Driven by the growth of agribusiness, the segment of agricultural machinery and implements recorded the best historical series of sales in the last 20 years. But is the industry prepared to meet this demand?
We made this post for you to stay on top of the main events and understand what the trends are for the next year. Good reading!
Current scenario
The record harvest of grains in the 2020/21 harvest, added to the appreciation of the dollar against the Brazilian currency, resulted in significant gains for exporting producers, who in turn, decided to invest in updating agricultural machinery.
According to the Brazilian Association of Machinery and Equipment Industry (Abimaq) in the first half of this year alone, sales of agricultural machinery grew 56%.
With good profitability caused by the record harvest and the rise in the dollar, rural producers invested in acquiring new agricultural machinery and implements.
According to the National Federation of Automotive Vehicle Distribution (Fenabrave), in the first half of this year, more than 25 agricultural machines were sold, a number 34,6% higher than in the same period of 2020.
However, some tractor and harvester models are only scheduled to be delivered in 2022. This is because the sector has been facing some difficulties in meeting this high demand, as we will explain below.
Lack of raw materials and logistical problems
Around the months of May and June of this year, most manufacturers of agricultural machinery and implements had already closed the order book. Purchases made after this period had deliveries scheduled only for 2022.
This is happening due to the scarcity of raw material to manufacture the machines. Steel, parts, components and tires are in short supply on the market since July last year. The unavailability of semiconductors, used in more technological machines, is also another factor that is affecting the industry.
This scenario is leading manufacturers to have to import these items in order to process orders. The delivery time for machines and implements went from 60 to 150 days, in some cases.
The pandemic affected the logistics of several sectors, including agricultural machinery.
However, even imports are not being easy, there is also a logistical problem affecting the segment. Ships and containers are also in short supply. The CNH Industrial group, owner of the Case and New Holland brands, had to resort to the use of planes to be able to bring in parts and tires from abroad.
Importing the raw material for the manufacture of machines not only increases the delivery time of the same, but also makes the final product more expensive, especially in this moment of appreciation of the dollar.
However, with the advancement of vaccination and a trend towards normalization of the market, the supply chain for the manufacture of agricultural machinery should normalize, making it possible to meet demand.
With all this in mind, see below what are the forecasts for the agricultural machinery and implements market for 2022.
Expectations for 2022
For next year, a good demand is still expected, but more contained. The number of orders is expected to stabilize, but at higher levels than in previous years.
There is a tendency for areas dedicated only to livestock to be transformed into crop fields, or to adopt the integrated livestock farming system, which should lead to movement towards the machinery and implements sector.
Another factor that can also boost sales in the sector is the return of face-to-face agricultural fairs, which are responsible for almost a third of orders in this segment.
The expectation is high for the return of agricultural events in person.
An example is Agrishow, in Ribeirão Preto/SP, which was suspended for two years, due to the Covid-19 pandemic. The event is one of the largest agricultural fairs in the world, recognized as the stage for the launch of the main trends and innovations in agribusiness.
However, some other factors, such as the performance of the off-season harvest in Brazil, the harvest numbers in the foreign market and the value of the dollar should also influence this market. At the moment, we already know that, due to climatic factors, the safrinha did not obtain the yield that the producers were hoping for.
Online sale of used machines
As an alternative to the industry’s difficulty in meeting the high demand, and also to the increase in the price of machines caused by the need to import raw material to manufacture them, there is the trade of used and new agricultural machinery and implements.
In both online auctions and advertisements for sale on marketplaces, producers are turning the market around. In addition to immediate availability, prices are also more inviting.
If you are looking to renew your fleet, it is worth taking a look at the advertisements available on the MF Rural Marketplace!
Did you like the article? We also suggest reading our text on how to choose the ideal heavy machine. Check out!
