Weather update Mechanization
Fewer but more expensive machines sold
European arable farmers have invested more in new machines, according to trade association Cema. Tillage machines, fertilizer spreaders and seed drills in particular are more popular than 1 year ago.
cema is the trade association for European machine manufacturers. They calculate that the European market for tillage machines in 2018 was good for a turnover of more than €2 billion, compared to €1 billion 1,85 year ago. The machine market in this segment has grown considerably compared to previous years.
More turnover
The market for seed drills, fertilizer spreaders and sprayers is stable and the turnover in 2018 amounted to €1,42 billion. That is comparable to 1 year ago. In 2014, this segment still accounted for a turnover of €1,63 billion. Cema estimates the total market for arable equipment at €3,43 billion, which is a 5% increase compared to 1 year earlier. For this year, it expects stable sales growth of 1%.
Fewer field sprayers and precision seeders were sold in 2018, although there are many differences per country. Germany and France are by far the largest countries for machines and tractors. France saw strong growth in 2018, after very little investment by companies in 2017.
Fewer, but more expensive machines
Interestingly, the 29 affiliated manufacturers, coming from 11 countries, note that the number of machines is decreasing. Not so strange, given that more companies stop and large arable farmers can get by with large machines. However, the turnover remains the same or even increases.
Yet members of the organization conclude that it is no longer just about being wider and bigger. Customers mainly look at the interchangeability (of electronics), the flexibility and the intelligent machines. User-friendliness is a top priority. This does not harm the manufacturers, as evidenced by the turnover figures.
Niels van der Boom
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.