Comment – The wider world

This week, and despite challenges with cyber attacks on airlines, I’ve been out to Germany and back, via the pre-Agritechnica DLG/VDMA InfoBorse. Think speed dating with manufacturers marketing departments, its not for everyone. I then took off for some other meetings with manufacturers and research organisations.

The mood music from the wider machinery manufacturing businesses is muted, and yet there is evidence of more confidence in the marketplace, have a look at CEMA’s latest outlook and the expectation of more orders is growing.

One highlight of the biennial trip to the InfoBorse is finding out about the Innovation Medals, this year was no exception, although we did indulge in that parlour game of ‘which award is the most difficult to describe in the pub’, in the pub. Have a read here and here and you decide.

Another facet to the US trade tariffs was explained in detail to me this week. Not only are there 15% tariffs payable on all agricultural machinery sold in the US from the EU, but there is also a 50% steel and aluminium tariff due. And, someone has to work out the percentage of the machines weight made up of those two metals. Bar some seat fabric, cab trim, a few bonnets and tyres, isn’t that most of the machine, by weight?  So a tariff on a tariff.. heck! Does anyone remember those timber floors in the forage wagons.? You join the dots.

Regarding innovation, I’m busy with an Agricultural and Rural Research Scholarship from the Council for Awards of Royal Agricultural Societies (CARAS) on the subject of how innovation reaches farmers. I have opinions on this, but would be really interested in some perspectives from the business. Feel free to give me a call.

Have a good weekend.

Andy