After three difficult years, the agricultural machinery market enjoyed a bit of a recovery in 2017, and improving dairy and livestock fortunes had a positive impact on the Kuhn Group’s 2017 turnover, which exceeded one million Swiss Francs (approx. €928 million) – up 15.7% on 2016’s CHF930 million (around €805 million).
Higher European milk and meat prices boosted demand for hay, grass and livestock bedding machinery, but the arable sector was once again affected by low and volatile prices. The important French market struggled following 2016’s poor harvest, and North America farmers were also cautious with investments.
Further improvements in the European dairy and livestock sectors are anticipated this year, but crop price uncertainties following 2017’s bumper harvest are expected to subdue interest in new arable kit. While the recovery in Europe is likely to continue, the rebound could take more time in North America where farm incomes remain under pressure. Even so, the Kuhn Group forecasts further sales growth in 2018 and an improvement in the operating profit margin.
