John Deere 2009 Annual Report Download - page 5

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consumption, worldwide stocks of key farm commodities have
fallen near historic lows in relation to use. By some estimates,
agricultural output will have to double by mid-century to satisfy
demand. That will defi nitely require further advances in farming
productivity to achieve.
Positive trends like these should benefi t the sale of sophisticated
farm machinery and be good for our other businesses as well. In
addition to spurring the need for food, a growing, more affl uent
population will lead to an expanded requirement for housing and
global infrastructure, therefore supporting the sale of
construction and forestry equipment.
The global economic slump may delay the pace at which these
developments move ahead. In our view, however, they remain very
much intact and are likely to play a vital, extremely constructive
role in John Deere’s future.
Targeting SVA Growth
Extending the John Deere brand to a wider worldwide audience
remains a top priority. Last year, the recession hurt Deere’s sales
outside the U.S. and Canada. Yet they still equaled 37 percent of
our total equipment sales and have more than doubled in this
decade. A number of important projects were announced or
moved ahead last year aimed at promoting growth on a global
scale. These included a new manufacturing and parts complex in
Russia expected to be operational in 2010. We also formed a joint
venture in India for the manufacture of backhoes and four-wheel-
drive loaders. The investments build on earlier ones that have
added signifi cantly to our capacity and marketing presence
worldwide.
Expanding our product range and entering attractive new
business segments are vital to growth. Among the products
introduced in 2009 was a new lineup of high-powered row-crop
tractors, as well as the company’s largest-ever planter and most
powerful forage harvester. Deere also brought out a new family
of innovative zero-turn-radius mowers for commercial customers
and had a major launch of golf course mowing and maintenance
equipment.
Long a company strength, innovation lies at the heart of our
plans to capture new customers and capitalize on positive
economic trends. In 2009, the company received a number of
honors for its highly advanced products and features, including
six medals awarded at the world’s largest agricultural-equipment
trade show in Germany. Among the innovations recognized was a
future steering concept for tractors that enhances effi ciency and
safety. In addition, the company continued development of new
engines that meet customer requirements for power and effi ciency
yet produce lower emissions. The engines will be included on some
products being introduced for model-year 2011.
Key to the success of all John Deere products, whether brand-
new or well-established, is an experienced, professional network
of independent dealers. Deere dealers provide crucial support for
our products and help deliver compelling value to our customers.
As important as positive trends and productive equipment are to
John Deere’s future, their full impact can be realized only when
combined with the expertise of a committed dealer channel.
Among the industry’s most productive forwarders,
the John Deere 1910E features extreme speed and
strength for moving heavy loads. Model boasts
two-metric-ton increase in payload and greater
power, hydraulic pump capacity, and tractive force.
E-series machines also have rotating and leveling
cabs that increase effi ciency and give operators a
better view of the work area.