Brazil Agricultural machinery Market
The Brazilian agri-equipment scenario is characterized by an active manufacturing and trading industry. As per the market share, Argentina and Brazil and Mexico constitute the agricultural machinery market. The industry is dominated mainly by the local machinery manufacturing industries and Brazil is the sixth largest exporter of the machinery units.
However, in line with low commodity prices and austerity measures adopted by Brazil, sales of agri-equipment have plummeted. These sales are expected to climb after implementation of national policies offering subsidization on rates of machines (as in Brazil), and hike in commodity prices. The plan for subsidization was initially delayed because of a delay of 45 in government funding, but is expected to take off soon. South American countries like Brazil and Argentina also are growing market share using integrated solutions for higher inputs. Currently worth USD XX billion, the Brazilian agri-equipment and machinery market is expected to grow at no less than CAGR XX% over 2017-2022.
The market in the country is adversely influenced by economic woes. These include the implementation of its austerity measures, and a global drop in commodity prices. Over 2014, the Football World Cup also influenced sales, as it did for a number of related and peripheral sectors. Other factors include availability of an optimized supply chain, productivity concern, experienced labour force and involvement of FDI in agriculture.
Starting with common tools of farming like plough and sickle, the agricultural machinery industry has products to offer in every stage of a crop cycle. Here market segmentation is done on the basis of product and phase type, for example, tractors, plowing and cultivating machinery, planting and fertilizing, harvesting machinery etc. The combine machine of scarifying, fertilizing and seeding is popular in Brazil; the plough, mineral fertilizer applicator, combine harvester and grain thresher are also in great demand, although only by relatively fewer, affluent farmers. Tractors and combine harvesters remain the most popular implements, with a well-developed ecosystem of manufacturing and sales by a number of regional manufacturers.
As per the market share, Brazil is the largest market 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 etc, Kuhn Group. The price of the machine manufacturing in Brazil is 37% higher than in other country machinery products like in USA, Germany.