Brazil Agricultural Machinery Market - Analysis of Growth, Trends, and Forecast (2018 - 2023)
The Brazilian agricultural machinery scenario is characterized by an active manufacturing and trading industry. The country agricultural machinery industry is dominated mainly by the local machinery manufacturers and Brazil is the sixth largest exporter of the machinery units. Brazil agricultural machinery market is expected to grow at a CAGR of 6.68% during the forecast period, 2018-2023.
Factors Majorly Hindering the Market Growth
Low commodity prices in Brazil have impacted decreased sales of agricultural equipment have decreased since 2014. Other factors that impacted on the declining market were high interest rate on bank loans, high tariff on imports of agricultural machinery parts, productivity concern and lack of experienced labour force.
Rising Soybean Production in the Country
Soybean is the majorly cultivated and exported crop in Brazil. In 2017, Brazilian farmers have witnessed an increase in the soybean production by 2% from 2016 covering approximately 33 million hectares of cultivated land in the country. The farmer’s investment towards high cost inputs resulted in positive yields of the soybean crop. Increasing high-cost inputs in the agricultural farms will prevail over the forecast period as the country’s economic conditions have started recovering in 2017 and anticipated to grow during the forecast period. High return profits with increasing crop production and investment towards technology will urge the farmers to adopt agricultural machinery during the forecast period.
Tractors and combine harvesters remain the most popular machinery, with a well-developed ecosystem of manufacturing and sales by a number of regional manufacturers. Recently, self-propelled sprayers have been primarily adopted by the small and medium scale farmers due to its high benefits with competitive pricing over traditional sprayers in the market.
As per the market share, Brazil is the largest market in the South American region for farm equipment, having local manufacturers and a low proportion of import equipment. Agricultural machinery industry is dominated by the local manufactures like Agrale, AGCO followed by the global players John Deere, CNH industrial, Kuhn Group, etc.
Key Developments in the Market:
September 2017: Mahindra & Mahindra (M&M) unveiled driverless tractors in India and anticipated to commercialize it by February 2018. The company plans to export the product to the countries like Brazil, US, Japan, and Turkey, to increase the M&M agricultural machinery export revenue target of 50% in the coming years.
Major Players: DEERE & COMPANY, MAHINDRA TRACTORS, CNH INDUSTRIAL, KUBOTA CORPORATION, AGCO, amongst others.
Reasons to Purchase this Report:
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