According to the Agriculture Manufacturers of Canada, the Canadian agriculture equipment market is currently valued at approximately US$4.5 billion. Within this group, the Canadian agriculture implement subsector is forecasted to reach approximately US$1.0 billion in 2008, with 67 percent of total imports originating from the U.S. Growth is expected to remain strong in this sector, with increased demand as a result of continued profitable grain prices, lower steel prices and the value of the Canadian dollar.
Best prospects will be tied to overall demand for crop cultivation and associated products. This report examines the market trends of the Canadian agriculture implement industry and product segments that offer the prosperous export opportunities for U.S. manufacturers and points of entry in Canada.
Growth potential within this market is heavily dependent on the expected performance of agriculture commodities and associated product derivatives. Increased demand of agriculture products and alternative fuels will play the role of key drivers in the future.
However, the Canadian agriculture implement industry is facing difficult times. Competition from low cost labor countries are presenting themselves as strong alternatives to Canadian manufactures. The Canadian dollar has also seen increased valuation due to bullish sentiment on natural commodities, decreasing export attractiveness, and favoring importation. While overall industry has historically displayed strong consistent growth, future forecasted rates however are expected to decrease in the face of financing woes caused by the credit crunch crises, and expected recessions amongst G20 nations. The Canadian agriculture implement market is no exception with projections for 2009 reflecting reduced demand. Sectors with high export orientation and low imports will continue to suffer under unnaturally high Canadian dollar schemes, and poor market conditions.
According to industry specialists, the Canadian agriculture implement market showing growth, with the majority of the manufacturers located in Saskatchewan. This subsector currently is experiencing a labor shortage, with many of the manufacturers searching for additional employees in other countries. Canadian agriculture implements are continually viewed in high regard as well engineered and high in quality suited for various agriculture uses. Canadian agriculture implements continue to play an important role in the Canadian economy and represent significant opportunities for American exporters.
By Crystal Roberts and Andrew Lim