids. <strong>The</strong> aim is<br />

to support investments in farms and to increase the number <strong>of</strong> new farmers.<br />

Several banks issue the loans: BNP Paribas, Crédit Agricole, Groupe Banque Populaire,<br />

Crédit Mutuel, Crédit Industriel et Commercial, Crédit Maritime Mutuel.<br />

5.1.3. Manufacturers loans<br />

Some manufacturers can negotiate for their clients a leasing option and have developed<br />

their own financial services.


Example One 42 : “John Deere supplies you with full range <strong>of</strong> financial services to finance<br />

your John Deere equipment such as loans, leasing and renting. Your John Deere sales<br />

person will assist you and will tailor-made the financial services.”<br />

1. Opti Pret : you borrow <strong>from</strong> John Deere Credit the amount you need to buy your material.,<br />

2. OPtiClassic : leasing that will allow you to buy your equipment at best price at the end <strong>of</strong> the<br />

contract.<br />

3. OptiDynamic is a leasing/renting to renew your material on a regular basis.<br />

Example Two : CLAAS 43<br />

Claas advertises for renting services on selected equipment :<br />

Axos for €399/month, Disco <strong>from</strong> €186/month, Lexion Plus €399/month, Arion 600/500<br />

comfort , <strong>from</strong> €399/month<br />

5.2. Leasing practices in sales <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong><br />

<strong>The</strong> data below comes ASF 44 and covers the category “new and used industrial<br />

machines tools and <strong>agricultural</strong> <strong>machinery</strong>”. Financing <strong>of</strong> new and used industrial<br />

machines tools and <strong>agricultural</strong> <strong>machinery</strong> (please note ASF provides information for<br />

aggregated category <strong>of</strong> machine tools and <strong>agricultural</strong> <strong>machinery</strong> only)<br />

42 (excerpt <strong>from</strong> <strong>French</strong> website) http://www.deere.fr<br />

43 http://www.duoclaas.fr<br />

44 http://www.asf-france.com/


Leasing no<br />

Classic loans<br />

2010 2009 2008 2007 2006 2005 2004 2000<br />

Amount, millions euros, amount <strong>of</strong> new loans attributed or amount <strong>of</strong> new investments (lease)<br />

Leasing +<br />

purchase<br />

Classic loans<br />

purchase<br />

1 086 1 098 992<br />

745 494 435 517 627 (incl.<br />

comput.)<br />

4 586 4 757 6 435 5 815 5 653 5 275<br />

4 847 4 521<br />

1 249 1 354 2 294 2 261 1 878 1 875 1 794 2 801<br />

In number <strong>of</strong> transactions : new loan attributed or new transaction (loans)<br />

Leasing +<br />

purchase<br />

Leasing no<br />

purchase<br />

Not<br />

itemized<br />

Not<br />

itemized<br />

19 973 16 628 14 786 12 283 19 646<br />

31 818<br />

(incl.<br />

comput.)<br />

80 814 87 007 105 091 110 464 110 870 114 731 109 782 91 527<br />

68 649 64 528 75 555 76 453 67 604 64 580 61 586 83 895


6. Communication tools for manufacturers<br />

6.1. Fairs in <strong>agricultural</strong> <strong>machinery</strong><br />

SIMA - AGRI BUSINESS SHOW 20 -24 February 2011, Paris Villepinte Exhibition<br />

(every 2 years)<br />

http://www.planet-agri.com/en/sima<br />

1,300 exhibitors and 1,550 brands in which 285 new exhibitors in 2011.<br />

50% international exhibitors, originating <strong>from</strong> 41 countries .<br />

AGRIEVOLUTION –– world summit on Agricultural Machinery along with SIMA<br />

http://www.agrievolution2011.org<br />

SPACE – Livestock <strong>machinery</strong><br />

http://www.space.fr/<br />

SIVAL – Material and techniques for vegetables, flowers, fruits and wine<br />

http://www.sival-angers.com/<br />

SIFEL-VINITECH , Wine, fruits and vegetables equipment, Bordeaux, 27-29 November<br />

2012<br />

http://www.vinitech.fr<br />

SALON HERBE – ALL YOU NEED FOR GRASS AND HAY<br />

http://www.salonherbe.com<br />

ETA – Rural Contractors 120 exhibitors and 7 000 visitors<br />

http://www.saloneta.com/<br />

SALON AUX CHAMPS – CUMA fair<br />

http://www.salonauxchamps.fr<br />

INNOV AGRI<br />

http://www.innovagri.com/<br />

6.1.1. Regional fairs<br />

Please note that there numerous local fairs where local retailers will exhibit, these fairs<br />

are active in France, in each county. Dates vary and fairs are usually held in medium size<br />

cities.


6.2. Web portals<br />

http://www.planet-agri.com/<br />

http://www.terre-net.fr/<br />

6.3. Specialized press<br />

France Agricole publishes several magazines<br />

www.abonnements-gfa.com/<br />

France Agricole ; for all farmers<br />

VIgne : vineyards<br />

Agro Distribution : for collecting and transforming<br />

Machines et Reseaux : for pr<strong>of</strong>essionals in <strong>agricultural</strong> <strong>machinery</strong><br />

Materiel agricole : for pr<strong>of</strong>essionals in <strong>agricultural</strong> <strong>machinery</strong><br />

http://www.materielagricole.info/


7. Competitor information<br />

Because the main competitors are international, the consultant decided to select<br />

information about the competition relevant to their organization <strong>of</strong> the sales on the<br />

<strong>French</strong> <strong>market</strong>. A list <strong>of</strong> <strong>French</strong> manufacturers is available in the Annex 12.3 and 12.4<br />

JOHN DEERE http://www.deere.fr<br />

1 manufacturing plant and a <strong>market</strong>ing <strong>of</strong>fice in France.<br />

Sales organisations : 173 dealers (377 sales points)<br />

Example <strong>of</strong> John Deere dealer SOFIMAT<br />

CLAAS http://www.claas.com<br />

2 production plants in France , 535 million euros <strong>of</strong> sales in France<br />

27 Claas subsidiaries, 220 sales points<br />

Example <strong>of</strong> a CLAAS dealer DOUSSET MATELIN


CLAAS has its own used-tractors internet website http://www.tracto<strong>market</strong>.com/<br />

KUHN http://www.kuhn.fr<br />

6 production sites in France<br />

Example <strong>of</strong> a KUHN dealer who also represent Caterpillar and Deere dealer.


AGCO http://www.agco.fr<br />

Distribution company for Massey Ferguson,Valtra, Fendt, Challenger<br />

3900 dealers in the world – one <strong>of</strong> the largest distribution networks in the industry.<br />

AGCO equipment is sold and serviced by local, independent dealers who back each<br />

product they sell with experienced, factory-trained staff and service personnel<br />

Massey Ferguson sales points : 219<br />

Valtra : 170<br />

Fendt : 153<br />

LANDINI – ARGO http://www.landini.it<br />

1 plant in France<br />

200 dealers in France for McCORMICK and LANDINI, 20 own sales persons to sell to<br />

dealers. ARGO developed an online sales tools for its resellers.<br />

McCormick : 190 sales points<br />

Landini : 155 sales points<br />

AMAZONE http://www.amazone.fr<br />

2 subsidiaries in France that import the products and maintains the dealers networks<br />

CNH http://www.caseih.com<br />

4.900 dealers in the world and one importer in France : France SA–Division Case IH<br />

Case NH developed help line 24 / 7 using solutions to known problems in several<br />

languages.<br />

case IH : 180 sales points<br />

KUBOTA http://www.kubota.fr<br />

Kubota Europe, Kubota Corporation’s subsidiary in Paris area.<br />

40 000 m², and 7 000 m² for spare parts. 650 dealers in Europe.<br />

KNEVERLAND http://www.kvernelandgroup.com<br />

Spare parts center in Metz 15 000 m² warehouse, 60 000 references in stock.


SAME DEUTZ http://www.samedeutz-fahr.com<br />

Carries a Tour de France for famers invited at 50 SDF dealers. Road show <strong>from</strong> March to<br />

November 2010. In 2009 it attracted more than 10 000 visitors. Interview <strong>of</strong> Mr.<br />

Schietequatte, MD <strong>of</strong> Same Deutz-Fahr France: “Our real fight is to cover empty zones<br />

finding new dealers. We can still grow. We help our dealers by organizing 50 PRO<br />

meeting this year.”<br />

Same sales points : 105<br />

Deutz sales points : 118


8. Imports <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong> in France<br />

In first half <strong>of</strong> 2011 imports represents 1.80 billion euros and imports supply 77 % <strong>of</strong> the<br />

<strong>French</strong> <strong>market</strong>.<br />

Imports dropped by 13% to 2.89 billion euros in 2009 over 2008, closely in line with<br />

<strong>market</strong> trends.<br />

Germany remains France’s leading supplier, around one third <strong>of</strong> <strong>French</strong> imports.<br />

TABLE 8 : FRENCH IMPORTS PER COUNTRY, IN MILLION EUROS 45<br />

2009 % <strong>of</strong><br />

total<br />

2010 % <strong>of</strong><br />

total<br />

06/2010-<br />

06/2011<br />

% <strong>of</strong><br />

total<br />

Germany 1 055 966 34.2 870 826 31.4 1 066 518 34.4<br />

Italy 494 058 26.0 439 137 15.8 473 863 15.3<br />

USA 222 627 7.2 216 110 7.8 225 243 7.4<br />

Belgium 212 205 6.9 171 673 6.2 184 744 6.0<br />

Austria 182 109 5.9 158 029 5.7 181 612 5.9<br />

Netherlands 140 512 4.6 149 508 5.4 161 996 5.2<br />

UK 153 383 5.0 144 618 5.2 108 301 3.5<br />

Japan 110 893 3.6 112 690 4.1 101 478 3.3<br />

Spain 61 527 3.0 62 944 2.3 79 749 2.6<br />

China 39 672 1.3 62 892 2.3 66 649 2.2<br />

Sweden 61 156 2.0 52 735 1.9 61 727 2.0<br />

Denmark 46 706 1.5 40 258 1.5 57 927 1.9<br />

Hungary 41 688 1.4 31 324 1.1 42 048 1.4<br />

Poland 27 423 0.9 31 356 1.1 35 438 1.1<br />

Finland 12 365 0.4 17 366 0.6 18 464 0.6<br />

Others 220 712 7.2 214 362 7.7 231 699 7.5<br />

Total 3 083 999 2 776 098 3 096 456<br />

45 http://www.sedima.fr


FIGURE 22 : FRENCH IMPORTS PER MACHINE GROUPS<br />

<strong>The</strong>re is little change over the years on categories <strong>of</strong> products being imported :<br />

Tractors are the first imports category with about 25%<br />

Lawn mowers with about 20%<br />

Spare parts with about 16%<br />

Harvesting and haymaking equipment with about 16%<br />

Soil tillage, sowing and plantation equipment with about 7%<br />

First Semester<br />

Second Semester


TABLE 9 : FRENCH IMPORTS PER MATERIAL, VALUE IN THOUSANDS EUROS<br />

2009 2010 07/ 2010- 07/2011<br />

A – New <strong>agricultural</strong> tractors 998 849 832 997 908 942<br />

B – Diverse motorized engines 69 235 73 807 74 882<br />

C – Soil tillage 108 164 97 758 116 699<br />

D – Sowing and plantation 125 020 114 385 130 638<br />

E – Lawn mower 407 002 399 512 453 089<br />

F – Haymaking 86 212 70 674 83 521<br />

G - harvesting 450 790 322 620 379 336<br />

H – Protection and irrigation 105 350 102 766 109 819<br />

I – Wine harvesters 9 040 10 689 11 853<br />

J – Milking material 47 985 36 447 42 291<br />

K – Breeding material 81 838 94 141 103 882<br />

L – Diverse <strong>agricultural</strong> machines 66 256 76 204 81 507<br />

M – transport and Handling 49 103 84 351 86 766<br />

N – Parts and accessories 479 155 459 747 513 231<br />

Total 3 083 999 2 776 098 3 096 456<br />

Source AXEMA


9. National production <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong><br />

Over the last 10 years there has been a decrease in number <strong>of</strong> manufacturers (-25%)<br />

related to difficulties in the <strong>agricultural</strong> sector. Most <strong>of</strong> the companies are <strong>of</strong> small size<br />

(50% <strong>of</strong> the companies employ less than 10 persons).<br />

12 companies employ about 30% <strong>of</strong> the workforce and have +200 employees.<br />

Large international groups dominate the manufacturing sector in France : Deere &<br />

Company, AGCO are leading the production sector. Some <strong>French</strong> companies developed a<br />

segment position such as EXEL in spreading activities.<br />

YEAR 2010<br />

KEY FACTS 2010<br />

450 manufacturers<br />

25 000 employees<br />

<strong>French</strong> production for <strong>French</strong> <strong>market</strong> €1bn<br />

<strong>French</strong> production exported €2.1bn<br />

A dip in the demand on the domestic <strong>market</strong> in 2009, combined with a fall in exports,<br />

led to a sharp decline in production by <strong>French</strong> <strong>agricultural</strong> equipment manufacturers.<br />

Tractor production, which represents 36% <strong>of</strong> total production, dropped 23% to €1.10<br />

billion. <strong>The</strong> production <strong>of</strong> <strong>machinery</strong> and other equipment, which represents 64% <strong>of</strong><br />

total production, dropped 24% to €1.95 billion.<br />

<strong>The</strong> <strong>French</strong> manufacturing sector’s total domestic sales dropped 20.6% to €1.04 billion,<br />

while exports declined at a faster rate (down 25.2%) 46 .<br />

46 http://www.axema.fr


FIGURE 23 : FRENCH PRODUCTION OF AGRICULTURAL MACHINERY 47<br />

VOLUME ON THE FIRST HALF OF 2011<br />

<strong>French</strong> production <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong> amounted to €1.96 billion in the first half<br />

<strong>of</strong> 2011, up 40.4% <strong>from</strong> the first half <strong>of</strong> 2010 (€1.39bn). Assessed at €610 million, the<br />

manufacture <strong>of</strong> tractors recorded a higher up, 46%, and remains the most important<br />

sector. Billings inside France progressed on the first half <strong>of</strong> 2011 <strong>of</strong> 35.2% after two<br />

semesters <strong>of</strong> strong declines -41,2% in the first half <strong>of</strong> 2010 and-21,2% in the second half<br />

<strong>of</strong> 2010.<br />

All devices manufactured in France progress over one year, except for lawnmowers (-<br />

7.1%), equipment for the preparation <strong>of</strong> food for animals (3.2%) and manure spreaders<br />

(0.6%). Disc harrows toothed record the highest growth (85.6%) <strong>from</strong> very low levels<br />

that they had met during the crisis. <strong>The</strong>n came the mowers and balers (+ 57.4%),<br />

<strong>agricultural</strong> tractors (+ 46.2%) and the silage cutters (42.7%).<br />

47 http://www.axema.fr


10. Business culture in <strong>agricultural</strong> <strong>machinery</strong><br />

PRESENTATION OF PRODUCTS<br />

Because <strong>French</strong> users as well as purchasers in sales companies have experience <strong>of</strong> a<br />

wide range <strong>of</strong> both quality and cheap products in the <strong>agricultural</strong> <strong>machinery</strong>, they will<br />

tend to think they have all they need and could resist being introduced to new products.<br />

<strong>The</strong>refore a careful comparison both in terms <strong>of</strong> price, technical features and end-users<br />

advantages has be carried in order to be able to argument and demonstrate for<br />

competitive advantages.<br />

Although the <strong>French</strong> do not like to be “sold” and do not favor aggressive negotiations,<br />

purchasers in sales companies will want to be exposed what the manufacturer considers<br />

to be better at, as well as the innovative features in comparison with products already<br />

on the <strong>market</strong>.<br />

<strong>The</strong> way to sell should be technical and fact-oriented : usually <strong>French</strong> companies ask for<br />

more information than Finnish companies are prepared to provide at first. <strong>French</strong><br />

companies will ask for facts, statistics, technical data’s and report … anything that will<br />

later help them make their mind, after the meeting with the sales persons.<br />

CONTENT OF COLLABORATION / SALES<br />

Most <strong>French</strong> companies mention the lack <strong>of</strong> support in the <strong>market</strong>ing effort <strong>from</strong> the<br />

manufacturers and they may be encouraged when the a manufacturer <strong>of</strong>fers technical,<br />

financial and <strong>market</strong>ing support for example :<br />

quality image database<br />

quality <strong>market</strong>ing documents in <strong>French</strong><br />

demos available<br />

financial participation in fairs and <strong>market</strong>ing events<br />

budget for communication<br />

<strong>The</strong> freight and cost issues are important and play an important part in the sales<br />

process. Even though it could be difficult to provide definite price for transport, it is<br />

important to be prepared to communicate a bracket <strong>of</strong> prices.<br />

Prices and quantities reduction information should be communicated, although <strong>French</strong><br />

companies understand there is always room for negotiation.<br />

<strong>The</strong> after sales and stock issues usually are <strong>of</strong> interest for the <strong>French</strong> companies as they<br />

will be in charge <strong>of</strong> it and they will expect the Finnish manufacturers to provide clear<br />

answer on :


creation and financing <strong>of</strong> a stock in France<br />

assistance to after-sales : time to answer questions, to send spare parts, online<br />

access to stock …)<br />

Hence lots <strong>of</strong> attention needs to be paid to the sales proposal that should be<br />

detailed<br />

technical and fact oriented<br />

supported by surveys, testimonies, statistics<br />

THE RELATIONSHIP<br />

<strong>French</strong> communication style will differ <strong>from</strong> different regions and company’s culture. It<br />

will be unlikely that your <strong>French</strong> contact will speak English – although that should not be<br />

ruled out, therefore all printed material need to be in <strong>French</strong> language. <strong>The</strong> <strong>French</strong><br />

person will feel reassured about understanding correctly what he/she reads and will also<br />

have the feeling that you are serious about entering the <strong>market</strong>.<br />

Some <strong>French</strong> are not at ease when they have to speak a foreign language and may feel<br />

embarrassed. <strong>The</strong>refore written communication should be emphasized.<br />

<strong>The</strong>re is a great love for debate. Eye contact is frequent and intense, so much so that<br />

many people may be intimidated.<br />

KEY NEGOTIATING POINTERS<br />

Avoid a hard sell. <strong>French</strong> are rather conservative and formal during business.<br />

After a brief exchange <strong>of</strong> pleasantries, get to the point <strong>of</strong> your discussion. Let your host<br />

take the lead. <strong>The</strong> personal relationship is normally solidified after the business<br />

relationship has been formed.<br />

New ideas should be researched and conceptually strong. <strong>The</strong> <strong>French</strong> apply reasons and<br />

logic to negotiations.<br />

Be aware that tough the <strong>French</strong> are <strong>of</strong>ten reserved, the team may be argumentative,<br />

disagreeing for the sake <strong>of</strong> discussion. Expect them to state their opinion openly.<br />

Allow plenty <strong>of</strong> time. Decisions are made after lengthy explanations. Yet there is a need<br />

to be in contact on a regular basis. You may not want to simply ask for a decision and<br />

leave for the person to get back. You need to show interest in developing the<br />

relationship and you can do so by feeding the persons with news and development<br />

information.


SOME FRENCH WORDS AND QUESTIONS<br />

No (meaning : convince me!)<br />

It’s not logical (meaning: please develop your argument)<br />

Let’s meet again (meaning I do not like to be rushed)<br />

Not bad (meaning: it’s good)<br />

I am not sure my boss is going to like it (meaning: I need time, I’m not convinced)<br />

What is your strategy ? (what do you expect <strong>of</strong> me ? what are your plans?)<br />

WHAT PEOPLE WILL EXPECT FROM YOU DURING A MEETING<br />

formality and confidence : not overfriendly, not too relaxed, you need to be<br />

proud <strong>of</strong> your products and it needs to show<br />

innovative product : state the obvious, explain your arguments, give something<br />

to remember<br />

logical presentation : why you think your product is worth <strong>of</strong> buying, why the<br />

product was developed, what it aimed to achieve and how you plan to do it<br />

reference to France : show that the products is adapted to the <strong>market</strong> situation<br />

(regulation and competition) and needs and demands <strong>of</strong> farmers<br />

fact and pro<strong>of</strong>s : every arguments need to be backed by facts and data<br />

knowledge <strong>of</strong> your <strong>market</strong>, your product, your competitors<br />

style appearance and personal touch : people will appreciate that your image<br />

respect and reflect the quality <strong>of</strong> your company, they are sensitive to Finnish<br />

humor and to your interest in the <strong>French</strong> <strong>market</strong><br />

WHAT WILL ASTONISH YOU DURING A MEETING ?<br />

small talk – but not always<br />

small personal space<br />

topics <strong>of</strong> conversation could be diverse : products, farming in Finland, trip, France<br />

tolerance to noise<br />

capacity to deal with many things during the meeting : interruption, telephone,<br />

mails …


11. Remarks and recommendations<br />

KEY FEATURES TO TAKE INTO ACCOUNT<br />

- fragmented <strong>market</strong> with 2 000 potential target companies<br />

- strong integration <strong>of</strong> manufacturers in the distribution with dealership concept<br />

- strong presence <strong>of</strong> foreign manufacturers<br />

Before deciding <strong>of</strong> a strategy to enter the <strong>French</strong> <strong>market</strong> it is essential that the Finnish<br />

manufacturers carry an in-depth approach to define their competitive advantages and<br />

the features <strong>of</strong> their selling proposition. <strong>The</strong> analysis will depend on the type <strong>of</strong> products<br />

and on each company’s characteristics, therefore it has to carried separately <strong>from</strong> the<br />

current research.<br />

Nevertheless, for all manufacturers, the following issues will have to be carefully<br />

prepared:<br />

innovation in comparison with current products available on the <strong>market</strong><br />

relevance <strong>of</strong> the features to the <strong>French</strong> <strong>market</strong> and the type <strong>of</strong> production<br />

competitiveness on the prices level and arguments in relation with competition<br />

after sales support and spare-parts organization<br />

<strong>market</strong>ing support : budget, tools, personnel<br />

sales support : tools, margins, access to intranet<br />

communication : hours, language<br />

product warranty<br />

delivery time<br />

Even if there is room for negotiation on all points mentioned above, it is important that<br />

the manufacturer be prepared to answer questions and to have identified its limits.<br />

In terms <strong>of</strong> information to be provided it is important to state the obvious, clearly<br />

explain and describe the products advantages in comparison with existing products. <strong>The</strong><br />

amount <strong>of</strong> information that <strong>French</strong> companies require usually surprise foreign<br />

companies who think they already provided enough – or a lot. For example CUMA<br />

publishes reports about costs <strong>of</strong> utilization per ha <strong>of</strong> some products and there could be<br />

questions on that issues.<br />

<strong>The</strong> <strong>French</strong> usually mistake the lack <strong>of</strong> detailed information for not being serious and as<br />

a lack <strong>of</strong> interest and support <strong>from</strong> the manufacturer. <strong>The</strong>re is much sales work to be<br />

done towards a future sales partners as the <strong>French</strong> would expect the manufacturer to<br />

convince them.


<strong>The</strong> <strong>French</strong> dealers will expect well-developed and fact-proven sales arguments on the<br />

innovation and quality issues. <strong>The</strong>y will also expect knowledge about the <strong>French</strong> <strong>market</strong><br />

in terms <strong>of</strong> current products being used and how new products will positively differ.<br />

Manufacturers <strong>of</strong> <strong>machinery</strong> dedicated to one specific production should first identify<br />

the region(s) <strong>of</strong> interest in terms <strong>of</strong> farming orientation.<br />

GIVEN THE MARKET ORGANIZATION, THE CONSULTANT SUGGESTS SEVERAL OPTIONS :<br />

a) For products usually sold under the dealership concept (tractors, harvesting<br />

machines.<br />

Issue<br />

Most dealers already have a contract – choices <strong>of</strong> partners will be limited or<br />

extremely strong arguments and benefits will have to be provided to convince<br />

them to change<br />

Suggestions<br />

develop product attractiveness to <strong>French</strong> farmers and distributors<br />

create a subsidiary to establish own stock and sales structure in France<br />

b) For products sold as complementary products to dealer’s sales <strong>of</strong> tractors or<br />

harvesting machine.<br />

Issue<br />

How to best approach existing dealers in order to create a reseller network ?<br />

Suggestions<br />

develop product attractiveness to <strong>French</strong> farmers and distributors<br />

create a subsidiary and establish own stock and sales structure ensuring<br />

better control on sales actions<br />

possibly recruit one dealer to act as stock and sales manager in order to<br />

cover the counties <strong>of</strong> interest<br />

develop a relationship with central buying <strong>of</strong>fices and approach dealers<br />

with the assistance <strong>of</strong> central buying <strong>of</strong>fice, yet central buying <strong>of</strong>fice do<br />

not sell on behalf <strong>of</strong> manufacturers so sales within the central buying<br />

<strong>of</strong>fices members needs to be attended<br />

recruit agent(s) to assist in approaching dealers and central buying <strong>of</strong>fice<br />

hire a <strong>French</strong> sales manager<br />

Entering the existing network <strong>of</strong> dealers seems to be the most feasible option. In order<br />

to do several scenarii can be planned. <strong>The</strong> choice will be influenced by current resources<br />

and investments. <strong>The</strong> consultant would rule out direct sales <strong>from</strong> Finland, except if the


company has access to fluent <strong>French</strong> speaking human resources fully available for an<br />

extended period to develop actions based on the following suggestions:<br />

SCENARIO 1 : QUESTIONS ABOUT THE POTENTIAL MARKET (NOT SURE ABOUT THE PRODUCT STRENGTHS<br />

in relation with <strong>market</strong> conditions)<br />

Aim : decide to test the <strong>market</strong> in real life with minimal investments<br />

1) further <strong>market</strong> information needed to clearly identify potential<br />

2) a test approach to selected local (county or regional) dealers to check on currents<br />

products, needs and areas <strong>of</strong> interest<br />

3) approach Central buying <strong>of</strong>fices to check on approval procedures and areas <strong>of</strong><br />

interest<br />

4) inquiry about agents role, sales power and organization<br />

SCENARIO 2 : CERTAINTIES ABOUT POTENTIAL MARKET (SURE ABOUT THE PRODUCT STRENGTHS IN<br />

relation with <strong>market</strong> conditions)<br />

Aim : start organizing sales network<br />

Following steps described in scenario 1 and additional ones<br />

1) organize sales tools needed to support interest in dealers, central buying <strong>of</strong>fices<br />

2) recruit a sales manager and/or agents<br />

3) Plan to exhibit at a fair with or without a sales partner<br />

4) plan other recruiting events such as : demo tours, invitations to Finland,<br />

<strong>market</strong>ing actions in <strong>French</strong> magazines, have articles written about the products


12. Annexes<br />

12.1. Annex : SEDIMA Questions asked to evaluate manufacturers<br />

Questions <strong>of</strong> satisfaction survey asked to distributors about their tractors<br />

manufacturers. <strong>The</strong> answers are ranked on a 20 points scale.<br />

COMPUTER SERVICES<br />

(a) willingness <strong>of</strong> the manufacturer to facilitate the communication with your system<br />

(b) cost <strong>of</strong> implementation and use <strong>of</strong> computer communication<br />

(c) reliability and readability <strong>of</strong> the tractors rates and parts on the Internet<br />

(d) ease <strong>of</strong> your employees to access the information in your manufacturer<br />

(e) competence <strong>of</strong> your computer contact in your manufacturer<br />

ADVERTISING AND MEDIA PRODUCTS<br />

(a) advertising budget <strong>of</strong> your manufacturer<br />

(b) effectiveness <strong>of</strong> the advertisements <strong>of</strong> your manufacturer<br />

(c) level <strong>of</strong> participation <strong>of</strong> your constructor to your advertising<br />

(d) Adaptation to your needs <strong>of</strong> service Internet-opportunity to your manufacturer<br />

(e) quality <strong>of</strong> CDs and other media sales aid<br />

PROCEDURES AND TIME LIMITS FOR PAYMENT<br />

(a) reliability <strong>of</strong> the monitoring <strong>of</strong> commands<br />

(b) simplicity <strong>of</strong> the procedures <strong>of</strong> applications for guarantees<br />

(c) timeliness <strong>of</strong> reimbursement by your supplier <strong>of</strong> money that he owes you<br />

(d) payment time <strong>of</strong> tractors<br />

(e) payment time <strong>of</strong> spare parts<br />

TRAINING<br />

(a) price/quality <strong>of</strong> the courses organized by your manufacturer<br />

RELATIONSHIP BUILDER-DEALER<br />

(a) quality <strong>of</strong> the relationships with your manufacturer<br />

(b) respect <strong>of</strong> manufacturer for your autonomy as head-manager <strong>of</strong> your company<br />

(c) opportunity to negotiate sales goals<br />

(d) your degree <strong>of</strong> confidence in the leaders <strong>of</strong> your manufacturer<br />

HELP IN THE PROFITABILITY<br />

Contribution level <strong>of</strong> your manufacturer to the pr<strong>of</strong>itability <strong>of</strong> your business<br />

IMPROVEMENTS?<br />

How do you consider the will <strong>of</strong> the manufacturer to improve its weak points?<br />

How would you rank the actions the concrete actions implemented by your<br />

manufacturer ?


12.2. Annex SIMA INNOVATION AWARDS 48<br />

1) Mass development <strong>of</strong> multiplexed communication systems, ICT and more<br />

particularly BUS CAN applications<br />

AGROTRONIX: Field sprayer microcontroller communicating via isobus "SEMIX" is a<br />

modular, element by element field sprayer control system. Any anomaly in spraying is<br />

immediately flagged, allowing the user to react instantly. This also simplifies system<br />

maintenance.<br />

ISAGRI: Multi-site onboard computer . <strong>The</strong> device can be installed onboard a tractor and<br />

in the milking parlour to allow farmers to closely supervise their business. It makes<br />

information accessible at any point and in any location, particularly out in the fields to<br />

supervise isobus equipment, integrate plot management and guidance solutions, or<br />

interpret internet data on weather forecasts or the <strong>market</strong>s.<br />

KVERNELAND Group France: <strong>The</strong> dual-screen isobus console can be used to supervise<br />

two different machines while effectively addressing the specific ergonomic<br />

characteristics <strong>of</strong> the operator's tasks (front and back tool, for example). In addition,<br />

features have been developed for accessing web pages on the internet via Bluetooth<br />

connection, viewing images <strong>from</strong> tool monitoring cameras, verifying GPS data and maps<br />

for manure spreading, and plot traceability.<br />

CASE IH: To synchronize two vehicles, an automated harvester that drives alongside a<br />

tractor and trailer, the speed and direction <strong>of</strong> the second team can now be supervised -<br />

for the first time with both speed and direction - by the "master machine." <strong>The</strong> same<br />

principle <strong>of</strong> having one tool supervise another has resulted in other remarkable<br />

accomplishments as well.<br />

JOHN DEERE: Recognized for its automation <strong>of</strong> hay and straw harvesting, which is one <strong>of</strong><br />

the three proposed applications, by having the tractor guided by the attached John<br />

Deere pick-up hay baler, the "Pottinger" intelligent loader wagon or the "Grimme"<br />

potato harvester.<br />

For the first time, the concept that the tractor must prevail over the commands <strong>of</strong><br />

hitched tools has been turned on its head! Instead, communication goes both ways, and<br />

for the first time it is the tool - the pick-up baler in this example - that decides to stop<br />

48 http://www.planet-agri.com/en/page/innovation-major-trends-2011


the tractor, determines its baling, tying and bale ejection method and then<br />

automatically orders the tractor to start up again.<br />

2- Technical developments in decision-making tools (versatile hardware,<br />

interconnectable s<strong>of</strong>tware) that will lead to new use practices<br />

AEB Méthafrance: S<strong>of</strong>tware to monitor a methanation facility . <strong>The</strong> "Methapro"<br />

s<strong>of</strong>tware can be used to track the flows <strong>of</strong> methanation facilities, <strong>from</strong> receiving the<br />

substrates through to manure spreading. It analyses energy production in terms <strong>of</strong><br />

biogas and electrical production. It can also be used to schedule equipment<br />

maintenance.<br />

AGRITEL: Decision-making s<strong>of</strong>tware to track <strong>market</strong>ing. In a context where volatility in<br />

<strong>agricultural</strong> raw materials is making <strong>market</strong>ing more complex, this s<strong>of</strong>tware meets the<br />

new needs <strong>of</strong> producers by <strong>of</strong>fering decision-making tools for <strong>market</strong>ing management.<br />

ARVALIS – Institut du Végétal: Online tool to evaluate the energy costs <strong>of</strong> operations and<br />

greenhouse gas. To illustrate agriculture's contribution to energy production, ARVALIS-<br />

Institut du végétal, CETIOM and ITB have created EGES®, a free online tool at<br />

www.eges.arvalisinstitutduvegetal.fr. EGES® allows users to input their actual operating<br />

conditions and determine the energy costs and greenhouse gas emissions for each item<br />

on their technical production path. It also evaluates the impact <strong>of</strong> changing practices.<br />

CLAAS France: Game detector A surveillance camera using infrared technology is<br />

installed in front <strong>of</strong> the harvesters to detect the presence <strong>of</strong> live animals.<br />

SAME DEUTZ FAHR: Integrated management system for precision viticulture All <strong>of</strong> the<br />

components <strong>of</strong> the Isobus system (the virtual terminal and task controller in particular)<br />

were installed onboard a vineyard tractor to modulate the actions <strong>of</strong> tools. For example,<br />

the task controller will supervise the actions <strong>of</strong> the leaf-stripping tool based on the<br />

information saved on the card.<br />

TERRE NET MEDIA / Isagri Group: Decision-making s<strong>of</strong>tware to control animal fodder<br />

expenses. This decision-making tool is designed for effective use <strong>of</strong> animal fodder,<br />

particularly the use <strong>of</strong> grass through grazing, combined with reasoned use <strong>of</strong><br />

supplementary sources. Controlling feed costs is a constant concern that this tool<br />

addresses.<br />

NEW HOLLAND: Traceability <strong>of</strong> hay bales (using RFID tags) Traceability <strong>of</strong> <strong>agricultural</strong><br />

production has become essential in checking best practices, which guarantee production<br />

quality. All <strong>agricultural</strong> products without exception are affected, whether they are<br />

intended for conversion in the food processing industries or for <strong>market</strong>ing in short<br />

distribution chains for uses such as animal feed. GPS and RFID tag technologies are now<br />

available to identify a bale <strong>of</strong> hay.


TECNOMA: Identifying weeds to adjust spraying <strong>The</strong> wait is over for imaging that can<br />

identify plants and distinguish between "weeds" and cultivated species. <strong>The</strong> CCD camera<br />

technology (charge transfer, like in cassette recorders) is widely available, and<br />

researchers have long suggested identifying weeds and treating them locally, or even<br />

one by one, in row planting. At SIMA in February, this application will be presented and<br />

<strong>market</strong>ed for the first time.<br />

3. Economic management <strong>of</strong> machines and input providing a very concrete<br />

solution to best practices in sustainable development<br />

CBM: Automatic hitching mechanism This ventral hitch can be used to hitch a towed<br />

vehicle without human intervention. An uncoupling pin releases the hitch axle just as the<br />

ring <strong>from</strong> the towed vehicle makes contact with it. <strong>The</strong> axle drops automatically and<br />

automatically hitches the tractor to the towed vehicle.<br />

EBEL SPINNEKOP: Versatile palletizer This palletizer is versatile and adaptable to meet<br />

the diversification and development requirements <strong>of</strong> farms or their packaging centres. It<br />

is suited to changes <strong>of</strong> pace and new types <strong>of</strong> packaging.<br />

JCB: New type <strong>of</strong> "anti-pollution" diesel engine This "clean" engine does not require any<br />

exhaust treatment, and it also reduces operating costs. Designed without a particle filter<br />

or urea injection to meet anti-pollution standards, it draws on many advances in<br />

understanding engine construction.<br />

LAFORGE: Secure folding command for front lift This command improves the safety and<br />

ease <strong>of</strong> use <strong>of</strong> a front lift while preserving its working capacity by enabling the lift to be<br />

moved <strong>from</strong> working position to stowed through a secure, voluntary switch. No other<br />

manipulation is required to return to working position, a fully automated process. <strong>The</strong><br />

device keeps the lift's versatility and respects international standards.<br />

MONROC: Automated tag axle management This electronically guided axle system<br />

reacts to the angle measured for each pivot on both the towing and towed vehicle. It<br />

provides users with major improvements in terms <strong>of</strong> operations, versatility, safety and<br />

reliability.<br />

RABAUD: Versatile wood chipper To <strong>of</strong>fer more options when choosing a type <strong>of</strong> wood<br />

chipper based on the cutting system (knives, flails or combination <strong>of</strong> knives + flails), this<br />

wood chipper has a "3-in-1" rotor capable <strong>of</strong> accepting all types <strong>of</strong> solutions.


ROPA: Loading arm to avoid earth moving <strong>The</strong> counterweight is placed at the opposite<br />

end <strong>of</strong> the automated loading arm for immediate loading at the end <strong>of</strong> the field,<br />

avoiding the need to transport earth and having it scattered over nearby roads.<br />

SIMON: Automatic leek harvester with circular box filling This automatic harvester sets<br />

itself apart by storing the leeks in circular boxes. In addition to the harvest speed, it also<br />

improves the qualitative aspects <strong>of</strong> the leeks and automates the process <strong>of</strong> supplying the<br />

peelers.<br />

FRANQUET: This supervision and control mechanism keeps the tool parallel to the<br />

ground using angle sensors and a calculator to correct the tool's compensation. It <strong>of</strong>fers<br />

the option <strong>of</strong> modifying the settings <strong>from</strong> the driving station depending on how even the<br />

ground is. Working at a constant depth ensures the best possible conditions for sowing<br />

and emergence.<br />

CLAAS with suspended track by replacing traditional tires, it can travel at up to 40 kph on<br />

roads (regulations limit speed to 25 kph in France). Its compatible road clearance<br />

improves the lift <strong>of</strong> machines and avoids soil compacting, which allows for the use <strong>of</strong><br />

simplified technical production paths.<br />

CASE IH: Variable transmission power take<strong>of</strong>f . A common reaction to this ecoinnovation<br />

is, "Why didn't we think <strong>of</strong> that earlier?" With load-bearing and constant<br />

variation for power take<strong>of</strong>f systems, the tool's operations can be adjusted to fit current<br />

conditions so as to use the lowest possible engine speed, which saves energy while<br />

providing a secure link between the tractor and the tool with repeated load-bearing<br />

take<strong>of</strong>fs or emergency stops.<br />

5. For managing soil and inputs<br />

CAFFINI: Traceability system for phytosanitary treatments This traceability system for<br />

phytosanitary treatments can record and georeference (using RFID tags on cans <strong>of</strong><br />

phytosanitary treatment products) in real time the parameters <strong>of</strong> the treatment<br />

performed and any weather conditions.<br />

DE SANGOSSE: Electrical centrifuge spreader for anti-slug granules With its innovative<br />

settings and DPA system (output proportional to forward speed), this spreader for antislug<br />

products improves longitudinal regularity. <strong>The</strong> aerodynamic mechanism avoids the<br />

waste <strong>of</strong> electrical power. Its electronic control unit includes all <strong>of</strong> the mechanical and<br />

ballistic parameters <strong>from</strong> the Cemagref's CEMIB test bank.<br />

GODE SAS: Electrical grease pump This electrical grease pump allows users to deliver the<br />

precise quantity needed for smooth operations depending on the bearings to be<br />

greased.


AGROTRONIX: Management system for spreading organic matter <strong>The</strong> solution consists<br />

<strong>of</strong> guiding a spreader DPAE (output proportional to forward speed) system that<br />

regulates the speed <strong>of</strong> the moving belt by taking into account the high section <strong>of</strong> the<br />

gate, which in turn equalizes the organic matter by measuring the pressure on the gate.<br />

Integrating weight into the loading process makes it possible to accurately manage the<br />

quantity spread by having an estimated density immediately upon loading. With GPS<br />

localization, the spreading plan and the loading zone are automatically remembered and<br />

can be transferred to a PC application.<br />

SULKY BUREL: Fertilizer distributor that optimizes spreading width in sections This<br />

technology, developed for a centrifuge spreader, suggests the same capacity for<br />

adjusting working width as a constant-width ramp. Breaking down the spreading layer<br />

into sections at each point <strong>of</strong> the work surface makes it possible to more effectively<br />

adjust and distribute the spread quantities..<br />

IRRIFRANCE: Electrical sprinkler for pivots and ramps. <strong>The</strong> rotating function provided by<br />

the force <strong>of</strong> the water leads to substantial load losses, and it is separated <strong>from</strong> the<br />

function <strong>of</strong> delivering the sprayed water, whose original pressure determines the reach<br />

<strong>of</strong> the spray. Optimal watering is ensured at the end <strong>of</strong> the pivot and ramps by reducing<br />

instant watering, which avoids the risk <strong>of</strong> damaging and choking the soil through settling<br />

or run<strong>of</strong>f. <strong>The</strong> reduced pressure saves water and energy (lower cost/hectare) for more<br />

efficient irrigation, fertigation and application <strong>of</strong> phytosanitary products, while also<br />

limiting risks to the environment (run<strong>of</strong>f into ground water or rivers) and the danger <strong>of</strong><br />

pivots getting stuck in the mud.


12.3. Annex : <strong>French</strong> manufacturers <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong> <strong>from</strong> INSEE<br />

Product<br />

Number<br />

companies<br />

2010<br />

Invoices 2010<br />

Quantities<br />

2010 per<br />

unit (pieces)<br />

Nb<br />

companies<br />

2009<br />

Invoices 2009<br />

Qties 2009<br />

/pieces<br />

motorized cultivator secret s s 6 4 094 6 978<br />

Tractors, agriculture + forestry, new, power sup. 37 kW secret s s ns ns ns<br />

Tractors, agriculture + forestry, new, power > 37 kW et 59 kW et 75 kW et 90 kW 6 525 439 9 030 6 655 132 11 279<br />

Ploughs for tractors 14 57 481 5 413 12 68 346 6 237<br />

Cultivators 12 8 644 8 457 11 6 424 8 048<br />

Harrow (pulveriser) 11 31 846 2 426 10 42 228 3 371<br />

Harrow for motorized cultivator non significant ns ns ns<br />

Classic harrow for tractors 15 49 669 4 624 14 52 093 6 035<br />

Hoeing and similar 7 9 786 2 322 7 10 765 4 416<br />

Seed drill with central command 5 43 656 1 995 4 35 225 s<br />

Other seed drills 8 34 651 2 333 6 44 870 3 616<br />

Planters secret s s s s s<br />

Fertilizers spreaders or other fertilizer machines 6 16 530 2 748 5 14 944 3 008<br />

Manure spreader secret s s ns ns<br />

Other engines and machines for soil work 75 106 097 93 840 64 90 565 50 834<br />

motorized mower non significant ns ns ns<br />

Non-carried mower secret s s s s s<br />

Mowers for tractors 8 94 080 12 712 6 98 960 12 358<br />

Haymaking secret s s s s s<br />

Balers secret s s 3 124 847 5 033<br />

Other hay balers ns ns ns ns<br />

potatoes harvesters secret s s s s s<br />

Beet harvesters 3 7 979 46 3 8 074 60<br />

Root harvesters . Outside <strong>of</strong> potatoes and beets 3 12 096 s 3 10 631 278


Combine harvesters secret s s s s s<br />

Machine for harvest other than combine harvester non significant ns ns ns<br />

harvester, loader and chopper for tractor secret s s s s s<br />

self-propelled harvester, loader and chopper secret s s s s s<br />

Vine harvesters 5 80 218 710 5 76 872 663<br />

Corn and other harvester non significant ns ns ns ns 180<br />

Watering and irrigation 8 26 444 17 414 9 37 739 3 298<br />

Pulverizer or spreader , for tractor 10 128 516 5 059 10 147 854 5 810<br />

Self-propelled pulverizer or not to be used with tractors 5 41 319 s 5 45 978 s<br />

Liquid Slurry spreaders 20 64 570 2 703 21 64 468 2 750<br />

Trailers for tractors 42 121 180 8 584 42 148 402 11 868<br />

Forage trailers 14 18 821 10 773 14 20 490 10 207<br />

Other trailers 26 21 859 5 819 23 17 943 5 563


12.4. Manufacturers <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong> in France<br />

ACEMO<br />

ACTISOL<br />

AGCO<br />

AGROMAT<br />

ALBOUY EQUIPEMENT<br />

ALCOMAT<br />

ALTEC<br />

AMAZONE<br />

AMR<br />

AMS<br />

ARNAUD FRERES<br />

ARTEC PULVERISATION<br />

ATELIER 3T<br />

ATELIERS MECANIQUES DE<br />

BEAULIEU<br />

ETS ROUSSET<br />

BAURAL<br />

BCMH TECH<br />

BELAIR<br />

BENNES MAUPU<br />

BERGER MACHINES<br />

AGRICOLES<br />

BERNARD ET BREMOND<br />

BERTHOUD AGRICOLE<br />

BOBARD JEUNE<br />

BOTON MERLET<br />

BRIE CHAMPAGNE<br />

INDUSTRIE<br />

BRIMONT AGRAIRE<br />

BROCHARD CONSTRUCTEUR<br />

BRUNEAU<br />

CALVET (11)<br />

CALVET (12)<br />

CARRE<br />

CARTEL<br />

CARTEL INDUSTRIES<br />

CAUSTIER FRANCE<br />

CCM SIMONNEAU<br />

CHAPRON-LEMENAGER<br />

CK INDUSTRIES<br />

CLAAS TRACTOR<br />

FADOUL GILIBERT<br />

INDUSTRIES<br />

FENET<br />

FERRAND<br />

FMS<br />

FORGEAVIA<br />

FORGES DE NIAUX<br />

FPF SERVICES<br />

FRANCE ARROSAGE<br />

FRANQUET<br />

FREMA<br />

GALVELPOR<br />

GARAGE GREFFIER<br />

GARD<br />

GB INDUSTRIE<br />

GEA WESTFALIASURGE ACIER<br />

GOIZIN<br />

GOURDON FRERES<br />

GREGOIRE<br />

GREGOIRE BESSON<br />

GROUPE METAL INDUSTRIE<br />

GROUPE S21<br />

GUERLETUB<br />

GYRAX<br />

GYRLAND INDUSTRIE<br />

HARDI EVRARD<br />

HARDY ET FILS<br />

HONDA FRANCE<br />

MANUFACTURING<br />

IRRIFRANCE INDUSTRIES<br />

JBM INDUSTRIE<br />

JEANTIL<br />

JOHN DEERE FRANCE<br />

JOSKIN BOURGES<br />

KIROGN<br />

KIRPY<br />

KIVA<br />

KUHN<br />

KUHN BLANCHARD<br />

KUHN HUARD<br />

KUHN MGM<br />

PATEER FRANCE<br />

PBL<br />

PELLENC<br />

PERARD<br />

PILOTE 88<br />

PLAISANCE EQUIPEMENTS<br />

POMMIER<br />

PONGE<br />

PONTHIEUX & FILS<br />

PRECICULTURE<br />

PRODUITS AVICOLES LILLOIS<br />

PROMILL STOLZ<br />

PUBERT HENRI<br />

R&A SOUCHU<br />

RABAUD<br />

RABEWERK FRANCE<br />

RAPIDEX IMMO<br />

RAZOL<br />

REMORQUES CHEVANCE<br />

RICO<br />

ROBUST 2000<br />

ROLLAND<br />

RONOT<br />

ROQUES ET LECOEUR ALES<br />

ROUSSEAU<br />

SATENE<br />

SERMAP<br />

SIAM<br />

SIMATEL<br />

SMAAR<br />

SOFAKER<br />

SOMAREF<br />

SOMMIER<br />

SOUSLIKOFF<br />

STC<br />

STE BINET<br />

STE CONSTRUCTIONS<br />

METALLIQUES<br />

FLORENTAISES<br />

STE COUTAND MA<br />

STE DE CHAUDRONNERIE


CLAVAUD CONSTRUCTEUR<br />

MONTAIGU<br />

CM<br />

COCHET<br />

CORNE ANTOINE<br />

COSNET<br />

DANGREVILLE<br />

DARDENNE BRETONNIERE<br />

DEGUILLAUME<br />

DEHONDT TECHNOLOGIES<br />

DELAPLACE<br />

DEWAELE BRICHE<br />

MANUTENTION<br />

DURO FRANCE<br />

DUSSAU DISTRIBUTION<br />

ESSIEUX BOURGOGNE<br />

ETESIA<br />

ETS BAYARD<br />

ETS BERGUE<br />

ETS BOISSELET<br />

ETS BONNEAU-TRICHET<br />

ETS BUGNOT<br />

ETS COLLARD<br />

ETS DEMAREST<br />

ETS DEVES<br />

ETS JEAN PASSEMARD<br />

ETS LAIR<br />

ETS LOUIS QUIVOGNE<br />

ETS MARCEL LEGRAND<br />

ETS MICHEL PICHON<br />

ETS MORGNIEUX<br />

ETS ORENGE<br />

ETS RENE TOY<br />

EXEL INDUSTRIES<br />

KUHN-AUDUREAU<br />

KVERNELAND GROUP LES<br />

LANDES<br />

GENUSSON<br />

LA BUVETTE<br />

LAGARDE<br />

LAMY LES CONSTRUCTEURS<br />

LAUPRETRE<br />

LE BOULCH<br />

LENORMAND<br />

LINDSAY EUROPE<br />

LUBING INTERNATIONAL<br />

LUCAS G<br />

LVES<br />

MAF AGROBOTIC<br />

MAITRE - FRA<br />

MAJAR<br />

MANCHE TRAITE SYSTEME<br />

MAT ELEVAGE<br />

MATROT EQUIPEMENTS<br />

MAUGUIN CITAGRI<br />

MAURY<br />

MCCORMICK FRANCE<br />

MECANIQUE AGRICOLE<br />

GENERALE<br />

MONROC<br />

MOREAU<br />

NAUDOT<br />

NOBLE<br />

NORD PULVE<br />

NOREMAT<br />

OTECH<br />

OUTILS WOLF<br />

MAYENNAISE<br />

STE DES CHARRUES BONNEL<br />

STE DESVOYS ET FILS<br />

STE DISTEL<br />

STE GOUVY<br />

STE ICKOWICZ<br />

STE JACQUES KREMER<br />

STE JEAN DE BRU<br />

STE LENDRE<br />

STE MASSON<br />

STE OUVRIERE DES<br />

CHARRUES GOIZIN<br />

STE REGERO<br />

STHIK<br />

SUIRE<br />

SULKY BUREL<br />

SYMAVAL PRO<br />

TECHMAGRI<br />

TECNOMA TECHNOLOGIES<br />

THIEVIN ET FILS<br />

TITAN FRANCE<br />

USINES CLAAS FRANCE<br />

VERMANDE<br />

VMN


12.5. Annex : EU regulation <strong>of</strong> state aid in the agriculture sector<br />

http://europa.eu/legislation_summaries/agriculture/general_framework/l24281_fr.htm<br />

<strong>The</strong> European Commission has adopted new guidelines on state aid in the agriculture and<br />

forestry sector for the period 2007-13. <strong>The</strong>y establish a series <strong>of</strong> rules applicable to notified<br />

aid to supplement the exemption Regulation (EC) No 1857/2006.<br />

ACT - Community guidelines for state aid in the agriculture and forestry sector 2007-13<br />

[Official Journal C 319 <strong>of</strong> 27.12.2006].<br />

SUMMARY<br />

<strong>The</strong> guidelines cover state aid in the agriculture and forestry sector for the period 2007-<br />

13 and replace the previous guidelines (2000-06) established for agriculture.<br />

<strong>The</strong>se guidelines apply to state aid granted for the production, processing and <strong>market</strong>ing <strong>of</strong><br />

<strong>agricultural</strong> products. Annex I <strong>of</strong> the Treaty on the Functioning <strong>of</strong> the European Union<br />

(TFEU) provides a detailed list <strong>of</strong> the <strong>agricultural</strong> products included. <strong>The</strong>y do not apply to<br />

the fisheries and aquaculture sector but, unlike the previous ones (2000-06), are applicable<br />

for aid for some forestry activities.<br />

State aid is categorised in the guidelines as follows:<br />

rural development measures;<br />

aid for risk and crisis management;<br />

other types <strong>of</strong> aid;<br />

aid for the forestry sector.<br />

RURAL DEVELOPMENT MEASURES<br />

In line with Regulation (EC) No 1698/2005, which regulates EU support for rural<br />

development (the second pillar <strong>of</strong> the Common Agricultural Policy (CAP)), the guidelines set<br />

out the rules governing state aid for rural development measures or other closely related<br />

measures.<br />

Aid for investment in connection with the processing and <strong>market</strong>ing <strong>of</strong> <strong>agricultural</strong> products<br />

is authorised where it meets the conditions laid down in one <strong>of</strong> the following provisions:<br />

Commission Regulation (EC) No 800/2008;<br />

the Commission guidelines on national regional aid for 2007–13.


12.6. Annex : 3 examples <strong>of</strong> aid provided to CUMA<br />

Please find below 3 examples <strong>of</strong> aids provided to CUMA. <strong>The</strong> first example is a regional aid<br />

example and the other the other two are county aids examples.<br />

1. Example <strong>of</strong> aids for CUMA in Aquitaine region 49 :<br />

Aim : to support solidarity amongst famers and to reduce unction costs. All Aquitaine CUMA<br />

are eligible. Investments are divided into 5 areas :<br />

1) Material that will help diminish work painfulness : mechanized works related to<br />

forage, material specific to fruits, vegetables, wines, seeds and tobacco products as<br />

well as for breeding.<br />

2) Material preserving environment, biomass related and open space maintenance : such<br />

as slurry spreaders, waste management, space management, energy savings …<br />

3) Material related to mountain agriculture : haymaking, milking, slurry spreaders,<br />

4) Other specific material<br />

5) Stock material : construction and renovation <strong>of</strong> buildings to stock products<br />

Maximum amount <strong>of</strong> aids <strong>from</strong> Regional Council <strong>of</strong> Aquitaine, County Council and Europe<br />

varies:<br />

Group1 material : 40 % (50 % for tobacco in targeted poor area)<br />

Group 2 material : 40 % ( 50 % in targeted poor area)<br />

Group 3 material : 50 %<br />

Group 4 material : 20 % - 27 %<br />

Group 5 material : 30 % - first time investment : 60 %<br />

Maximum amount for investment related to environment actions : €60 000 per CUMA for<br />

2007-2013. This can be multiplied by number <strong>of</strong> CUMA members, up to 3.<br />

Maximum amount for material : €200 000<br />

49 http://les-aides.aquitaine.fr/article695.html


2. Example 2 County Council aids <strong>of</strong> Manche 50<br />

County Countil <strong>of</strong> Manche decided to support CUMA within its <strong>agricultural</strong> development<br />

frame. <strong>The</strong> aim is to support purchase <strong>of</strong> material within renewable energy area as well as<br />

in the area <strong>of</strong> improvement <strong>of</strong> environmental conditions <strong>of</strong> agriculture.<br />

Aids will range <strong>from</strong> 5 % - 40 % <strong>of</strong> total costs, depending whether there are other financing<br />

bodies. County Council will budget 400 000 € <strong>of</strong> aids per year for this action.<br />

3. Example 3 : County Council <strong>of</strong> aids Bouches du Rhone 51<br />

CUMA principles and actions are selected in County Council Bouches du Rhone as worth <strong>of</strong><br />

being supported because CUMA help reduce costs since they are shared and they also avoid<br />

over-investments.<br />

Global yearly budget for CUMA support <strong>from</strong> County Council : € 100 000 /year<br />

<strong>The</strong> aid will represent 5-15% <strong>of</strong> the costs <strong>of</strong> the material, combined with other aids, the<br />

amount will not exceed 40%.<br />

MATERIALS<br />

Harvest (except tomatoes, cherries, olive and nuts) 15 %<br />

Material that will contribute to environment protection 15 %<br />

Breeding material and equipment to produce forage that will be consumed by the<br />

farm itself<br />

Materials for integrated industries:<br />

15 %<br />

. cherries<br />

. tomatoes<br />

. olives<br />

10 %<br />

Other material 15 %<br />

Construction <strong>of</strong> warehouses 5 %<br />

INTERVENTION<br />

RATE<br />

In conformity with 2007-1013 European and National plan, used material cannot be<br />

subsidized. Aids apply to any CUMA in county <strong>of</strong> Bouches du Rhone.<br />

50 http://entreprendre.manche.fr/entreprendreDansManche/iso_album/080829_enviro_cuma_2.pdf<br />

51 http://www.cg13.fr/amenagements/agriculture/agriculture.html


13. Sources<br />

ACTA http://www.acta.asso.fr/<br />

AGRA http://www.agrapresse.fr<br />

Agri travaux http://www.agri-travaux.com/<br />

Agriculture Ministry<br />

http://www.agreste.agriculture.gouv.fr/ ;<br />

http://acces.agriculture.gouv.fr/disar/faces/<br />

AXEMA http://www.axema.fr<br />

Banque de France<br />

http://www.banque-france.fr<br />

BCMA http://pardessuslahaie.net<br />

Cemagref http://www.cemagref.fr<br />

DRIRE/ DREAL http://www.developpement-durable.gouv.fr<br />

EDT http://www.e-d-t.org/<br />

France Agricole<br />

http://www.lafranceagricole.fr<br />

<strong>French</strong> legislation codes<br />

http://www.legifrance.gouv.fr<br />

INSEE http://insee.fr; http://www.bdm.insee.fr,<br />

ASF http://www.asf-france.com<br />

CUMA http://www.cuma.fr<br />

MSA http://www.msa.fr/<br />

SEDIMA http://www.sedima.fr<br />

SIMA http://www.planet-agri.com<br />

SIMO http://www.simo-net.fr


14. Glossary and translated terms used in the report<br />

AAA Utilized <strong>agricultural</strong> area<br />

ACTA Network <strong>of</strong> <strong>agricultural</strong> institutes<br />

ASF <strong>French</strong> Association <strong>of</strong> Financial Societies<br />

AXEMA Association <strong>of</strong> manufacturers <strong>of</strong> agro- equipment<br />

BCMA Agricultural development pr<strong>of</strong>essional association<br />

CUMA Cooperative for the use <strong>of</strong> <strong>agricultural</strong> material<br />

DRIRE/ DREAL Office for control <strong>of</strong> vehicles<br />

EARL Limited liability farm<br />

EDT Fédération Entreprises de Travaux Agricoles – Rural Contractors<br />

ESU (UDE) European Size Units (ESU) equivalent to 1.5 hectares <strong>of</strong> wheat<br />

GAEC Farming group status<br />

INSEE <strong>French</strong> national statistics <strong>of</strong>fice<br />

Pr<strong>of</strong>essional farms have an economical size at least equal to 8 (ESU)is 12 ha <strong>of</strong> wheat.<br />

PTAC Authorized loaded weight<br />

SAU Utilized <strong>agricultural</strong> area (UAA)<br />

SEDIMA Association <strong>of</strong> distribution <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong><br />

SIMA fair in agriculture <strong>machinery</strong><br />

SIMO Used <strong>agricultural</strong> <strong>machinery</strong> evaluation <strong>of</strong>fice<br />

UAA Utilized <strong>agricultural</strong> area


EN/FR<br />

cereal cereales<br />

chain conveyor convoyeur à chaine<br />

chisel chisel / cultivateur lourd<br />

combine harvesters moissoneuse-batteuse<br />

conditioning conditionnement<br />

crane grue<br />

cultivator cultivateur<br />

decompactor décompacteur<br />

disk harrow pulveriseur à disque<br />

disk plough charrue a disques<br />

dryer sechoir<br />

fenaison haymaking<br />

fertilizer distributeur engrais<br />

fodder, forage fourrage<br />

forage trailers plateau fourrager<br />

front loader chargeur frontal<br />

front mounted plough charrue portée avant<br />

grain dryer séchoir à grain<br />

grass herbe<br />

harrow herse<br />

harvesting/harvest récolte<br />

hauling traction<br />

hay foin<br />

hoeing machine bineuse<br />

liquid manure tank citerne à lisier<br />

livestock struck bétaillère<br />

loader élévateur<br />

manure spreaders epandeur de fumier<br />

monocoque trailers remorque monocoque<br />

mower faucheuse<br />

planting plantation<br />

plough charrue<br />

plough laboureuse<br />

pneumatic silo loader ensileuse pneumatique<br />

round baler presses a balles rondes<br />

screw conveyor convoyeur à vis<br />

self-propeled forage cutter ensileuses automotrice<br />

silo unloader désileuse<br />

silo silo<br />

soil working travail du sol<br />

sorter/grader trieur<br />

sowing / drill semoir


sprayer pulverisateur<br />

square baler presses a balles carrées<br />

storage stockage<br />

straw distributor pailleuse<br />

stubbles cleaner dechaumeuse<br />

tailer body benne<br />

telescopic loader chargeur télescopique<br />

tractor tracteur<br />

FR/EN<br />

bêcher spad<br />

benne tailer body<br />

bétaillère livestock truck<br />

bineuse hoeing machine<br />

cereales cereal<br />

chargeur frontal front loader<br />

chargeur telescopique telescopic loader<br />

charrue plough<br />

charrue a disques disk plough<br />

charrue portée avant front mounted plough<br />

chisel chisel<br />

citerne à lisier liquid manure tank<br />

conditionnement conditioning<br />

convoyeur à chaine chain conveyor<br />

convoyeur à vis screw conveyor<br />

cultivateur lourd chisel<br />

cultivateur cultivator<br />

dechaumeuse stubbles cleaner<br />

décompacteur decompactor<br />

désileuse silo unloader<br />

distributeur engrais fertilizer<br />

élévateur loader<br />

ensileuse pneumatique pneumatic silo loader<br />

ensileuses automotrice self-propeled forage cutter<br />

epandeur de fumier manure spreaders<br />

faucheuse mower<br />

faucheuse mower<br />

fenaison haymaking<br />

foin hay<br />

fourrage fodder, forage<br />

grue crane<br />

herbe grass<br />

herse harrow


laboureuse plough<br />

moissoneuse-batteuse combine harvesters<br />

pailleuse straw distributor<br />

plantation planting<br />

plateau fourrager forage trailers<br />

presses a balles carrées square baler<br />

presses a balles rondes round baler<br />

pulverisateur sprayer<br />

pulveriseur à disque disk harrow<br />

récolte harvesting/harvest<br />

remorque monocoque monocoque trailers<br />

sechoir dryer<br />

séchoir à grain grain dryer<br />

semis sowing<br />

semoir sowing / drill<br />

silo silo<br />

stockage storage<br />

tracteur tractor<br />

traction hauling<br />

travail du sol soil working<br />

trieur sorter/grader


Table <strong>of</strong> figures<br />

Figure 1 : France 22 regions .................................................................................................................. 8<br />

Figure 2 : france 96 counties .................................................................................................................. 8<br />

Figure 3 <strong>French</strong> <strong>agricultural</strong> <strong>machinery</strong> <strong>market</strong> ................................................................................... 10<br />

Figure 4: New tractors registrations ................................................................................................... 11<br />

Figure 5: Evolution <strong>of</strong> horsepower segments in standards new <strong>agricultural</strong> tractors ........................ 12<br />

Figure 6:<strong>French</strong> <strong>market</strong> for combine harvesters ................................................................................. 15<br />

Figure 7: <strong>French</strong> <strong>market</strong> <strong>of</strong> forage cutters ........................................................................................... 17<br />

Figure 8: <strong>French</strong> production <strong>of</strong> trailers ................................................................................................ 18<br />

Figure 9: Orders <strong>of</strong> organic spreaders................................................................................................. 19<br />

Figure 10: Orders <strong>of</strong> trailers ................................................................................................................. 19<br />

Figure 12: Size <strong>of</strong> sedima members ..................................................................................................... 27<br />

Figure 11 : Morale <strong>of</strong> distribution in second semester 2011, based on estimates <strong>of</strong> growth for 2nd<br />

semester 2011/2nd semester 2010. .................................................................................................... 42<br />

Figure 13 : utilised <strong>agricultural</strong> area: 30 million ha ............................................................................. 44<br />

Figure 14: Cereal, oleaginous and proteaginous , beets and industrial cultures ................................ 45<br />

Figure 15 : Evolution <strong>of</strong> farms size ....................................................................................................... 47<br />

Figure 16: Number <strong>of</strong> large and medium farms and their orientation ............................................... 48<br />

Figure 17: Results before taxes : average for France per head <strong>of</strong> farms ............................................ 49<br />

Figure18 : Number <strong>of</strong> cuma per county ............................................................................................... 51<br />

Figure 19: frequency <strong>of</strong> activities in cuma ........................................................................................... 52<br />

Figure 22 : Evolution <strong>of</strong> CUMA financing ............................................................................................. 52<br />

Figure 23 : average number <strong>of</strong> days worked by contractors for clients .............................................. 55<br />

Figure 24 : <strong>French</strong> imports per machine groups .................................................................................. 66<br />

Figure 25 : <strong>French</strong> production <strong>of</strong> <strong>agricultural</strong> <strong>machinery</strong> .................................................................... 69

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