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This news article was originally written in Spanish. It has been automatically translated for your convenience. Reasonable efforts have been made to provide an accurate translation, however, no automated translation is perfect nor is it intended to replace a human translator. The original article in Spanish can be viewed at Entrevista a Alejandro Gil, responsable de comunicación de Ansemat
"Looking ahead to the new year, the spare parts sector at least should maintain its business figures"

Interview with Alejandro Gil, head of communication of Ansemat

David well25/11/2010

November 25, 2010

From the National Association of agricultural machinery, forestry and green spaces (Ansemat), defined as a forum for meeting, information and work in common, which have accommodated not only partners and the market of the agricultural and forestry machinery, but also Governments and Government agencies of usual treatment with operators in the sector. Interempresas wanted to know by Alejandro Gil, head of communication of the Association, in which context moves the agricultural and forestry machinery especially in a critical period for the primary sector such as this, and how this influences the evolution of the market of spare parts and accessories.
Alejandro Gil, head of communication of Ansemat
Alejandro Gil, head of communication of Ansemat.

In four words, and taking into account the situation experienced by the sector of agricultural and forestry machinery, what are the requirements that the customers most demand?

The first thing we should bear in mind is precisely the dimension and difficulties of the time in which all the agricultural and rural sector. With logic, the sector of mechanization is no exception to this juncture, showing sales in its markets, stagnation of certain types of machinery and much smaller investment. In general, without responding to specific demands and types of machinery (campaign machinery), buyers take their decision to purchase or investment on the basis of the price. With a level of adjusted stock but, so far, has responded to the demand, also noted a growth in segments of machinery most professional, following the trend towards larger, more versatile machinery and with a higher level of technification manufacturing.

The renewal of equipment, and therefore the movement of the market, is more for this last demand, as farmers on an individual basis may delay the purchase of equipment or, in many cases, make your investment in them dependent on the granting of aid and subsidies. Funding remains a problem, greater in the case of many farmers professionals and companies of services, because of the difficulty of these when it comes to capitalize on their investments. To this he replied with a great effort of adjustment of prices as well as a search for solutions of funding by enterprises of machinery.

In general, do you think that the economic crisis favours spare companies, because the farmer changes and renews pieces instead of buying new equipment? If not so, what is the reason?

We could see several stages in the progress of the crisis that led to the farmers, depending on the level of income, funding and, in general, the news about the bad financial moment, they choose some or other actionsliving naturally some more or less radical.

The first decision was the reduced investment, or stick them exclusively to the lines of aid and grants. A second action, the need to invest or renew equipment, was the choice range machinery more low, with lower levels of technification and, therefore, minor price. Others were reverted by one of the above, trying to make, at the same time, maintenance and arrangements, preventive, to extend the useful life until that change is necessary. The pressure has led in some cases, even be opt for machinery sold outside the usual circuits of purchase, or devoid of all the guarantees of quality and safety.

In any case, we should bear in mind two key issues. Our country has a large park of machinery, outdated and bloated, which should facilitate the sale of spare parts in the vast majority of cases. This is not without prejudice so that, in a positive market with the biggest sale of equipment, more spare parts are always sold.

"Our country maintains a large park of machinery, usually outdated and bloated, which should facilitate the sale of spare parts"

Taking into account the current economic situation, have you noticed any change in the type of buyer?

As expressed above, there has been changes, logical, in the average buyer. Generally, the farmer individually encircles their investments to the payment of grants or the urgent need for change trying to lengthen the useful life of its fleet of machinery as much as possible. In the case of investing, it is the price.

On the other hand farmer professional service companies, and in general those in greatest need of mechanization, also seek subsidies but seek to direct their investments into machinery with greater versatility and higher technology solutions.

Have companies associated with Ansemat due to an increase in delinquencies noticed the lack of liquidity? In the sector, and based on the experience of the past few months, how you think that that defaults will evolve to short/medium term?

In general, the farmer remains a good payer, as already demonstrated throughout the process of financial collapse, opting not to invest in machinery in the absence of sufficient liquidity to meet the payment. Little assets and profitability small producers to add the cost of production and facing the perceived prices slows the purchase of machinery, but also that of other inputs such as fertilizers or fertilizer.

Taking into account this reality, perhaps the lack of recovery has proceeded of institutions and municipalities that have not been able to meet payments. The evolution of this index is difficult to define, to depend on a number of external factors.

Although developments in the sector of spare parts for the next six months is expected to be uncertain in Spain...
Although developments in the sector of spare parts for the next six months is expected to be uncertain in Spain, from Ansemat they predict a maintenance, at a minimum, of the current business figures.

Do expect you the sector of spare parts with the arrival of the new year?

On the basis of the above data, and that gives us the business barometer of CEMA (European Association of manufacturers of agricultural machinery), which is a member Ansemat, the climate of the sector of agricultural machinery, at least at European levelIt will show a continued growth in the next six months.

This is more difficult to put into practice in our country that, in general, the economic forecasts are still negative for the start of the year. In theory, there should be no large fluctuations in the current behavior: markets in expectation of the improvements of their prices and production, recovery of the latter on the basis of these changes and stability of the current level of repair and maintenance of the machinery in use. At least, the spare parts sector should maintain its business figures.

"The climate of business of the agricultural machinery in Europe will grow in the next six months." "Spain is difficult to put into practice: economic forecasts are negative"

How can you help Ansemat, from his position, all associates at a time like this?

Ansemat continues to work, from the perspective that we give these 15 years of existence, as a reference for the sector of mechanization, their companies, for both public and private institutions and society in general. We are Forum meeting, information and working together, along with all the authorities and official bodies representing all and sending his voice, in search of common interests.

Excellent helping to all partners, work is carried out also from the point of view policy and technical manufacturers and marketers of agricultural machinery, in adapting rules and regulations for design, manufacturing and marketing products.

Finally, there is a job information and service to all the needs that may have each and every one of the partners on any kind of mechanization, agricultural, forestry machinery or green spaces.

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