Market Trends of Brazil Agricultural Irrigation Machinery Industry
This section covers the major market trends shaping the Brazil Agricultural Irrigation Machinery Market according to our research experts:
Drip Irrigation System Dominates the Market
The drip irrigation segment is projected to witness one of the highest CAGR during the forecast period. As coffee is one of the major crops cultivated in Brazil, the profitability index of the conventional coffee production system was much lower than the drip-irrigated production system. The increasing scarcity of fresh water in arid and semi-arid regions has driven the necessity of the application of strategies that can save water, but without impacting the crop yields. Even banana crops in the country were irrigated by different drip systems, differences between normal water application and drip irrigation were observed in the effective water extraction zones indicating the effect of soil water distribution as a consequence of the irrigation systems on water extraction by the banana. Thus, most of the crops are covered under this system in the country and therefore this segment is boosting the market growth of the overall agricultural irrigation machinery market.
Growing Demand for Coffee
Brazil is the world's largest coffee producer and produces around 25% of the world's supply of coffee. Brazil has improved its irrigation systems and farmers have added new species of coffee to revive agriculture in the region to overcome a devastating drought in the year 2016. According to the FAO database, the production of coffee in the country grew from 2684.5 thousand tons in 2017 to 3556.6 thousand tons in 2018 owing to the demand for coffee in the domestic and international markets. The Brazilian organizations developed technological solutions for the use of water in coffee crops which, in addition to streamlining the use of water, contributed to optimizing productivity, product quality, and reduced production costs. Such technologies, like efficient irrigation systems, contributed to increase coffee farmers' income. Thus, the adoption of irrigation systems led to increased sales of irrigation machinery in the country. This, in turn, would boost the overall agricultural irrigation machinery market.
