With nearly 3,000 companies including global giants and ambitious start-ups, there were plenty of innovations to attract the attention of serious investors or curious competitors at Agritechnica.
One of the objectives for international farm equipment retailers attending the show was to evaluate the global appetite for new products and services.
According to Olga Hall, division manager of agricultural exports for RDO Equipment, having a presence at the event is as much about reinforcing the products the dealership carries, as it is about prospecting for new supplier partnerships.
For the last decade, the Fargo, N.D.-based John Deere dealership group has developed its agricultural business in Russia, the Ukraine, Australia and other European countries. In well-developed regions, the dealership’s agricultural business is advancing at a pace similar to North America, according to Hall.
However, one of the trends differentiating North American growth compared to emerging markets overseas, is the emphasis on parts and service as a source of revenue.
“In some countries, we still do see that a lot of dealers would look at it as a necessary evil as they have to service equipment and provide parts just because they still enjoy the good sales of equipment. The market is just not as saturated with equipment like it is in North America. There will be the time when we see the same thing as we’ve seen in America where parts and service is going to be the focus for all dealers.”
Hall adds that one of the challenges to increasing adoption of precision farming technology in developing overseas markets, is the abundance of available land. This is especially true in Africa, she says, where farmers can claim vast areas of farmable acreage, and don’t view technology as a necessary investment.
You can find more coverage from Agritechnica here.