World ag equipment demand continues slide

Demand for ag equipment continues to wane


Machinery
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Results from the US and trends in Europe show demand for agricultural equipment continuing to slide.

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US farm machinery exports are down, European agricultural machinery sales continue to fall and the 2017 outlook appears weak.

Tractor sales in Europe in the first nine months of this year were down 4.5 per cent on 2015 numbers with the third quarter showing the decline slowing - down 2.2pc compared to Q3 in 2015.

European agricultural equipment manufacturers association CEMA said demand is particularly lower for mid-range tractors between 90 and 180 kilowatts.

In the US, agricultural equipment manufacturing exporters are feeling the pinch with export numbers slipping 14pc to the end of September.

The numbers are well down in the Australia / Oceania region with US equipment imports falling 30pc to a total of $US395 million.

Canadian imports of US equipment dropped 15pc to $US1.5 billion.

Europe and Central America showed some growth with US imports, while Asia lead a 44pc decline for the other world regions, according to the Association of Equipment Manufacturers (AEM).

Central American imports grew 16pc to a total of $US978 million.

In Europe, most farm machinery sales numbers are similarly grim according to CEMA.

Germany is set to rank among the worst-performing markets in 2016, with demand for machinery decreasing by 9pc.

The decline is set to continue in 2017, yet at a much slower pace, with an expected 2pc drop.

CEMA said demand in the UK remained weak, particularly for non-tractor farm machinery with 2017 UK market demand expected to stabilise while markets in Italy, Belgium, and the Netherlands will likely experience a small decrease in 2016.  

CEMA noted a peak in demand in September in the 56kW to 130kW power category they explained as a result of transitional provisions as part of the EU’s exhaust emissions legislation.

Many tractors with Stage IIIB engines needed to be registered before 1 October, otherwise, they could not be registered  again.

Demand for most other major agricultural machinery products declined in the CEMA countries as well in line with predictions.

Combine harvester sales are expected to be down 13pc in 2016, with demand falling across all CEMA countries and the organisation expected this trend to continue in 2017.

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