In collaboration with the MicroFinanceOrganisation PRESTANIC the HORSCH Foundation supports small-scale farmers in the North of Nicaragua in improving the maize cultivation and, thus, their income situation. On the one hand credits for seed and fertilizer are granted and on the other hand cultivation methods are improved by constant counselling. In the rain-laden North of Nicaragua no-till farming is the most suitable method to help improve the soil fertility, erosion protection and an optimum use of the production capacity. This can be combined with the traditional technique of the dibble and increase the productivity by simple improvements. The annual small-scale farmer convention in Jalapa that has taken place for the third time already has again been the highlight of the project.

On 28th of June 2010 Walter Horsch celebrated his 80th birthday. Being one of the founding partners and long time managing directors of Horsch Maschinen GmbH, he has left his mark on the company and played a major role in its growth and development to become one of the leading manufacturers of agricultural machinery. Walter Horsch’s original profession was a farmer. In 1953 he had rented a farm in Burgstall near Straubing, then in 1958 Gut Attenberg near Pfarrkirchen and in 1968 the distillery farm Bayerbach near Landshut. The changeover to commercial matters started in 1967 when the commercial company Horsch OHG Landau/Isar was founded. He and his cousin Helmut Horsch became directors, after which Walter Horsch became responsible for chicken farms and the sale of eggs (GoldEi). While being a director of the Landwirtschaftliche FrischEi GmbH managers took care of his rented farms.

On 1st of January 1984, together with Michael‘s father Dankwart Horsch along with Eckhard Eyer and Hans-Ulrich Horsch, Walter Horsch founded the Horsch Maschinen GmbH for which Michael and he were appointed as directors. Here too, his field of activity was the commercial part. All staff members particularly appreciated his straightforward, consistent character, his personal interest in the individual always being top priority. At the end of 2000, at the age of 70, he passed on his position as managing director to Horst Keller. For many years, Walter Horsch was a member in various DLG-committees and in the main committee as well as, for 12 years, accounts auditor of the DLG. In 1996, his commitment was honoured with the silver Max-Eyth-medal. Walter Horsch is an active and committed member of the Mennonite church in Regensburg. He acts as a counselor for the Horsch Foundation. In the private domain he relaxes within the circle of his family, within the mennonite church, in the sauna club along with cycling every morning.

Walter Horsch is known for his meticulous, straightforward and consistent personality when pursuing an aim. He always managed companies that involved family members and friends. One of his excelling characteristic is his personality that he could contrive to bridge the gap between entrepreneurial interest and the interest of the individual. He succeeded in integrating the involved persons without any difference so that everyone felt accepted, represented and fairly treated.

Even after his retirement Walter Horsch is still in touch with Horsch Maschinen GmbH. He is still present at shows at home and in the neighbouring countries and a tour of the company is always part of his visits at Sitzenhof. Therefore he not only celebrated his birthday with his wife Gudrun, their 5 children and 9 grandchildren as well as with numerous friends. To celebrate his 80th birthday Walter Horsch also invited the employees of Horsch Maschinen GmbH for lunch at Schwandorf and Ronneburg. For the Ronneburg colleagues there was a simulcast from Schwandorf to Ronneburg.

In his speech Walter Horsch particularly thanked his wife and his family for always supporting him in all the very busy years. Despite the considerably grown number of employees the Horsch company is a big family which he still feels part of.

Michael Horsch thanked Walter Horsch for the unconditional support that he got from the „non-technician“ at the foundation of the company and during all the following years. He particularly praised the real life honesty and the resulting credibility as the main features of Walter Horsch’s character. With these principles Walter Horsch has left his mark on the company and this spirit still lives on in the company.

Horst Keller, Walter Horsch’s successor as managing director, emphasized that it was the merit of Walter Horsch that times of crisis could be the survived. He expressed his admiration and his thanks for the fact that at his retirement Walter Horsch succeeded in making a clear cut, passing on all the tasks without any reservation and nevertheless, stay in contact with the company.

Two of the most long-standing employees of Horsch Maschinen GmbH, Herta Pitz and Anton Grauvogl, confirmed that Walter Horsch set an example as head of the business and as a person who acted with natural authority, but at the same time full of kindness and warmth.

Finally, Cornelia Horsch conveyed the congratulations of the various Horsch plants.

Following his wishes the Horsch employees handed over a cheque for 800 EUR as a donation for the Mennonite organisation „Helping the hungriest“.

In 2009, the turnover of Horsch Maschinen GmbH amounted to 135,5 million Euro. Compared to the exceptional year 2008 this is a reduction, but it corresponds to a turnover plus of more than 30 % compared to 2007. Especially due to the very strong traditional markets and the very early and quick reaction to the slowdown in sales in the year of the crisis 2009, the decrease of turnover and yields was limited. „Without our very motivated and flexible staff it would not have worked out so well“ says the management. Contrary to all expectations, the development of the turnover in Germany was very positive and amounted to over 40 million Euro, i.e. 37 % of the company’s machinery turnover – a record level since 25 years. Among the strongest markets beside Germany are mainly France, Poland, Great Britain, Romania, Bulgaria and Denmark. These are longstanding Horsch markets with an excellent sales and service network. The sowing technology and cultivation lines have an almost equal share in turnover. The top-selling machines are still the universal seed drill Pronto DC, the universal cultivator Terrano FX and the whole Tiger range. Since its introduction 3 years ago, Joker sales have risen massively and the compact disc harrow has become one of the Horsch core products.
„Concerning the outlook and the planning for 2010, the Agritechnica was the ideal barometer of public opinion. Not only because of the financial crisis, but also because of the present situation at the agricultural commodity market, Horsch already had reduced its production at the end of 2008. By talking to many customers and importers we learned that 2010 will be a decisive as well as a highly-competitive year on the market. It will not only be the price of machine that counts, but also the corresponding intensive counselling of every single customer as well as the professionalism and the innovation of the manufacturers! These points as well as highest quality and perfect service have always been Horsch’s core competences which we will continue to develop and intensify. Therefore, we are looking very positively into the future“ says Michael Horsch, managing director and strategic head of the company. Therefore, Horsch is planning again with a slight decrease in sales for this year. The order books have already been filled to our entire satisfaction and approx. 60 % of the planned machines for 2010 have already been sold. Inspite of the current difficult situation, Horsch looks very positively into the future and goes on investing into staff, markets and development. In 2009, 10% more personnel was employed, now amounting to 382 employees. Especially in the departments research und development, sales, marketing and after-sales service more people have been employed to go on increasing professionalism and investing into the future. Investments at home and abroad, too, are being continued: In 2009, Horsch already started to build the sales and service centre in Tchaplignin, Russia. Beside the partnership with Ropa, a beet specialist from Lower Bavaria, Horsch has founded its own sales company in Russia. In 2010, an sand blasting and painting plant will be installed and a production line for machines of up to 12m working width for the Russian market will be built up. Last year Horsch also founded its own sales company in the Ukraine. After having introduced a new computer system, further important strategic investments are already in the planning stage. These projects will be realized in the next two to five years.
Six new products have been presented at the Agritechnica (and are shown at the moment at the very successful product offensive campaign) and even in a year when there is no Agritechnica you can count on Horsch having several surprises and new innovations up its sleeve. You will get an outlook on tomorrow’s technology on various shows and trade fairs and at the Horsch seminaries. Among the other Horsch goals for 2010 are the reinforcement of the existing markets with a strong sales and service network as well as a further development of the Horsch core competences like intensive counselling and training, e.g. at the Horsch seminaries, in the Horsch FITCentre or at the Practical Field Days that will take place, this year again, in May and June at the Horsch headquarters in Schwandorf. Professional training for our sales and service partners are of main importance to guarantee that the customer has a professional contact person on site.

Like the years before, the Horsch seminaries have been extremely successful. More than 600 interested participants were informed about various current topics. “New legal EU framework – is this the end for row cropping?” was one of the intensively discussed topics. Each Federal State is realizing the EU standards for the soil erosion register with individual adjustments. For some farmers, especially for those in areas that are susceptible to water and wind erosion, this means a changing of their cultivation system and partly the end for the plough. The conditions have been discussed at the Horsch seminaries. In the topic „Does traditional mulch sowing solve the erosion problem?“ practising experts offered an approach what farming could be like in the future with the new legislation and how optimum yields could be realized. The second topic of the seminaries 2010 was „Strip farming – the new way of agriculture?“ Michael Horsch as well as the practising expert Deert Rieve (farmer from Muuks/Stralsund, Mecklenburg-Western Pomerania) talked about the positive experiences and yield increases they realized with a technology that is not yet available, but into which Horsch has already been doing an intensive research for 8 years to be able to launch it on the market. The stock-exchange analyst Johann Schmalhofer foretold the farmers increasing commodity prices in the medium term. „In the future, the farmer will get considerable more money for his harvest because at the moment the agricultural market is one of the most undervalued markets“ says Schmalhofer. This, however, is where speculators can make a lot of money. When this price increase is due to happen, cannot be foretold exactly. But when it comes, it will come quickly.

In the year of the 25th company anniversary, Horsch Maschinen GmbH present themselves on the largest stand in the company’s history at the Agritechnica show which, this year, has been the second largest German show after the IAA. On about 2000 m² 16 machines were shown – including seed drills, cultivators and machines for transport logistics.
According to the information of the DLG about 350.000 visitors (including 77.000 international guests) have attended the show. Many of them were interested in the Horsch innovations in hall 11 and, at times, there were 80 Horsch employees on the stand to inform the visitors. Six novelties were to be seen on the largest stand of hall 11, among them the 3-point seed drill Express 3 TD, the updated Terrano FX cultivator series, the universal seed drill Pronto 6 KR with rotary harrow, the universal seed drill Pronto 12 DC for large fields with a seed wagon hopper capacity of 17.000 litres, the tine seed drill Sprinter 8 SW and, of course, the new Horsch auger waggon Titan 34 UW. The auger waggon with a hopper capacity of 34 m³ was one of the highlights on the stand due to its sheer dimension. Concerning the output, it also stands for harvest efficiency in a new dimension. Due to the large hopper capacity of 34 m³ idle times on the field boundaries and awkward manoeuvring are part of the past. The hopper capacity of the UW corresponds to one truckload. A truck is thus filled at one go. The output of the newly designed hydraulically foldable auger conveyor (ø 600 mm) is 18 tons per minute. Thus, 34 m³ are reloaded in only 90 seconds. The universal cultivator Terrano FX has been influenced by the know-how derived from the Tiger models. The frame has been reinforced and it has been equipped with TerraGrip tines of the second generation. Thus, Horsch makes allowance for the increasing tractor power. Moreover, with the various equipment possibilities like six different packer versions, the cultivator can be adapted ideally to any condition. Especially with the Pronto 6 KR and the Express 3 TD, Horsch, as a leading manufacturer of seeding technology, approaches new customers for whom Horsch did not have the suitable technology among their range of products. The Pronto 6 KR is a six meter rotary harrow seed drill combination with low horse power requirement and the Express 3 TD combines the precise and well-proven Pronto technology with a 3-point attachment.
„The Agritechnica is the most important agricultural show worldwide for us and for most of the manufacturers of agricultural engineering as well as a barometer of public opinion. So after the last show in 2007 the enourmous sales year 2008 could be anticipated. Due to the financial crisis in 2009 we arrived with slightly dampened expectations at the Agritechnica 2009. But talking to our numerous customers and importers we realized that 2010 will be a very interesting, but also a highly competitive year. It is not only the machinery prices that count, but also a corresponding intensive counselling for every single customer! This as well as highest quality and a perfect service have always been the Horsch core competences that we want to develop and intensify further and, thus, we look positively ahead“, says Michael Horsch, managing director and strategic head of the company.
This year again, six Horsch dealers have been awarded with the Shell-Service-Award of the magazine Agrartechnik as a competent contact and mainly for perfect service. Among them were two national and one international winner.
The seminaries that took place directly on the Horsch stand were very popular. Yield increases due to strip farming and erosion protection are only two of the many topics that have been explained by practising farmers, consultants and university lecturers. Moreover, for the first time there was a future forum at the Agritechnica where Horsch already informed about technology for tomorrow. „These will surely be topics that will be handled in our seminares 2010 and the practical field days next year. Customer groups that, together with their Horsch dealer, come to the company headquarters in Schwandorf can, thus, be informed intensively according to the requirements of their site. After the successful practical field days of the last three years we expect an even increasing interest in these events for May and June“, says Cornelia Horsch, head of the marketing department.
The Horsch fan shop is also an indicator for the success of the Agritechnica 2009. Despite a large stock articles like the detailled machinery models 1:32 and the Horsch casual wear had to be ordered additionally for the show. This shows the impressive identification of the customers and the visitors with the brand name Horsch. Right in time for the start of the Agritechnica the new Horsch shop got online under ww.horsch-onlineshop.de and now waits for fans of the Horsch brand. Enthusiasm for the brand, product quality and service are again reflected in the DLG Imagebarometer for agricultural engineering that was published shortly before the Agritechnica. For the second year in a row, Horsch again ranks on the forth position behind the three large tractor manufacturers Fendt, Claas and John Deere. This year, Horsch is also heading every individual category as a manufacturer of cultivators and seed drill in the sector of agricultural engineering.

The year of the 25th company anniversary is also the year of the 12th birthday of the Horsch FIT-Centre where the Horsch Practical Field Days have been taking place for the last 3 years. The letters FIT stand for Forschung (research), Information und Technologie (technology). This is the perfect location to hold the Practical Field Days that in their third year have become firmly established as a permanent event in June for farmers that are very interested in Horsch.
Even in economically difficult times the Practical Field Days at Gut Sitzenhof show that there is a growing trend for high quality informative events held by agricultural manufacturers. This is also proven by surveys like the DLG Image barometer and the agro-media analysis. This year, there were more than 1200 participants who were informed about the latest products, cultivation techniques and trends. There were 450 visitors from German-speaking countries and 750 people from all over Europe and the GUS countries.
The Practical Field Days are proof that Horsch are doing pioneering work in the sector of agricultural engineering. Horsch is the first producer that provides the possibility to exchange experiences and information and to inform visitors about current topics other than products on the premises of an agricultural manufacturer. One of this year’s topics was the climate change and the consequences for the soil and the water supply.
At present Horsch is thinking about extending the Practical Field Days also to the international Horsch FIT-Centres. Beside the one on Gut SItzenhof there is a Horsch FIT-Centre in France, along with one in South Dakota (USA) with our local partners Anderson and in the Ukraine with Agro Soyuz. Until now the farmers from these countries have come to Gut Sitzenhof. In 1998, Horsch was the first manufacturer to introduce an information and technology centre that is alongside the company-owned trial and demonstration fields and to transfer this idea quickly to other countries.
(The photo shows a Pronto 3 DC surrounded by farmers.)

Also in 2009, Horsch Maschinen GmbH was honoured with the most important Bavarian economic award “Bayerns Best 50” by the Bavarian minister of economic affairs, Martin Zeil. This prize is given annually to the best 50 medium-sized companies. This is already the second time that Horsch have been awarded this award. The ministry of economics especially acknowledged the extraordinary growth and that Horsch succeeded in a more than average increase of its turnover and its number of employees that is almost unparalleled. The company’s founder Michael Horsch says: “We are very happy to be among the awardees, especially because it is recognized not only in the agricultural sector, but even cross-sector that we are among the absolutely best. This is an honour which every single employee can be proud of. Without everyone’s commitment, regardless of the department, the unequalled growth of our company would not have been possible. Moreover, the “Bayerns Best 50”-award is the reward for the efforts of the previous years and an incentive to remain the innovative leader in the sector of cultivators and seed drills.” All awardees were given a certificate and a statue made of china of the Bavarian Lion by the Bavarian minister of economic affairs. This year, a Horsch supplier also got the “Bayerns Best 50” award. The company Quadrus Metalltechnik GmbH based in Schmidgaden was awarded for maximum quality and efficiency in the whole sector of order processing. Thus, Quadrus is a perfect example of the high quality of Horsch suppliers.
The photo shows Horsch Marketing Director, Cornelia Horsch, and Managing Director, Horst Keller, together with the minister of economic affairs, Martin Zeil, on the occasion of the award ceremony.

In May, after the 25th anniversary celebration, the Horsch Practical Field Days started for the third time. Last year more than 1500 guests visited the Horsch headquarters at Gut Sitzenhof in Schwandorf, Bavaria. Between end of May and during the whole of June interested farmers and importers from all over Europe will get information on current products, cultivation technology and latest trends. Like last year the exchange between each other will be an important part. Please contact your Horsch importer to find out about the dates of the Practical Field Days 2009! Registration is only possible with your importer!

In the past year, Horsch realized a record increase that exceeded all expectations considerably. Approx. 30 % had been expected originally, in the end it was a total plus of 74 %. This corresponds to a turnover of 181,4 million Euro compared to 103,5 million Euro in 2007.
For the executive directors Michael Horsch, Philipp Horsch and Horst Keller it is clear that this increase was possible because Western and Central Europe had been granted a similar importance in the years before. „73 % of our turnover have been made abroad, 27 % in the German market. Thus, the export ratio has risen continually. After Germany, the countries with the highest sales were France, Czech Republic, Great Britain, Scandinavia and Poland. This shows the good cooperation with long-time exclusive sales partners that have been well trained. Separated by products 54 % of the turnover come from seeding and 31 % from cultivation technique“, says Michael horsch, the company’s founder.
In 2008, the most considerable sales increases (in Euro) have been made in Germany, France, Russia and the Ukraine as well as in the Czech Republic and Hungary.
The increases in Russia and the Ukraine are mainly due to the fact that apart from its long-time partner, Agro Soyuz, Horsch is also represented by a few exclusive dealers that sell machines that are produced in Germany. Horsch Anderson in South Dakota/USA and Horsch Agro Soyuz in the Ukraine build and sell cultivation machines and direct seed drills up to a working width of 18 m that are specially designed for the requirements of the farms in these areas. This turnover is not included in the 181,4 Mio. Euro.

Plans for 2009
Even though the financial and economic crisis does not hit the agricultural sector with full force, Horsch plans carefully for 2009. At the moment the consequences are most obvious in Eastern Europe. In Western Europe there is rather a certain „caution“ due to the cereal prices that, contrary to expectations, have decreased. The cereal warehouses are full and the farmers are waiting for better prices. After having observed the markets, Horsch started already in September to adjust the plannings considerably downwards. The objectives, thus, are below those of the exceptional year 2008, but still in the course of the long-term expected company development for the next years which is still the basis of orientation of the Horsch company. It is certain that no permanent employee has to fear for his job due to the crisis. The suppliers also have been involved early into these careful plannings. „We also regard 2009 as a year of reorganisation. The extreme sales increases were highly demanding for every single employee. This year new colleagues will be trained increasingly to be able to cope with the continuously growing requirements of our customers for example. The introduction of SAP as a new EDP system is tying up manpower we would not be able to provide in another extreme year,“ says marketing manager Cornelia Horsch.
With this stable planning Horsch takes care of its employees and customers. If the market should gain momentum more quickly than the „experts“ are predicting, it will be no problem to force the pace. This has been proven in the past year when the starting plan of approx. 30 % resulted in a plus of 74 %.
Moreover, Horsch concentrates on its core products – cultivation technology with the Terrano/Tiger range and seeding technique with the Pronto/Sprinter range as well as on the core markets that will be further developped and strengthend with a perfect service.

Anniversary year 2009 will be year of innovations and novelties
In May the 25th company anniversary will be celebrated. The plannings are in full swing. In the middle of May Horsch will already present the first novelties for 2009/2010. These will complete and expand the existing range of products and culminate in a further novelty firework at the Agritechnica Show in Hanover in November.

This year again, the editorial department of the AGRARTECHNIK magazine initiated the Shell Service-Award for manufacturers of agricultural machinery and specialized firms. The German national and regional winners as well as various international winners have already been announced. We are very happy that, again, there are Horsch dealers and importers amongst them.
Congratulations to the following Horsch partners:
BayWa AG Obertraubling, Bahnhofstr. 10, 93083 Obertraubling – National winner, as well as regional winner Bavaria
Günter Poggensee KG, Neuer Weg 34, 23867 Sülfeld – Regional winner Schleswig-Holstein/Hamburg
Axial Landtechnik, Szegedi ut 147, 6500 Baja – International winner Hungary

In October, Horsch carried out a two-week demonstration tour in the state of Kansas together with its partner Harper Industries, Inc. A Horsch Pronto 6 DC PPF was shown in practice. Within a radius of approx. 30 km around Harper where Harper Industries is based a total of 12 demonstrations were made on selected farms. The weather conditons being optimal an average of 8 to 10 ha per farm were sown. The farm size was between 150 and 4500 ha.

The Horsch Pronto worked in various conditions: on very intensively prepared soils (plough and harrow), directly into stubble (wheat after wheat), directly after silage maize, after one-time passage of a disc harrow and after conventional mulch seed.

The farmers’ reactions were very positive throughout. Amongst other things, they were thrilled by the re-consolidation while seeding and the very intensive preparatory work of the two Horsch Pronto disc rows. They were also quite enthusiastic about for example the metering system and the simple turning test including the possibility to change the seed quantity while driving.

The seed on the first fields Horsch had sown had already emerged during the two-week tour and looked very promising. In close contact with Horsch, Harper Industries will follow up on the development of the population.

The Horsch demonstration tour was a great success. Harper Industries, too, were more than content with the progress and the result of the demonstrations. Together with Harper Industries and Horsch Anderson, the already existing Horsch partner for direct drilling in the USA, further proceedings regarding the introduction of Horsch machines for mulch seeding in the USA and the corresponding market development will be negotiated on the Horsch premises in Schwandorf in November.

The current DLG-Image-Barometer 2008 shows considerable changes concerning image-points, rankings und new image leaders. In the sector of agricultural machinery Horsch profits the most! The annual trend barometer of the DLG (German Agricultural Society) confirms the best Horsch image value in its company history with 80,9 out of max. 100 points. Thus, Horsch is number four on the ranking list of all manufacturers of agricultural machinery. The DLG summarizes the results as follows: “The sector of agricultural machinery remains the branch with the highest attraction to farmers. Beside the companies Claas, Fendt and John Deere the credit for this also goes to the many excellent medium-sized specialists… There are striking changes in the sectors cultivation and seeding technology that always attract the leading farmers’ highest attention… Considerably more mentions and image increases are recorded for Horsch who shows its highest image values so far and, for the first time, is on the fourth position.”

The HORSCH Maschinen GmbH was awarded with the so called “Bayern Best 50” by the minister of commerce in Bavaria, Emilia Müller. It is given annually to the top 50 small and medium businesses in Bavaria. For the first time this year, HORSCH was also chosen. The ministry of commerce is honouring thereby the extraordinary strength of growth, since HORSCH was able to increase turnover and number of staff above average in the last years. Founder Michael Horsch said: “We are very pleased to be amongst the award winning companies, since it recognises us not only in the agricultural sector but within the whole business sector as one of the best. This is an award, which should make each individual staff member of HORSCH proud. Without the commitment and dedication of each individual in any of our departments, this exceptional growth rate would not have been possible. Within the field of agricultural machines and equipment manufacturers, HORSCH has had the highest growth rate percentage wise (not turnover) in the last 10 years globally. That is what this award “Bayern Best 50” means for us. It is furthermore a reward for all the effort displayed in the past years and we will take it as an incentive to maintain being the leader of innovation within the field of tillage and seeder technology.” All award winning companies received a certificate as well as a statue of the “Bavarian Lion” made out of porcelain. HORSCH intends to increase the previous record turnover of 2007 (103,5 Mio Euro) by 50% in 2008. In 2009 HORSCH will celebrate its 25th anniversary and the company is striving for 200 Mio Euro turnover that year. The picture shows the directors of HORSCH Horst Keller, Philipp Horsch and Michael Horsch with the certificate and the statue from the ministry of commerce.

More than 1500 guests visited the HORSCH headquarter at Gut Sitzenhof / Schwandorf between May and June. After the great success in 2007, HORSCH Marketing decided to repeat the Practical Field Days in 2008 and invite interested farmers and dealers from all over Europe. Latest information about products, farming systems and trends was offered and exchanged. “Last year already, initiating this event for the first time, was very promising. Having such a good response this year, with twice as many visitors has been very rewarding.” says marketing manager Cornelia Horsch.

During the period of the practical field days, the annual HORSCH Seminar took place and the latest news and topics where discussed to enrich and broaden the view of agriculture beyond German boundaries. The theme this time around was: “ Limited food resources – opportunities and dangers for the future!” Approximately 350 visitors came to the Ostbayernhalle close to Gut Sitzenhof on the 31st of May. Like in previous years, HORSCH managed to invite high profile speakers for the event: Prof. Ernst Ulrich von Weizsäcker (President of the Bren School of Environmental Science and Management, University of California, Santa Barbara), Dr. Tilo Bode (Founder and MD of “foodwatch”, a consumer rights organisation), Carl-Christian von Plate (DLG Board Member and farmer, 700 ha) and Michael Horsch (founder and international active MD of HORSCH Maschinen GmbH). “Farmers are focusing more on speculation/marketing as ever before. As wheat was traded between 100 and 110 Euros per tonne before last year, the trading value is between 150 and 300 Euros per tonne today. These large price discrepancies are very substantial for either success or failure and therefore quite dangerous for the farmer” says Michael Horsch. The reason for the high prices: The times of surplus food and overflowing warehouses are over. Agriculture producing a surplus is not an issue anymore. Instead, farmers can not keep up with the global demand. Fallow fields, its something of the past! The production of renewable resources (bio fuels) is competing with food production on arable land. In addition to that, the consumption of meat is increasing in developing countries with a high economic growth rate. It takes 7 kg of grain to produce 1 kg of meat. All the sudden the increase of starvation through hunger is being discussed. And one can not expect an improvement of global grain stocks even with an exceptional record yield, which as it looks one can not expect this year anyways. Prof. Ernst Ulrich von Waizsäcker, who used to be called “the environmental consciousness of Germany” has analysed the situation of the last years and had to correct the strategy of even the United Nation, in that the key to sustainable progress and development is, to overcome subsistence agriculture. In fact, the opposite is actually true. “A lot has gone wrong, something was called development which actually wasn´t.” Von Weizsäcker is also concerned in terms of the climatic changes affecting farming and the availability of food. To just stabilise the concentration of CO2 in the atmosphere, the emissions of CO2 would have to be cut in half. “But if we just go on as we do right now, we will double it.” Bio fuels are not the solution in his opinion, because just for one tank filling of 100 litres one needs as much grain as one person consumes in a year. Generally speaking, bio fuel will only have a positive effect on the climatic change in the second generation (Bioethanol made from wood or reed). But von Weizsäcker is horrified to imagine, what could happen, if these GMO microbes, which will produce bio fuels on an industrial scale by decomposing wood extremely efficient, will be accidentally released into the environment. On the other hand, he doesn´t think that the increase of fossil fuel prices will continue like that. Except of oil, gas and a few rare metals, the prices will stabilise and even oil will remain constant, since now, large quantities of oil sand in Canada can be mined successfully. To retrieve oil from there is profitable at a price of 100 Dollar / Barrel, which has been surpassed a long time ago. Dr. Tilo Bode was a speaker that was not afraid to make uncomfortable statements. Michael Horsch`s assumption was right by saying, it could turn out to be very interesting event. And indeed it did. As Bode started to explain, that for example the hunger in Africa is to certain degree caused by the subsidies that farmers receive in the EU, a sigh spread through the crowd. “The EU is contributing to the hunger” Bode said. “Farmers in third world countries can not compete with highly subsidised products. With these subsidies we destroy farmers in the third world” says Bode and citing UNO calling it “a pervert system”. In his opinion, all subsidies should be cancelled and only offered in situations where farming without them is not possible, but also redistribute them for services like maintaining the landscape. “Genetic engineering is not a solution to fight hunger” says Bode. It will reduce the input of insecticides or fertilisers, but will not help to increase the stocks of grain, since yields will remain the same and seeds are very expensive. In this regard he called it absurd for Monsanto to promise that it will be a means to fight hunger. This way, Monsanto wants to prevent farmers to breed their own varieties. The company wants to create a monopoly to earn more money and make farmers dependent on them. Carl-Christian von Plate names the strong increase in bio fuel production the main reason for limited food resources and therefore high prices. In addition he thinks that losses of yields through chaotic weather patterns and an increased demand for food in developing countries like China and India, has contributed to this situation as well. It is a fact that in the previous years the global production volume of grain was below the demand. “The world has used up their stocks in previous years” says von Plate. These challenges farmers can only meet by becoming even more efficient as they already are at the moment. The greatest potential is not only with genetic engineering, fertiliser or chemicals, but the proper application of best technology, as for example HORSCH is promoting with their continuous innovations. The individual farmer will not be able to solve the global problems, but it is their duty to face the challenges and take responsibility. “Farmers will have to face times of increased risks, it will not get easier and the competition will raise.” says von Plate. In general he fears, that this issue of limited food resources could vanish rather quick because other topics will receive more attention. The final discussion, which was led by Tim Schlüter (TV moderator of ARD and NDR) was used to clarify complex issues as well as to answer questions from the audience. Following statement, given by one of the guests, reflects the impressions, most visitors left the event with. “Dear Mr. Horsch. Again you managed to keep me restless. It happened to me already last year with Prof. Fischler or the year before with Prof. Radermacher as speakers. But this year`s event – the excellent choice of speakers – my thoughts are spinning. Satisfaction falls short in describing it, it is rather enthusiasm. You not only know how to spell sustainability, you know how to create it. My compliments and thank you very much. (W. Schönleben)

After the previous successful year, again Horsch Maschinen GmbH has closed the business year 2007 with a new record. A total turnover of more than 103,5 Mio. Euro has been reached and exceeds the result of 70,4 Mio. of the previous year by 46%. Thus, the company trend of the previous years in which the family enterprise always reached a high two-digit increase in turnover clearly continues. "70 % of our turnover has been reached abroad, 30 % on the German market. Thus, the export part has continued to rise. After Germany, the countries with the highest turnover were France, the Czech Republic and Slovakia, Scandinavia, Great Britain, Poland and Hungary. Divided up into groups, 53 % of the turnover has been reached with seeding technology and 30 % with cultivation technology", says Michael Horsch, managing director and founder of Horsch Maschinen GmbH. The most considerable increases have been accomplished in Bulgaria and Romania (+155%), Poland (+140%), Hungary, France, the Czech Republic as well as in Russia and the Ukraine. The Ukraine, in general, is a growing market with great potential. The change in the agricultural sector is very extensive as there is an enormous potential in agricultural used areas. Horsch as the leading producer of cultivation and seeding technology is going to influence this market considerably and, with Astra, has found a countrywide partner for sales and distribution. The turnover of Horsch Anderson in South Dakota/USA and Horsch Agro Soyuz in the Ukraine has not been considered for the 103,4 Mio. Euro. They produce machines for cultivation and seeding up to a working width of 18 m, specially designed for the demands of the farm in these regions. Objectives for 2008 The basis for the enormous growth of the company in the last year was the building of the new Horsch production site in Ronneburg, Thuringia. With the new employees in Ronneburg and the employees at the headquarters in Schwandorf Horsch meanwhile employs about 400 people. Their commitment is the basis for the medium-term objective of approx. 150 Mio. Euro. It should be reached till the end of 2008, as production at both sites has been increased again due to the considerable demand at the beginning of the year. In addition, Horsch continues to concentrate on its core products – the Terrano cultivator line and the Pronto seeder line – as well as on its core markets which will be expanded furthermore. As they do in Germany, Horsch puts its focus on training and perfect service. "Conservational cultivation and mulch seeding will continue to prevail for economic and political reasons even with the currently high production prices. We consider ourselves as a partner for the farmers so that they can cope with the demands by using most modern technology", says Michael Horsch. The subject of the Horsch seminars 2008 are again decisive and current political and agricultural topics. „Scarce food – Chances and dangers for the future“ is the subject of the seminar that takes place at the company headquarters in the FITCentre at Gut Sitzenhof in Bavaria on 31st of May 2008. The keynote speaker at the seminar is Professor Ernst Ulrich von Weizsäcker. The main focus of the regional seminars is "Increasing corn prices – How about mulch seeding?". They will take place in February in the Deula Nienburg (Lower Saxony, 19th February), in Linstow (Mecklenburg-Western Pomerania, 21st February) and in Ronneburg (Thuringia, 26th February).

In June 2006, the Horsch practical-days took place at the Horsch headquarters Gut Sitzenhof in Bavaria. Horsch invited farmers and merchants from whole Europe to Gut Sitzenhof. They were informed about actual products and agricultural trends. The practical-days were a great success. “Over 700 visitors came to our practical-days. That is a great success for Horsch, because we organised this event for the first time,” so Cornelia Horsch, head of marketing. The picture shows the universal cultivator Pronto DC surrounded by farmers.

The new Horsch factory in the Thuringian Ronneburg is one of the most modern agricultural machinery factories of Europe. About 450 invited guests wanted to be present at the official opening on the 22nd May, after the production had already started in January. At the beginning of the ceremony company founder and manager Michael Horsch explained the reasons for the starting-up of the new factory and also for the location Ronneburg. Directly besides the highway A 4 near the Hermsdorfer Kreuz Horsch invested about 15,6 Mio. Euros with 9,5 hectare built on area. The covered area is approximately as big as three football fields. Many reasons support the decision for the location in Thuringia: Ronneburg is quite close to the highway, the conditions for settlement were very attractive, the industrial zone was already developed, the support by the government is excellent, there is highly trained staff in the surroundings and the development department of Thuringia, was the central main partner for all economic issues. “Furthermore the new factory is located in one of our main markets. We have to owe our extraordinary growth of Horsch to East Germany after the German reunification - we want to appreciate this with the new location, too", according to Michael Horsch. He promised that Horsch would continue to play an important role for the next 20 years. Dieter Althaus, Prime Minister of Thuringia, thanked Horsch for the extraordinary engagement and for the fact that all promises about new jobs and investments were kept and Horsch even exceeded all expectations. "Although the new industrial zone had been put out to tender for a long time, nobody has settled there up to now. Horsch seems to fulfill the hopes of the whole area and creates perspectives for the new employees and their families", according to Althaus. He talked to some of the new employees about their activities at a guide through the factory, and got information for example about the operational sequence of the fully automatic varnishing plant. Originally Horsch planned to create 76 new jobs in Ronneburg. In the meantime Horsch clearly exceeded this number with 162 new workplaces. All in all Horsch nearly doubled the number of employees the last half-year up to 402 employees! The optimum production run caused the renaming of KWL Ronneburg to Horsch Industrietechnik GmbH. This step became necessary because the originally planned capacity utilization of KWL was topped by Horsch Maschinen GmbH in a great extent. In the beginning 50% of the capacities were booked for Horsch. However, the first working weeks proved that more than 90% of the resources were needed. "We have built the factory in Ronneburg exactly at the right time. The annual sales correspond to about 100 million Euros. This allows us to expand our double-digit sales growth during the next years", according to Horst Keller, manager of the Horsch Maschinen GmbH. The highlight of the opening ceremony was the Open Day on the 23rd May. More than 1.500 guests visited the company area to get an impression of the production and the innovative machines of Horsch. 36 guided tours with each 30 – 50 amazed visitors took place the whole day at the work plants of Horsch Maschinen GmbH and Horsch Industrietechnik GmbH. Many farmers took the opportunity to see the perfect producing of their machines. The headline of the local newspaper OTZ also reflects the warm welcome of Horsch Maschinen GmbH in Thuringia and especially in Ronneburg: “Horsch - a stroke of luck."

The annual workshop with the theme "Do european farmers need subsidies in future" at Gut Sitzenhof on February 3rd, was a great success. Horsch decided to stay in the well known FITCentre and used a big tent, to accommodate the large number of visitors. The positive Feed back from numerous participants underline the good quality of the speakers and their presentations as well as the final discussion on stage. Horsch not only aims, to built high quality machines, but to organise valuable events for farmers, that touches the right issues and topics of todays agriculture. "“Food versus Fuel – what will farmers produce in future" was one of several recent headlines used by Michael Horsch (CEO Horsch) to start the day and welcome everybody. But no matter how the individual farmer decides, in general they could become the new "oil sheiks". Dr. Franz Fischler (former EU Commissioner of agriculture) first of all emphasized, the change of society in general over the next decades. There is an increasing trend of urbanisation. "There should be more companies like Horsch, that very consciously place their investments in rural areas and do not move their production into urban industrial sites" states Fischler. In terms of subsidies, Fischler was not able to predict their general future, but was clear, that they will be cut. Although, in his opinion it is essential, that farmers are subsidised for their unpaid services to society, so that agriculture does not change into a sector that functions purely on economic principles. He recons, that the number of “part time farmers” will increase in Europe, like it is already the case in the United States. Fischler also discussed the global climatic change and its effect on agriculture. In his opinion, genetic engineering will play an important role in order to make the necessary adjustments on the production side. Dr. Klaus-Dieter Schumacher (Töpfer International, international trading company for agricultural products) takes it a step further and describes a possible scenario, if the EU does not join the rest of the world and change its approach to this new technology. The demand on soybeans in Germany could soon not be met, if genetically modified soybeans can not be imported. Schumacher pointed out the general trends in demands for the next ten years – the demand for food will double, the demand for oilseed will increase by 30 %. This global trend has tremendous effects on farming in the EU. If the production of bioenergy is even further pushed, because there is a surplus on food within the EU, the food supply in poor countries could become even more critical. Karl Heinz Mann (CEO LBB) concentrated on economical issues that concerns the farmers. Based on pure economics, he pointed out, that many farms will not be profitable in the future. But he also showed ways, how farmers could face these challenges. "If there is enough income at the moment, it should only be used for necessary investments, loan repayments or to increase own capital but nothing else. The present optimism caused by good prices should not tempt farmers to make questionable investments. For the final discussion on stage with all speakers, Dr. Gottfried Lischka was invited as a moderator. Questions were considered but had to be handed in during lunch in writing. Many aspects of the different presentations were taken up again and discussed between the participants.