LEMKEN shrugged off global supply chain issues and increased its export share to 80% of all current production for a record result
LEMKEN still refers to itself as a family business with a 243-year history but that hasn’t stopped this cultivation and seeding specialist from growing its export market to 80% of all sales to become one of the best-known specialists brands for farmers worldwide.
The growth trajectory for LEMKEN over the past year includes setting another record by increasing its sales by 25% to an estimated €559 million (au$900 million).
The past reporting year for LEMKEN started with a high level of orders on its books from all parts of growing regions worldwide, including our local market where the badge has taken off exponentially over the past two years.
“We were able to increase our sales and result once again, despite global supply chain problems and increasing rates of inflation,” said partner Nicola Lemken and CEO Anthony van der Ley as they presented the preliminary sales figures. Incoming orders have exceeded expectations. 2022 also confronted farmers with many challenges, but overall, farmers used high producer prices to invest in professional agricultural technology, even though input prices had increased.
All over the world, LEMKEN benefits from its excellent image in the industry. It successfully expanded its sales further in both its home market of Germany and in its international business. “We are currently already generating 80% of our sales from our export business and believe that there is potential for further growth as we explore new markets and target groups,” said CEO Anthony van der Ley. Products such as the new Karat 10 cultivator and recent release cultivators have also driven additional demand.
In order to achieve its ambitious goals, LEMKEN is investing not only in a new facility in Dinteloord The Netherlands (manufacturing the latest design precision hoeing technology) but also the expansion of its Haren Germany facility (assembly of seed drill technology) and its Excellence program (optimisation of production and assembly) in Alpen Germany.
Another major contribution to the company’s future success is expected to come from the company’s acquisition of Equalizer, the South African specialist for precision seed drills with a focus on minimal tillage and no-till farming for large-scale farms. See more about the LEMKEN Equalizer joint operation here.
LEMKEN also continues to focus on its employees, whose commitment constitutes an essential part of the success of this family business. During the past financial year, LEMKEN increased the number of its employees worldwide by 4.5% to 1,773. This was necessary to keep up with its strong growth and to maintain the high-standing service as a partner for farmers.
The company expects that its positive business development will continue in 2023, based on the already high level of existing orders. While farmers will likely benefit from the ongoing positive market situation, European agricultural policy and the expectation of additional regulation in particular will create additional concerns for EU-based farmers compared to international producers.
LEMKEN will be appearing at all the world’s leading trade shows for agricultural equipment and will showcase an impressive array of innovations across the entire product portfolio. LEMKEN additionally lives up to its mission as a leading AgroVision Company by investing in future-oriented issues such as autonomous drive units and carbon farming.
Contact the local Australian LEMKEN division for model availability or for your nearest dealer on mobile 0410 445 952, or see the website here.
