Brazil Agricultural Equipment Market was led by Huge Demand in the Domestic as well as International Market Coupled with Support from Brazilian Government: Ken Research

Considerable potential in agriculture sector, economic recovery, regain in the commodity prices and growing replacement demand will majorly drive Brazil agriculture equipment market in upcoming years.

Agriculture is an important part of Brazil’s economy and it is the only country in Latin America that achieves surplus in agricultural machinery import and export trade. However, fall of commodity prices and difficult measures adopted by Brazil have negatively affected the sales of agriculture equipments in the country. The sale of the equipment is expected to climb in near future on the back of implementation of national policies offering subsidization on rates of machines and hike in commodity prices.

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From common tools of farming like plough and sickle, the agricultural machinery industry in Brazil offers diversified products in every stage of a crop cycle. Tractors and combine harvesters account for the major source of revenue in the country with a well-developed ecosystem of manufacturing and sales across various regions. The replacement market has huge potential in the country which is further influenced by the overall economic environment, access to financing, and the development of new, technologically-advanced models that can boost crop yields and reduce production costs.

The agricultural equipment market in Brazil is supported by government which has set up a series of policy and mechanism to support agriculture development, which includes agricultural loan system, policies of agriculture assurance and minimum price. Brazil is a huge market for both finished equipments and parts & components. Brazil is a vital market for parts and components for final assembly in domestic factories due to its high tariffs and other barriers to the importation of finished goods. Additionally, Brazil has capability of increasing its planted area which provides considerable room for growth of the country’s commercial agricultural sector. However, during the review period, the sale of agricultural equipments registered volatile growth due to falling commodity prices and increase in the interest rate on official credit for purchasing agricultural machinery but the overall agricultural equipments market witnessed a positive growth.

The report titled “Brazil Agricultural Equipment Market by Major Products (Tractors, Combine Harvesters, Tractor Implements and Rice Transplanters), By Application (Land Development, Sowing & Planting, Weed Cultivation, Harvesting & Threshing, Post-harvest & Agro Processing), By Planting Equipment (Row Crop Planters, Air Seeders, Grain Drills and Others) and By Major Regions – Outlook to 2022” by Ken Research suggested that growth in international trade of agricultural equipment and rising demand from tractor segment will majorly account for the overall revenue growth of Brazil agricultural equipment market in next 5 years till 2022.

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