Kuhn affected by lower farm incomes
The market for agricultural equipment declined for the third successive year last year, resulting in a 13% fall in Kuhn Group net sales to CHF 930 million (approx. £740 million).
Down from 2015’s CHF 1.068 billion (around £850 million), the company blames the further decline in agricultural commodity prices and farm incomes worldwide, on record cereal harvests, overproduction in the milk sector and a meat surplus. Adverse weather conditions resulted in lower cereal yields in the important French market, and the Kuhn reckons the cautious investment behaviour is particularly noticeable in North America.
Looking ahead, the company expects low prices for agricultural produce and subdued demand for machinery in the arable sector to continue this year, but rising milk prices could provide a slight increase in demand for livestock bedding and feeding equipment.
Friday, 3 February 2017
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