ANALYSIS Agricultural Engineering is Using Up-to-Date Technology Agricultural machines are among traditional <strong>Czech</strong> export commodities. The character of the machines has radically changed over the past 30 years, with the agricultural machinery sector of today comparing well with the technologically most demanding industries, by the use of modern materials and even space technologies. Sophisticated production is a common feature in <strong>Czech</strong> factories, with firms promptly meeting demand, introducing new models and high-quality processing, all at competitive prices, even in foreign markets. There are some 100 agricultural and forestry machine manufacturers in the <strong>Czech</strong> Republic. The Agricultural and Forestry Machinery Association A.ZeT has 43 members, including all the major domestic producers and both the country’s agricultural universities plus the Agricultural Research Institute. The total output of the member firms is worth around CZK 20 billion (approximately EUR 750 million), which accounts for 80 % of total production in the <strong>Czech</strong> Republic. Total <strong>Czech</strong> agricultural and forestry machinery exports are worth CZK 17.4 billion (approx. EUR 660 million). Of this amount, the export of A.ZeT members accounts for 85 %. Agricultural machinery manufacturers employ an estimated 10 000 people, about one-third of the number the sector employed 20 years ago. • STABLE SALE OF UNIVERSAL TRACTORS The sale of universal tractors is stable, according to long-term statistics, which show that since the beginning of this decade approx. 2 200 tractors were sold each year. With regard to the sale of combine harvesters, the capacity of the <strong>Czech</strong> market is estimated at some 170 machines. Their sale, however, fluctuates year-on-year. In 2017, which was more or less an average year, altogether 2 247 tractors and 162 combine harvesters were sold. • EFFECT OF EU DIRECTIVE INTRODUCING STRICTER EMISSION STANDARDS ON SALES A new Directive, EU 167/2013, which enacts stricter rules for placing new tractors on the market and their registration, came into force at the beginning of <strong>2018</strong>. Manufacturers were prepared for the new situation and the change only had some effect at the end of last year, when dealers were trying to place on the market machines made in the previous year. This resulted in an extra high number of new tractor registrations. At the beginning of the new year, however, sales stabilised and returned to normal • CZECH PARTICIPATION IN TRADE FAIRS AND EXHIBITIONS, SUCCESSFUL BUSINESS MISSIONS The production potential of <strong>Czech</strong> agricultural engineering exceeds the absorption capacity of the domestic market. One of the main activities of A.ZeT therefore is to support <strong>Czech</strong> exports, such as presenting <strong>Czech</strong> manufacturers in other countries. Our most important foreign undertakings take place at trade fairs, for example at SIMA in Paris and AGRITECHNICA in Hannover. Both these exhibitions are the most important events within the sector not only on the European scale, but also in the world context. The disadvantage is that both these exhibitions are held in the same calendar year, always the odd year. <strong>Czech</strong> firms never miss them and have been present there every time since 1995. A positive aspect, on the other hand, is that, in the even years, <strong>Czech</strong> firms can concentrate on the TECHAGRO domestic fair. In the past, the Association also organised joint participation of <strong>Czech</strong> firms in trade fairs and exhibitions in Ukraine (Kiev), Denmark (Herning), and Poland (Poznan), and mediated the firms’ presence at the International Specialised Exhibition of Agricultural Machinery, AGROSALON, in Moscow. In addition, it has twice organised the participation of its members at EXPO AGRO in Argentina. An important event for small agricultural machinery manufacturers is the GaLaBau fair in Nuremberg. Representatives of our firms take part in business missions led by officials of the Ministry of Agriculture. In the past two years, we have had an opportunity to present our industry in Tanzania, Zambia, Nigeria, Senegal, and China. The concerted approach of the suppliers of agricultural and food industry Photo: Zetor archives | 14
CZECH BUSINESS AND TRADE 15 |