Industry Facts
The overall value of turnover of A.E.A. members, both manufacturers and suppliers to the British market, was estimated to be over £4.1 billion in 2008. Exports for tractors, agricultural machinery and outdoor power equipment accounted for nearly £1.7 billion.
For an Overview of the Agricultural Machinery Industry click here
Agricultural Engineering Industry
For the agricultural engineering sector total turnover was estimated at close to £3.5 billion, almost £1.9 billion of this being contributed by UK based manufacturers. Within this total the export trade approached £1.6 billion.
In 2008 the UK agricultural engineering industry suffered a trade deficit of £0.25 billion.
Domestic Market: In the last decade between 10,000 and 18,000 new agricultural tractors have been registered each year; 2008 saw a total of 17,104 units, some 10% more than 2007 and the largest number since 1996. The average horsepower of an agricultural tractor has risen from 111 to 138 hp in the last 10 years.
The value of sales of agricultural machinery excluding tractors in the UK in 2008 was estimated to be towards £950 million, more than a quarter up on 2007 and more than two and a half times that recorded for the year 2000.
The increases in the tractor and machinery markets in 2008 reflected the improved position of farming, in particular the substantial increase in grain prices associated with the 2007 harvest. The investment in new equipment that began in the last quarter of 2007 continued through to the end of 2008 despite prices falling again in the autumn.
Outdoor Power Equipment
The total domestic market for outdoor power equipment has been estimated at some £575 million in 2008, an increase of some 6% on the previous year.
UNITED KINGDOM TRACTOR REGISTRATIONS
Agricultural Tractor Registrations (>50 hp) : Monthly 2008-2010
| Yearly | Year | Yearly | Yearly | ||||
| % | to | % | Moving | % | |||
| Year | Month | Units | Change | date | Change | Total | Change |
| 2008 |
Jan
|
767 | 4.5 | 767 | 4.5 | 15573 | 14.3 |
|
Feb
|
692 | -10.9 | 1459 | -3.4 | 15488 | 12.5 | |
|
Mar
|
2003
|
8.2
|
3462
|
3.0
|
15640
|
11.6 | |
|
Apr
|
2116
|
28.6
|
5578
|
11.4
|
16111
|
12.5 | |
|
May
|
1892
|
23.9
|
7470
|
14.3
|
16476
|
15.4 | |
|
Jun
|
1796
|
19.0
|
9266
|
15.2
|
16763
|
16.1 | |
|
Jul
|
2185
|
20.4
|
11451
|
16.2
|
17133
|
16.8 | |
|
Aug
|
1588
|
-1.6
|
13039
|
13.7
|
17107
|
13.2 | |
|
Sep
|
1684
|
20.3
|
14723
|
14.4
|
17391
|
13.5 | |
|
Oct
|
1047
|
0.0
|
15770
|
13.3
|
17391
|
13.1 | |
|
Nov
|
702
|
-22.6
|
16472
|
11.1
|
17186
|
10.5 | |
|
Dec
|
632
|
-11.5
|
17104
|
10.1
|
17104
|
10.1 | |
| 2009 |
Jan
|
790 | 3.0 | 790 | 3.0 | 17127 | 10.0 |
|
Feb
|
858 | 24.0 | 1648 | 13.0 | 17293 | 11.7 | |
|
Mar
|
2313 | 15.5 | 3961 | 14.4 | 17603 | 12.6 | |
|
Apr
|
1986 | -6.1 | 5947 | 6.6 | 17473 | 8.5 | |
|
May
|
1591 | -15.9 | 7538 | 0.9 | 17172 | 4.2 | |
|
Jun
|
1686 | -6.1 | 9224 | -0.5 | 17062 | 1.8 | |
|
Jul
|
1603 | -26.6 | 10827 | -5.4 | 16480 | -3.8 | |
|
Aug
|
1062 | -33.1 | 11889 | -8.8 | 15954 | -6.7 | |
|
Sep
|
1167 | -30.7 | 13056 | -11.3 | 15437 | -11.2 | |
|
Oct
|
782 | -25.3 | 13838 | -12.3 | 15172 | -12.8 | |
|
Nov
|
662 | -5.7 | 14500 | -12.0 | 15132 | -12.0 | |
|
Dec
|
513 | -18.8 | 15013 | -12.2 | 15013 | -12.2 | |
| 2010 |
Jan
|
516 | -34.7 | 516 | -34.7 | 14739 | -13.9 |
Source: A.E.A. Economics Department
UK tractor registrations are taken as a broad indicator of the strength of the domestic market for agricultural equipment. Tractors must be licensed for use on public roads and as such are registered with the Department for Transport which allows an accurate count to be made. In value terms, sales of tractors, plus parts and accessories, account for almost one half of farmers' total spend on equipment, which again makes this data series a prime indicator.
Agricultural Tractors: Sales levels held up through the year, although the second half was less buoyant than the first with falling crop prices and as the 2008 harvest proved more difficult and less rewarding.
History: The first chart below illustrates a cyclical pattern around a longer term downward trend, with 2008 emerging as the peak for this decade; the power sold in recent years is shown in the second chart.
Regional: The more westerly regions have been grouped in the first chart below; these tend to include more dairy and livestock enterprises. The more easterly regions are shown on the second chart and these tend to have a predominantly arable base. With the healthy incomes from the 2007 harvest the largest increases were again seen in the predominantly arable regions, with the exception of the Northern region of England.
UK TRACTOR REGISTRATIONS : Market Share Analysis
Source: AEA Economics Department
|
2006
|
2007
|
|||
|
% of Total
|
% of Total | |||
| Company | Units | Units | ||
| John Deere |
3861
|
25.8
|
5000
|
29.3
|
|
CNH |
3584 |
24.0 |
3766 |
22.0 |
|
AGCO |
3472
2580 535 357
|
23.2
17.3 3.6 2.4 |
3830
2766 662 402 |
22.4
16.2 3.9 2.4 |
| McCormick |
860
|
5.8
|
845
|
4.9
|
| Claas |
732
|
4.9
|
926
|
5.4
|
| Same Deutz-Fahr | 622 | 4.2 |
755
|
4.4
|
| Kubota | 536 | 3.6 |
667
|
3.9
|
| Landini |
192
|
1.3
|
210
|
1.2
|
| JCB |
182
|
1.2
|
237
|
1.4
|
| Others |
900
|
6.0
|
853
|
5.0
|
| Total UK |
14941
|
100.0
|
17089
|
100.0
|
| N.B. Data includes Compact Tractors (<= 50 hp) and Agricultural tractors (> 50 hp) Case includes Steyr, MF includes Challenger Data released after one year delay |
||||
UK AGRICULTURAL TRACTOR REGISTRATIONS (> 50 hp)
| 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | |
| Units | 9468 | 10911 | 10304 | 11523 | 13878 | 14445 | 14750 | 13068 | 13566 | 15540 | 17104 |
| Annual % Change |
-37.3 | 15.2 | -5.6 | 11.8 | 20.4 | 4.1 | 2.1 | -11.4 | 3.8 | 14.6 | 10.1 |
| Total horsepower (000's) |
1053 | 1279 | 1241 | 1376 | 1646 | 1819 | 1900 | 1667 | 1741 | 2082 | 2361 |
| Annual % Change | -36.8 | 21.5 | -3.0 | 10.9 | 19.6 | 10.5 | 4.4 | -12.2 | 4.4 | 19.6 | 13.4 |
| Average horsepower |
111.2 | 117.2 | 120.5 | 119.5 | 118.6 | 126.0 | 128.8 | 127.6 | 128.3 | 134.0 | 138.1 |
| Annual % Change | 0.9 | 5.4 | 2.8 | -0.8 | -0.7 | 6.2 | 2.3 | -1.0 | 0.6 | 4.4 | 3.1 |