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"Consolidation in any sector or industry is a logical, natural response to difficult operating conditions or declining growth," said Rabobank's report.

The "difficult operation conditions" to which the report refers are a witch's brew of factors.

It suggests three scenarios: 1) Mergers among the largest manufacturers; 2) Acquisitions by the larger fish of smaller fish; 3) Manufacturers branching out into new product lines including grain storage and animal protein production systems.

It seems AGCO, one of the largest manufacturers to which the report refers, already got a jump on the acquisitions and new product line parts of this.

And a few companies may abandon the field altogether.


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