MILWAUKEE, Wis. — Exports of U.S.-made agricultural equipment for first quarter 2015 dropped 16.7-percent compared to first quarter 2014, for a total $1.82 billion shipped to global markets.
All world regions recorded declines except Central America, and Europe experienced the deepest drop, according to the Association of Equipment Manufacturers (AEM), citing U.S. Department of Commerce data it uses in global markets reports for members.
Exports by region
First quarter 2015 U.S. agricultural equipment exports by major world regions compared to first quarter 2014, looked like this: Canada dropped 16.7 percent, for a total $582 million; Europe declined 34.7 percent, for a total $410.5 million; Central America gained 6.4 percent, for a total $273.3 million; South America dropped 21.8 percent, for a total $187.8 million; Asia fell 22.2 percent, for a total $178 million; Australia/Oceania fell 16.2 percent for a total $120.7 million; and Africa decreased 6.3 percent, for a total $67 million.
Analysis overview
According to AEM’s Benjamin Duyck, director of market intelligence, this quarter decline of 16.7 percent was quite steep, though less harsh than the 29 percent decline last quarter or the 19.3 percent decline in Q1 of 2014.
As global market drivers had not changed much from last year, declines in the exports of farm equipment was expected.
Farm incomes are still forecasted to decrease in 2015, and on a more macro-economic level the strong dollar is still hampering U.S. global competitiveness.
A recent report by the global Agrievolution Alliance indicated that while the global business climate is expected to improve in the next six months, the current situation still indicated a clear decline in global turnover in Q1 2015, though there are some regional differences.
Overall, Asian markets have a more dynamic development with a positive climate in China, India and Turkey.
Other markets
Other established markets, such as the USA, Europe and Japan, are still negative. While exports have decreased, the U.S. domestic market is moving in different directions.
The segment of small equipment used for landscaping services, hobby farmers and livestock continues to grow, while sales of larger tractors and combines, used in production ag, continue to decline.
Top countries
The top countries buying the most U.S.-made agricultural machinery during first quarter 2015 (by dollar volume) were Canada, $582 million, down 16.7 percent; Mexico, $242.1 million, up 7.5 percent; Australia, $107.7 million, down 17.2 percent; China, $75.5 million, up 57.4 percent; Germany, $66.4 million, down 7.6 percent; Brazil, $61 million, down 35.8 percent; Belgium, $47.7 million, down 36.1 percent; France, $46.2 million, down 11.3 percent; South Africa, $42.6 million, down 14.2 percent; United Kingdom, $42.3 million, down 14.5 percent.
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