Small Irish manufacturing firms are exporting farm machinery worth over €500 million every year, the Farm Tractor and Machinery Trade Association said at the ploughing championships, writes Seán MacConnell
Its president, Mr Simon Cross, said while Ireland imports upwards on €250 million worth of machinery, exports were now a very important part of the industry. He said companies such as Keenans and McHales were major players in the farm machinery business on a global basis, exporting quality Irish-designed machines not just to Britain and Europe but to Latin America, the US and New Zealand.
Turnover in the Irish farm machinery market was in the region of €260 million last year and tractor registrations had increased by 5.6 per cent in the January to August period 2003.
He said sales of used imported tractors were up significantly by over 30 per cent in the same period but the rest of the farm machinery market had been marginally negative over most of 2003 due to good working conditions due to the good weather.This was in sharp contrast, with the difficult harvest of 2002, with poor weather followed by poor prices which dampened enthusiasm for upgrading machines.
He said this time last year, insurance costs were a big issue for the industry but he was delighted to say that there had been some opening of the markets and competition had emerged to ensure more competitive quotes for its members.
"While saying that, we are still the most expensive insurance market in Europe and farm machinery companies, like farmers, have to compete with their European neighbours in a cost sense and this remains an ongoing challenge for us," he said.
Also at the championships, the Minister for Community, Rural and Gaeltacht Affairs, Mr Ó Cuív, announced he is carrying out a review of enterprise support in rural areas. He told a press conference that for years we had been told it was impossible to attract industry into rural areas. He never had and never would believe that.
"The simple truth is that if you target the development of suitable industries such as IT-based services, food production, biotechs, tourism, timber milling, etc., there is no reason why rural communities cannot be just as economically vibrant as their urban counterparts," he said.