Economic Report 2017
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ECONOMIC REPORT 2017 CONTENTS ► OVERVIEW OF THE AGRICULTURAL MACHINERY SECTOR 01 P. 6 ► DETAILED RESULTS FOR AGRICULTURAL MACHINERY 02 P. 14 18 20 22 24 26 28 30 32 34 38 40 42 ► AGRICULTURAL MACHINERY OUTLOOK 03 P. 44 ► APPENDICES 04 P. 58 ► INDEX 05 P. 62 ►DID YOU KNOW? AGRICULTURAL THE AGRICULTURAL EVOLUTION MACHINERY SECTOR OF THE FRENCH IN FRANCE IN FRANCE MARKET €4.6 bn €70 bn +5% in 2018 FRENCH PRODUCTION FRENCH PRODUCTION PRODUCTION OUTLOOK OF rd st AGRICULTURAL MACHINERY (€4.9 Bn) 3 PRODUCER 1 COUNTRY IN EUROPE IN EUROPE BEHIND IN PRODUCTION OF EVOLUTION OF FRENCH GERMANY AND ITALY LIVESTOCK AND CROPS FARMS BETWEEN 1990 AND 2015: 4% OF THE FRANCE: 17% TURN- GLOBAL PRODUCTION OF THE AGRICULTURAL PRODUCTION OVER X 2.3 SUB- IN EUROPE SIDIES 31% OF THE X 9 FRENCH PRODUCTION LIVESTOCK PRODUCTION (2017): IS TRACTORS €9.3 bn COSTS X 2 OF MILK PRODUCTION €5.1 bn €1.2 bn COSTS IN FUEL FRENCH MARKET OF EGG PRODUCTION €11.9 bn & LUBRICANTS: X 3 €3.5 bn OF BEEF PRODUCTION COST OF FEED FOR CATTLE: X 2.5 OF IMPORTS THE SURFACE AREA OF CEREALS (2016): 33% OF FRENCH COSTS IN WORK BY €3.3 bn AGRICULTURAL LAND THIRD-PARTIES: X 2.2 OF EXPORTS €9.7 bn PRICE OF EQUIPMENT: X 1.5 Exports €-252 m Imports (-718 in 2016) CEREAL PRODUCTION CHANGE IN FRENCH TRADE BALANCE 296,800 FARMS FOR AGRICULTURE IN FRANCE YIELDS JOBS & COMPANIES 2 TIMES LESS THAN IN 1990 1 FARM / 2 WITH LIVESTOCK 385 COMPANIES +43% +36% +18% 17,000 JOBS OF THE INVESTMENTS IN 2015: DEALERS 5.3% 3,548 COMPANIES No. 1: GENERAL CROPS FARM AREA IS COVERED No. 2: MIXED CATTLE 40,000 JOBS BY ORGANIC FARMING No. 3: PIGS STAKEHOLDERS IN THE AGRICULTURAL MACHINERY SECTOR 71% Production exported 385 companies (2015) (2017) rd 3 EU producing country (Turnover) th 8 country in number of companies (Europe) €3.1 bn* Exports to 159 countries (2017) FRENCH PRODUCTION €4.6 bn (2017) €3.5 bn Imports from 69 countries (2017) DEALER DEALER Specialists in Specialists in agricultural garden machinery €18 bn of turnover machinery €5.1 bn (new equipment) Gardeners Companies in CUMA** Contractors Farmers landscaping 16.5 million 13,500 companies 296,800 34,500 companies farms * excluding second-hand equipment ** shared equipment cooperatives 01 ► OVERVIEW OF THE AGRICULTURAL MACHINERY SECTOR ►INTERNATIONAL TRADE IN AGRICULTURAL MACHINERY IN 2017 IMPORTS EXPORTS 0.5% 0.1% 3.6% 4.3% 18.8% EUROPE 12.9% ASIA AMERICA 19.5% 61.1% 54.1% 25.1% € Bn 55 OCEANIA € Bn 48 Source: Douanes-IHS Maritime & Trade, AXEMA & Trade, Douanes-IHS Maritime Source: AFRICA ►INTERNATIONAL EXPORTS OF AGRICULTURAL MACHINERY PER CATEGORY IN 2017 1.0% 0.5% 3.1% 3.2% 3.7% 3.9% Tractors Spraying and protection equipment 3.9% 28.7% Green space equipment Storage, drying, and preservation 4.3% Harvesting equipment Breeding equipment 7.1% Soil working equipment Dairy equipment Haymaking equipment Transport equipment 21.1% 19.6% Sowing and plantation equipment Vine harvesting equipment Source: Douanes-IHS Maritime & Trade, AXEMA & Trade, Douanes-IHS Maritime Source: ►PROFILE OF AXEMA MEMBER COMPANIES 30.3% 230 69.7% Source: AXEMA Source: members IMPORTERS MANUFACTURERS Profile of AXEMA members Profile 1.1 ► VARIATION IN INDUSTRIAL PRODUCTION Three major crises affected the Agricultural is specific to the agricultural sector and is specifically Machinery sector since the early 1990s. Indices of related to the crisis in price and volume of cereal industrial production in France, base 100 in 2010, show production, since the industry as a whole has been doing three very important falls: -24% in 1993-1994, -28% in well since 2015. 2009-2010 and -24% in 2016. In 2017, all industrial sectors were seen to be recovering Compared to the two previous crises, the fall in (+ 2.7%), with the Agricultural Machinery sector posting production volumes of agricultural machinery in 2016 better performance in the year: +5.4%. 2017 VARIATION IN INDUSTRIAL PRODUCTION IN FRANCE 1 9 9 0 2 0 0 0 2 0 1 0 210 205 200 195 190 185 180 175 170 165 160 155 150 145 140 135 130 125 120 115 110 105 100 95 90 85 80 75 70 2011 1991 2017 1997 2014 2012 2013 1994 1993 1992 2015 2016 1995 1996 1999 2010 2001 1998 1990 2007 2004 2003 2002 2005 2009 2006 2008 2000 Agricultural machinery Machinery and Equipment Manufacturing Index: 2010 = base 100 for volumes produced (adjusted for seasonal and working day variations) - Source: INSEE 8 Economic report 2017 - AXEMA 1.2 ► VARIATION IN TURNOVER Recovery of the Agricultural Machinery sector Turnover returned to the 2014 average, at a level of 134 resulted in an increase in the turnover index of 10.1% (base 100 in 2010), with the last quarter of 2017 posting in 2017 and has ended three consecutive years of fall in a level of 142. French production (designed for domestic and foreign It should also be noted that the deviations in variation markets). recorded in 2016 is the largest since 1990. 2017 VARIATION IN TURNOVER IN FRANCE 1 9 9 0 2 0 0 0 2 0 1 0 200 180 160 140 120 100 80 60 40 20 0 2011 1991 2017 1997 2014 2012 2013 1994 1993 1992 2015 2016 1995 1999 1996 2010 1998 2001 1990 2007 2004 2002 2003 2005 2009 2006 2008 2000 SA-WDA index Raw index Indexes for turnover generated from the manufacturing of agricultural machinery (2010 = base 100) for turnover from the domestic market and exports - Source: INSEE Economic report 2017 - AXEMA 9 1.3 ► STRUCTURE OF THE AGRICULTURAL MACHINERY EQUIPMENT SECTOR IN THE EUROPEAN UNION In Europe, the agricultural machinery manufacturing It should be noted that Poland now has more sector comprises over 7,100 industrial firms, employees than France (17,698 compared to 16,924) employing 180,000 people. for an equivalent number of industrial operators but With a total turnover of €42.2 bn, France is the total turnover lower than 70%. 3rd largest producer of agricultural machinery with The agricultural machinery sector in the industrial €4.9 bn in turnover, far behind Germany (€11.5 bn) country of the Czech Republic is also growing, with and Italy (€8.4 bn) 8,305 employees in 2016. 2016 STRUCTURE OF THE AGRICULTURAL MACHINERY INDUSTRY IN THE EUROPEAN UNION Turnover (€ m) Number of companies Number of employees Germany 11,467.7 588 40,205 Italy 8,351.5 1,791 31,925 France* 4,950.1 540 16,924 United Kingdom 2,670.0 483 7,633 Netherlands 2,367.2 307 7,505 Austria 2,039.6 121 6,154 Belgium 2,024.3 225 5,438 Poland 1,474.9 562 17,698 Spain 1,417.8 694 8,598 Sweden 1,316.7 208 3,636 Finland 1,178.0 139 4,180 Czech Republic 774.9 261 8,305 Denmark 605.3 156 4,200 Hungary 429 145 5,056 Slovakia 208.8 46 1,347 Ireland ** 182.9 79 1,144 Slovenia 161.6 56 1,316 Greece 122.0 412 1,174 Portugal 113.2 142 1,672 Croatia 104.0 59 1,077 Romania 102.3 60 2,225 Estonia 80.5 28 625 Lithuania 36.2 10 490 Latvia 28.1 22 512 Bulgaria 25.8 54 1,049 Cyprus 10.2 8 70 Luxembourg 0 0 0 Malta 0.0 0 0 European Union (28 countries) 42,243 7,196 180,158 * France: INSEE, 2015 - ** Ireland: 2014 data - Source: Eurostat 10 Economic report 2017 - AXEMA France continues to be the European leader in The agricultural machinery industry and trade agricultural machinery trade with €18.1 bn (sales sectors in Europe have more than 30,000 firms of new and second-hand equipment and services). and 350,000 employees. It is followed by Germany with €15.2 bn and the United Kingdom close to €9 bn. 2015 STRUCTURE OF THE AGRICULTURAL MACHINERY TRADE IN THE EUROPEAN UNION Turnover (€ m) Number of companies Number of employees France 18,092.4 3,548 40,059 Germany 15,215.8 2,230 34,684 United Kingdom 8,885.0 1,648 19,455 Italy 4,338.0 2,801 8,341 Spain 3,474.5 2,053 11,791 Poland 2,816.9 2,130 8,794 Denmark 2,316.7 515 6,155 Sweden 2,056.4 672 3,955 Austria 1,816.2 502 4,083 Belgium 1,708.2 649 2,557 Finland 1,265.4 344 1,917 Ireland 1,238.4 490 2,625 Bulgaria 721.2 411 2,410 Hungary 680.1 368 2,659 Lithuania 631.4 273 3,331 Portugal 615.0 697 3,285 Romania 411.5 536 3,056 Greece 399.7 887 1,356 Slovakia 362.7 180 1,188 Latvia 335.6 206 1,527 Estonia 185.8 106 597 Luxembourg 123.3 44 350 Slovenia 111.9 110 348 Croatia 96.9 106 504 Cyprus 14.8 51 182 Malta* 10.6 14 59 Netherlands - 1,381 7,627 Czech Republic - - - European Union (28 countries) 67,924 22,952 172,895 * Netherlands (Turnover: NA) - ** Malta (2010 data) - *** Czech Republic (NA) - Source: Eurostat Economic report 2017 - AXEMA 11 1.4 ► PROFILE OF FRENCH AGRICULTURAL MACHINERY COMPANIES 2/3 of AXEMA members are manufacturers and In terms of French factories, intermediate-sized firms 1/3 are importers. generate 50% of total turnover, while in Germany, such Overall, 86% are SMEs (Small and Medium Enterprises) firms represent 82% of total production in value.