This means that the grounds are fully booked. All the leading companies in the industry will be represented with a complete range of products. With these exhibitor figures, Agritechnica impressively affirms its high attractiveness and its position as the internationally largest agricultural machinery show. The trade fair generates impetus and signals for the agricultural machinery markets worldwide.
Dr. Reinhard Grandke, Chief Executive Officer of DLG (Deutsche Landwirtschafts-Gesellschaft – German Agricultural Society), Frankfurt am Main
Outstanding participation from abroad
Agritechnica is more international than ever before. 1,563 exhibitors (56 per cent) are from outside Germany. This represents a new record number. The largest contingents of foreign companies come from Italy (391 companies), the Netherlands (126), Turkey (109), France (103), China (100), Austria (70), Poland (68), Canada (60), USA (54), the United Kingdom (46), Denmark (46), Spain (43) and Finland (39). Above-average increases in exhibitor numbers are noted in particular from Turkey, Italy and Finland. DLG sees the exhibitor registration figures as a clear signal for the further increasing global orientation of the companies and of agribusiness with its global interconnections. The companies plan to use the Agritechnica platform specifically to open up new markets. “The world meets at Agritechnica in Hanover.”
Sharpening awareness of the future
Agriculture is facing major challenges. Many farms assess their present situation critically. Low producer prices, high policy risks and demands from society are depressing the mood. Farmers currently have an enormous need for information. Agritechnica is coming at just the right time. It is the global centre for innovations and new developments in agricultural machinery and equipment. With its pooled international expertise from industry, agriculture and science as well as advisory institutions, it is a unique workshop of the future for the worldwide agricultural sector. Agritechnica is not only an innovations platform for modern machinery and equipment, but also supplies ideas and impetus and serves as a trendsetter for important questions concerning the future of agribusiness and agricultural machines. That is why the fair attracts particularly those farmers who want to equip themselves thoroughly to meet the challenges of the future, including the use of the latest technology. This forward-looking atmosphere is a hallmark of Agritechnica. The agricultural machinery manufacturers from all over the world know and appreciate this mood. Especially in difficult times with new challenges, the actors from agriculture, industry and distribution partners must sharpen their awareness and focus on the future. Agritechnica is an incomparably good forum that is ideally suited for this.
Agricultural machinery and equipment in demand as problem-solvers
Agricultural machinery and equipment are required to make an essential contribution to producing more cost-efficiently and with less stress on the environment. Farmers take the demands of society very seriously. They see the future for their farms to lie in sustainable land management with special consideration given to economic, ecological and social aspects. Innovations in agricultural machinery and equipment help farmers to accomplish this task. At Agritechnica, the exhibitors present solutions with which farmers can work even more precisely, more efficiently, and conserve more resources. Further developments in electronics and sensor technology set the pace.
Modern agriculture needs consensus with society
The global challenges can only be met by innovative agriculture that integrates the constantly evolving growth in knowledge and skills. One of the basic requirements for this is stress-resistant and continuous consensus with society about agricultural production processes. Progress in agricultural production and production methods as well as their evaluation by society must be fundamentally in concord with each other. This is currently not the case in some sectors. That is why the great challenge for agriculture lies in dealing with the declining social acceptance of modern agriculture and in developing accepted solutions. Innovations in agricultural machinery and equipment that make major contributions to farming in a manner that conserves the environment and resources are an essential basis for the dialogue with society. Farmers must draw more attention to this in such dialogues. Agritechnica with its outstanding supply of expertise and guidance is the ideal information platform for this.
Current situation on the markets
The global grain harvest is more abundant than expected. The building up of stocks in the export countries is leading to pressure on grain prices. As a result of the strong position of the Black Sea countries, farmers in the European Union can currently expect only a low level of export business. There is hope that grain prices will climb in the winter.
A globally high supply of milk comes at a time of stagnating demand due to the economic situation (especially in Asia) and is leading to pressure on prices. The EU milk price is around 13 per cent below the five-year average. Farmers have also harvested lower feed quantities in various regions as a result of drought conditions.
Pig production in the European Union is characterized by an increase of 1.2 per cent in slaughter figures compared with 2014. In Germany the increase is 2.6 per cent. Currently prices are under pressure due to restrained demand in conjunction with growing supplies. The high grain and soya harvests are easing the feed costs for farmers.
Business situation and business development
Farmers in Germany, the United Kingdom and Poland are distinctly less satisfied with the current business situation than they were in the spring. This is revealed by the preliminary results of the Trendmonitor Europe that DLG has just conducted in Germany, France, the United Kingdom and Poland together with Europe's leading agricultural market research institute, the Kleffmann Group (Lüdinghausen/ Westphalia). In particular animal farmers are less satisfied, while cash crop producers assess the situation as stable. This reflects the currently low producer prices that are exerting pressure in particular on dairy farmers and pig farmers. In France, the mood is stable at a low level (rating unchanged at 3.4). The government measures to relieve the burden on animal farmers appear to be calming the situation. The cash crop producers are more satisfied than the animal farmers as a result of the record harvest with good qualities.
The animal farmers in all four countries are less optimistic regarding expectations of business development in the coming twelve months. Dairy and pig farmers in particular are sceptical. The market situation is unlikely to change, as the supply of milk and pigs remains extensive. Moreover, in France rising milk imports mean growing competition for the dairy farmers who currently obtain the highest milk price in a European comparison. Furthermore, the farmers are in conflict with the meat processors about price determining and price setting for slaughter pigs.
The business expectations for cash crop producers in Germany, France and Poland are stable by comparison with the spring survey. The drought did not result in the expected harvest losses, and despite globally high grain harvests, hope remains that export business will start up and that there will be brisker demand from domestic processors after the harvest.
Mixed readiness to invest
Compared with the spring survey in 2015, readiness to invest has declined in Germany to 41 percentage points, in Poland to 39 percentage points and in the United Kingdom to 29 percentage points. In France, readiness to invest remains stable at 23 percentage points. In Germany, Poland and the United Kingdom, farmers have developed their capacities in the last five years and renewed their facilities, machinery and equipment. In phases with low producer prices, the focus is more on securing liquidity, especially on farms that have invested in recent years and whose debt service has increased. Any new investments are being deferred. In France, on the other hand, readiness to invest remains stable, although at a low level. While the readiness to invest is declining among dairy farmers and pig producers, cash crop producers plan to invest more (increase from 9 percentage points in spring 2015 to 22 percentage points in the current survey).
Areas of investment – Arable farming to be strengthened
More of the investments planned in Germany will be channelled into arable farming (+9 percentage points by comparison with the spring survey 2015). Farmers in the United Kingdom want to strengthen diversification of production. Their investments break down into +8 percentage points for bioenergy and +2 percentage points for arable farming. Furthermore, 45 per cent of those farmers willing to invest aim to expand existing capacities. By contrast, farmers in Poland are investing more in animal husbandry.
Farmers in France plan to invest more in arable farming. The areas of investment into which investments are to flow have shifted strongly towards arable farming with +25 percentage points taking this sector up to now 73 percentage points.
Focus on challenges in arable farming
Cash crop producers will have to adjust in coming years to the fact that fewer active ingredients will be available for plant protection and moreover more requirements (including greening) will have to be observed. Against this background, it is important for farmers in Germany, France and Poland to use their fertilizers more efficiently. Farmers in Germany, France and Poland aim to expand their cultivation programme and grow more summer crops and more catch crops. The farmers are accordingly interested in innovations in fertilizer machinery and equipment (73 %). They also expect innovations in stationary data processing (62 %), the use of Cloud software solutions, and innovations in strip cultivation (54 %) in order to improve production.
More than 400,000 visitors expected
The need to prepare farms properly for the future means that farmers, contractors and machinery rings from all over the world have an enormous appetite for information. They want to use the potentials existing at their locations even more effectively, efficiently and sustainably now. Agritechnica with its unique programme of information offers them the right platform. This year DLG again expects more than 400,000 visitors, including around 100,000 international visitors from outside Germany.
Presentation of Dr. Reinhard Grandke
Source: Agritechnica
