Total Italian farm machinery sales, including machine components, shrunk 23% in 2009, for an approximate value of $8.8 billion, according to the Italian Farm Machinery Manufacturers Association (UNACOMA). To a great extent this drop in sales can be attributed to lower demand for farm machinery in European markets, particularly since the domestic market has experienced relatively flat growth. For 2010 and 2011, Italian production of farm machinery should benefit from improving market conditions in the United States and strong demand in the Asia and Latin America.

Italian exports of farm machinery account for about 57% of total production. In 2009 they experienced a reduction of 25% over the prior year. This decline has been fueled primarily by weak demand for farm equipment in Europe. During the same period, exports of Italian farm machinery to the U.S. have been slowed by general weakness in the U.S. dollar as well as drought conditions that have affected farming in some areas of the country. This trend is expected to change in the coming year particularly because of strengthening farm commodity prices and the resulting gain in net farms income.

Italian farm equipment manufacturers are looking to foreign markets to grow their businesses, especially to opportunities in emerging economies. Italian companies provide OEMs with high quality, cost-efficient partners for parts and assembly systems. The United States is the most important market for Italian farm machinery outside of Europe. Last year, U.S. imports of Italian farm machinery (including component parts) totaled approximately $402 million. Italy is the 4th largest foreign supplier and during the first ten months of 2010, exported $324 million worth of farm machinery and components to the United States. In terms of sales, Italy is the largest producer of farm machinery in world next to the United States.

For distributors looking to carry new equipment lines, Italian manufacturers offer highly competitive, quality farm equipment with proven performance in the world market.

To learn more about Italian farm machinery products and manufacturers, please call the Italian Trade Commission at (404) 525-0660, visit www.italianfarmmachinery.com, or e-mail us at amussa@italianfarmmachinery.com