The farm equipment industry is again in the mid Chancen1999 sales declined by five percent - in demand in Central and Eastern Europe fell by one third - too cautious German farmers
Green Week, Agriculture Hall: Away from the crowds that push their way through clouds of mist sausage, fish sauce and garlic have issued farm equipment dealer. A pair of red tractors standing around, in front of green trailers for grain and straw. The farmers look right, but later bought.
The majority of German farm equipment manufacturers looking anyway with mixed feelings in the new millennium. According to preliminary estimates, German farm equipment and tractor manufacturers in 1999 sold five percent less than last year (7.5 billion DM), mainly because of the crisis in Central and Eastern Europe. Could they sell them there in 1998 machines worth over one billion DM, the demand broke last year about a third one.
Nevertheless, the farm equipment manufacturers remain confident. "In the medium term, we are operating in a market with growth opportunities. The demand has not changed," said Bernd Scherer, Managing Director of the Agricultural Engineering Association (LAV) in the German Engineering Federation (VDMA).
The unstable market in the east is currently not the only problem of the German construction equipment manufacturer. The industry serves up in 1998 by a five-year growth wave is fighting in Germany with insecure clients - one-third share of sales still their most important market. Were German farmers in early 1999 because of unknown consequences of the EU agricultural reform cautiously, they are now because of the tax reform.
According to the latest Ifo survey of German farmers estimate 45 percent of their situation as a bad time - six months earlier there were still 42 percent. This is reflected through not directly affect the investment behavior, is but the number of investment with 22 percent refusing a similar level as in previous surveys. But the number of farms decreased steadily.
"Every 30 minutes on a farmer, about 40 per day," said Heinz-Bernhad Strautmann, executive member of the farm equipment factory as Strautmann and sons. If the conditions changed for an industry that is changing the structures. The same applies to the eco-tax reform, the German farmers disadvantage. "It will stop the forced decision: grow or soft," says the junior manager of the 220-man operation.
The number of farms under 70 hectares of land is shrinking, the growth of plants over 70 hectares and that of the contractors - and thus the demands on agricultural machinery. Despite the courts death the producers remained in business, with reduced numbers, but with more expensive machines. Strautmann: "To win the new states as a market, umkonstruieren we had our wagons and spreaders, they were for the large areas and farms too small and that helps us now with the trend in the western states, but also in the export.."
Longer term, the medium-sized agricultural machinery manufacturers formed a distribution problem. Concentrations as that of Case New Holland, John Deere and Agco Fendt owners are able to offer the combine tractor over the entire country for fertilizer technology. So that they could force dealers to work exclusively and not to sell products from other vendors. Strautmann: "SMEs have to find niches that are technically top and quickly respond to requests This is their chance, even against complete provider.."
make on the Green Week as only specialists shops. "We have plenty to do, but we are in an absolute niche market," said Ralf Lange seller of Conow trailer manufacturing. His company refreshed old trailer from DDR-production with current technology - about 25 percent cheaper than new vehicles.
