The production of agricultural machinery had a growth of 105% in the first four months of 2021 according to the National Institute of Statistics and Censuses (Indec), reaching a manufactured volume close to the 8606 units (considering the units produced of all equipment). Between the sales of the main teams, the sembradoras, with a rise of de 67.3%, in the accumulated from January to April.
“The reactivation in the sale of equipment is supported by the favorable situation of the agricultural sector, that is, in the rise in international prices that improved profitability and better financing for the purchase of machinery, as detailed in a report by IES Consultores. In addition to the higher sales in seeders, the market for smaller equipment was also reactivated, such as tillage implements (29.5%), and tractors (17.3%).
However, there was a 39.1% decrease in sales of harvesters. It should be noted that this was the only category that exhibited a drop during 2020 and the first quarter of 2021. “However, this responds to the lower sale of imported equipment, in contrast to the increase in the sale of national machinery,” the report clarifies.
For its part, Alejandro Ovando, director of the consulting firm, expressed his opinion: “The improvement in the financial situation (gross margins) of agricultural producers and accessible financing they will continue to drive the demand for machinery ”.
Manufacturing and foreign trade
It is worth bearing in mind that the production of agricultural equipment had an increase of 44.1% in 2020 compared to 2019, according to Indec data,
“The higher production responds to the sustained demand on the part of the agricultural sector benefited by the improvement in credit conditions for the purchase of equipment, as well as the rise in international prices of commodities that improved profitability “, indicated the professionals of IES Consultores.
“Regarding the year-on-year performance of the various types of equipment, there was a general rise in the production of equipment manufactured by the sector, although large-scale equipment (tractors and harvesters) exhibited the smallest increases,” the report indicates.
Finally, the exports machinery totaled US$43,8 millones in the accumulated to April, an increase of 78% compared to the previous year, after falling 23.4% in 2020 and being the lowest in 15 years due to the fact that the pandemic affected the logistics of foreign trade. Meanwhile, imports of teams totaled US$312,2 millones, an increase of 18.6% compared to 2020.
“The trade balance sector continues to be in deficit, with a negative result of US$268,5 millones so far in 2021, 12.5% higher than the previous year. Although in 2020 agricultural machinery imports grew 7.1%, totaling US$831,7 millones, they were low in values in relation to the last fifteen years “, concludes the document.