Executive Summary
The apparent UK market for agricultural machinery was estimated by Key Note
to be worth £2.22bn in 1995, with UK manufacturers' sales valued at
£2.66bn. By 1996, manufacturers' sales are estimated to have increased to
£3.54bn, and the apparent UK market to have been £2.95bn. In 1995,
tractor sales made up the majority of purchases, with the apparent tractor
market totalling £1.51bn. The UK is a net exporter of agricultural
machinery, with a trade surplus of £436m in 1995.
The market is divided into two main sectors. The first category is that of
tractors, and the second is that of other agricultural equipment. The `other
equipment' sector covers powered machines, such as combine harvesters and all
terrain vehicles, trailed equipment, such as grassland machinery and crop
cultivators, and static farm machinery, such as milking parlours.
The early 1990s have seen the worst worldwide agricultural downturn since the
severe recession of the 1930s. Competition for machinery sales is extremely
intense in the UK, as it still remains one of the most advanced agricultural
countries in the world, and thus is an attractive market for manufacturers. UK
manufacturers have been fortunate, as Common Agricultural Policy (CAP)
subsidies have helped farmers purchase machinery. This comes at a time when
mechanical engineering sales have been severely hit by the recession.
Whilst the bovine spongiform encephalopathy (BSE) crisis has affected dairy
herds, and to a lesser extent machinery sales into this sector, generally sales
have been buoyant in the cereals machinery market. The CAP reforms have
compensated farmers for an expected fall in cereal prices at a time when
worldwide prices were actually rising to EU levels. This, coupled with a good
harvest despite the dry weather in 1995, has resulted in British farmers being
cash rich.
UK manufacturers' sales of agricultural machinery are predicted to grow by an
average annual rate of 15.5% between 1996 and 2000, reaching some £7bn by
the turn of the century. The tractor sales sector is expected to perform
exceptionally well in comparison with other sectors. However, if further CAP
subsidies aimed at a specific crop are introduced, this is likely to boost
sales of any related machinery.
Eleventh Edition 1997
Edited by Louis Barfe
ISBN 1-85765-644-X
|
If you are interested in further information about the full Keynote report, including price and how to buy, please complete the following form. You will be contacted by Keynote who will provide you with the information you require.
Denotes a required field.
