News: Agricultural

2021-06-27

Second Wave COVID Will Have Limited Impact on India Ag Sector

Aditya Kondejkar

“COVID-19 cases started spreading in the rural areas with the beginning of the month of May, and agriculture activity in the month of May is bare minimal, particularly land-based activities,” says Niti Aayog Member (Agriculture) Ramesh Chand.

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PSR Analysis: The second wave of COVID-19 started spreading in the rural areas in May 2021, but agriculture activities in May are minimal, and are mainly land-based activities. Agri activities peak in March or the middle of April, after which it drops significantly and again peaks with the arrival of monsoon.

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Edge Computing Brings Data Closer To Home

John Krzesicki
John Krzesicki

It’s often said that there’s nothing new under the sun, only new ways of doing old things. That may be especially true in how we handle data.

Ever since Power Systems Research began tracking global production of engines and powertrains in 1976, its analysts have been alert to new trends surrounding power and data movement.

Today, as three essential metrics in data handling change— cloud costs, volume and processing time—, the structure of data networks also is changing. In many cases, it’s not practical to send vast amounts of data to the cloud to be processed and then wait for the results. Now, it’s often necessary to have smaller data centers located near the activity, at the edge of the action, if you will.

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DATAPOINT: NA Harvesters, 2021 Production, 550 Units

550 units is the estimate by Power Systems Research of the number of Harvesters to be produced in North America in 2021. This information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers.

Market Share: Dominating the NA market for Harvester production is Deere with 50.5% of total units produced.  In second position with combined plant total of 20% is Oxbo “International; third is Flory with 13%.

Trends: In 2020, production of Harvesters in NA decreased 17%.  Production is expected to increase 19% in 2021 over 2020.  The Ag industry has fluctuated over the years and demand for new products has declined.  Due to falling commodity prices in recent years, farmers/cultivators can’t afford new equipment and have spent years of refurbishing existing units.

Uncertainties of COVID-related factors led farmers to avoid spending nominal profits on new machinery. Over the past several years, the dramatic fall in net farm income in 2015 and 2016 seems to be leveling out at a lower level. However, America’s farmers are enduring the impact of a continuation of the current trade war with China. 

On the flip side, the harvester production increase is attributed to the desire for new machines to increase productivity and to end up with a profitable yield.  Expect production to fluctuate over the next 3-5 years with a slight gain of 5% by 2025.   PSR

Carol Turner is Senior Analyst, Global Operations, at Power Systems Research

2021-06-22

DATAPOINT: NA Skid Steer Loaders, 2021 Production Forecast: 95,100 Units

95,100 units is the estimate by Power Systems Research of the number of Skid Steer Loaders to be produced in North America (Canada and the U.S.) in 2021.

This information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers.

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2021-06-19

CTT Bauma Moscow Shows Growing Optimism in Russian Construction Market

Maxim Sakov
Maxim Sakov

The CTT Bauma trade show is main event of construction industry in Russia. Since 2017 it’s owned and operated by Messe Munich. The show was conducted this year in Moscow May 25-28 in its usual place, the Crocus Expocenter. Last year, the fair was off because of the COVID pandemic, but this year we saw that both the exhibition and construction industries are showing a growing trend. The fair’s indoor exposition was restored to three pavilions, and the outdoor exposition also grew in size versus 2019. There were 351 exhibitors from 17 countries, somewhat better than last time. A total of 184 brands were represented.

Here is, however, one unpleasant factor. Most of the international OEMs did not participate in the fair this time. Wirtgen, Volvo, Cummins, Caterpillar, Ammann, Hyundai, Renault, Komatsu machines were missing from this fair. John Deere, Doosan, Kato, and some other brands were limited, having only small booths, set by the local dealers. Many Russian machine makers, who usually participate in the fair, also ignored the event. Among them – GAZ, Chetra, DST-10, Chelyabinsk Tractor Plant, YAMZ.

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2021-05-24

Russian AG Machinery Exports Double in Q1 2021

Maxim Sakov
Maxim Sakov

Exports of Russian AG machines more than doubled in Q1 2021 versus the same period in 2020; exports have reached US$ 53 million (3.9 billion rubles).

Rosspetsmash, the Russian Association of Manufacturers, notes that Russian OEMs showed record high figures for 2020, reaching US$ 214 million (15.9 billion rubles). For Q1 2021, Russian AG machines were shipped to 23 countries. Exports of AWD tractors are up by 2.8 times, and combines, by 46%. The exports to Germany have increased by five times, to Bulgaria by 65%, and to Poland by 49%.

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Mahindra To Set Up New Plant for Farm Equipment

Aditya Kondejkar

Mahindra and Mahindra Ltd (M&M), market leader in the Indian tractor industry, is betting on farm equipment because of increasing demand. The decision is greatly influenced by the healthy agricultural output, record sales for tractors and reverse migration since last year.

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PSR Analysis: The company is trying to enter the untapped farm mechanization segment in the country. According to Mr. Hemant Sikka (President Farm Equipment Sector Mahindra) this market has very high potential as India has only 1% share of the global farm equipment market vs. 10% of the global tractor market. 

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2021-03-20

Jacto Announces New Plant in Brazil

Jacto has announced a new 96,000 m2 plant that it will build by 2023 in Pompeia-SP – Brazil, the same location where most of its operations are already located. Fernando Gonçalves Neto, Jacto President, says the new and modern facility will sustain forecasted growth for several years.

Source: M&T Magazine     Read The Article

PSR Analysis: Jacto has been growing in importance with specialized products for high caliber agriculture in Brazil with sprayers, harvesters, and seeders. They have been launching new agricultural products with remarkable success and the growth outlook is positive. PSR

Fabio Ferraresi is Director of Business Development-South America for Power Systems Research

2021-01-25

Weichai Takes 60% Stake in Agricultural Equipment Maker

Qin Fen
Qin Fen

Weichai Holding Group Co., Ltd., a leading Chinese powertrain manufacturer, has acquired a controlling stake in Lovol, one of the country’s major agricultural equipment makers.

Source: Xinhua News Agency    Read The Article

PSR Analysis: People look up to leading companies in industry because often times they are not just leading the trend, they are also setting an example of weathering the storm during crisis.

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2021-01-22

NA Economic Outlook: Slower H1 2021, But Much Stronger H2 2021 Expected

Yosyf Sheremeta
Yosyf Sheremeta

SUMMARY.  In our previous forecasts, we have discussed some hope for a V-shaped recovery, it did not materialize.  Our conclusion was based on several factors, such as the current economic cycle, overall strength of the economy, fiscal policy, political landscape in the US and globally, etc. After managing through the early stages of the pandemic in H1 2020, we saw good trends in H2 2020 and we had reasons to be optimistic for a quick recovery.

However, the recovery took a slight pause during the last few months.  Unemployment continued to increase, and regional lockdowns prevented the necessary demand for a significant year-end growth.  Now that the elections are over, we’ll have yet to see what the new administration will be able to achieve during the next two years.  Specifically, if the long awaited infrastructure reform can be passed.  However, fiscal policy with near zero interest rates, which government has promised to keep in place for the near future, will provide a good platform for the economic recovery and allow us to look optimistically into 2021-2022.

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