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DLG Trendmonitor results: Continued investment despite challenging conditions

This spring the Trendmonitor surveyed 3,500 farmers in eight countries – Germany, France, UK, Poland, the Czech Republic and Hungary. Included in the survey for the first time were top farming decision makers in Russia and the Ukraine: and responses from the new countries emphasised the continued importance of markets for agricultural machinery in eastern Europe and further afield.
4 June 2009
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Agritechnica Preview highlights latest DLG Trendmonitor results. Eastern European farmers cautious - but other countries plan machinery expansion despite medium-term uncertainties.

Willingness to invest in agricultural machinery and farm developments remains steady in Europe, according to latest DLG Trendmonitor results presented to experts attending the Agritechnica 2009 Previews in Sweden and France in May.

The international mood amongst farmers remains very realistic which means financial developments are being carefully watched,” commented Dr Jochen Köckler, Managing Director, DLG Exhibitions Department. “The results of the DLG Trendmonitor show farmers are confronted with many new challenges but are still willing to spend money on solutions for more efficient farming.

Dr Köckler added that the importance of DLG exhibitions such as the coming Agritechnica in Hanover this November was crucial in the current situation. The largest exhibition of agricultural machinery in the world was the ideal international platform for the latest in advice, management aids and innovative new technology for even more efficiency desperately needed in difficult times.

This spring the Trendmonitor surveyed 3,500 farmers in eight countries – Germany, France, UK, Poland, the Czech Republic and Hungary. Included in the survey for the first time were top farming decision makers in Russia and the Ukraine: and responses from the new countries emphasised the continued importance of markets for agricultural machinery in eastern Europe and further afield.

In Germany, respondents reflected the uncertainties of the financial crisis and related input price and market volatility typified by the current downward spiral of milk prices. Their estimation of the current economic situation on a scale where 1 is “very good” and 5 “very poor” has dropped from last autumn’s 3.0 to 3.7. Ukraine farmers gave the lowest score on this subject with 4.2. And the less optimistic mood so far in eastern Europe generally was reflected in the 40 per cent of Russian farmers and one third of those from Ukraine that could give no answer to future investment prospects.

In general, the situation on own-farms was noted “normal” in the survey with 3.1 and 3.0 for the period up to spring 2010. DLG Chief Economist Dr Achim Schaffner interpreted the latest Trendmonitor results as showing that farmers in at least some areas are willing to invest strongly once the economic situation calmed down. Helping the situation was the fact that money is very cheap in some of the countries surveyed. Looking ahead he warned, though, that the agricultural markets in autumn 2009 would be “crucial” for further investments decisions through the winter and into 2010.

Despite this, the Trendmonitor results as presented at the Swedish Agritechnica preview indicated that farmers in western Europe were still planning to invest not only in tractors but also in tillage, fertiliser and plant protection machinery: strategies for which Agritechnica 2009 is ideally placed this autumn with its international machinery exhibitors, innovations and forums on new crop production efficiencies.

Yet another boost for the show is the growing interest in bioenergy production indicated in the survey in Germany, but also particularly in France and the Czech Republic. This year Agritechnica will include an area focused on energy production where equipment for establishing, growing and harvesting crops for this purpose will be on show. Information and advice will be freely available on the best cultivation techniques and crop types for efficient production and processing of fuel from the fields.

Trendmonitor Europe is conducted by the independent Kleffmann Group (Lüdinghausen) market research company on behalf of the DLG. Twice a year, in spring and after harvest, leading farmers and farm managers throughout Europe are asked opinions on mood and business conditions as well as major trends, plans and expectations. The latest survey involved over 3,000 farmers from eightcountries, with those from Russia and Ukraine part for the first time.

http://www.agritechnica.com/index.php?struts=publicArtikelDetail.do&id=1592&artikelId=2421&kategorieId=10&spracheId=2&bereich=News

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