French agricultural machinery returns to growth and its medium-term average
The French market for new agricultural equipment grew by 6.5%, reaching 5.376 billion euros in 2018. It consolidates its second place in Europe behind Germany (€6.5 billion in 2017) and ahead of Italy (€3.9 billion in 2017) and the United Kingdom (€2.6 billion). Adding the used machinery market and services to this newbuild market, France becomes the leading European agricultural machinery power, with sales of 17.5 billion euros.
The French agricultural equipment market will continue to expand to reach 5.618 billion euros (+4.5%) in 2019, with a dynamic first half-year and a less buoyant second half. Positive farm performances in 2018, combined with sustained investment needs in certain sectors (row crops, mixed cropping and livestock, etc.) provide a source of optimism, despite growing uncertainties surrounding Brexit and the economic outlook of the European Union.
An upturn is anticipated specifically on the tractor market (30% of French agricultural equipment output) following several years of declining volumes. Positive variations are also expected in winegrowing (7% of output) and in dairy and handling (in particular in telescopic loaders). It should be noted that at 5.6 billion euros, the French agricultural equipment market will merely be returning to figures observed on average over the medium term (2012-2018) and will still be running behind the exceptional results recorded in 2012 and 2013.
France, a European power in agricultural machinery which holds its own against the industry’s giants
Buoyed along by its market demand, French agricultural machinery output picked up in 2018. France has held onto its position as third largest industrial power for agricultural machinery, behind Germany and Italy, with output in 2018 standing at 4.9 billion euros, up by 5.8%. France’s share of European output remains unchanged in the medium term at around 11%, illustrating the proven existence of a solid and enduring industrial base. France stands out in several specific market segments. It is the European leader in milking equipment and occupies second place in many other segments such as manufacturing of tractors (21% of European output), livestock equipment (15%), haymaking plant (17%) and winegrowing equipment (7%).
Nearly 70% of output is exported to more than 100 countries all over the world. While Europe accounts for 82% of French export business, no country alone makes up more than 20% of the total. The leading importer of French products is Germany (18% of exports by value) followed by the United Kingdom (9%), Belgium (5.5%) and Spain (5.1%) with Italy rounding off the top five with 4.8% of French exports. France is the fifth largest exporter of agricultural machinery in the world, behind Germany (no.1), the USA, China and Italy. France’s worldwide export market share is holding firm and has even risen in recent years, which is another sign of the solidity of French positions on foreign markets.
Source: AXEMA economic report