The French market of agricultural machinery - Agrotechnology from ...
The French market of agricultural machinery - Agrotechnology from ...
The French market of agricultural machinery - Agrotechnology from ...
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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