T.O. 55
This report is not to be published nor may
it be quoted as representing the Bank's views.
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
WESTERN EUROPEAN TRACTOR AND AGRICULTURAL
MACHINERY INDUSTRY
June 15, 1954
Department of Technical Operations


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WESTIM EUROPEAN TRACTOR AND AGRICULTURAL
MACHINERY INDUSTRY
age
Summary and Conclusions                                     1
I. Development                                          2 - 5
a. Pre-War
b. Post-War
c. General Characteristics
II. Tractor Production                                   6 - 9
a. Size of Tractors Produced
b. Trend of Production
c. Production Targets and Uhused Capacity
III. Consumption Trends                                   9 - 10
IV. Foreign Trade                                       10 - 16
a. Imports
b. Import Restrictions
c. Exports
d. Trends in Overseas karkets
e. Financial Assistance for Exporters


WESTERN EUROPEAN TRACTOR AND AGRICULTURAL MACHINERY INDUSTRY
Summary and Conclusions
The production of agricultural tractors has expanded considerably
in Western Europe. Compared to pre-war production it has multiplied by
twelve to 272,686 tractor units in 1952.  The United Kingdom, Germany, France
and Italy are now the leading producers. Tractor production is concentrated
in the hands of a few large producers but agricultural machinery production
is largely among small firms. Excluding garden tractors, four sizes of wheel
and crawler tractors are being produced, with the largest number of wheel
models being produced in the 2-plow size, and 4-plow in the crawlers.
Consumption within the OEEC area is upward. At present the demand
for tractors is favorable due to scarcity of farm labor, increased prices,
better credit facilities and lower cost of machinery.
Exports are increasing and dollar imports are decreasing. In 1951,
some 53% of tractor units produced were exported at an equivalent dollar value
approximating 125 million,
In general it can be concluded that the production of tractors in
Europe has increased very greatly since the war, and its share of a larger
total world output is rising, Moreover, the range and quality of tractors
produced has improved markedly since the war. Today one can buy in Europe
a goodtractor, which will meet the requirements of our agricultural projects,
for a reasonable price with good after sales service.


-2-
I. Development
a. Pre-War
Before the war the production of agricultural tractors in Europe
was concentrated mainly in Germany, which supolied the larger part of the
total output, and secondly in England.
Of the member countries now producing agricultural machinery,
France, Germany, Italy and the United Kingdom have extensive industries.
covering a wide range of tractors and agricultural equipment.
In 1950 published data indicates that 85% of the European tractor
and machinery production by value was shared by four main producing countries;
United Kingdom, 31.0 of total output; Germany, 21,8%; Italys 17.3%; and
France, 14.8%. (See Table 1)
b. Post-War
The importance of the tractor and agricultural machinery industry
in Europe can be best judged, in part at least, by the more recently published
figures of labor in the industry in 1950. In that year, according to an OEEC
publication, 3/ there were approximately 190,000 people engaged in the in-
dustry, valued at $760 million.  Some 209,306.tractor units were produced in
1950, valued at $283 million, or a per unit cost of about $1,000 per tractor,
In the field of tractor production, Italy has specialized to a
large extent in large wheel and crawler tractors; and Germany in medium diesel
and semi-diesel wheel tractors, while the United Kingdom accounts for the bulk
of wheeled tractor production. In the other producing countries, the industry
is quite small and covers a limited range of wheel tractors.
I/ Situation of the Agricultural Engineering Industry, OEEC, 1950.


* 3 -
TABLE 1
1950 PRODUCTION BY COUNTRY EXPRESSED AS A PERCENTAGE OF
TOTAL PRODUCTION
(in value)
Total agricul-
Tractors            Agricultural           tural machinery,
(tracklaying          machinery and          tractors, and
Country       and wheeled)          spare parts            hort. tractors
Austria            2.5                   2.0                     2.2
Belgium             -                    2.1                     1.3
Denmark             --                   2.8                     1.7
France            11.3                  17.3                    14.8
Germany           27.2                  18.8                    21.8
Greece              -                    1.6                     1.0
Italy             13.9                  19.7                    17.3
Netherlands         -                    1.5                     0.9
Norway              -                    0.3                     0.2
Sweden             3.6                   8,4                     6.5
Switzerland        1.7                   0.5                     1.3
Turkey              -                    n.a,                    n.a.
United Kingdom    39.8                  25.o                    31.0
TOTAL      100.0                 100.0                   100.0
Source: Situation of the Agricultural Engineering Industry, OEEC, 1950.


Since 1939, there have been radical changes in the pattern of
agricultural machinery industry in Europe. Production was reduced to a
fraction of pre-war as a result of damage to plants, especially in Germany.
Production at the end of the war was reduced to a fraction (3,00 units)
of the pre-war level (21,76 units). Secondly, with the increased demand
for agricultural machinery and the inability to get adequate supplies of
imported equipment in the immediate post-war period, the European countries
and notably the United Kingdom, have considerably expanded their production
capacity.
As compared to pre-war, the production-in Western Europe has been
almost multiplied by twelve, amounting to 272,686 units in 1952. The United
Kingdom was largely responsible for this increase, production having increased
by fourteen times to 141,868 in 1951. The United Kingdom, Germany, France
and Italy are now leading producers. The trend in production of tractors by
countries can be seen in Table 2.
The data in Table 2 indicates production increasing in all countries
for which there are data through 1952 but a decrease in 1953 for Germany and
the United Kingdom.
c. General Characteristics
In contrast to certain other industries, the agricultural engineer-
ing industry in Europe is characterized by a large number and great diversity
of its producers, most of which,are small and widely distributed throughout
the producing countries. Of the 118 firms making tractors in 1950, 22 firms
employed 200 workers or more. Tractor Droduction can be said to be concen-
trated largely in the hands of the large firms, and agricultural machinery
production largely in the small firms.
(Table 2 on following page)


TABLE 2
TRACTOR PRODUCTION
(in unit s)
country         1938   1947     1948     1949     190      1951     1952    1953
Austria           -      407    4,141     4,106   5,659    7,O63    9,888   8,650
Belgium           -0 -                              -       *                -
France          1,515   4,262  12,423   17,275   14,191   16,221   25,308  28,246
Germany        21,576   3,50   8,000   26,900   52,082   80,543   93,760  74,529
Italy           2,000  2,200    3,300    7,500    7,948   10,200   8,128   10,336
Sweden            300   2,802   4,70    6,058    6,418    6,939 .  6,50   6,875
Switzerland     1,000  1,500    2,000    1,8ob    1,600    1,800   1,85o    1,680
United Kingdom 10,227  58.949 117,798   91,459 121,408 141,868 127,9202 112,661.
TOTAL    36,618 73,620 152,367 155,O98 209,306     264,634  272,686  242,977
1/ Unless otherwise stated all tractor figures throughout the report.exclude
horticultural tractors.
All the 1938 figures given for Germany in the report relate to Western
Germany. Tractor production in 1938 for pre-war Germany was 24,121 units.


II. Tractor Production
a. Size of Tractors Produced
Excluding the garden tractors, four sizes of wheel and crawlers
are Droduced with the largest number of wheel models being produced in the
2-plow size, and 4-plow in the crawlers. In 1950, the production of tractors
by countries and size are listed in Table 3.
Most of the tractor modele produced in Europe today are wheel
tractors of the 2-plow size and powered by diesel fuel. According to a survey
made by OEEC in 1950, 81 percent of the wheel models and 95 percent of the
crawler models were operated by diesel fuel. f
Pre-war tractors were mostly of the 4-wheel fixed track type and-
very few all-purpose or "row-crop" tractors were manufactured. The chief
reason for this was that the tractors were used principally for heavy work
of ploughing and for driving threshing machines, the lighter work of the farm
being done by horses or by hand. In recent years, owing to the necessity for
human food production, horse numbers declined and the need for tractors to
meet all farm operations increased, and a great increase in tractor numbers
arose, including the inter-row cultivation tractor. To meet this need, manu-
facturers have produced all-Durpose four-wheeled tractors and three-wheeled
tractors of a tricycle type with adjustable track. Most important European
manufacturers now offer all-purpose tractors, In England this has resulted
in becoming the most intensified mechanized country in the world with 1
tractor per 23 hectares of land in 1951, compared to the United States with
1 tractor per 53 hectares in the same year. Statistics are not.available
but it is estimated that about half of total production is of the all-purpose
type.
There may be several reasons why Europe prefers diesel or semi-diesel
power, but one very good reason is the trend to use higher powered
tractors using more fuel increases the importance of economy in fuel
and so favors the use of diesel engines.


ITABLE 3
AUROPEAN TRACTOR PRODUCTION BY TYPE AND SIZE IN 1950
No. of Firms by Country Manufacturing
Wheel Tractors                                 Crawler Tractors
1 plow      2 plow     3 plow       4 plow      1 plow      2 plow     3 plow       4 plow
(8-10 HP) (18-26 HP) (27-36 HP) (Over 37 HP)    (8-10 HP) (18-26 HP) (27-.6 HP)   (0yer 37 HP)
Europe:
Austria                            1                       -           -
Belgium              n.a.        n.a.       n.a.         n.a.        n.a.       n.a.        n.a.         n.a.
France                 4           9          5            4           2          5           7           13
Germany                4          10         10            2          -           -           -            1
Italy                  5          -           1            8          3           -           1           14
Sweden                 -          2           1            2          -                       -           -
Switzerland            1          5           4            5          --                      -           -
United Kingdom         -           6          7            8           -          1           5            4
TOTAL            14          33         28           29           5          6          13           32


- 8
b. Trend of Production
The development of production by country is shown in Table 2, from
which it will be seen that in 1950 overall tractor production -(in units) was
nearly six times the pre-war volume and by 1953 it was nearly seven times.
Tractor production in the United Kingdom, the largest producer, has risen to
heights of about 14 times the pre-war volume by 1951 and declined slightly to
a little over 11 times in 1953. In Germany, the second largest producer, pro-
duction has risen to a height of about 4-1/2 times pre-war,in 1952 but declined
to 3-1/2 times in 1953. In France, the third largest producer, production has
risen to 18 times pre-war in 1953.
OEEC j/ reports that these post-war increases in production have been
made possible not only by the setting up in many countries of new factories but
also by the modernization and expansion of existing plants. In many countries
the largest factories capable of.mass production have been progressively better
equipped and as a result of the large post-war investments in the industry pro-
ductivity in certain countries is reported to have increased considerably above
the pre-war level.
Distribution of Production in 1952
The distribution of tractor production, by units, in the participat-
ing countries in 1952 (the highest post-war production year) was as follows:
1952 Production by Country Expressed as a Percentage of
Total Tractor Production
(in units)
Country                           1952
Austria                            3.6
Belgium                             -
France                             9.3
Germany                           344
Italy                              2.9
Sweden                             2.4
Switzerland                        0,7
United Kingdom                    46.7
Total                     100.0
/ Situation of the Agricultural Engineering Industry, OEEC, 1950.


The figures above indicate that in 1952, 90.4% of production by
units was shared by the three main producing countries, the United Kingdom
accounting for 46.7% of total output, Germany 34.4%,. and France 9.3%.,
c. Production Targets and Unused Capacity
Estimates submitted to the OEEC Organization in 1948 estimated that
tractor output was expected to increase by 100% between 1948 and 1952. How-
ever this goal was not met and production in 1952 fell about 25% short of
reaching the estimated goal.
With a revival in demand for tractors, part of this unused capacity
has since been absorbed and Droduction has been increased to new high outputs.
III. Consumption Trends
During the immediate post-war years, there was a renewed drive
towards mechanization of agriculture in many European,countries. The shortage
of agricultural labor in many countries and its rising cost plus the demand
for increased efficiency in agriculture, created a demand for labor-saving
machinery. This demand increased until 1948, declined in 1949, increased
again in 1950 through 1952. pata is incomplete for 1953 but, if it were avail-
able, or if the same demand was maintained in 1953 that existed in 1952, the
total tractors consumed in the area as a whole in 1953 would exceed the demand
in 1952. See Table 4. The data in Table 4 indicates for the area-as a whole
that the trend of consumption is upward.
In the United Kingdom, consumption in1949 declined below,1948. Con-
sumptiori of tractors in that year amounted to 27,353 units, comoared with
51,183 units in 1948. Sales revived in 1950 after which they declined through
1953. Western Europe is not the main market for British tractors; the bulk of
its exports is outside of the member countries.
TABLE 4
CONSUMPTION OF TRACTORS
(in units)
Country          1938   1947    1948     1949     1950     1951     1952    1953
Austria           100*    453    4,055    2,560   4,241   4,261     n.a.. .  n. a,
Belgium           n.a.    na. ..2,409    2,042    3,202   -4,000    4,693   4,620
Denmark J         456- 1,984'   6,333    5,919    6,473    9,613   11,800  10,958
France            n.a.    n.a,  26,000  24,50  21,000   20,611,  30,503  33,258
Germany        10,000   3,500    7,249  24,667,  40,181   59,802   70,829  54,023
Greece            174     354     634    1,519    1,385    n.. .   n.a      n.a.
Italy         1,903   2,289    2,615    3,150    6,289   9,064     n.a,      n,a,
Netherlands 2/    452   2,032   6,480    4,653,   3,800    n.a..    n.a.      n.a,
Norway            664   1,476   2,242    1,231    1,412    4,117    n.a.      n.a.
Sweden          4,347   7,500  13,379   11,214   14,799   14s735  19,534   16,46
Switzerland       684  1,654    2,623    2,429    2,378    2,575   2,400    2,300
Turkey          3,625  1,117    2,815    4,784    4,362   10,320    n,a.      n.a.
United Kingdom  7,180 43,314   51,83   27,353   39,051   34,399  35,782   32,350
TOTAL        --      --  . 128,017 116,021 148,573   173, 97Y175,    2/153,978
1/ Including horticultural tractors.
2/ Preliminary,


- 10 -
In Germany, consumption rose steadily from 1947 and exceeded pre-
war in 1949 and continued to increase through 1952. The main outlet for the
German export trade is in Europe.
The French tractor demand declined from 1948 steadily to 1951 and
increased to a high in 1953. The French industry was largely concentrated on
petrol-driven wheel tractors and was hard hit by the new demand for diesel and
semi-diesel powered units. It was obliged to intensify and search for new
markets abroad and at the same time modify its manufacturing programs so as
to meet the demand for a cheaper fuel powered tractor.
The favorable trend in demand in consumption of tractors may be due
to a number of caused; a scarcity of farm labor, increasdd prices for farm
oroducts, better farmer credit facilities and others. However, it might be a
reasonably safe statement to indicate that the demand for future tractors and
certain types of equipment might generally be slowing down and that henceforth
supply would be mainly a replacement problem. This is best illustrated when
one considers the density of tractor population per hectare in 1930 for the
European area as a wholema 1,277 Y  hectares per tractor and in 1951 had
fallen to 171 hectares per tractor.  In 1951, the,United Kingdom had 23 hectares;
Netherlands 58 hectares; and Sweden 62 hectares per tractor. With the exception
of Soain, Portugal, and Greece, the point of economic saturation must be near
and future demand must be largely replacement.
IV, Foreign Trade
An attempt will be made to give,a brief picture of foreign trade in
tractors. One can imagine that the post-war period has brought about imoortant
changes in the pattern and volume of trade in this sector. Development broadly
would be: (1) a steady increase in the volume of intra-European trade; (2) a
lessening dependence on dollar,imports; and (3) a rapid expansion of exports,
especially to countries outside of the participating area.
a. Imorts
In the immediate post-war period, European manufacturers were not in
a position to satisfy the pent-up demand for tractors and there was a heavy de.
mand on the United States and Canada for tractors, especially crawler tractors,
and light and heavy-wheeled tractors.
The expansion of production in Western Europe has since made it
possible for European manufacturers to supply an increasing part of the tractor
demand within the area.
The development of tractor imports by country is shown in Tables 5
and 6. In units, the trend for the area as a whole was generally upward from
1947 to 1951, after which it declined. By value the trend was upward to 1952,
afterward it declined.
Sources The European Tractor Industry in the Setting of the World Market,
February, 1952.


- 11 -
France and Sweden are the largest importers of this type of ma-
chinery and in 1953 accounted for 58% by value of total imports from all'
sources into Western Europe, with dollar expenditures slightly in favor of
France.
Imports into Denmark, which was the third largest importer both
by number of tractors and value, increased their demand sharply after 1950,
to multiply their 1953 imports by value two-fold.
Tractor imports into the United Kingdom declined steadily from
1947 to 1951. In 1952, there was a slight increase but declined again in
1953. Increased manufacture of tractors in the United Kingdom had made im-
portation almost unnecessary.
TABLE 5
IM?ORTS OF TRACTORS FROM ALL SOURCES
(in Units)
Country          1938      1947    1948    1949    1950    1951      1952      1953
Austria            101        52     208     183     181     275       n,a,      n.a.
Belgium             -         86   2,409. 2,o42    3,202   4,347     4,753     4,661
Denmark 2/         457     1,987   6,334, 5,927    6,473   9,613    11,800    10,958
France             n.a.   12,274  15,755  12,182 13,075    9,980     9,403     8,119
Germany             27       n.a.    n.a.     11     177     218       704       482
Greece             174       354     634   1,519   1,385    .n.a.      n.a.      n.a.
Italy 2/            50        58     223   1,002   1,489   2,877       n.a.      n.a.
NetherTands 2/     452     2,032   6,480   4,653   3,800     n.a.      n.a.      n.a.
Norway             664     1,476   2,242   1,231. 1,412    4,117       n.a.      n.a.
Sweden           4,112     5,167   9,539   5,818   9,305   9,530    14,721    11,253
Switzerland         84       554   1,023     729     778     775       620       650
Turkey           3,633     1,117   2,815   4,784   4,362 11,823        n.a.      n.a.
United Kingdoin  2,855     1,739   1,989   1,179     189     185       566       263
TOTAL      12,609    26,893 49,651 41,260 45,828 53,740 / 42,567 3/ 36,386/
l/ 1937.
Figures include horticultural tractors.
Y Preliminary.


- 12 -
TABLE 6
VALUE OF TRACTOR INPORTS FROM ALL SOURCES
(1,000 dollars)
Country           1938      1947    1948    1949    1950    1951    1952    1953
Austria             117 1/    291     354     424     319     591     n.a.    n.a.
Belgium              -         74   3,525   2,828   ,loo   6,111   7,054   6,786
Denmark             279     2,536   7,898   6,865   6,249   9,674  13,284  12,865
France            1,947    16,552 14,939   11,923 16,349   12,130 14,814   15,747
Germany               9       n.a.    n.a.     15     167     298     782     624
Greece              824     1,285   1,872   5,173   4,994     n.a.    n.a.    n.a.
Italy 2             558        51     371   1,700   3,138   5,234     n.a.    n.a.
NetherLds 2/       I49      3,037   8,030   6,562   -4,098    n.a.    n.a.    n.a.
Norway              453     1,785   2,929   1,787   2,375   4,860     n.a.    n.a.
Sweden            2,760     6,121  12,379   7,664   9,810  11,753  17,300  15,400
Switzerland         n.a.      n.a.    n.a.    n.a. 1,167    1,160   1,240   1,300
Turkey            1,218       770   2,571   6,888   8,539  24,000  20,864     n.a.
United Kingdom    2,860     2,390   3,759   3,569     700     718   3,757     717
TOTAL       11,474    34,892 58,627 55,398 61,824     76,529 79,095   53,439
}1 For 1937.
2/ Figures include horticultural tractors.
Imports of tractors into Turkey increased sharply to 1951; data
is not available for 1952 and 1953. In 1951, about 25% of the total imports
in the area countries went to Turkey. The remaining 75% of the increased
imports into Turkey came from non-member countries, principally the United
States.
In 1953,.the situation in Western Europe is today one of virtually
self-supporting in tractors of every type. With the expansion of the indus-
try in the area there has been a tendency on the part of the producing coun-
tries to satisfy an increasing part of their domestic requirements for agri-
cultural power through local manufacture, and in recent years, a lessening
dependence on outside sources of supply.
b. Import Restrictions
The importation of farm machinery (and farm tractors) is fully
liberalized with the OEEC countries. There are no import restrictions other
than those imposed by the availability of foreign currency. Import duties
are moderate and average about 15% ad valorem. They compare favorably with
those of other European countries..


- 13 -
c. Exports
Tractor units exported increased after the war until 1951, after
which they declined. In 1951 some 54% of all tractor units manufactured
were exported. The development of tractor exports by country as shown in
Table 7, shows the important factor in the increase of agricultural tractor
exports since the war. This was due to the steep rise in the United King-
dom export trade and the recovery of Germany as an exporting country.
The rise in exports from the United Kingdom has been remarkable.
It is to be noted that tractor exports of 17,374 units in 1947 (valued at
$18 million) increased to 107,654 units in 1951 (valued at S120 million).
That year the United Kingdom contributed 75% of the tractor units exported
from member countries to all destinations.
TABLE 7
EXPORTS OF TRACTORS TO ALL DESTINATIONS
(in Units)
Country          1938       1947    1948    1949     1950     1951    1952      1953
Austria              1 1/       6     294   1,729    1,599    3,077     n.a.     n.a.
Belgium            n.a.      n.a.     n.a.    n.a.     n.a.     n.a.     60        41
Denmark2/            1         -        1       8       20      n.a.    n.a.     n.a.
France             n.a.      n.a.     n.a. 2,695     3,166    5,590   4,208     3,107
jermany          3,300 2/    n.a.     751   2,244   12,078   20,959  23,635    20,988
Italy 2/            97         9      958   1,204    1,421    2,974     n.a.     n.a.
Sweden              65       469      865     662      924    1,734. 1,737     1,659
Switzerland        400       400      400     100      n.a.     n.a.     70       30
United Kingdom   5,802    17,374  68,604   65,285   82,546  107,654 .91,986   80,574
TOTAL                                 73,927  101,754  141,988 121,696  106,399
1/ 1937.
Figures for.estern Germany. Total exports from pre-war Germany
amounted to 3,738 units.
2/ Including horticultural tractors.


- 14
TABLE 8
VALUE OF EXPORIS OF TRACTORS TO ALL DESTINATIONS
(1,000 dollars)
Country         1938     1947- . 1948.  1949     1950       1951     1952    .1953
Austria             5 ,/     3    618   3,674    1,930     14,L95      n.a.    n.a.
Belgium           127      68     202      90      100        n.a.     92       87
Denmark 3/          1      -        3       3        4        n.a.     n.a.    n.a.
France            n.a.    n.a.'   n.a.' 8,523    6,558     12,514   12,685    9,858
Germany         4.,955    n.a.    n.a. 5,314   20,927     4.,825  55,891   41,750
Italy /             5      30   5,854. 6,636     6,678     14.,837    n.a.     n.a.
Sweden            134    1,1446  2,590  1,613    1,333      2,929    3,500   3,800
Switzerland       n.a.    n.a.' ' n.a.    n.a.     n.a.       n.a.     175      75
United Kingdom  2,569  -18,071 .77,739. -75,683  83,507 2/ 120,646 1214,128  107,436
TOTAL                            101,536  121,037    200,246  196,471 163,006
1/ 1937.
2 f.o.b. value.
3/ Including horticultural tractors.
Distribution of exports between member and non-member countries
in 1950 is shown in Table 9. Of the total exports of machinery and tractors,
47% of the total value went to participating countries and 53% went to non-
member countries. Germany in 1950 was a heavy contributor, to other par,-
ticipating countries, with about 67.8k of the value of exports to members
and 32.2% of the value to non-member countries. No data are available for
the more recent years of 1952 and 1953.
It is interesting to note from Table 9 that for the United Kingdom
the principal market is not -Western Europe as over 65% of British exports
in 1950 were sent to non-member countries and to the British Commonwealth.
The main outlet for German machinery and tractor exports is in Europe.
d. Trends in Overseas Market
It is reasoiable to assume that with increased production in Eu-
rope a much larger share of this production will find its way abroad. Since
the war, Europeanmanufacturers' products in some of these markets have
grown considerably. United Kingdom exports have increased rapidly to Aus.-
tralia and New Zealand, South Africa and Canada.' France has become an im-
portarit supplier to North Africa.


- 15 -
The large increase in United Kingdom exports has been due in large
part to the competitive prices quoted. Devaluation in Britain has favored
British manufacture. 1dr. Connors reports that presently the prices of agri-
cultural tractors and equipment are somewhat less costly (10 to 20%) than
the comparable machinery in the USA. Increase in farmers' incomes has im-
proved the demand for agricultural machinery. If farm income remains stable,
and production for export is not curtailed by raw materials, expansion for
export may increase unless there is a new source of foreign competition or
an increase in local manufacture.
Australia and New Zealand are both very important markets for
British machinery exports. Before the war, the main supplier was the United
States.
TABLE 9
DISTRIBUTION OF EXPORTS BETWEEN MEMBER AND NON-NEMBER COUNTRIES, BY VALUE
1950
AGRICULTURAL MACHIERY AND TRACTORS
To          To Non-
kember        Member
Country                  Total       Countries     Countries
Country  (I,o)    (Rof total)
Austria                   2,058        80.0          20.0
Belgium                   1,885        85.5          14.5
Denmark                   2,252        34.o          66.0
France                   18,598        73.6          26.4
Germany                  40,570       67.8          32.2
Italy                     8,079        21.1          78.9
Netherlands                 815        26.3          73.7
Norway                       29         n.a.          n.a.
Sweden                   13,533        59.2          4o.8
Switzerland                .923         n.a.          n.a.
United Kingdom          112,572        34.4          65.6
TOTAL              201,314        7.0%         53.0%
Source: Situation of the Agricultural Engineering
Industry, OEEC, 1950.


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Since the war they have switched to the United Kingdom as the main source
of supply. In South Africa also they have switched from dollar sources to
non-dollar sources of supply.
In both Australia and South Africa local production is increasing.
Australia is already meeting about 50% of her machinery requirements from
home manufacture and is now developing tractor production.
In Latin America, American manufacturers dominate and the European
share in these markets up to the present has been very small.
e. Financial Assistance for E4porters
Various financial measures have been taken to assist exporters
in various countries. In the United Kingdom, Mr. Connors reports, the
Government Export Credits Guarantee Department, offers exporters, on a pure-
ly commercial basis, insurance against certain risks in export business.
Once the insurance policy is in force, the manufacturer, if he desires, can
borrow from a confirming house 90% of the principal at a rate of 6% per an-
num, and make an extension of credit to the dealers.
In France, exports to all countries are exempt from taxation
directly affecting all selling prices. In addition, exporters and the in-
dustry to which they belong are allowed to retain a proportion of the foreign
currency which they earn (10 to 15%) to purchase capital needs and raw mate-
rials outside the normal import controls.
There are many other measures taken in other countries to assist
exporters but are not treated in detail in this paper.
Source: (Tables 2, 4 through 8) Situation
of the Agricultural Engineering
Industry, OEEC, 1950, plus Supple-
mentary Data from its Secretary,
Paris, April, 1954.
J. Thomsen Lund
June 14, 1954.