Europe and Central America each recorded double-digit gains, and the other world regions saw double-digit declines, led by Africa and South America, according to the Association of Equipment Manufacturers (AEM), which cited the U.S. Department of Commerce data that was used in the global market reports sent to its members.
“While U.S. ag equipment exports to the world continue to decline, this quarter’s year-over-year decline of 8 percent was lower than last quarter’s 16.7-percent decline and 2015 third-quarter decline of 29 percent,” said Benjamin Duyck, director of market intelligence for AEM. “Declines are continued to be expected as global market drivers responsible for the ag downturn, such as low commodity prices and the larger global malaise, remained in place, but aside from specific industry-related issues, international trade overall is slowing down. A strong U.S. dollar also continues to hamper our nation’s global competitiveness.”
Duyck also explained that global recovery is not expected to be in sight for at least six months.
“While the sector does seem to have stabilized, it is a low level of stability, and recent data from the results of the recent Agrievolution Business Barometer shows that Central America remains an important market for the U.S.,” he said. “Exports of harvesting equipment, particularly combines, as well as exports of tractors and tractor parts drove the growth in exports to Germany. Export growth in new tractors was the main driver for trade with France.”
The top countries buying the most U.S.-made agricultural machinery during the first quarter of 2015, by dollar volume, were:
1. Canada – $468 million, down 20 percent
2. Mexico – $276 million, up 14 percent
3. Australia – $79 million, down 27 percent
4. Germany – $73 million, up 11 percent
5. France – $63 million, up 37 percent
6. Brazil – $50 million, down 19 percent
7. Ukraine – $49 million, up 161 percent
8. China – $49 million, down 36 percent
9. Russia – $39 million, up 48 percent
10. United Kingdom – $37 million, down 13 percent