Kuhn Group net sales of CHF913 million (approx. £854 million) were almost 20% lower in the first nine months of this year. Net sales in the same period last year were CHF1.3 billion (around £1.1b).
The market slowdown was in line with expectations reports Kuhn Group parent company Bucher Industries, which blames farmer caution when buying new kit on lower prices for agricultural products, high interest rates and fewer subsidies.
The weather did not help in Brazil and Europe, where harvests were lower, while yields in North America are higher. The bright spots are the dairy and beef sectors. These have benefited globally from solid milk and meat prices, with grassland machinery performing the best for Kuhn from January to September this year.
Generally, though, many dealers have high inventories and were therefore hesitant to place pre-orders. This resulted in a significant nearly 25% decline in order intake, the two hardest hit markets being Brazil and Europe.
Demand for farm machinery is forecast to remain subdued for the remainder of this year, and capacity adjustments have been made at the plants in Brazil and Europe as Kuhn continues to optimise costs.
For more up-to-date farming news click here and subscribe now to profi and save 47%.
