German farm machinery sales on the up

German farm machinery makers enjoyed strong demand in 2011, according to the VDMA (the German equivalent of the UK’s Agricultural Engineers Association).


It reports that German machinery makers increased their turnover in 2011 by 27% to 6.98bn euros (£5.79bn). That followed a downturn in sales in 2009/2010, preceded by a strong year in 2008.


“The speed with which the orders received by agricultural machinery manufacturers climbed again surprised us. A year ago we did not anticipate such a significant upswing,” says VDMA managing director Dr Bernd Scherer.


Tractor sales accounted for a total of €3.41bn (£2.83bn), 49% of total German farm machinery production. A total of 60,600 tractors rolled off the assembly line, 19% more than in the previous year. A quarter of the tractors had engine power outputs 150hp.


However the biggest growth area in 2011 was harvesting machinery, which had been in the doldrums in 2009/2010. Total sales of new combines produced in Germany increased to €961m (£798m) in 2011, though that was still a little lower than the record sales of €1091m (£906m) in 2008.


New records were also set in 2011 for sales of forage harvesting machinery and there was good growth in tillage equipment, drills, fertiliser spreaders and sprayers.


Overall, 72% of the farm machinery produced in Germany was exported. France was the most important export market, with 40% more machinery sold than last year. In fact France accounted for one sixth of the export earnings of German machinery manufacturers, while Russia was its second most important export market, well ahead of the UK and the US.


German farmers are also doing their bit to help manufacturers with just under 36,000 tractors sold in 2011. The sector has also started the new year with full order books. In value terms, new orders in the three-month period from October to December 2011 were 26% higher than in the previous year.

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