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The Agricultural Machinery Sector Broke a Sales Record in Brazil in 2022. According to Pedro Estêvão, President of Abimaq, Internal Sales Totaled About R$ 91 Billion, an Increase of More Than 2% Compared to the Previous Year.
The leader provided a brief explanation, saying that the percentage is low because the sales base for the years 2020 and 2021 was much higher. This segment grew by 17% in 2020 and 48% in 2021.
With a series of uncertainties for this new year that is beginning, the leader finds it difficult for the excellent performance of 2022 to be repeated. This is because the resources from the 2022/2023 Safra Plan, made available in July, ran out in October.
“Since interest rates are very high, the investment window has become very poor. If there is no signal from the government in the short term, new resources should be available only at the beginning of the second half. If resources return from July, we could repeat the performance of the second half of last year, but we would have this decline in the first half.” According to Estêvão, it would just not be possible to know how much this decline would be.
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Agricultural Machinery Sales Hit Record
This scenario is even more concerning when considering that, in the accumulation of the months of November and December 2022, these sales fell by 20% compared to the same period in 2021.
However, the agricultural machinery companies report an even worse scenario this January, as the sector has no expectations for improvement.
However, the leader is even more optimistic about all the prospects of good harvests related to grains in Paraná, in the Southeast and Midwest. “The expected profitability is very good, and many producers have the capital to buy machinery outright. This is the positive point for the first half,” he celebrated.
Division by Crop
The machinery for grains accounts for about 65% of the national markets. Sugarcane, coffee, and cotton together account for about 25%, while other crops combined make up more than 10%.
Estêvão took the opportunity to present the growth projection of more than 1% for the year 2022, which was announced yesterday during a presentation of last year’s results by the leaders of the associations. “There is still no projection. We will meet next Friday to discuss the scenarios for the upcoming year: harvest, sales, financing, etc.”
In addition to all that, other important issues for the sectors must still be addressed, such as the new government’s position on the machinery industry and also regarding possible changes in taxation.
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