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Tough market for farm machinery sales to continue

Machinery dealers across Europe are suffering
Machinery dealers across Europe are suffering

Scottish farm machinery dealers can rest assured they are not alone in suffering a drop in sales this year.

The latest figures from European agricultural machinery association Cema reveal an overall decline in sales of new tractors across the continent in the first half of 2016.

Cema blamed low commodity and milk prices for the drop in sales and said the mixed wheat harvest could aggravate the situation.

As such, it predicts a continued decline in sales for the remainder of the year.

France, Spain and Belgium bucked the trend in the first six months of the year with sales up 16.1%, 10.7% and 5% respectively.

UK sales on the other hand were down 8.5%, with sales in Denmark down 10.3% and sales in Germany down 9.7%.

Sales of combines by 8.3% across the board, while demand for forage harvesters is expected to decrease by 12% this year.

The mower and baler markets are also suffering with demand for both reported to be down 8.6% this year.

Cema said: “The only market that is expected to remain stable is the one for sprayers.”

Meanwhile, the latest sales figures for UK tractor sales reveal sales were down 8.6% between January and August.

Data from the Agricultural Engineers Association reveals 7,277 tractors over 50 horsepower were registered in the first eight months of the year.

Sales in August totalled 953 units, which is down 14.7% on the same month last year.