Market for Grassland Equipment Finds Balance

CEMA reports production of grassland equipment increased 12% in the 2017/2018 timeframe, but is expected to decrease 4% in the next season.


Manufacturers of grassland equipment look back on a very positive market in the year 2017/2018. Due to positive developments in the prices for milk products, dairy farmers and contractors invested in their equipment. The increase of roughly 12% was unexpected and was a challenge for the manufacturers, especially as suppliers struggled to cope with the significant increase. For the next season they expect the market to find a balance with a small decrease of 4%, also caused by the impact of the drought in specific European regions.

Another big question will be the effects of Brexit for business with the U.K., the third biggest market in Europe for grassland equipment. These were the key conclusions of the meeting of the CEMA Product Group “Grassland Equipment” at Pöttinger in Grieskirchen (Austria) which brings together manufacturers of mowers, tedders and rakes. This time also the manufacturers of self-loading wagons joined the meeting, and the Product Group decided to include this product category in the Product Group “Grassland Equipment.” The Product Group Grassland Equipment met at the Pöttinger headquarters in Grieskirchen, Austria.The Product Group Grassland Equipment met at the Pöttinger headquarters in Grieskirchen, Austria.

For the long term, markets shall remain pretty unpredictable, due to the present instability in the world market and trade agreements. Another issue is the uncertainty of the impact of the post 2020 Common Agricultural Policy. On a worldwide scale, demand for dairy products in countries outside Europe is expected to grow. So manufacturers prepare for export opportunities, but also for agility in their organization to anticipate on the volatility in specific markets.