28 February 2015 | Online since 2003



Agricultural machinery 'must innovate' to meet food demand


Companies in the agricultural machinery supply chain will need to change their business models to meet the growing global demand for food, according to a report from Rabobank.

With global demand for food expected to increase by 70 percent by 2050, the role of the machinery manufacturer and equipment dealer is changing, and machinery is becoming an integral part of the all-encompassing solution to increase productivity.

However, diversity among farmers means there is no ‘one-size-fits-all’ solution, and no one business model for manufacturing and selling agricultural machinery.

Increasing productivity is complicated by the diversity among farmers as the farming industry is in different stages of development in different parts of the world.

For example, Asia and Africa, with their small farm structure, are at a relatively early stage in adopting modern agricultural machinery.

In comparison, mature markets, such as the US, Europe and Australia, are showing consolidation amongst farmers, resulting in growth in the large farm segment.

The whole farm inputs complex is shifting gears to contribute to the productivity challenge and also to benefit from the increase in spending power of farmers; made possible by higher agri-commodity prices.

The increasing size of farms, availability of new technologies and emerging opportunities to combine machinery and other inputs to further enhance agronomic practices result in demand for integrated farming solutions.

Ever larger farms in key markets for agricultural machinery, such as North America, Europe and Australia as well as new frontier regions in South America and the Black Sea region, are increasingly using on-farm management information and working with integrated farming solutions to optimise inputs.

Machinery manufacturers can either take a leading role in developing integrated farming solutions by tapping into the larger market of all farm inputs, or take a secondary role by contributing to integrated farming solutions led by others.

Either way, they will need to consolidate further in order to fund R&D and to gain the critical mass to collaborate with other input suppliers.

For equipment dealers, machinery sales will change from a one-off sale of a fixed asset to the long term provision of services.

Download



Comments


19-11-2012 21:14 PM | Posted by: Mike Donovan
Rabobank is correct in pin-pointing machinery as the input needing development. As farm commodity prices rise so methods change. Ten years ago oil seed rape was best planted as inexpensively as possible, behind the combine header was one system. With osr 3x as much it's worth spending more money on the agronomics, planting behind a subsoiler and getting that extra 1/2ton+ per acre. The new Practical Farm Ideas has a top home built design.

To post comment without approval login or register

Display name

Please enter your name

Email (optional)
Comment

Please enter your comment

Post Comment

Your comment submitted successfully.Please wait for admin approval.

Some error on your process.Please try one more time.



Jobs


12 February 2015
Product Manager
If you are looking to start the next stage of your career in agriculture then there is no better. Are you ready for your next...

19 February 2015
Production Manager - Dairy
Established in 1997 the Gelli Aur Resource Centre within Coleg Sir Gâr is fundamental in supporting Gelli Aur as a “Centre of...

12 February 2015
Apprentice Gardener
Working as part of small teams out of fully equipped vans, each team is responsible for every task necessary to keep customer...

26 February 2015
Band 6 Biomedical Scientist
It comprises Barnet Hospital, Chase Farm Hospital, the Royal Free Hospital and more than 30 services in the community....

24 February 2015
Stockperson
Stockperson for outdoor pig farm in Norfolk. W e are looking to recruit a hard working , caring person to work with pigs on a...




Top stories you may have missed
2 February 2015 | Arable
Is EU membership damaging UK farming?

Is EU membership damaging UK farming?

Membership of the EU is damaging the British farming industry, according to...


29 January 2015 | Machinery and Equipment
Drones 'rapidly changing' agriculture

Drones 'rapidly changing' agriculture

BASIS has launched an accreditation for pilots of Unmanned Aerial Systems (...


23 January 2015 | Arable
UK wheat yields have potential to double

UK wheat yields have potential to double

UK wheat yields have theoretical potential to more than double over the nex...


23 January 2015 | Machinery and Equipment
Crowds flock to LAMMA 2015

Crowds flock to LAMMA 2015

Britain’s farmers flocked to Peterborough for the first day of LAMMA’15 to ...


22 January 2015 | Cattle
Don't blame supermarkets for milk crisis...

Don't blame supermarkets for milk crisis...

The crisis in the dairy industry is not the fault of supermarkets, accordin...


16 January 2015 | CLA
Families affected by HS2 face 'major wor...

Families affected by HS2 face 'major wor...

Transport Minister Baroness Kramer visited three rural businesses in Cheshi...


16 January 2015 | Machinery and Equipment
John Deere unveil new 6R tractor range

John Deere unveil new 6R tractor range

Spearheading the John Deere range of mid-size tractors from Mannheim, the n...


14 January 2015 | Animal Health
Monthly TB checks more effective than ba...

Monthly TB checks more effective than ba...

Regular testing for bovine TB could significantly reduce the number of infe...


12 January 2015 | News
Government regulations hampering UK agri...

Government regulations hampering UK agri...

Single-issue policy-making threatens to hamper, not help, the progress of U...


8 January 2015 | Cattle
2015: The year ahead for the beef market

2015: The year ahead for the beef market

2014 has been a “rocky old year” for the beef industry but better prices ar...