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The agricultural and forestry machinery market - Brazil

An analysis with all the essential information for a clear, complete and quantified view of this market.

Available in Portuguese

The agricultural and forestry machinery market - Brazil

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Study Overview

Agricultural machinery appeared gradually at the end of the 19th century as a result of the agricultural revolution and the resulting replacement of animal traction by motorized traction to modernize French agriculture. The term characterizes all machines used in agriculture (tractors, harvesters, etc.) which theoretically increase agricultural productivity. Agricultural machines can be used for different purposes :

Tractions Soil ploughing Plantation Harvesting Processing Livestock Handling and maintenance

Closely linked to the agricultural market, the market for agricultural machinery depends on farmers' incomes, therefore on the agricultural situation. According to data from the Association of Motor Vehicle Manufacturers (Anfavea), Brazil sells between 42 and 47 thousand machines of this type per year. In 2019, the Brazilian market suffered a decline of 8.4%. A large part of this decrease was attributed to the lack of forecasting by farmers in relation to the interest rates applied in the market at the time the machines were purchased and, in many cases, to the low availability of banks to assist rural producers, given the recent contingency of resources from the National Bank for Economic and Social Development (BNDEs) with the financing lines for the sector. Sales of these machines for 2020 are estimated at 45,000 units, while exports of these equipment were projected at 13,000 units, representing an 1% increase compared to 2019. Since agriculture is one of the strategic sectors of the Brazilian economy, constant investments are expected in the acquisition of new and modern machines to ensure a better efficiency in the face of intense competition.