Agricultural Machinery: market still in crisis
Sharp drop in production of all types of machinery in 2009 with negative trend continuing into opening months of 2010. Speaking at the annual Unacoma assembly, President Massimo Goldoni casts light on the impact the new CAP and policies on bioenergy and water resources might have on the agricultural machinery market.
The world economy has embarked on slow recovery but this development has yet to be felt in the mechanization sector. Following 2009, which closed with a steep decline in production, the market for all types of machinery was still strongly in the negative in the first months of 2010. Data reported today in Bologna, at the annual assembly of the Unacoma manufacturers association disclosed that production in 2009 came to slightly more than 1.12 million tons, for a 34.8% drop compared to 2008, and reached the value of € 8.33 billion for a decline of 33.5%. In detail, tractor output in units sank by 36% with 59,497 units produced while other machinery fell 18.5% by weight and earthmoving machinery, again, by weight, plunged 53.7%. Also the figures on 2009 exports were deep in the red with sales blocked at € 4.74 billion for a drop of 36.2%.
Due to negative conditions still prevailing on domestic and foreign markets, the recovery of production was still in trouble in the first part of the new year. In the first five months of 2010, tractor registrations in Italy fell 16.1% and those for combine harvesters were down 10.8% while the market for earthmoving machinery showed a drop of 16.9% in the first quarter of the year. Gardening machinery fared better in disclosing a decline in the first quarter limited to an average of 3% coupled, however, with a negative trend for professional machinery for the maintenance of greens which fell 22%.
The scenario for the European markets, those which heavily account for Italian exports, was also strongly in the red. According to data produced by CEMA, the European association of the agricultural machinery industry, tractor sales around the continent tumbled 21.8% in the first quarter compared to the same period in 2009, with the steepest downturns reported for France, off 27.8%, Germany, down 25.9%, and Britain, falling 14.4%.
Commenting on these figures, Unacoma President Massimo Goldoni affirmed that the Italian mechanization industry, working in the context of a national system which has weakened over the past few years, will be forced to exert considerable effort to defend the position of excellence the sector has attained internationally.
In the near future, he added, the mechanization market will be subjected to the repercussions of variables determined by the trends in a number of sectors: earthmoving machinery can be expected to begin a slow recovery resulting of the revival of the construction industry whereas the agricultural machinery market will be conditioned by the more-or-less restrictive Common Agricultural Policy measures and by the real implementation of important programs which involve the primary sector, such as those already announced by the European Union for the development of biofuels and safeguarding water resources.
Roma, June 24, 2010
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