Europe's leading non-tractor farm equipment companies are growing as they gain market share and tackle new export markets. Peter Hill profiles some of the biggest firms in the sector
Where are the Brits?
1 Alamo Group Europe This subsidiary of Texas-based Alamo Group was created with the acquisition of vegetation control specialist McConnel in 1991, then Bomford Turner two years later. Twose and Spearhead and several French manufacturers followed in succession, including Rousseau and loader maker Faucheux. UK sales account for a quarter of revenues. The group accounted for one-third of the parent company's [pounds sterling]381m sales in 2011. Turnover in 2011 was [pounds sterling]106m, compared with [pounds sterling]54m in 2004.
2 Dairy specialist Fullwood & Bland is Britain's second biggest farm equipment business with revenues of [pounds sterling]71m last year, down from a peak of [pounds sterling]76m in 2008. The Fullwood Packo group comprises milking systems manufacturer Fullwood and Netherlands' Packo companies producing dairy electronics and industrial products. In 2011, milking equipment accounted for 55% of turnover while milk cooling tanks contributed 24%.
3 Next up is IAE, the Staffordshire maker of fixed equipment, feeders and weighing systems for livestock farms, with 2011 sales that recovered close to the [pounds sterling]43m peak recorded in 2008.
4 Simba International's sales figures dropped to the equivalent of [pounds sterling]16.2m last year after losing Horsch distribution following Simba's acquisition the year before by the USA's Great Plains Manufacturing. New products and improved export sales, which increased to 38% of revenues last year, should see turnover climbing back to the 2008 high-point of [pounds sterling]28.8m.
5 In the grassland/livestock sector, Teagle Machinery's near-[pounds sterling]12m equivalent turnover leads the way.
Krone, Germany
Turnover: 2004, [pounds sterling]139m2011, [pounds sterling]332m
6 Krone's farm machinery division represents about a third of the [pounds sterling]1bn sales generated by Krone Group, which manufactures road trailers for articulated lorries and has three farm machinery dealerships.
The farm machinery division has focused on grassland products since ditching its ploughs and power cultivators several years ago. It is energetically pursuing the contractor and North American market by developing high-performance, self-propelled mowers and forage harvesters.
Krone has a single manufacturing location in Germany, where recent investments include a [pounds sterling]2.1m shipping complex and [pounds sterling]3.3m training centre. The group is privately owned by the Krone family.
GEA Farm Technologies, Germany
Turnover: 2004, n/a | 2011, [pounds sterling]412m
3 GEA Farm Technologies supplies milking equipment, cooling technology, automatic feeding systems, animal hygiene, milking parlour cleaning, barn equipment and slurry technology.
It was created when industrial group GEA acquired milking machine companies Westfalia Separator of Germany and WestfaliaSurge of the USA in 2004, then Canadian manure handling equipment maker Houle in 2007.
It also acquired robot milking technology to complement its conventional systems and in November 2011 added Milfos International, a New Zealand manufacturer of milking, cooling, stall and automation products.
DeLaval, Sweden
Turnover: 2004, [pounds sterling]527m | 2011, [pounds sterling]686m
1 Sweden's DeLaval is the world's biggest supplier of milking systems and other equipment and services used on dairy farms. Almost 50% of revenues ([pounds sterling]329m) are generated by conventional and robot milking systems, with parts and cooling technology taking the proportion accounted for by nuts-and-bolts products to 70%.
The business is a division of Tetra Laval, the packaging and bottling group owned by the Swedish Rausing family, which had revenues of [pounds sterling]9.8bn in 2011.
Kverneland, Norway
Turnover: 2004, [pounds sterling]407m2011, [pounds sterling]363m
5 Kverneland developed from plough maker to major international concern through acquisitions in the 1990s giving it strong grassland, tillage and spreading/spraying lines using the Kverneland, Vicon, Taarup and Rau brands. It also supplies grassland products to New Holland in North America and to Deutz-Fahr.
In 2009, Kverneland agreed to sell its Dutch baler factory and product lines to Kuhn for [pounds sterling]93m. Revenues dropped from [pounds sterling]499m in 2008 to [pounds sterling]320m two years later.
By way of recovery, Kverneland acquired a forage wagon range from Veenhuis in 2010 and then negotiated a [pounds sterling]3.4m near-40% shareholding and global marketing agreement with baler maker Gallignani of Italy, which it has since taken over.
Kverneland was bought by Japan's Kubota Corporation in 2012.
Exel Industries, France
Turnover: 2004, [pounds sterling]115m e_SFlb2011, [pounds sterling]246m
8 Created from the Tecnoma sprayer firm in France, Exel Industries embraced numerous spray equipment manufacturers, including Caruelle, Berthoud and Matrot, before the [pounds sterling]32m acquisition of Hardi International, with its Evrard subsidiary, in 2007.
This year, Agrifac was added to the portfolio for [pounds sterling]2.4m, raising revenues by about [pounds sterling]31m.
It also adds another sugar beet harvester line to Exel's Matrot and Moreau products, alongside Herriau precision seeders. Farm equipment made up 70% of Exel's [pounds sterling]425m sales in 2011-12; the rest comes from industrial spraying systems. The Ballu family owns 75% of shares; 25% are listed on the Paris stock exchange.
Kuhn, France
Turnover: 2004, [pounds sterling]375m | 2011, [pounds sterling]674m
2The world's biggest manufacturer of farm implements by revenues, the Kuhn Group has developed a vast range of tillage, spreading, spraying, grassland and feeding equipment, all under one brand.
Acquisitions in Europe, Brazil and North America expanded the range and multiplied revenues. Most recent were the Kverneland baler business and factory in the Netherlands for [pounds sterling]93m, and Krause Corp, a US maker of cultivations equipment and seeders for about [pounds sterling]20m.
Kuhn parent Bucher Industries, a Swiss engineering firm, spent [pounds sterling]5.1m on a 24% stake in fertiliser spreader and seed drill maker Rauch last year.
Lely, Netherlands
Turnover: 2004, [pounds sterling]128m e_SFlb2011, [pounds sterling]405m
4 A group based in the Netherlands, Lely is firmly focused on the grassland machinery and dairy technology markets. It is also the world leader in robotic milking, with more than 15,000 Astronaut systems supplied over the past 20 years, and is now developing a range of automated cattle feeding and cleaning systems.
Lely acquired a German farm-scale wind turbine generator business in 2012 as part of its aim to achieve energy-neutral dairy farming.
It bought Mengele and its trailer and forage wagon products in 2010 and owns 75% of baler maker Welger, which generates sales of about [pounds sterling]54m. Its North American strategic partner, Vermeer, holds the other 25%. The group is privately owned by the Lely family.
Amazone, Germany
Turnover: 2004, [pounds sterling]162m e_SFlb2011, [pounds sterling]320m
7 Amazonen-Werke is the biggest European manufacturer specialising in arable equipment - tillage implements, seed drills, fertiliser spreaders and sprayers; it also has a groundscare machinery arm.
Western Europe remains the principal market but sales are growing in Russia and the nations of the Commonwealth of Independent States (CIS). The company's 98% turnover growth since 2004 has been achieved almost entirely organically - the most recent acquisition was the 1998 purchase of cultivations equipment manufacturer BBG. The next turnover target is [pounds sterling]405m.
Amazone has factories in France (groundscare), Russia (assembly) and Germany.
Lemken, Germany
Turnover: 2004, [pounds sterling]75m2011, [pounds sterling]229m
9 Germany's Lemken is Europe's second largest arable equipment specialist, with sales developed largely by expanding the range to complement the plough line-up, adding seed drills and, in 2005, by developing a crop sprayer line after acquiring German manufacturers Jacoby and LTS.
Russia is now a significant market and the firm recently completed a [pounds sterling]5.6m factory in India. Building has begun on a new plant in China, as well as a further four production halls in its large headquarters complex in Germany. The business is privately owned by the Lemken family.
Source Citation (MLA 7th Edition)
"MACHINERY BIG BOYS." Farmers Weekly 4 Jan. 2013. Environmental Studies and Policy. Web. 21 Jan. 2013.
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