According to the Italy's Farm Machinery Manufacturers Association, FEDERUNACOMA, Italian farm machinery sales, including machine components, increased 4% this year to approximately $10 billion. To great extent, the increased sales can be attributed to stronger demand for farm machinery in European markets, particularly since the domestic market has experienced a relatively flat growth. For 2012 and 2013, Italian production of farm machinery should benefit from strong demand in the United States, as well as improving economic conditions in Eastern European and other emerging markets.
In 2012, Italian exports of farm machinery accounted for about 63% of total production and experienced an increase of 8% over the prior year. This growth has been fueled primarily by strong demand for farm equipment in France and Germany. Furthermore, during the same period, exports of Italian farm machinery to the United States have also made encouraging gains, particularly when considering the drought conditions that have affected farming in many areas of the country. This growth trend is expected to continue in the coming year because of strengthening farm commodity prices and the resulting gain in net farm income.
Italian farm equipment manufacturers look to foreign markets and emerging economies to grow their businesses. Italian companies provide OEMs a high quality and cost- effective partner for parts and assembly systems. Outside of Europe, the United States is the most important market for Italian farm machinery. Last year, U.S. imports of Italian farm machinery, including component parts, totaled about $600 million. Italy is the 4th largest foreign supplier exporting $535 million worth of farm machinery and components to the United States in the first ten months of 2012. In terms of sales, Italy is one of the largest producers of farm machinery in the world, second only to the United States. For distributors looking to carry new equipment lines, Italian manufacturers offer highly competitive, high quality farm equipment with proven performance in the world mark.