EUROPEAN MANUFACTURERS EXPECT STABLE MARKET FOR GRASSLAND EQUIPMENT

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Press release...

Brussels/Hannover, 3 December 2019 – Manufacturers of grassland equipment experienced an unexpected small growth in shipments in the year 2018/2019. On the basis of the developments in the previous season they expected a balanced market. As during the last season, dairy farmers and contractors invested in their equipment based on rather stable prices for milk products, but drought in specific European regions had an impact on demand. Although the total market developed positively, the figures are different per country/region and for the individual segments of loader wagons, mowers, rakes and tedders.

For next season, manufacturers expect stability in the market. When it comes to units, the market has shown a trend to grow in size and capacity of replacement of equipment. This was the key conclusion of the meeting of the CEMA (European Agricultural Machinery Association) Product Group “Grassland Equipment” at Agritechnica Hannover.
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Manufacturers need to anticipate volatility in specific markets, as well as the impact of climate change in specific regions as experienced in two consecutive years. Developments in the United Kingdom and Ireland remain unpredictable. In the long term, instability in the world market, trade agreements and the post 2020 Common Agricultural Policy shall impact the market; nevertheless, manufacturers are confident they shall manage the future developments.

The CEMA Product Groups are alliances of the leading European manufacturers of agricultural equipment. The main focus is placed on the joint assessment of the market based on dedicated statistics. Currently, 11 companies from five European countries are members of the CEMA Product Group Grassland Equipment. Prerequisite for participation is the membership in a national industry association, which belongs to the European umbrella association CEMA.

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