AGRAGEX expects 2017 to close with a 10% increase in Spanish exports of agricultural equipment
AGRAGEX, the Spanish Association of Manufacturers-Exporters of Agricultural Machinery and its Components, Greenhouses, Crop Protection, Irrigation Systems, Livestock Equipment, Animal Health and Nutrition, Forest Machinery, Biomass and Post-harvest; On February 21st, it released information on the Spanish export of agricultural equipment during the last financial year. With official data available only until November 2017, and totaling exports worth 2,127,949,081.08 €, the association estimates that the year will close with a 10% increase compared to 2016, in which, moreover, only an increase of 2.95% had been achieved compared to 2015.
The main reason for this spectacular improvement is placed by AGRAGEX in the good performance of Europe in general and France in particular. Europe will grow by 15%, breaking the downward trend that dragged the last two years
According to Jaime Hernani, president of AGRAGEX, “good winds are blowing over the old continent and agriculture and livestock again see green numbers and” buying joy “. We must not forget that Europe is something more than 60% of the total of Spanish exports”.
The main driver of this improvement is France. After three years especially bad for Spanish exports, it seems that 2017 returns to resume the path of growth and, if everything goes as expected, Spanish sales to the French country will register a rise of 14%. Although we are still far from recovering the 2013 figures, a positive trend is emerging that offers hope to our manufacturers.
Portugal, Germany, the Netherlands and Italy have performed magnificently and the growth of our exports has been between 15% and 20%
For its part, exports to Turkey have stabilized after the tensions recently experienced and Russia has exploded in its purchases of Spanish agricultural machinery. In the absence of December data, an increase of no less than 40% is expected, until reaching the level of 2014.
North of Africa
As for the Maghreb, the year has not been good. The persistent droughts throughout the year took their toll and with luck the sales reached in 2016 will hardly be repeated
Both Morocco and Algeria have had an erratic behavior and only Egypt is saved, which has had a great behavior, doubling its purchases to Spain, to record the 40 million euros.
In Latin America, the results have not been good either. The bad evolution of the dollar throughout the year has been worsening sales as the year progressed. Its weakness has caused the strength of the euro to reduce our exports as the months passed. The Spanish exports of agricultural equipment will be reduced, approximately, by 8% compared to 2016, highlighting the drop of just over 20% in Mexico.
On the contrary, the United States rose considerably and a close with an 18% improvement in our exports to the American giant is expected
Instability in Asia
Finally, Asia has had an erratic and very irregular behavior throughout the year, which contrasts with its traditional stability. AGRAGEX estimates that 160 million euros will be reached, which means an increase of close to 8%
Jaime Hernani believes that “in general you could say that the year has been good. Stresses the recovery of Europe and the weakness of the dollar as two important and opposite concepts. The start of 2018 has only confirmed us, the strength of the euro, or the forced weakness of the dollar, and the strength of Europe, which seems to have a good performance“.
Source: AGRAGEX
