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EIMA is a global showcase of agricultural machinery and associated technologies.
As a guest of the Italian Trade Association, Rural News Group Machinery Editor Mark Daniel took the opportunity to make an early November dash to Bologna to the 46th EIMA exhibition.
EIMA is a global showcase of agricultural machinery and associated technologies, over 1750 participating companies, 700 of which are from 50 countries outside Italy, covering every market segment including tractors harvesters, machinery and advanced digital systems for an increasingly scientific agricultural industry.
The exhibition is organised into 14 product sectors, with five thematic shows: Components, Digital, Energy, 'Green' and Hydrotech, with approximately 60,000 units of vehicles, equipment and components.
While the event was certainly creating a positive vibe with jam-packed walkways and smiling exhibitors, the Italian industry was looking to close off the year with a 19.5% decrease compared to 2023, with a value of €13.2 billion. The decline is said to be due to the contraction of domestic demand, alongside a slowdown of foreign markets.
Looking at the different types of machines, tractors account for just over €2 billion (-25% compared to 2023), incomplete tractors and spare parts account for around €1 billion (-28.6%), machines and equipment represent a value of €6.2 billion (-16.5%), components for €3.3 billion (-17.5%), while gardening and green care machines contribute €700 million, a decrease on the previous year of 22.2%.
Looking at the global picture, data from Agrievolution, an organisation that brings together data from manufacturers in the main production countries, indications are a drop in tractor production of 12% for the first half of 2024, with all markets affected. Both India and China fell 10% and the United States by the 12% median.
In Europe the French market was off 8%, Germany by 1%, with much larger falls in Canada, Japan, Russia and Turkey, with falls of 16%, 28%, 32% and 20% respectively.
Industry analysts suggest the second half of 2024, will fare no better with a prediction that the total global sales of tractors will fail to reach 2 million units. This would be the lowest level since 2016, compared to average sales of tractors over the 2017 to 2023 period of 2.2 million units, with a peak of 2.5 million units in 2021.
One of the key talking points was the implications of the Green Deal and the election of Donald Trump for the European agricultural sector. The outcome of the American elections could have a decisive impact on the Italian and European economies.
"A possible tariff policy and new environmental guidelines could penalise a sector such as agri-food, which currently sees Europe exporting EUR 200 billion a year," said Paolo De Castro - president of Filiera Italia. "Europe has embarked on the path of the Green Deal and the question we must ask ourselves today is whether it will be possible to reconcile it with the objectives of the Trump administration."
The issue of environmental policies appears to be one of the thorniest in the current political scenario, with suggestions that if it is true that the Biden administration allocated almost USD200 billion for ecological transition, US farmers have preferred not to use them, so as not to change their production standards.
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