News: Agricultural

2023-12-17

Mahindra Plans To Double Tractor Exports

INDIA REPORT
Aditya Kondejkar

“Our aim is that with the launch of Oja (platform), we will double our export in the next three years,” says Hemant Sikka, president of Mahindra’s farm equipment sector. “So, we want to increase exports from 18,000 to 36,000 in about three years.”

In collaboration with Mitsubishi Mahindra Agriculture Machinery, Japan, and an investment of INR 1200 crore, the new Oja platform could help Mahindra win 25% of the worldwide tractor demand. This includes tapping into new markets such as Europe and ASEAN, as well as strengthening its presence in sectors like horticulture.

Source: Economic Times    Read The Article

PSR Analysis: The launch of Mahindra Tractors’ new Oja platform underscores a strategic move with several critical business implications. First, the entry into the 80,000 unit ASEAN market represents an expansion initiative, targeting countries such as Thailand, Indonesia, and the Philippines. This move aligns with the company’s global growth strategy, capitalizing on the increasing demand for tractors in these emerging markets.

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2023-12-04

2024 Combine Production: 7,100 Units

7100 units is the estimate by Power Systems Research of the number of Combines to be produced in North America (United States) in 2023. Final 2023 production numbers will be available later in Q1 2024.

North America Combines – Dec 2023Download

A combine is a farm machine that harvests grain crops. Combines can reap, thresh and winnow crops into a single process. Crops include wheat, oats, rye, barley, corn, etc. Combines overall boost crop output and farm income. 

Market Share:  With 61.5% of total units produced, Deere captured the lead for combine production in North America (US).  In second position was Case with 25%; third, was Claas Omaha with 9%.

Trends: In 2022, production of Combines in North America increased nearly 12.5%, climbing from 6,372 units in 2021 to 7,162 units in 2022. Production is expected to remain flat in 2023 with a nominal decrease of less than 1%.  The Combine market steadily rose this past year and farmers are upgrading to new machines. PSR

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

2023-10-24

Sonalika Group Plans $100 Million for Export Facility

INDIA REPORT
Aditya Kondejkar

Sonalika Group is planning to spend approximately $100 million to set up a manufacturing facility for the production of tractors aimed at the international export market. Production will be used to developing products tailored to meet customer requirements in Latin America, Europe, United States, Oceania and South Asia

“We are looking at investing $100 million to set up a dedicated facility for exports. The new unit will have total installed capacity of 100,000 units and will be commissioned within the next two years,” according to Gaurav Saxena, director and CEO of the company’s International Tractors Ltd., operation.

One-third of the group’s revenue is attributed to exports, and the organization aims to be among the world’s top three tractor brands by 2030, considering the global sale of 1.5 million tractors. Presently, ITL exports 35,000 units and has set a target to reach 100,000 units within the next seven years.

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2023-08-20

Methane Is A Big Greenhouse Gas Problem

The world has a methane gas problem. Methane is over 80 times worse for forcing global heating over 20 years than its greenhouse gas sibling, carbon dioxide.

And yet we love to burn natural gas, which is mostly methane, to make electricity and heat. Our agricultural and food systems leave a lot of biomass lying around where a lot of it turns into methane and enters the atmosphere. Acceptable limits of leakage are suggested at 0.2%, however evidence suggests that actual leakage to be in the range of 1.5% to 3%

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2023-05-24

Show Report: Agrishow 2023

SHOW REPORT  
Fabio Ferraresi
Fabio Ferraresi

Our Power Systems Research South America Team visited the Agrishow 2023, in Ribeirão Preto-SP, Brazil, visiting customers and checking the new launches and market expectations. It’s the world’s largest show on Agricultural Equipment       

The general expectations of exhibitors we talked with were not positive. Exhibitors carefully spoke about some factors influencing the market, such as lower commodities prices and the new government often speaking against Agribusiness that does not promote positive investment decisions.

On the other hand, the projections of business during the show surpass US$ 2,6 Billion (R$ 13,2 Billion), that is 18% nominal growth over 2022 business and actual growth of 9.5% discounting inflation. The expectation is for a recovery in commodities prices in 2H 2023. The government is also announcing more credit for this segment and OEMs are offering their own credit lines.

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2023-03-24

CONEXPO CONEXPO 2023 Features Hydrogen, Electric Equipment

Walking CONEXPO 2023, the giant international construction show in Las Vegas this month, it was obvious that OEMs are devoting huge amounts of resources to developing alternative power sources for their compact equipment.

Hydrogen powered units and battery packs were common and new products powered by alternative energy sources were popular with attendees. New technology was the name of the game at this year’s show.

However, there were several prototypes that were built only for the show, according to some exhibitors, and were not likely to be put into mass production anytime soon. In fact, one manufacturer told us, “This was manufactured for the purpose of the exhibition and is not intended for mass production.”

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2023-03-21

DATAPOINT: NA Harvesters, 2023 Production

DataPoint – NA Harvesters – Mar 2023Download

470 units is the estimate by Power Systems Research of the number of harvesters to be produced in North America in 2023.

The combine harvester, often simply called a combine, is a machine that harvests grain crops. The name derives from its combining three separate operations comprising harvesting—reaping, threshing, and winnowing—into a single process.

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: With 52% of total units produced, Deere leads in production of harvesters in North America.  In second position, with combined plant total, is Oxbo International with 25%; third, Flory with 10%.     PSR

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

2023-02-20

Brazilian Law for AG Tractor Cabins Changes

The law requiring the use of cabin tractors for spraying includes changes in applications and timing. Under the new wording, cultivation methods in which the use of the original or adapted closed cabin is unfeasible depending on the spacing between lines, a sprayer trailer pulled in a machine without closed cabin may be used, provided that it meets certain conditions.

New deadlines vary from 120 months for small properties and 60 months for large properties.

 Read The Article

PSR Analysis: Given the long deadlines, the market total volumes should not be impacted, but product lines should have volume changes within the application the product and model level. These should be reflected in next publish of PSR’s OE Link™ Forecast.    PSR

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

2023-02-17

Thailand Kubota Takes Measures To Secure Manpower

SOUTHEAST ASIA: THAI REPORT
Akihiro Komuro
Akihiro Komuro

In Thailand, one of the most industrialized countries in Southeast Asia, automation is accelerating in the manufacturing industry as the working population tapers off. Workers’ attitudes are changing, and fewer Southeast Asians are migrating to Japan. Business models based on cheap labor are no longer viable in Asia.

When I visited the Amata City plant of Siam Kubota, a locally incorporated subsidiary of agricultural machinery giant Kubota Corporation, I saw countless automated guided vehicles (AGVs) running in every direction.

Sales of tractors and combine harvesters are booming, thanks in part to the government’s special demand for subsidized farm machinery for those who lost their jobs due to the COVID-19 disaster and are now returning to their hometowns to start farming. The fruits of this policy are being returned in the form of year-end bonuses, and Siam Kubota is not suffering from a labor shortage at this time.

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