NEW CHALLENGES, NEW GENERATION The Role of Mechanisation and Technology
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1 EUROPEAN AGRICULTURAL MACHINERY NEW CHALLENGES, NEW GENERATION The Role of Mechanisation and Technology Richard W. Markwell, President 7 th September, 2015
2 The Voice of the Manufacturers of Agricultural Machinery in Europe 4,500 manufacturers large multinational companies & SMEs 450 different machine types ranging from tractors & combine harvesters to plant protection equipment and precision seed drills Aggregate annual turnover of 26 billion direct employment for 135,000 persons and another 125,000 persons in the distribution and service network Among the highest-ranking European industries in terms of innovativeness + competitive advantage [European Commission s 2013 Competitiveness Report] EUROPEAN AGRICULTURAL MACHINERY Page 2
3 European Agricultural Machinery: Global Leader in Production+Innovation World s largest producer of farm equipment (31% of global production) 2nd highest-ranking European industry in terms of innovativeness + competitive advantage Source: European Commission, 2013 Competitiveness Report Page 3
4 European Farm Machinery Viewed from the Outside? Page 4
5 Advanced Equipment and Technology Becoming More Productive Page 5
6 Technology Well Above the Most Advanced Cars Page 6
7 Exciting and Positive Opportunities for the Agricultural Industry Page 7
8 Four Key Challenges Facing Agriculture Productivity Sustainability Economic Viability People Page 8
9 The Global Agricultural Challenge until 2050 Page 9
10 One Of The Oldest Professions Page 10
11 Four Key Challenges Facing Agriculture Productivity Sustainability Economic Viability People Page 11
12 Providing Nourishment for Healthy and Fulfilled Lives Page 12
13 Total Factor Productivity (TFP) growth in agriculture driven by mechanisation Some of the biggest single events improving TFP have been delivered by advances in agricultural machinery! Ø Labour Hours to Produce 100 Bushels of Wheat ( ) We cannot stop here! Page 13
14 Farm Machinery Investment in Europe EU survey (September 2014): new machinery & equipment is the top investment priority for European farmers (40.3%) [ahead of investments in land (21.0%), buildings (20.3%) & training (16.2%)] Investments in new machinery & equipment seen as key contributing factors to improve working conditions on the farm & increase production quality. Source: European Commission s Joint Research Centre (JRC), European farmers intentions to invest in Page 14
15 Precision Farming Adoption of new technologies (satellites, positioning systems, sensors, IT applications) combined with high-tech engineering smart agricultural machines featuring data-rich sensing, monitoring & management systems Doing the right thing, at the right place, at the right time, in the right way. Page 15
16 A Virtuous Circle of Benefits throughout the Entire Crop Growth Cycle More efficient farm management Less unproductive time More ha/per hour Farm the correct amount of land Use the full capacity Use the correct settings Page 16
17 Four Key Challenges Facing Agriculture Productivity Sustainability Economic Viability People Page 17
18 Sustainability and The Environment Page 18
19 Reductions In Emissions by 98% Page 19
20 15 Billion Investment in R & D Over The Last 5-6 Years Page 20
21 Four Key Challenges Facing Agriculture Productivity Sustainability Economic Viability People Page 21
22 Economic Viability and Competitiveness 1. Raise output & productivity to meet growing demand 2. Cost and efficiency control to protect competitiveness 3. Food at affordable prices Page 22
23 Precision Farming: Smart, Productive & Sustainable Higher yield potential Less crop damage and crop loss Higher Productivity Economic & other benefits for the farmer Greater Sustainability Less quantity of inputs (fuel, water, fertiliser etc.) Higher use efficiency More environmental protection. Greater application speed Reduced working hours Lower production costs Page 23
24 Four Key Challenges Facing Agriculture Productivity Sustainability Economic Viability People Page 24
25 People High Levels Of Good, Skilled, Well Educated People Page 25
26 Less Than 7% of the Farming Population under 35 Years Old 20 Percentage of farms farmed by under 35 year-olds in representative countries EU-27 Czech Rep. UK Denmark Germany France Spain Poland Page 26
27 Farmers Under 35 Years 12% More Productive 30 over 55 1 under 35 *Example taken from farmers in Portugal Page 27
28 EUROPEAN AGRICULTURAL MACHINERY NEW CHALLENGES, NEW GENERATION The Role of Mechanisation and Technology 7 th September, 2015
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