Agrievolution reports favorable global business climate for agricultural machinery

A recent survey by Agrievolution indicates favorable conditions within the global agricultural machinery industry, and estimates growth of 7% in 2013.

The manufacturers of tractors and agricultural machines are satisfied with their current business situation. The Agrievolution Alliance, a global network of the leading agricultural machinery associations, presented the 8th edition of its representative survey among manufacturers and importers of machines. According to this inquiry, every second company describes the business situation to be “good“ or “very good.” The correspondent Agritech Business Climate index rose by three points. “Overall favorable economic conditions for farming around the globe have a crucial impact on the high machinery sales,” says Gerd Wiesendorfer, Coordinator of the Agrievolution Economic Committee. Worldwide turnover of the agricultural machinery industry is estimated to increase by 7% to 96 billion Euros (126 billion USD) in 2013.   

Overall perspectives remain positive 

In general, the perspectives on the agricultural machinery markets remain positive. Sales went up during the past three months in most markets compared to a rather flat development during the first half of this year. On a global average, 45% of the manufacturers expect further growth of their turnover for the coming six months, 
while 37% anticipate their turnover to remain on the current level and only 18% expect decreasing sales. According to the survey, above average growth will occur in China, Brazil and Turkey for the next months, based on a higher order stock level. Agricultural policy programs play a certain role for this development. The 
European market seems to be flat or slightly decreasing for the coming months. As usual, the regional development within the continent will vary.

Automation as key driver for the next years 

Despite the current good conditions, some manufacturers mention the global challenges the farming sector in their countries face on the global commodity markets. Also financing to some extent is an issue for farmers. On the other hand, in the mid-term view, mechanization and automation on the field and for animal housing will 
remain a major driver for demand of new agricultural machinery.