Italy, the largest ag equipment producing country after the U.S. and Germany, will likely see an 11.9% decline in tractor exports by the end of 2018. This is according to FederUnacoma, the Italian Agricultural Machinery Manufacturers Federation, which also reports that national production is dropping in the country as a result. Even so, other equipment segments are performing strongly which should lead to a production value in line with 2017 levels.

Turnover for gardening equipment and components is stable and showing a 19% growth, which should offset the decline in tractors. The addition of other machinery and implements leads to an outlook of production valued at €11 billion ($12.5 billion), in line with the previous year.

Italy fancies itself as the top ag equipment producer worldwide in terms of production capacity and breadth of range. Its two biggest export markets are Europe and the U.S., though FederUnacoma notes there are changes in where the country ships its products.

The group’s President Alessandro Malavolti said during a press conference at the International Exhibition of Agricultural Equipment International (EIMA) in November that 2017 saw an expansion of exports to France and the U.S. The first half of 2018 on the other hand has revealed a different trend.

Export value to France (the leading country in purchases of Italian equipment) reported a decline of 11.6% due to a decrease in demand. Exports to Germany slipped by 0.3% while Turkey saw 20.6% decline in exports to currency devaluation making foreign merchandise pricier.

Along with the forecasted decline of 11.9% for tractors, officials expect 2.4% declines in ag machinery and implements as well as 3.1% growth for incomplete tractors and tractor parts. Overall, the value of Italian exports is expected to decline 4.2%, from €5.2 billion in 2017 to less than €5 billion ($5.7 billion) in 2018. Because exports account for 70% of Italian sales, industry production has dropped.

By year’s end Italian tractors should reach a value of €1.8 billion ($2 billion), down 8.3% in 2017. Other ag machinery could decline by 1.8% while tractor parts are expected to increase 0.6%. These figures should be compensated for by the growth in components production, estimated to increase 10%, as well as a stable trend in gardening and groundskeeping machinery. All things considered, Italian ag production should finish the year with turnover of €11 billion ($12.5 million), in line with 2017.

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