Canada has the crucial ingredients for leading the world's agriculture industry: a clean environment, temperate climate, plentiful natural resources, a strong economy, and high standards for food inspection and regulation. As one of the oldest sectors of the economy, it accounts for over 8 percent of the Canadian GDP and has become one of the country's most dynamic and innovative industries.
Improving commodity prices have shown a positive impact on the agricultural machinery and equipment market. The trend toward diversification of crops and the need to meet worldwide food demand have farmers planting more land, but are cautious when buying equipment. The market size for the sector in 2008 will exceed US$4.5 billion, with U.S. companies supplying roughly 71 percent of the import market. Industry sources predict the sector will grow at an annual rate of approximately seven percent through 2008. Factors contributing to the growth in this sector include continued favorable grain prices and low steel prices, as well as rising worldwide demand and decisions by food processing companies to build and expand factories and to introduce new product technologies.
The agricultural machinery and equipment market is highly competitive in terms of price and technology. Companies with significant competitive advantages, such as the latest state-of-the-art technologies and excellent after-sale service, will find good sales and market opportunities in Canada.
Expanding row and crop farming is driving the need for smaller technology equipment to serve Canadian farmers diversifying from dry land farming to increase pulse and vegetable crops. Equipment with good sales potential would be spraying equipment, as well as seeders, planters and transplanters.