Agrievolution - Global Alliance for Agriculture Equipment Manufacturing Associations



AXEMA

France - Association for Industrial Agricultural Equipment
Marché 2023.PNG
Marché 2023.PNG
Agriculture FR 2023.PNG
Agriculture FR 2023.PNG
Immatriculations 2023.PNG
Immatriculations 2023.PNG

French agricultural equipment market for 1st half 2023: rising billings, falling orders

In France, the economic situation in the first half of the year was quite satisfactory. Growth forecasts have been raised to 1% for 2023, with a slight acceleration expected in 2024 (+1.2%). The disinflation trend is set to continue over the coming months. Nevertheless, at 2.7%, the inflation rate forecast for 2024 will remain above the central banks' target (+2%). Business sentiment remains good: corporate margins continued to expand in 2023. Household morale, on the other hand, is low, and households are more inclined to save than to spend.

Climatology has not been negative in France, as in other countries. In terms of both temperature and precipitation, the year so far has been fairly normal, except around the Mediterranean. Harvest estimates or forecasts are good this year, in line with the average of the last five years, or even slightly higher. This is true for field crops, specialized crops and viticulture.

Nevertheless, the current agricultural climate is not conducive to investment in equipment, except in the livestock sector. Field crop and wine-growing farms are facing a scissor effect on their margins, with farm sales prices falling, sometimes sharply, and supply costs rising. In winegrowing, not only are prices falling, but so are sales volumes. The situation is completely the opposite in the livestock sector, where revenues and margins have reached record levels, particularly in the pork and poultry sectors.

The agri-equipment sector is suffering from this agricultural situation in terms of order intake, which contracted sharply in France in the 1st half (-20%). Billings, on the other hand, continue to grow at a double-digit rate, thanks to the order backlog built up by 2022. For the year as a whole, we expect the market to exceed 9 billion euros, up 15% on the previous year. The air pocket in terms of order intake is likely to make itself felt heavily in 2024, a year for which we forecast a -10% to -20% drop in the market.

AGRIEVOLUTION
The Agrievolution Alliance is the global voice of agricultural equipment manufacturers
that represents over 6000 companies around the world.
www.agrievolution.com

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