The average horsepower rating of new tractors sold in France last year (2017) was 140hp. The data comes from Axema – the French trade association of the agricultural equipment industry.
The news was carried in a report by French publication La France Agricole.
Business trends
Axema also says that business turnover across the (French) agricultural machinery sector (manufacturing and trade) increased by 6% in the first half of this year (2018).
The livestock machinery sector is apparently the one showing the most growth, followed by transport-type equipment. Turnover at companies manufacturing tillage equipment also increased.
Respondents to Axema’s surveys and market probes remain positive about prospects for the second half of 2018 (57% responded positively, versus 47% this time last year).
Image source: Le Parisien
However, margins across the (French) farm machinery sector are down. According to 45% of respondents, this is due to increases in raw material costs. Increased regulatory costs (2%) also played a role.
Delving deeper, Frederic Martin, president of Axema, commented: “We are seeing a significant shortage of production capacity. This is one of the rising and worrying trends of 2018.”
Source of the data
Axema has 240 companies within its ranks. It claims to represent 90% of the agricultural equipment sector in France.
Most of its member firms are businesses with sales of up to €15 million per year. However, it’s also home to a significant number of importers and manufacturers with an annual turnover of over €30 million.
Founded in 2013, Axema resulted from the merger of three manufacturers’ and importers’ associations.