AGRICULTURAL BLOG

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1. Global Profile of Agricultural Machinery Industry

1.1 General Outlook

The global agricultural machinery sector, which reached the highest business volume of all time in 2013, reached 117.52 billion USD in 2017. The development trend of the sector is shown in the table below.

The Size of the Global Agricultural Machinery Industry (Billion USD), 2010–2020

Years

2010

2011

2012

2013

2014

2015

2017

2020*

105,07

119,7

131,68

137

134,34

121

117,52

124,72

*estimated

Source: VDMA Sector Reports

According to the estimates made by some major agricultural machinery producers open to the stock market, despite a series of negative developments such as global sales, movements against globalization, the effects of climate change, protectionist movements observed in the countries in the period of 2017, the growth expectations especially from the USA increased, with the effect of falling unemployment, it will grow on average 2 percent annually. According to this approach, it is calculated that the global agricultural machinery market will reach 124.72 billion USD by 2020 (Zobu Consulting, 2018).

Regional Distribution of Agricultural Machinery and Equipment Market (Percentage share), 2017

Regions

EU

Nafta

China

S.America

India

CIS*

Japan

Turkey

Others

%26

%22

%15

%8

%6

%6

%4

%3

%10

*Commonwealth Of Independent States

Source: VDMA

Production, Foreign Trade and Internal Market in the EU Agricultural Machinery Industry (Million Euro)

Countries

Production

Export

Import

Domestic

Market

2015

2016

20171

2017

2017

2017

Germany

11.108,3

11.183,5

12.664,4

10.247,5

4.037,3

6.454,3

France

4.426,9

4.284,2

4.634,9

3.171,5

3.585,2

5.048,7

Italy

8.230,1

7.899,9

7.109,9

4.523,5

1.272,8

3.859,2

United Kingdom

2.623,9

2.357,9

2.512,2

2.114,6

2.183,9

2.581,6

Belgium

1.600,6

1.637,2

2.111,6

1.959,5

1535

1687

Spain

1.195,2

1.185,1

1.293,8

721,5

1.096,9

1.669,2

Poland

1.526,5

1.262,5

1.450,5

1.234,2

1.323,8

1.540,1

Austria

1.757,7

1.783,6

1.809,9

1.491,8

1.019,7

1.337,8

Netherlands

2166

2.232,2

2.303,8

2.887,9

1.715,1

1131

Sweden

903,6

899,6

1.034,7

1.037,8

960,6

957,6

Czech Republic

696,4

715,4

777,9

733,4

777,8

822,3

Romania

85,2

88,8

137,5

102,1

689,9

725,3

Finland

1.123,5

1.138,9

1.208,7

1.012,2

414,8

611,3

Denmark

538,5

549

530

841,1

901,5

590,4

Hungary

467,4

427,8

434

726,9

739,5

446,6

Portugal

108,2

102,8

110,5

57,4

317,9

371

Ireland

154,8

122

142,6

238

405,7

310,3

Lithuania

29,4

33,3

42

279,2

501,2

264

Bulgaria

35,5

24,8

26,7

279,2

491

238,5

Letonia

28

26,7

25,5

66,1

237,2

196,6

Croatia

95,9

105,8

114,2

85

165,4

194,5

Slovenia

132,9

142,4

153,3

162,6

191,4

182,1

Slovakia

191,6

209,7

229,5

409,1

353,1

173,5

Greece

78,7

70,7

94,3

66,4

141,5

169,4

Estonia

76,3

79,3

74,3

83

175,4

166,7

Luxembourg

0

0

0

41

90,2

49,2

Cyprus

8,8

9,9

11,1

1,2

11,5

21,4

Malta

0

0

0

0,1

2,1

1,9

Total EU 28

39.389,9

38.573

41.037,9

34.573,8

25.337,4

31.801,5

Turkey

2.585,1

2.646,7

2.638,3

681,3

633,4

2.774,7

Source: CEMA, 2019

(1) estimated

According to these values ​​in terms of production size and domestic market volume, Turkey comes after Germany, Italy and Fransa.

1.2 Overview of Turkey

Turkish Agricultural Machinery Sector reached 3.5 billion USD in 2017.

Turkey Agricultural Machinery Market Size (USD Million), 2011-2017

Years

2011

2012

2013

2014

2015

2016

2017

2.637

1.836

2.838

3.036

3.344

3.708

3.497

Source: Turkish Statistical Institute, expert accounts

2. Global Trade

2.1 World Agricultural Machinery Trade Volume

The global trade volume of the agricultural machinery industry as of 2018 (narrow scope) is 127.4 billion USD according to ITC statistics. 63.9 billion USD of this amount is export and 63.5 billion USD is import.

World Agricultural Machinery Foreign Trade (Thousand USD), 2014-2018

2014

2015

2016

2017

2018

Export

62.643.152

53.508.488

51.964.687

58.755.026

63.957.632

Import

61.562.373

54.314.188

51.986.347

57.828.466

63.526.110

Kaynak: ITC

Regions in Global Trade (Percentage share), 2018

Europe

Asia

America

Oceania

Afrika

Total

Export

64,2%

14,2%

20,6%

0,6%

0,4%

57 billion €

Import

53,9%

12,7%

25,6%

4%

3,8%

60 billion €

Source: CEMA, 2019

Global Agricultural Machinery Export by Product Groups (2018)

Tractors take the first place in global exports with 29.1 percent, followed by green field (landscape) equipment with 19 percent.

In terms of the number of producers, the share of the tillage; planting, fertilizing, hay making and harvesting which are the three important groups of the agricultural machinery industry was calculated as 33.1 percent.

(CEMA, 2019)

Global Agricultural Machinery Export by Product Groups, (Percentage, Value, billion €), 2018

Percentage

Value

Percentage

Value

Tractors

29,1

16,6

Farming

4,4

2,5

Landscape

19

10,8

Hay making

4,3

2,5

Harvest

17,2

9,8

Sowing, Planting, Fertilization

4,3

2,5

Soil Processing

7,3

4,1

Dairy

3

1,7

Storage, Drying

5,1

2,9

Transportation

1

0,5

Plant protection

4,7

2,7

Viticulture

0,6

0,4

Source: CEMA, 2019

2.2 Turkey's Share in Global Trade

Turkish agricultural machinery industry, which exported 56 million USD of agricultural machinery in 2001, has a foreign trade surplus with exports exceeding 1 billion USD today.

While the sector was 31st in exports in 2001, it completed 2019 in 16th place and increased its share from exports to 3 per thousand and 15 per thousand.

Top 10 Countries in Agricultural Machinery Export and Turkey’s Share (Percentage share, Value; thousand USD), 2018

Countries

Value

Pay %

World

63.957.632

Germany

11.557.128

18,1

USA

8.074.620

12,6

China

4.582.214

7,2

Italy

4.559.703

7,1

France

3.755.583

5,9

Netherlands

3.245.805

5,1

Belgium

2.443.578

3,8

United Kingdom

2.442.659

3,8

Japan

2.096.416

3,3

Canada

1.810.591

2,8

Turkey

817.397

1,3

Source: ITC; narrow analysis

According to 2018 data, the share of the top 10 countries in total exports is 69.7 percent. Only Germany and the USA's share is 30.7 percent.

Top 10 Countries in Agricultural Machinery Import and Turkey’s Share (Percentage share, Value; thousand USD), 2018

Countries

Value

Pay %

World

63.526.110

USA

7.644.636

12,0

France

4.728.702

7,4

Germany

4.723.724

7,4

Canada

4.102.194

6,5

United Kingdom

2.584.674

4,1

Russian Federation

2.257.890

3,6

Netherlands

1.904.339

3,0

Australia

1.734.198

2,7

Belgium

1.702.687

2,7

Poland

1.693.628

2,7

Turkey

435.901

0.7

Source: ITC; narrow analysis

According to 2018 data, the share of top 10 countries in total exports is 52.1 percent.

2.3 Agricultural Machinery Export

In 2019, agricultural machinery was exported to approximately 120 countries at the level of 1.041 million USD. 573 million USD of this value is tractor and 468 million USD is equipment. 93 million USD of tractor exports are parts and components.

Turkey's Agricultural Machinery Exports by Countries (Value, thousand USD) 2015-2019

Countries

2015

2016

2017

2018

2019

Total

651.419

607.759

641.548

817.397

937.069

USA

181.745

169.682

150.719

183.510

203.791

Italy

70.613

63.847

63.068

113.096

131.378

Iraq

29.839

29.294

24.887

39.789

75.967

Azerbaijan

20.967

23.688

55.385

42.667

45.651

Uzbekistan

10.105

9.667

21.794

38.679

42.496

Sırbia

7.097

9.674

11.214

16.453

25.442

Algeria

21.010

20.005

9.874

12.651

23.463

Bulgaria

14.965

13.527

12.741

17.905

20.349

Sudan

22.127

19.668

15.306

21.140

16.706

France

13.322

11.451

13.734

16.037

15.551

Morocco

11.487

6.854

12.663

17.775

14.824

Russian Federation

15.060

7.583

7.432

13.557

14.593

Iran

15.794

15.187

17.070

9.114

14.090

Romania

5.915

7.122

9.395

11.226

13.544

Turkmenistan

5.765

6.022

7.010

7.551

12.641

South Africa

11.106

13.242

12.272

13.963

12.460

Germany

3.897

4.633

4.813

9.137

10.792

Libya

2.636

4.182

1.699

5.268

10.219

Others

187.969

172.431

190.472

249.019

233.112

Source: ITC; narrow analysis

Turkey's Agricultural Machinery Exports by HS Code (Value, thousand USD) 2015-2019

HS Code

Product Label

2017

2018

2019

Total

641.548

817.397

937.069

8701.93

Tractors, of an engine power > 37 kW but <= 75 kW (excl. those of heading 8709, pedestrian-controlled)

270.176

368.923

419.069

8424.82

Agricultural or horticultural mechanical appliances, whether or not hand-operated)

22.697

39.723

57.376

8701.94

Tractors, of an engine power > 75 kW but <= 130 kW (excl. those of heading 8709)

43.328

48.508

54.427

8436.29

Poultry-keeping machinery (excluding machines for sorting or grading eggs, poultry pickers )

41.496

50.349

53.079

8436.10

Machinery for preparing animal feedingstuffs in agricultural holdings and similar undertakings)

23.517

29.718

43.915

8432.39

Seeders, planters and transplanters (excl. no-till machines)

34.245

33.570

41.553

8432.90

Parts of agricultural, horticultural or forestry machinery for soil preparation or cultivation ...

29.996

40.608

40.354

8433.90

Parts of harvesting machinery, threshing machinery, mowers and machines for cleaning, sorting ...

18.753

25.694

25.231

8432.29

Harrows, scarifiers, cultivators, weeders and hoes for use in agriculture, horticulture or ...

11.825

19.005

20.830

8424.49

Agricultural or horticultural sprayers (excl. portable)

13.733

16.650

18.171

Others

131.782

144.649

163.064

Source: ITC; narrow analysis

Note: Due to the change in some HS codes in 2017, previous years were not included in the table.

Agricultural Machinery Exports by Countries (Value; thousand USD), 2014-2018

Countries

2014

2015

2016

2017

2018

Total

62.218.222

53.253.825

51.931.929

58.926.543

63.980.202

Germany

10.756.032

8.900.206

8.885.211

10.450.845

11.500.558

USA

9.023.267

7.626.477

6.759.374

7.564.677

8.066.143

China

3.742.914

3.667.512

3.655.593

4.470.877

4.582.214

Italy

5.268.418

4.405.629

4.214.518

4.421.488

4.563.204

France

3.556.271

2.851.261

2.947.124

3.329.193

3.754.005

Netherlands

2.543.686

2.284.527

2.544.360

2.975.671

3.300.534

Belgium

2.225.460

1.898.891

1.842.245

2.023.015

2.445.914

United Kingdom

2.561.668

2.105.295

2.062.648

2.204.005

2.442.659

Japan

2.028.992

1.946.159

1.907.074

1.967.139

2.096.416

Austria

1.919.634

1.426.834

1.312.328

1.499.014

1.823.487

Canada

1.966.998

1.605.652

1.448.873

1.569.026

1.810.456

Poland

1.179.755

1.023.875

1.053.793

1.283.365

1.374.281

Finland

986.651

931.550

929.178

1.069.936

1.348.889

Brazil

1.271.240

920.675

853.709

1.275.883

1.135.230

India

1.055.437

1.117.598

1.019.426

945.341

1.030.365

Sweden

779.432

637.189

640.924

823.934

939.271

Czech republic

733.682

673.619

675.050

738.552

856.921

Hungary

615.680

515.622

546.235

738.678

826.486

Mexico

969.980

896.168

770.607

790.620

818.700

Turkey

727.901

651.419

607.759

641.548

817.434

Others

8.305.124

7.167.667

7.255.900

8.143.736

8.447.035

Source: ITC; narrow analysis

2.4 Agricultural Machinery Imports

In 2019, 282 million USD agricultural machinery was imported. 138 million USD of this value is tractor and 144 million USD is equipment. 57 million USD of tractor imports are parts and parts.

Turkey's Agricultural Machinery Imports by HS Code (Value, thousand USD) 2015-2019

Countries

2015

2016

2017

2018

2019

Total

680.319

657.007

624.449

435.901

191.479

Italy

147.305

147.241

159.312

89.665

27.099

Germany

73.346

59.074

72.588

51.686

25.514

France

70.467

69.825

69.168

32.304

21.856

China

33.886

42.764

52.724

42.180

20.098

India

125.959

115.519

72.347

29.897

19.744

USA

47.862

44.693

25.725

20.921

17.024

Japan

20.083

28.703

29.343

17.407

14.602

Poland

48.675

50.104

49.398

54.772

8.250

Israel

4.264

4.866

6.984

20.624

7.387

Netherlands

20.036

20.061

11.390

13.785

6.931

Slovakia

6.625

4.421

6.418

6.380

5.330

Mexico

10.268

10.366

6.560

5.596

4.238

United Kingdom

18.766

16.352

13.400

12.324

2.900

Belgium

17.925

9.768

16.769

14.867

1.720

Spain

2.779

5.123

5.228

5.118

1.457

Others

32.073

28.127

27.095

18.375

7.329

Source: ITC; narrow analysis

Turkey's Agricultural Machinery Imports by HS Code (Value, thousand USD) 2015-2019

HS Code

Product Label

2017

2018

2019

Toplam

624.449

435.901

191.479

8701.93

Tractors, of an engine power > 37 kW but <= 75 kW (excl. those of heading 8709, pedestrian-controlled)

179.060

72.085

33.907

8701.94

Tractors, of an engine power > 75 kW but <= 130 kW (excl. those of heading 8709, pedestrian-controlled)

99.732

54.506

28.748

8433.90

Parts of harvesting machinery, threshing machinery, mowers and machines for cleaning, sorting etc.)

17.781

36.642

14330

8433.59

Harvesting machinery for agricultural produce (excluding mowers, haymaking machinery, etc.)

29.467

41.492

13.225

8433.60

Machines for cleaning, sorting or grading eggs, fruit or other agricultural produce

21.517

19.234

12.335

8701.95

Tractors, of an engine power > 130 kW (excl. those of heading 8709, pedestrian-controlled tractors)

22.590

23.841

11.394

8424.82

Agricultural or horticultural mechanical appliances, whether or not hand-operated

24.355

20.661

10.087

8433.51

Combine harvester-threshers

67.701

59.089

9.310

8436.29

Poultry-keeping machinery (excluding machines for sorting or grading eggs, poultry pickers)

22.947

6.225

7.577

8701.92

Tractors, of an engine power > 18 kW but <= 37 kW (excl. those of heading 8709, pedestrian-controlled

40.731

10.589

6.619

Others

98.568

91.537

43.947

Source: ITC; dar kapsamlı analiz

Note: Due to the change in some HS codes in 2017, previous years were not included in the table.

Agricultural Machinery Imports by Countries (Value, thousand USD), 2014–2018

Countries

2014

2015

2016

2017

2018

Total

61.314.747

54.047.507

52.215.718

58.015.741

63.477.950

USA

7.589.728

7.405.608

6.621.599

6.632.913

7.649.465

France

4.792.695

4.087.158

3.733.516

3.643.698

4.719.675

Germany

4.633.115

3.879.930

3.731.098

4.097.154

4.659.858

Canada

4.066.928

3.348.562

3.095.384

3.761.372

4.101.073

United Kingdom

2.809.108

2.390.879

2.255.225

2.428.263

2.584.674

Russian Federation

2.314.125

1.326.975

1.718.061

2.482.377

2.257.890

Netherlands

1.385.394

1.174.696

1.632.242

1.766.368

2.023.174

Australia

1.542.120

1.510.649

1.662.012

1.915.211

1.734.198

Belgium

1.997.592

1.538.739

1.433.064

1.554.408

1.703.342

Poland

1.700.420

1.384.810

1.032.408

1.341.719

1.675.446

Italy

1.250.035

1.111.332

1.107.883

1.230.240

1.481.838

Spain

1.128.133

1.087.728

1.074.951

1.127.715

1.353.037

Ukraine

694.401

532.935

1.138.677

1.380.944

1.147.435

Austria

1.122.916

941.069

868.547

1.001.671

1.134.893

Sweden

1.025.036

891.715

941.565

985.596

1.096.928

Mexico

888.109

959.167

901.481

902.374

947.423

Denmark

857.955

700.196

797.505

926.683

938.996

Romania

698.933

550.385

568.326

682.715

931.706

Czech Republic

835.393

753.109

649.299

772.437

914.122

Hungary

803.429

584.728

651.813

777.201

884.619

China

890.357

966.394

832.235

782.893

751.004

Japan

697.831

490.897

587.220

674.065

724.226

New Zealand

682.849

473.990

429.501

598.382

670.023

Switzerland

656.563

646.122

600.844

614.452

658.295

Norway

603.817

549.122

570.672

611.938

656.235

Bulgaria

569.006

578.186

480.886

500.092

622.714

South Afrika

781.943

551.127

431.287

593.257

553.682

Argentina

353.615

294.601

408.092

783.171

548.612

Lithuania

363.227

351.983

463.636

497.849

543.332

Brazil

640.348

398.750

334.299

365.426

533.612

Republic of Korea

494.193

385.700

484.449

476.802

520.756

Ireland

467.355

414.428

376.902

407.287

512.555

Finland

517.159

379.273

402.373

397.199

466.047

Chşle

387.312

369.744

329.721

369.660

445.561

Turkey

602.631

680.319

657.007

624.449

435.901

Others

10.470.976

10.356.501

9.211.938

10.307.760

10.895.603

Source: ITC; narrow analysis

3. EU-Turkey Comparison in Number of Companies in the Agricultural Machinery Industry

Although more than a thousand companies operate in the sector, this number is an average of 500-600 companies in the leading EU countries except Italy. There is a production value of € 22 million per unit firm in Germany, € 4 million in Italy, € 8.5 million in France, € 5.2 million in the UK and € 2.6 million in Poland. In Turkey, this value is € 1.85 million level.

Number of Companies in Agricultural Machinery Industry in EU Countries, 2016

Ülkeler

Firma Sayısı

Ülkeler

Firma Sayısı

Ülkeler

Firma Sayısı

Germany

577

Finland

139

Greece

450

Italy

1.772

Czech Rep.

266

Esthonia

29

France1

546

Denmark

156

Lithuania

10

United Kingdom

483

Hungary

145

Latvia

22

Netherlands

307

Slovakia

47

Bulgaria

54

Austria

120

İreland2

79

Cyprus

8

Belgium

187

Slovenia

56

Luxembourg

0

Poland

563

Portugal

155

Malta

0

Spain

749

Croatia

59

EU–28

7.245

Sweden

206

Romania

60

Turkey

1.434

Source: CEMA, 2019

(1) France: INSEE, 2016, (2) Ireland: 2014