The Kuhn Group blames economic and political uncertainties for the 19% drop in net sales in the first three months of this year to approx. £312 million (CHF357m). In the same January to March 2023 the figure was closer to £385 million (CHF440m).
Demand for agricultural machinery continued to decline in the first three months of this year reports Kuhn Group parent company Bucher Industries. The company says that lower agricultural commodity prices, higher interest rates, and fewer available subsidies are making farmers reluctant to invest. In addition, farm machinery inventories remained high within the Kuhn dealer network, weakening demand in all regions.
Order intake was down by a third in the first three months and the order book by nearly 43% from approx. £429 million Q1 2023 to around £260 million Q1 2024.
The uncertain political climate had a negative impact in Europe and wet weather conditions delayed drilling. North America also showed signs of a slowdown and the order intake in Brazil remains low.
Kuhn anticipates that demand will continue to soften slightly in 2024 against an environment increasingly characterised by uncertainties.
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