Machinery Sales Up in Most Markets

January 30, 2013 03:18 PM
Machinery Sales Up in Most  Markets

Ag machinery sales up in Brazil and China, down in Italy

Overall, the global ag machinery industry remains positive; worldwide production volume was set to increase to $110 billion by year-end 2012 and could grow by another 5% in 2013, according to reports from the Agrievolution Economic Committee, a gathering of the world’s largest agricultural machinery associations.

The committee promotes the exchange of agricultural machinery market information for greater market transparency. The following are updates from around the globe.

In the U.S., the drought had a slight negative influence on machinery demand. By October 2012, total tractor sales were 10% above a year earlier. The combine sector recorded
a deficit in the 8% range after three years characterized by high sales.

The market volume for 2012 in the European Union for ag machinery was expected to be comparable with 2008—its last record year. Levels are expected to remain high in 2013, but there is potential for a small drop.

Italy’s sales declined by 17% at the end of September compared to 2011, with higher exports offsetting a slower domestic market.

In Germany and France, higher producer prices have pushed new machinery investments to a record level. In France, the tractor market was expected to grow by nearly 10% in 2012. Planned investments overall for the coming six months remain at the previous year’s level for Germany.

Japan’s overall market for 2012 was expected to grow by 9% for machines and 2% for tractors, followed by 2% growth in 2013.

Significant growth is expected for Brazil. By September 2012, the domestic market was stable for tractors and grew considerably for combines. Market volume growth of 10% is expected for 2013.

The ag machinery sector has grown significantly for China, helped by government subsidies to induce greater mechanization. Sales growth reached 17% for the first seven months of 2012. For tractors, however, growth was limited to the above-100 hp segment. For 2013, slight growth is expected below 10%.

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