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There’s been a sharp downturn in the global demand for tractors and machinery.
As a sign of the times, a sharp downturn in the global demand for tractors and machinery has seen some of the global players announcing lacklustre half yearly results.
AGCO, the parent company of Fendt, Massey Ferguson and Valtra, has reported net sales of around US$6.2 billion, a decrease of 13.7% on the same six months in 2023. This result is on the back of a 12.1% downturn in the first three months of the year, meaning the second quarter, with sales of US$3.2 billion was down 15.1% compared to 2023.
The company says the result paints a picture of weakening market conditions and significant production cuts, the latter to help reduce the company’s and dealer inventories. They also note that declines in commodity prices and subsequently reduced farm income has tempered farmer sentiment, further reducing global demand.
A spokesman for the company commented, “In the first half of 2024, retail tractor industry demand fell by an average of 8.0% across the three major regions of North America, South America and Europe.” In Western Europe, retail tractor sales decreased 5.0% during the first half of 2024, while growth in Germany, Turkey and France was offset by reduced sales across all other European markets – the weakest conditions eventuating in Italy, the UK and Scandinavia. Looking ahead, AGCO expects demand to soften for the rest of 2024, with a full year of net sales at around US$12.5 billion.
In the blue and maroon tractor camp, CNH Industrial is blaming lower demand for the 16% drop in net sales in its second three months of this year to US$5.49 billion. While Agriculture – Case IH, New Holland and Steyr – delivered the largest share of the total at US$3.91 billion, the figure was 20% lower than the US$4.89 billion in 2023.
Industry volume was down 11% year on year for tractors under 140hp in North America, but up 2% for 140hp+ tractors. The combine market was down 5%, South American tractor demand was down 10% and combines was down 26%, while by contrast, Asia Pacific tractor sales were up 1% and combines demand up 4%. Again, looking ahead, forecasts suggest weaker demand, with agricultural machinery net sales likely to be down by 15% to 20%.
On the machinery front, Kuhn Group net sales in the first six months of this year fell to around €733 million, a fall of around 17%. Kuhn Group parent company Bucher Industries says lower prices for agricultural products, higher interest rates and fewer subsidies continue to make farmers cautious in terms of investment.
Like the tractor sector, inventories of machinery in the dealer network remains high, leading to lower demand in all regions, especially in Brazil, Europe and North America. For the second half of the year, expected demand will continue to be affected by the volatile environment. Overall, Kuhn Group expects sales to decrease and the operating profit margin to be lower.
Global tyre manufacturer Michelin has extended its agricultural trailer tyre range, with the introduction of its new WorkxBib series, designed for tipping trailers, slurry tankers and manure spreaders.
Following the record-breaking success of its hydrogen-powered Hydromax, JCB is ramping up its investment in the business, key to the first major change at the executive level of the business, with George Bamford stepping up to the post of joint chairman, alongside his father Lord Bamford.
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Massey Ferguson has announced a strategic supply partnership with International Tractors Limited (ITL), a manufacturer of low-horsepower and compact tractors, with recognised brands such as Sonalika and Sollis, to expand its portfolio with a new tractor range.
With the biannual Italian EIMA machinery Expo less than a month away, Case IH has taken out a Technical Evolution award for the Advanced Vehicle Suspension system available on its Optum 360–440 series tractors.
The Advanced Vehicle Suspension system, available on Optum 360, 390, and 440 models, responds to changing conditions, automatically adjusting how the suspension reacts to absorbs shocks and controlling vehicle movement.
In operation, sensors monitor the vibrations transmitted from the tractor chassis to the operator cabin, allowing the system to adjust suspension damping in real time. The control system incorporates key priorities, such as comfort at lower speeds and stability as speed increases, while also reacting to factors such as lower tyre pressures, where the tyres absorb more of the initial shock.
Case IH said as suspension requirements change throughout the working day, as tractors move between the paddock and road transport, the system manages suspension response in the background as tasks, speeds and conditions change, leaving the operator without the need to make manual adjustments.
Richard Hollins, Optum series tractors global product manager, said: “Pioneering technology must earn its place in the working day. Farmers and contractors will judge an investment by what it delivers, including manageable ownership costs, dependable up-time and the versatility to tackle different jobs. With AVS, we are putting intelligent control to work for comfort and stability, without giving the operator another setting to manage.”
Organised by FederUnacoma, the Italian Agricultural Machinery Manufacturers Federation, the contest has been part of EIMA since 1986, with the Technical Evolution distinction awarded to products that introduce original improvements to solutions already manufactured or patented.
www.caseih.com
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