Argentina sees decline in agricultural machinery sales in 2024

The National Institute of Statistics and Censuses (INDEC) released data on agricultural machinery sales in Argentina for the last quarter of 2024. The figures show that total sales revenue reached 2,2 trillion pesos, a real increase of 18% compared to the previous year. However, the growth in value does not reflect an increase in unit sales, but rather an appreciation in the prices of the machines.

In terms of units, the total number of machines sold was 16.103, which represents a drop of 4% compared to the previous year and 17% compared to the average of the last five years.

This reduction in sales is mainly attributed to the drop in tractor sales, which was not offset by the increase in sales of harvesters, seeders and implements.

It is worth noting that this performance occurs after a significant 23% drop in sales in 2023, reflecting the severe drought that impacted agricultural production.

The sector's performance is affected by several external factors, such as weather conditions and harvest developments, which in 2024 showed results below expectations. In addition, the financial impact of the 2022/2023 drought reduced the capital available for investment in machinery. The rise in machinery prices, which rose 19% in real terms, also contributed to restricting demand.

Sales distribution

Regarding the distribution of sales by type of machinery, tractors led sales in 2024, accounting for 40% of total revenue. This segment, historically the most commercialized, was followed by implements, which accounted for 25% of sales. Seeders ranked third, with 18%, while harvesters came in last, with 17% of the share.

Despite the drop in units sold, tractors recorded a 2% increase in the value invoiced in 2024, reaching 881,8 billion pesos. Implements showed a 25% growth in the value invoiced, totaling 549,3 billion pesos. The seed drill segment, which had a 25% increase in units sold, also saw a 49% growth in the total value invoiced, reaching 399,9 billion pesos.

Harvesters, on the other hand, showed a mixed performance. Although sales volume increased by 9% compared to the previous year, the number of units sold was the second lowest recorded to date, with only 713 units. The amount invoiced from harvesters was 373 billion pesos, an increase of 23% compared to 2023, but a decrease of 5% compared to the average of the last five years.