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Taure tractor sales have increased even being the EU support funding gap year

 

Even thou this year the sales of tractors and other agriculture machinery have dropped due to the European Union funding support gap year, Taure who is one of the Estonian biggest tractor seller has increased its revenue by 14% and improved the profitability in the first quarter of the year, said AS Taure CEO Toomas Jürgen.

According to Toomas Jürgen this year the sales have been also increased due to the sales of more powerful Valtra S-series, over 300 bhp tractors. In 2014 the overall market in Estonian will decrease due to the EU support funding gap year and starting from the next year in 2015 the market should return in its previous state said Toomas Jürgen.

The gap year has influenced companies differently. Jürgen who quoted its competitor AS Tatoli member of board Mati Nõmmsalu that the gap year will have the most influence in be sales of harvesters. But also the sales of tractors have decreased in Tatoli AS in comparison with the previous year. According to the DMV statistics the tractor sales have decreased also in Stokker Agri and Konekesko Eesti AS. The total number of first registration of new tractors has decreased 24% in first five months to 271 units. Taure who sold 13.6% of the total number has been able to increase the sales by one unit to 37 in comparison to 2013.

According to the Taure AS business development consultant Investment Agency OÜ member of board Illar Kaasik the agriculture machinery sales will also supported by the Estonian agriculture sector growth that is in growing stage. In the past few years the growth has been influenced by EU support funding and growing agriculture prices. With the new coming EU funding period there will be even bigger support for agriculture and that will also increase the machinery sales.

One of the most influential to the agriculture sector heavy machinery sales was in 2013 the growth in exports of cereals and cereal products that increased 12% reaching 505 thou. t. Even though the total revenue decreased 2% due to some products prices the total revenue was 106M€. The total production of cereals was 990k t. out of which the local consumption was 600k t.

One of the biggest Estonian tractor seller Taure who is Valtra dealer in Estonia 2013 revenue was 13.2M€, that is in the same area as in 2012. In 2013 Taure sold 72 new and 9 used tractors. Also the company closed its loss making transportation unit in 2013 and improved tis EBITDA margin by 0.5% reaching to 6.3%. The total EBITDA increased from 787k€ to 842k€ on y-on-y comparison.

Taure AS is Valtra dealer in Estonia that is part of AGCO group who is selling tractors, agriculture, and forestry and road maintenance equipment. Company was established in 1992 and has sold over 1300 tractors in its history. Company has two sales and maintenance centers one in Türi and Tartu. Taure also is selling spare parts and doing machinery maintenance.

Illar Kaasik, Investment Agency OÜ partner