German agricultural machinery market can be named as locomotive of the greatest and the most expensive agricultural machinery market in the world, market of the EU. This country today is the greatest producer of agricultural production in the European Union, that forms the largest market of agricultural machinery sales in the unit’s territory. To the German agricultural machinery manufacturers’ share goes 28% of the whole EU’s agricultural machinery production volume. In German there are the most modern and hi-tech manufacturing enterprises of the world leading brands, such as Claas, John Deere, AGCO, Same Deutz-Fahr, Horsch etc
On results of the year 2013 manufacturing volume growth of agricultural machinery up to ˆ 8.388 billion was fixed in Germany that is more than the previous year criterion for 9.6%. Growth of the internal market is 2.6% and it has reached a level of ˆ 5.558 billion. Last three years tendency of increase volume of agricultural machinery manufacture and size of internal market in Germany allowed to a big amount of German farmers and contractors to renew and modernize their techno parks, to complete them by more modern and hi-tech models.
The largest share of German agricultural machinery internal market (37%) goes to tractors. According to statistics data during years 2011-2013 every third German farmer purchased a new tractor. During this period there were fixed about 36,000 pcs for every year.
Manufacturing volume of tractors in the 2013 increased compared to previous year indicators for 15.9%, and internal market volume in this segment increased for 7.6 %. Thanks to presence in the German territory of new modern manufacturing enterprises AGCO/Fendt, John Deere, Same Deutz-Fahr, and also of tough competition between them, tractors produced in Germany are in demand not just in the European greatest agricultural machinery market, but also in the whole world. In the 2013 export volume growth of tractors was 16.3% compared to similar indicator of the previous year.
German combines harvesters are considered as the best in the world, what we can see from manufacturing volume growth of these machines during last many years. In the 2013 growth of 7.8% was fixed compared to the indicator of the previous year. Combines harvester sales volumes In the German internal market in monetary value on results of the year 2013 reduced for 10.1%. It is caused, first of all, by market saturation in the segment on results of combines harvesters sales during last years. This result was compensated by German agricultural manufacturers and their partners of the whole world at the expanse of export volume growth that was 9.6%.
In the segment of cultivation agricultural equipment a significant increase approximately of the same level as in the tractors market was fixed. Volume growth of cultivating agricultural machinery manufacture in Germany was 15.6%, and internal market added 5.3 % in volume, export growth was 17 %. The highest growth result according to the indicators was fixed in segments: ploughs and harrows.
Last year also was very effective in such agricultural machinery market segments, as precision seeders, sprayers, fertilizers spreaders and bailers. In these segments growth up to 26 % in production, export and sales in internal market volumes was fixed. It should be noticed that favorable prices for milk gave farmers a possibility to invest into milking and cooling equipment that influenced sales level of the equipment in Germany.
High level of investments into agricultural machinery during last years allowed farmers to renew and modernize their techno parks that made representatives of German agribusiness to be even more on external markets. However, according to VDMA’s public opinion polls, most German agrarians pointed that they would invest into agricultural machinery in 2014 less compared to previous year. Instead this they intend to invest into the sphere of agricultural building and of renewable energy. Cause of that is implementation of a new tax for own energy production from the 1st of August, 2014. For energy producers, who had set systems before that date, action of that decree does not apply.
Despite public opinion poll of German farmers, during first quarter of the 2014 there were not any signs of demand reduction on German agricultural machinery market. Registration quantity of new tractors remained at the same level as in similar periods of previous years. Sales volumes of equipment for cultivating, seeding, fertilizing and plants protection even increased compared to indicators of similar period of year 2013. In segment of harvesting agricultural machinery on results of first quarter of year 2014 demand decrease was.
Despite favor forecast of agribusiness development in Germany demand on agricultural machinery will be corrected to the less. But it will be insignificant sales volume decrease and trade turnover inside the market in 2014 will be approximately ˆ 5.4 billion that is higher than average indicator for last 5 years (ˆ 4.7 billion) for 15%.