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These factors decide when buying agricultural technology

Chart of the month (August/2018)

Insight into the purchasing behavior of buyers of agricultural machinery is a key success factor for technology manufacturers in international agricultural machinery markets. Because the knowledge about the importance of different purchase criteria is a prerequisite for meeting the expectations of the farmers.

The current graph of the month by DLG-Agrifuture Insights shows which factors influence purchasing decisions for farmers from different countries in particular.

Price-sensitive are the farmers in particular at the purchase price of machinery. For far more than half of the surveyed farmers, the price of machinery is very important. On the other hand, about 30 percent of the farm managers surveyed in Germany rate the purchase price as very important - a large proportion of farmers appear to be better convinced by other criteria.

The farmers in Russia, Brazil and South Africa are above-average sensitive to spare parts prices. Because the machines work under harsh conditions that lead to high wear. In addition, the high machine utilization leads to demand for spare parts, so that the prices for spare parts are a very important parameter of the purchase decision.

This agrees that the maintenance intensity of the machinery is an important purchasing criterion for farmers in Brazil and South Africa. This is because a high amount of time spent on machine maintenance means service life and increases machine costs, thus having a negative impact on the profitability of agriculture.

Of particular importance is the electronic equipment of machines for farmers, especially in Germany, but also in Russia. Farmers in Germany, in particular, use electronics to optimize, for example, the application of equipment. It is noticeable that electronic equipment is much less important for farmers in France. Most of the farmers interviewed in France focus on the purchase price and are interested in keeping it low with as little equipment as possible.

DLG-Agrifuture Insights

DLG-Agrifuture Insights is the new DLG knowledge brand and platform for international trend analysis in the agricultural sector. It examines the business environment in agriculture and agribusiness through a global panel of 1,650 leading farmers in 11 countries. Every month, DLG-Agrifuture Insights publishes a "Chart of the Month" from the extensive range of development trends in the international agricultural markets.