Farm equipment sales to drop in Europe

cema

Sales in Europe of soil working, sowing, fertilizing and plant protection equipment is expected to fall a further 11% in 2016. Source: Farmers Journal

The overall market for arable farm machines in the EU fell by around 14% to €3.09bn in 2015, according to the European Committee of Associations of Manufacturers of Agricultural Machinery (CEMA).

Europe’s leading manufacturers met at German company Horsch in Schwandorf to discuss current market trends and expectations for the future.

Low commodity prices and the comparatively low income of farmers that produce them are the principal reasons for falling demand, according to Philip Nonnenmacher, coordinator of the CEMA Product Groups.

“This being said, it should be noted that the drop in demand follows a peak in sales in 2013, which means that the current sales levels are within the average of the past eight years,” he said.

In 2015, the fall in demand for sprayers, fertiliser spreaders and seed drills fell by 12%, while soil working equipment sales fell by 16%.

This trend is expected to invert in 2016, according to the CEMA, with the market for soil-working equipment levelling out at the bottom.

Only a slight further decrease of around 4% is expected, while demand for sprayers, fertiliser spreaders and seed drills is likely to drop further by around 19%.