World Agricultural Equipment

Global demand to rise 4.5% annually through 2014

World demand for agricultural equipment is forecast to rise 4.5 percent per year through 2014 to $123 billion. Gains will be paced by the accelerating mechanization of the agricultural sectors in developing countries, especially in heavily populated China and India. Farm sectors in these countries are still significantly unmechanized and inefficient in comparison to those found in more developed markets. Moreover, robust economic growth in both countries is resulting in ever increasing per capita consumption of all kinds of food products. As a result, these countries’ governments are focusing on policies that aid their respective farm sectors and improve crop yields in order to ensure national food security.

Developing nations to post healthiest gains

Besides China and India, other large developing nations with sizable agricultural sectors, such as Brazil, Indonesia, Russia and Thailand, will also register healthy gains as a result of increasing mechanization that will be bolstered by rising farmer incomes. Moreover, further urbanization in developing countries will necessitate the replacement of human capital with fixed capital. The US will experience gains that lag the world average due to decelerating growth in economic and agricultural sector output in the country. Western Europe will post weak growth due to similar reasons as well as weak population growth. Moreover, the European Union’s next budget (the current one runs from 2007 to 2013) will almost certainly result in less funding for the common agricultural policy (CAP). Farmers in both the US and Western Europe will be adversely impacted by continuing trends in favor of free trade and against protectionist measures such as subsidies for domestic farmers and tariffs on agricultural product imports. Brazil and Russia stand to benefit the most from increasing export opportunities for farm products.

Modern technology to aid gains in developed nations

Throughout the industrialized world, demand will largely be replacement oriented in nature, as the farming sectors of most countries are not growing in terms of number of farms, acreage harvested and similar physical variables. Demand will also be aided by the development and growing use of higher value “precision agriculture” products that make extensive use of modern technologies such as global positioning systems (GPS) and wireless sensors. Given the widespread diversity and often interrelation of applications, growth prospects for specific types of farm machinery -- tractors, combines, planting and fertilizing, plowing and cultivating, and haying machinery, etc. -- do not vary substantially.

China now largest global supplier, surpassing the US

Hundreds of companies manufacture agricultural equipment throughout the world, with the large multinational producers headquartered almost exclusively in the developed regions. In 2009, China overtook the US as the largest global supplier, with shipments of $17 billion. The US industry declined in 2009 due to the country’s recession. A majority of Chinese production continues to take place under numerous state-controlled entities and is of lower quality than found in developed nations, although foreign manufacturers are becoming increasingly important in the country’s farm machinery industry, often through joint ventures.

Study coverage

This new industry study presents historical demand data (1999, 2004, 2009) plus forecasts for 2014 and 2019 by type, world region and for 26 countries. The study also considers market environment factors, evaluates company market share and profiles 26 industry participants worldwide.

Global Agricultural Machinery Industry

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4

General 4
Global Macroeconomic Environment 5
Recent Historical Trends 5
World Economic Outlook 7
World Demographic Overview 11
Population 12
Nonurban Population 13
World Agricultural Outlook 15
World Agricultural Land Usage 17
Wheat 20
Corn 21
Rice 22
Soybeans 23
Other Crops 24
World Arable Land 25
Labor Force Productivity in Agriculture 27
Relationship between Agricultural Output & Agricultural
Equipment Demand 30
Agricultural Equipment Pricing Patterns 32
Agricultural Equipment Technology 33

III. SUPPLY & DEMAND 35

General 35
World Agricultural Equipment Demand by Region 36
World Agricultural Equipment Demand by Type 38
Farm Tractors 39
Harvesting Machinery 43
Planting & Fertilizing Machinery 44
Haying Machinery 46
Plowing & Cultivating Machinery 47
Other Agricultural Equipment 50
Parts & Attachments 52
World Agricultural Equipment Production 53
International Trade Flows 55

IV. NORTH AMERICA 58

General 58
United States 62
Canada 68
Mexico 72

V. WESTERN EUROPE 77

General 77
Austria 82
Denmark 85
France 89
Germany 93
Italy 98
Netherlands 102
Spain 105
United Kingdom 109
Other Western Europe 113

VI. ASIA/PACIFIC 117

General 117
Australia 122
China 125
India 133
Indonesia 139
Japan 142
South Korea 148
Thailand 152
Other Asia/Pacific 156

VII. OTHER REGIONS 161

Central & South America 161
Argentina 165
Brazil 169
Other Central & South America 173
Eastern Europe 177
Poland 181
Russia 185
Ukraine 190
Other Eastern Europe 194
Africa/Mideast 198
Iran 202
South Africa 205
Turkey 209
Other Africa/Mideast 213

VIII. INDUSTRY STRUCTURE 218

General 218
Industry Composition & Market Share 219
Product Development & Manufacturing 224
Marketing & Distribution 225
Financial Requirements 232
Company Profiles 233
AGCO Corporation 234
Al Ghazi Tractors, see Fiat
Alamo Group Incorporated 241
ARGO SpA 246
Berthoud Agricole, see Groupe Exel Industries
Bomford Turner, see Alamo Group
Bucher Industries AG 248
Bush Hog, see Alamo Group
Caruelle-Nicolas, see Groupe Exel Industries
Case New Holland Machinery Harbin, see Fiat
Caterpillar Incorporated 253
CLAAS KGaA mbH 257
CNH Global, see Fiat
Daedong Industrial Company Limited 263
Deere & Company 266
Escorts Limited 274
Fiat SpA 276
First Tractor Company, see YTO Group
Foton Lovol International Heavy Industries Company 284
Gehl Company, see Manitou BF
Groupe Exel Industries 285
Hardi International, see Groupe Exel Industries
Herschel, see Alamo Group
Iseki & Company Limited 289
Kanzaki Kokyukoki Manufacturing, see Yanmar
Kubota Corporation 292
Kuhn, see Bucher Industries
Kukje Machinery Company Limited 295
Kverneland ASA 297
Laverda, see AGCO and ARGO
M&W Gear, see Alamo Group
Mahindra & Mahindra Limited 301
Manitou BF SA 305
Matrot Equipements, see Groupe Exel Industries
McConnel, see Alamo Group
Mitsubishi Heavy Industries Limited 307
Netafim Limited 309
New Holland HFT Japan, see Fiat
Perkins Engine, see Caterpillar
Preciculture, see Groupe Exel Industries
Production Association Minsk Tractor Works 313
Rhino, see Alamo Group
Rousseau, see Alamo Group
Same Deutz-Fahr SpA 315
Schulte Industries, see Alamo Group
Shanghai New Holland Agricultural Machinery, see Fiat
Societe Nouvelle Moreau, see Groupe Exel Industries
Spearhead Machinery, see Alamo Group
Tecnoma Technologies, see Groupe Exel Industries
Tong Yang Moolsan Company Limited 320
Tractors and Farm Equipment Limited 321
Transaxle Manufacturing of America, see Deere and
Yanmar
Turk Traktor ve Ziraat Makineleri, see Fiat
Twose of Tiverton, see Alamo Group
Yanmar Company Limited 323
YTO Group Corporation 328
Zak?ady Sprz?tu Mechanicznego Ursus Sp zoo 330
ZETOR TRACTORS as 331

LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

Summary Table 3

SECTION II -- MARKET ENVIRONMENT

1 World Gross Domestic Product by Region 11
2 World Population by Region 13
3 World Nonurban Population by Region 14
4 World Agricultural Value Added by Region 16
5 World Agricultural Land Usage by Region & Crop 18
6 World Arable Land by Country, 2007 27
7 Labor Force Productivity in Agriculture for Selected
Countries, 2009 29

SECTION III -- SUPPLY & DEMAND

1 World Agricultural Equipment Demand by Region 37
2 World Agricultural Equipment Demand by Type 39
3 World Farm Tractor Demand by Region 41
4 World Harvesting Machinery Demand by Region 44
5 World Planting & Fertilizing Machinery Demand by Region 45
6 World Haying Machinery Demand by Region 47
7 World Plowing & Cultivating Machinery Demand by Region 50
8 World Other Agricultural Equipment Demand by Region 52
9 World Parts & Attachments Demand by Region 53
10 World Agricultural Equipment Shipments by Region 55
11 World Agricultural Equipment Net Exports by Region 57

SECTION IV -- NORTH AMERICA

1 North America -- Agricultural Equipment Supply & Demand 60
2 North America -- Agricultural Equipment Demand by Type 62
3 United States -- Agricultural Equipment Supply & Demand 66
4 United States -- Agricultural Equipment Demand by Type 68
5 Canada -- Agricultural Equipment Supply & Demand 71
6 Canada -- Agricultural Equipment Demand by Type 72
7 Mexico -- Agricultural Equipment Supply & Demand 75
8 Mexico -- Agricultural Equipment Demand by Type 76

SECTION V -- WESTERN EUROPE

1 Western Europe -- Agricultural Equipment Supply & Demand 80
2 Western Europe -- Agricultural Equipment Demand by Type 81
3 Austria -- Agricultural Equipment Supply & Demand 84
4 Austria -- Agricultural Equipment Demand by Type 85
5 Denmark -- Agricultural Equipment Supply & Demand 88
6 Denmark -- Agricultural Equipment Demand by Type 89
7 France -- Agricultural Equipment Supply & Demand 92
8 France -- Agricultural Equipment Demand by Type 93
9 Germany -- Agricultural Equipment Supply & Demand 96
10 Germany -- Agricultural Equipment Demand by Type 97
11 Italy -- Agricultural Equipment Supply & Demand 100
12 Italy -- Agricultural Equipment Demand by Type 101
13 Netherlands -- Agricultural Equipment Supply & Demand 104
14 Netherlands -- Agricultural Equipment Demand by Type 105
15 Spain -- Agricultural Equipment Supply & Demand 108
16 Spain -- Agricultural Equipment Demand by Type 109
17 United Kingdom -- Agricultural Equipment
Supply & Demand 112
18 United Kingdom -- Agricultural Equipment Demand
by Type 113
19 Other Western Europe -- Agricultural Equipment
Supply & Demand 115
20 Other Western Europe -- Agricultural Equipment Demand
by Type 116

SECTION VI -- ASIA/PACIFIC

1 Asia/Pacific -- Agricultural Equipment Supply & Demand 120
2 Asia/Pacific -- Agricultural Equipment Demand by Type 121
3 Australia -- Agricultural Equipment Supply & Demand 124
4 Australia -- Agricultural Equipment Demand by Type 125
5 China -- Agricultural Equipment Supply & Demand 130
6 China -- Agricultural Equipment Demand by Type 133
7 India -- Agricultural Equipment Supply & Demand 137
8 India -- Agricultural Equipment Demand by Type 139
9 Indonesia -- Agricultural Equipment Supply & Demand 141
10 Indonesia -- Agricultural Equipment Demand by Type 142
11 Japan -- Agricultural Equipment Supply & Demand 146
12 Japan -- Agricultural Equipment Demand by Type 147
13 South Korea -- Agricultural Equipment Supply & Demand 151
14 South Korea -- Agricultural Equipment Demand by Type 152
15 Thailand -- Agricultural Equipment Supply & Demand 155
16 Thailand -- Agricultural Equipment Demand by Type 156
17 Other Asia/Pacific -- Agricultural Equipment
Supply & Demand 159
18 Other Asia/Pacific -- Agricultural Equipment Demand
by Type 160

SECTION VII -- OTHER REGIONS

1 Central & South America -- Agricultural Equipment
Supply & Demand 164
2 Central & South America -- Agricultural Equipment
Demand by Type 165
3 Argentina -- Agricultural Equipment Supply & Demand 168
4 Argentina -- Agricultural Equipment Demand by Type 169
5 Brazil -- Agricultural Equipment Supply & Demand 172
6 Brazil -- Agricultural Equipment Demand by Type 173
7 Other Central & South America -- Agricultural Equipment
Supply & Demand 176
8 Other Central & South America -- Agricultural Equipment
Demand by Type 177
9 Eastern Europe -- Agricultural Equipment Supply & Demand 180
10 Eastern Europe -- Agricultural Equipment Demand by Type 181
11 Poland -- Agricultural Equipment Supply & Demand 184
12 Poland -- Agricultural Equipment Demand by Type 185
13 Russia -- Agricultural Equipment Supply & Demand 188
14 Russia -- Agricultural Equipment Demand by Type 190
15 Ukraine -- Agricultural Equipment Supply & Demand 193
16 Ukraine -- Agricultural Equipment Demand by Type 194
17 Other Eastern Europe -- Agricultural Equipment
Supply & Demand 197
18 Other Eastern Europe -- Agricultural Equipment Demand
by Type 198
19 Africa/Mideast -- Agricultural Equipment Supply & Demand 201
20 Africa/Mideast -- Agricultural Equipment Demand by Type 202
21 Iran -- Agricultural Equipment Supply & Demand 204
22 Iran -- Agricultural Equipment Demand by Type 205
23 South Africa -- Agricultural Equipment Supply & Demand 208
24 South Africa -- Agricultural Equipment Demand by Type 209
25 Turkey -- Agricultural Equipment Supply & Demand 212
26 Turkey -- Agricultural Equipment Demand by Type 213
27 Other Africa/Mideast -- Agricultural Equipment
Supply & Demand 216
28 Other Africa/Mideast -- Agricultural Equipment
Demand by Type 217

SECTION VIII -- INDUSTRY STRUCTURE

1 Selected Agricultural Equipment Manufacturers -- Revenue
Data, 2009 221
2 Selected Cooperative Agreements 228

LIST OF CHARTS

SECTION II -- MARKET ENVIRONMENT
1 World Agricultural Land Usage by Region, 2009 19
2 World Agricultural Land Usage by Crop, 2009 19
3 Leading Wheat Producing Countries, 2008 20
4 Leading Corn Producing Countries, 2008 21
5 Leading Rice Producing Countries, 2008 23
6 Leading Soybean Producing Countries, 2008 24
7 World Agricultural Equipment/Agricultural Output
Relationship, 2009 31
SECTION III -- SUPPLY & DEMAND
1 World Agricultural Equipment Demand by Region, 2009 38
2 World Four-Wheel Tractor Demand by Country, 2009 42
SECTION VIII -- INDUSTRY STRUCTURE
1 World Agricultural Equipment Market Share
by Company, 2009 222