Agriculture and Forestry Machinery Industry in Canada

Efficient Market Hypothesis (EMH) History and
September 21, 2022
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September 21, 2022

Agriculture and Forestry Machinery Industry in Canada

General remarks:

  1. The sources should be added
    1. The way we do it is like this[1]
    2. Also, since there are now sources, I cannot check how valid are your points
  2. It is always better to talk about the movement rather than static:
    1. E.g. the point with loans. Less loans, more loans than in 2012 (2011, 2012)? What is the trend, and this trend is the result of what? (not just 2013)
    2. With agricultural land. Increasing? Decreasing? The trend.
  3. Hard to understand the main story (and I think it is more related to the loans, and cutting of subsidies than with rich harvest)
  4. I am also adding the competitive landscape from last year, so you can finish the company you didn’t know.

Headlines

  • Market for agricultural and forestry machinery grows 15% in 2013 due to increasing capacities of domestic and main import/export partner USA farms and consequently high farm incomes that encourage farmers to invest in agriculture machinery.[G1]
  • Industry increasingly concentrated, with top 5 companies: Buhler Industries Inc., John Deere Ltd., CNH Canada Ltd., Bourgault Industries Ltd., La Coop Purdel – increasing their revenue Government gives loans and insurance incentivise farmers to buy new equipment or update old machines[GL2]

 

  • Domestic market grows slightly more than sales over 2013, mainly due to cost savings arising from adoption of innovative technologies[GL3]
  • Maybe a point about cutting government subsidies
  • Loans
  • Something from production, like innovation trend or demand abroad for Canadien machinery ( I still didn’t get why exactly is the Canadian machinery demanded)
  • Industry set to see 3% turnover growth in 2014 due to accelerating mechanisation and adoption of precision farming in agriculture, coupled with strong USA demand for Canadian-made machinery

Market Trends

  • The Canada’s market for agricultural and forestry machinery was valued C$5.4 billion in 2013, up by astounding 15% from 2012. Year-on-year [G4]market growth was mainly attributed to the agriculture industry and its growing automation, while increasing application of innovative products such as precision farming equipment also had a positive impact. Farms sought to increase production capacity and capture the benefits of high revenue coming from high crop prices. [G5]Furthermore, major what? trends in Canada and other high-income countries included a reduction in the number but growth in the size of farms[G6], which fuelled demand for sophisticated agricultural equipment.