Machinery dealers in Ireland need a turnover of €4m in order to survive, the FTMTA annual conference heard.

Speaking at the conference, William Judge, of Massey Ferguson UK and Ireland, said that for a dealership to be sustainable in the future, each branch will need to have turnover of at least €4m, and ideally €6m to ensure growth and development. This will mean fewer dealers, according to Judge.

He was speaking at the FTMTA annual conference in Laois last week. Speakers, including an Irish Farmers Journal panel, gave their views on the machinery industry and farming in Ireland.

Judge believes that full equipment lines from manufacturers, including Agco, will be the norm in the future. This will be seen with the launch of the Massey Ferguson grass range next year.

Judge also said that farming and the machinery industry in Ireland is not that different from anywhere else in Europe and must embrace new technologies.

Economist Jim Power had encouraging news in terms of interest rates – he predicts rates will remain low. This should encourage farmers to borrow.

Oil

Power had some other interesting comments on oil. The price of oil has dropped 52% in the last 18 months. According to Power, there is now an oversupply situation as OPEC has flooded the market to thwart the development of renewable energies.

Power also noted that fertiliser price remains high in Ireland. The drop in oil price should be seen in the fertiliser market now.

Commenting on the value of sterling, the prediction is that it will remain high. This should benefit indigenous machinery manufacturers and exports.