Before the fair in Kielce, many people from the machinery industry were concerned whether Agrotech would “work out” this year. Protests, low prices of produce, farmers on the verge of a nervous breakdown, and increasingly expensive machines. For dessert, many farmers called for a boycott of the event to show producers that the current market situation is unacceptable. What was it really like?
Everyone was certainly happy that the boycott turned out to be a failure. Many people wrote in comments on Agrotech articles that the companies participating in the event, including Farmer’s editorial office, are scabs. It’s not true. A strike is one thing, an attempt to show what is happening in the industry is another. Life goes on, everyone has to work – farmers in the field and on the farm, producers and dealers in product promotion, service and sales, and journalists should show how it really is, from every point of view and in every place where things important to farmers are happening.
And we saw a lot at Agrotech – from the minister who has little to say all the time to the clearly dull faces of the representatives of the machinery industry. Only the smiles of the hostesses and colorful (and really interesting) machines were a bright spot on this map of hopelessness.
There was a lot going on at Agrotech. Let’s start with the positives
Managers of individual brands were happy that people came and asked questions, were interested, and were ready to continue fighting on the field, and not just on the street. Many farmers had specific needs for machines, company representatives gathered a lot of contacts. Product specialists confirmed that there were more official inquiries, which were written down on special forms, than they expected. Everyone knows perfectly well that this year and probably the next ones, unfortunately, you will have to work much harder and more intensively to sell anything at all. The seasons when everything in the square was sold are gone forever, and promotions and open prices are back, which are finally not a taboo topic.
It is worth noting that there were also specific transactions or orders placed. And not only for cheap and simple machines, but also for large, very expensive ones. Of course, there were better seasons, but in today’s situation, every single transaction is really pleasing.
It goes without saying that the mood among farmers is negative. Many of them came only to socialize or for information – to collect the latest news from the fair regarding new products, promotions and prices. In our survey, which you will see in the “Masyznownia” program, we found various people. Both those who were looking for specific machines (such as spreaders or navigation) and those who do not intend to invest at the moment, but are not so pessimistic as to boycott the fair or blame the producers for the current state of affairs.
The “pigmen” did not complain. There may be no eldorado in their industry, and most of them have suffered their share much earlier than the rest. Those who survived the ASF crisis and expensive feed now have much less to worry about. There is no great crisis among “dairy farmers” or vegetable farms. Many of these farmers do not even go to protests, and they came to the fair with the intention of looking for something for their farm. Perhaps they are behind the trade fair transactions.
“It was sad at the fair”
When we asked one of the farm team members on Sunday how he assessed the fair, he replied: “it was somehow so sad.” I guess that’s an accurate observation. We have listed the positives of the market situation above. But unfortunately, these advantages do not outweigh the disadvantages. Behind the nice stands, lights, lamps, hostesses, leaflets and slogans stood people who saw that things were bad, talked to farmers about the terrible condition of agriculture, and finally had to tell journalists what the situation on the machinery market was. Such an accumulation of pessimism is difficult to hide behind a smile.
The managers we asked about the current state of the Polish machinery market did not want to talk about it officially, they avoided a specific answer or simply put on a good face to make a bad play.
Some people say it straight – if the government breaks down under the influence of strikes and implements farmers’ demands, perhaps the market will return to better shape. They also support farmers and know perfectly well that both producers and farmers are in the same boat.
Many companies also confirmed that they did not agree with the opinions that they did not help in strikes. Dealers and Polish producers are trying their best – some pay invoices for catering at roadblocks, others provide parking lots and showrooms during the protests, and still others are in the crowd of strikers as private people. Usually, such actions are not publicized because they are not done to brag about it in the media.
– If our client asks us for help, we help. It happened that we paid an invoice for strike costs. It can be various things – food, vests, banners. We do it all the time, but it’s not something we should brag about, we just do it. We are in the same boat as farmers. We live off them, everyone knows that, said one of the Polish producers in a private conversation.
The company representatives were not smiling because there is something to worry about. Prices at shopping malls are still flat and there is no sign of them wanting to move up. Contracts for fetuses are offered at unacceptable prices. In these conditions, the protests are not surprising and it is not surprising that the farmers do not want to buy machines that they consider expensive. As a result, the machinery industry is in decline and virtually everyone says so.
Producers (I’m talking about Polish ones) are doing slightly better as they sell a lot of their production for export to the West and to distant corners of the world. These are also quality producers who produce their equipment carefully, slowly and to specific orders. Such companies include, among others: Rolmako or Euromilk. Such companies were also affected by the worse economic situation, but their presence on many global markets and the production of machines tailored to the individual needs of farmers ensure that there are no downtimes on production lines.
So far, it has been similar in the machines of global corporations, the premium ones, the best equipped, the most powerful, the most expensive, and the ones with the greatest capabilities. Unfortunately, according to predictions, only the 2024 season will show what the situation will be like. Industry specialists predict that sales will also start to decline in this segment.
There will be promotions, but don’t expect big discounts
As a result of all this not very optimistic news, we finally have promotions and price reductions. But let’s not expect too much. Machines have become more expensive, but they will not become much cheaper.
– Lower steel prices are one thing, but let’s not forget that it is only one of the components. Everything else went up, not by 2 or 4 percent, but by 20, 30, and maybe even 100. We are talking about prices of energy, transport, gasoline, employee costs, increasingly strict environmental and health and safety regulations, electronics needed for more and more complicated machines, foreign components. Everything, just everything. Every element has improved significantly over the last 2-3 years. Producers don’t have much room to maneuver. We, just like farmers, fight for our existence. Bankruptcies in this market segment will begin soon, that is certain, one of the domestic producers told us at the fair.
Therefore, when you come to a dealer or even a manufacturer, it is worth haggling, but there is definitely a ceiling beyond which the seller will not go. This is worth remembering.
Can machines be cheaper? No, but they may be more expensive – if the price increases for energy and components, as well as wages, continue to increase, there is a real threat of even higher prices at sales points. Although this is an abstraction from today’s point of view, such a scenario is possible.
On the other hand, many dealers’ machines are parked in the square, and there are often no specific customers to bargain with.
– If someone were interested in the tractors that are in my yard and were specific, I would sell them below the purchase cost. He wants to get it over with, he wants to get at least some of the money back, but he doesn’t even have anyone to talk to – one of the dealers of a lesser-known tractor brand from the province told us. Świętokrzyskie
Not everyone came to Kielce
The situation is difficult, perhaps it will get worse, and everything points to that. And it was visible at the fair. Some companies did not show up at all, claiming that if they want to exhibit, they should either show up with pomp and opulence, or not at all. Others, despite the difficult period, decided not to save money, because saving money at fairs is a way to nowhere. There were also companies that significantly reduced their space or limited the spectacular nature of their stands (e.g. by not investing in carpeting, lighting, gadgets or hostesses).
Companies that did not appear at Agrotech at all (even through dealers) include: Claas, Pottinger, Kverneland and Pronar. New Holland, which always had an impressive stand in Kielce, was missing, but in this case, as in such brands as John Deere, Kuhn or Kubota, the brand was well represented by dealers. Companies that have reduced their expenditure on fairs will certainly return to farmers through shows and events organized locally.
You will be able to see more about the fair, new products and the more positive side of the event in the Maszynownia program, which is currently being installed. There is also more specific information – who showed what, what machines caught our attention, what producers and our journalists think about the market situation. The premieres of the new Deutz-Fahr, Valtra and Steyr and the appearance of the Ferrari and TAFE brands on the Polish market are certainly positives of this event.
You will also find even more positive emotions in the gallery for this article, where we tried to show the beauty of this fair.
