Why this is important to Wisconsin businesses: New and growing farms will need machinery—an opportunity for Wisconsin exporters.
The government of Luxembourg is about to authorize spending $400 million on agriculture, 25 percent of which is coming from EU funds. The program aims to modernize and grow local agriculture. Farmers, gardeners and breeders will have to adopt modern standards and techniques. Wisconsin, being a major producer of agricultural machinery, has a great opportunity here. In 2015 there were about 2,000 farms in Luxembourg. According to Eurostat, the total standard output of Luxembourgish agricultural holdings was €268 million in 2010, an increase of 19 percent in 10 years’ time. This creates opportunities for Wisconsin manufacturers, as emerging farms will eventually invest in new and larger equipment of the kind made in Wisconsin.
Within Luxembourg’s agriculture sector, the dairy industry contributes approximately 55 percent of all agricultural profits. Most of the investments in this sector will be focused on building larger and more modern barns for the dairy industry. Therefore, opportunities in this sector are in the construction and installation of these barns, according to De Verband, a Luxembourgish agricultural association.
Not only is agriculture one of the most important economic sectors in Wisconsin, it is also a sector for which Wisconsin produces machinery– both for farming itself and for the processing of agricultural products. Together with the materials and know-how for constructing large (dairy) barns, the intended investment of €350 million ($400 million) is a great opportunity for Wisconsin to pursue cooperation with, and exports to, Luxembourg.