A general crisis in commodity prices and declining farm incomes are some of the reasons behind a general fall in world agricultural machinery sales. Source: The Land
That is according to data released during EIMA 2016 which also indicates the trend is set to continue in 2017.
The tractor market is heading toward the end of 2016 declining in almost all major countries.
Using data prepared by Agrievolution, the first nine months of the year saw a decline in sales in Europe (down 6%), in China (-29%), Brazil (-17%), Russia (-19%) and Japan (-24%).
There are just a few countries running in positive sales territory including India (up 17% – but on the back of a big decline in 2015), and Turkey (+7%).
The US has experienced a slight increase up just 3% although 70 kilowatt plus size tractors recorded a big slump in sales to fall 22%.
An EIMA 2016 press conference was told the drop in sales is due to the reduction in farm incomes caused by excess production of key commodities and subsequent price collapse affecting farm investments.
Beginning in 2014, the trend is expected to continue into 2017 with estimates of excess world production in the cereal crop mainly in the United States, Australia, Canada, China and Kazakhstan and increases in rice, oilseeds and milk production.