Brazil Agricultural Machinery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Brazil Agricultural Machinery Market is segmented by Tractors (Below 80 HP, 81-130 HP, and Above 130 HP), Ploughing and Cultivating Machinery (Ploughs, Harrows, Cultivators and Tillers, and Other Ploughing and Cultivating Machinery), Planting Machinery (Seed Drills, Planters, Spreaders, and Other Planting Machinery), Harvesting Machinery (Combine Harvesters, Forage Harvesters, and Other Harvesting Machinery), Haying and Forage Machinery (Mowers, Balers, and Other Haying and Forage Machinery), Irrigation Machinery (Sprinkler Irrigation, BatteDrip Irrigationry Operated, and Other Irrigation Machinery).

Market Snapshot

Brazil-Agricultural-Machinery-Market_Market Summary
Study Period: 2016 - 2026
Base Year: 2020
CAGR: 6.7 %

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Market Overview

The Brazilian agricultural machinery market is projected to register a CAGR of 6.7% during the forecast period, 2021-2026. The COVID-19 crisis has resulted in a decrease in commodity prices and farm revenues, which in turn made the farmer stop investment in machinery replacements leading to the decreased sales in the market. As global supply chains were disrupted and manufacturing industries closed down in accordance with government measures to prevent the spread of the virus, the market was slowed down during the pandemic. As stated by Brazil’s ANFAVEA, the farm tractor year-to-date sales fell by 9.5% in May, with 2,562 units sold in 2019, when compared to 2,832 units in 2018. At the same time, sales were up 2.6% compared to the previous month, when 2,495 units were registered in April. The accumulated volume during the first five months of 2019 was 11,822 tractors. Improved technology, such as precision farming, expanding planted areas, increased government initiatives, reducing import tariffs, improvements in infrastructure, and growing demand, for soybeans have been the key factors driving growth in the Brazil agriculture equipment market.​ The market is largely dominated by the top three global players John Deere, AGCO & CNH industrial, due to the higher quality of product and better after-sales service offered by these players. Domestic manufacturing accounts for the vast majority of machinery sales due to the presence of local production plants of all the major companies.​

Scope of the Report

Machinery used for agricultural activities (like planting, seeding, fertilizing, pest control, irrigation, harvesting, haymaking) and post-harvest activities (like loading, unloading, and storage) are broadly termed agricultural machinery. The Brazilian agricultural machinery market is segmented by tractors (below 80 HP, 81-130 HP, and above 130 HP), ploughing and cultivating machinery (ploughs, harrows, cultivators and tillers, and other ploughing and cultivating machinery), planting machinery (seed drills, planters, spreaders, and other planting machinery), harvesting machinery (combine harvesters, forage harvesters, and other harvesting machinery), haying and forage machinery (mowers, balers, and other haying and forage machinery), irrigation machinery (sprinkler irrigation, battedrip irrigationry operated, and other irrigation machinery).

By Tractors
Below 80 HP
81 to 130HP
Above 130 HP
By Ploughing and Cultivating Machinery
Ploughs
Harrows
Cultivators and Tillers
Other Ploughing and Cultivating Machinery
By Planting Machinery
Seed Drills
Planters
Spreaders
Other Planting Machinery
By Harvesting Machinery
Combine Harvesters
Forage Harvesters
Other Harvesting Machinery
By Haying and Forage Machinery
Mowers
Balers
Other Haying and Forage Machinery
By Irrigation Machinery
Sprinkler Irrigation
BatteDrip Irrigationry Operated
Other Irrigation Machinery

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Key Market Trends

The Brazilian Farm Structure and Consolidation of Smaller Farms

The availability of skilled labor in Brazil is reducing, as compared to the increasing area under agricultural activities. As farming is a heavy job for most farmers, they depend on technology to help increase farm productivity. As of 2018, the agricultural land in Brazil covered about 31.0% of the total land available, out of which 65.0% was occupied by smaller farms of less than 20 hectares. More farms are being consolidated in Brazil in order to share the cost of heavy agricultural machinery and solve the national problem of food scarcity in Brazil. Additionally, as small farms are slowly being acquired by the bigger ones, the need for agricultural machinery is increasing. Hence, the market for agricultural machinery can be expected to grow at a fast pace in Brazil.

Brazil Agricultural Machinery Market, Farm Area Share in %, 2018

Rising Soybean Production

Soybean is a majorly cultivated and exported crop in Brazil. In 2018, Brazilian farmers witnessed an increase in soybean production by about 10% from that in 2017, covering more than 30 million hectares of cultivated land in the country. The farmers' investment toward high-cost inputs resulted in positive yields of the soybean crop. Increasing high-cost inputs in the agricultural farms may prevail over the forecast period, as the country’s economic conditions started recovering in 2018. The high-cost inputs are anticipated to increase during the forecast period. High return profits, owing to the increasing crop production and investment toward technology, may urge farmers to adopt agricultural machinery during the forecast period.

soybean production in Brazil

Competitive Landscape

The Brazilian agricultural machinery market is fairly consolidated, and it is dominated by global manufacturers, as farmers prefer international companies for assurance of quality and after-sales services offered by the big companies. Machines manufactured domestically account for most sales, as most international companies have their local production setups in the country.

Recent Developments

In October 2019, Deere and Company acquired Unimil, a privately-held Brazilian company in the aftermarket service parts business for sugarcane harvesters. Through this acquisition, Deere and Unimil may expand their product portfolio and serve cost-effective solutions for customers.

In September 2018, Massey Ferguson extended its hay and forage range with new baler models MF RB 3130F fixed chamber round baler, MF RB 3130F Protec, and MF RB 4160V Protec fixed and variable chamber baler.​

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Tractors

      1. 5.1.1 Below 80 HP

      2. 5.1.2 81 to 130HP

      3. 5.1.3 Above 130 HP

    2. 5.2 By Ploughing and Cultivating Machinery

      1. 5.2.1 Ploughs

      2. 5.2.2 Harrows

      3. 5.2.3 Cultivators and Tillers

      4. 5.2.4 Other Ploughing and Cultivating Machinery

    3. 5.3 By Planting Machinery

      1. 5.3.1 Seed Drills

      2. 5.3.2 Planters

      3. 5.3.3 Spreaders

      4. 5.3.4 Other Planting Machinery

    4. 5.4 By Harvesting Machinery

      1. 5.4.1 Combine Harvesters

      2. 5.4.2 Forage Harvesters

      3. 5.4.3 Other Harvesting Machinery

    5. 5.5 By Haying and Forage Machinery

      1. 5.5.1 Mowers

      2. 5.5.2 Balers

      3. 5.5.3 Other Haying and Forage Machinery

    6. 5.6 By Irrigation Machinery

      1. 5.6.1 Sprinkler Irrigation

      2. 5.6.2 BatteDrip Irrigationry Operated

      3. 5.6.3 Other Irrigation Machinery

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Share Analysis

    2. 6.2 Most Adopted Strategies

    3. 6.3 Company Profiles

      1. 6.3.1 John Deere Brasil Ltda

      2. 6.3.2 AGCO do Brasil

      3. 6.3.3 CNH Industrial Brasil Ltda

      4. 6.3.4 Kubota Tractor Corp.

      5. 6.3.5 Claas KGaA mbH

      6. 6.3.6 ARGO SpA

      7. 6.3.7 Massey Ferguson

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. AN ASSESSMENT OF COVID-19 IMPACT ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Brazil Agricultural Machinery Market market is studied from 2016 - 2026.

The Brazil Agricultural Machinery Market is growing at a CAGR of 6.7% over the next 5 years.

Deere and Company, Mahindra Tractors, CNH Industrial, Kubota Corporation, AGCO Corporation are the major companies operating in Brazil Agricultural Machinery Market.

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