West Flanders dominates
AVR and Dewulf lead the Belgian machine industry
The Belgian province of West Flanders has the largest cluster of agricultural machinery manufacturers in the country. Where they are fairly spread out in the Netherlands, this is certainly not the case with our southern neighbors. The New Holland factory in Zedelgem makes an important contribution, however, potato specialists AVR and Dewulf are the fastest growers.
De province West Flanders has figures published about the machine industry in the province, specifically focused on agriculture. In total, this concerns more than twenty manufacturers, the last listed of which has a turnover of 1,1 million euros. CNH Industrial is by far the largest player and partly responsible for the West Flemish focus on agricultural technology. In second place is Packo Inox, which produces machines for food processing. However, all companies are in stark contrast to New Holland's more than 2.000 employees and a turnover of 864 million. In 1906 Leon Claeys founded his machine factory in the town of Zedelgem, where the multinational is based.
In the list we also find well-known names for the Netherlands. AVR and Dewulf as numbers three and four (36,5 and 37,6 million euros turnover), but also Delvano, Dezeure and Beyne to name a few. In addition, many specialist players are active. For example Steeno (tillage), Union en Depoortere (fibre flax) or Deman en Verhoest (vegetable harvest).
Eighty percent of all agricultural machinery constructed in Belgium comes from the coastal province. In 2014, the country was the number six in terms of turnover in the EU. Good for 2,2 billion euros. The Netherlands is just above this with 2,38 billion euros. Our country has 337 manufacturers compared to 142 in Belgium. In terms of exports, Belgium comes in seventh place in the world. However, if we look at the amount of manufacturers and farms, our southern neighbors come first. On almost 38.000 farms, an average of 58.000 euros worth of machines is produced. In the Netherlands that is 35.000 euros on 67.000 companies. Italy has more than a million companies, bringing the production level to just 9.000 euros per company. Incidentally, it is not the case that the Belgians invest heavily in machines. An agricultural company spends 14.725 euros annually on machines. In the Netherlands that is 26.141 euros. By far the highest level in the EU.
How is it possible that one province is such a leader in the Belgian machine sector? The province itself speaks of the Claeys effect† The current company CNH contributes significantly to the success with 469 million euros. If those figures are not taken into account, the other players together still account for 50 percent of the Belgian market share. During the twentieth century, the Claeys factory acted as a catalyst and attracted other parties. In addition, West Flanders has the most agricultural enterprises. 22 percent of the total in Belgium.
Other companies – in more recent times – that are causing a snowball effect are Dewulf-Miedema and AVR. Together they have a Belgian market share of approximately 75 percent and an estimated 35 percent Europe-wide. Roeselare grew into an important place for potato and vegetable cultivation. That has attracted other brands. Even Grimme recognizes the importance of the area. In 2013, it took over the Walloon importer Vanderstichelen in Hainaut. Grimme Belgium achieved a turnover of 2015 million euros and a profit of -13,3 euros in 843.000. It is currently building a new location in… Roeselare. It will open in the course of 2017.
AVR and Dewulf are not sitting still either. Both parties are evenly matched and have been expanding considerably in recent years. Dewulf took over Miedema. AVR opted for the incorporation of Climax. This made them both potato full-liners. To a large extent, the emerging potato processing industry in Flanders is of great importance to both companies. Between 2013 and 2015, Dewulf and AVR jointly invested 11 million euros in business expansions. Both have recently expanded their factory or are still working on it.
Niels van der Boom
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