Cautious Outlook for Europes Ag Machinery Market
Europe’s agricultural machinery industry takes a cautious outlook for 2015, with overall equipment sales expected to drop by 5-10%, reported cema-agri.org. Compared to 2014, sales in Germany and France are expected to fall 7% and 10%, respectively, with similar declines expected in other key markets, such as the UK (-5%) and the Netherlands (-5 to -10%).
Factors contributing to the downward trend are similar to those in the U.S. In addition, new rules for EU subsidy payments under the Common Agricultural Policy (CAP), to be introduced in 2015, will add further uncertainties.
The market outlook for 2015 varies by machinery type.
For Mowers, The European market for mowers has been generally stable, with small increases in sales in the UK, Italy, Netherlands and Belgium, and shrinkages in Spain and France. For 2015, decrease in demand is expected in Germany and France, but stable market conditions are anticipated in the other European countries.
For forage harvesters, only Italy and UK experienced a small increase in demand in 2014. For all other European markets, no major changes in sales were reported and none are expected for 2015.
For balers, a weakening of demand, around -10%, was seen. Although demand was stable or slightly positive for the Netherlands, Italy and Spain, other markets experienced a decline, resulting in an overall decrease. For 2015, only minor changes in almost all European markets are expected.
For sprayers, the market slightly decreased in 2014. The Netherlands, Belgium and Italy saw a small decline, while Germany, the UK and France experienced a small increase. Germany expects a decrease in sales in 2015, as other markets remain more or less stable.