Agricultural machinery sector has a 20% reduction compared to 2022

The agricultural machinery sector continues to decline, according to data released by the Brazilian Association of Machinery and Equipment Industry (Abimaq). The approximate reduction is 20% compared to the previous year. The outlook should extend until the end of the year. 

Pedro Estevão, president of the Sector Chamber of Agricultural Machines and Implements at Abimaq, explains that last year there was a large number of sales of machines as a result of the record harvest harvested. He also argues that the downward movement experienced in 2023 is due to the stagnation in the increase in planted area. 

“In 2021 and 2022 we had an increase in planted area of ​​12 million hectares, which means a significant 5% per year. In this summer harvest, which began last month, there was an increase of just 1% in planted area, too little to put pressure on this agricultural machinery sector. In previous years, we had an expansion market and a replacement market. This year, basically, we only have a replacement market”, he highlights. 

For the Abimaq representative, high interest rates and the reduction in commodity prices are other factors that contribute to the drop in revenue in this market. “We see that this does not constitute a crisis in the sector. Large fluctuations are normal in this sector, which represents approximately a quarter of the machinery market”, he concludes.