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The Entry of the German Brand in the Country Reinforces the Advancement of Precision Agriculture and Positions Brazil on the Global Radar of High-Performance Agricultural Machines
The Brazilian agribusiness has gained a new heavyweight player. The German brand Fendt, known worldwide as the “Ferrari of tractors,” officially started its operations in Brazil after an investment of R$ 150 million over the course of two years. This time, the arrival was made through the AGCO group, which already operates in the country with the brands Valtra and Massey Ferguson.
The information was released by G1, according to a report published on April 23, 2019. According to the content, the company established an office, commercial center, and parts warehouse on BR-163 in Sorriso (MT). Therefore, AGCO positioned Fendt in the main soybean-producing hub in Brazil, bringing the brand closer to large rural producers.
In addition, the strategy reinforces the company’s presence in the heart of the national agriculture, targeting a highly technical audience with significant investment capacity.
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While Russia dominates the global wheat market, Brazil emerges as an unexpected competitor in the Cerrado, offering grain available in July and August when stocks in the Northern Hemisphere are at their lowest point of the year.
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China returned almost 20 Brazilian ships with soybeans, but now everything could change: the country that buys 80% of the grain is considering relaxing regulations after impurities held up shipments of thousands of tons and caused million-dollar losses.
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The drought of the cerrado was considered an enemy of wheat, but Brazilian scientists turned the lack of rain into a competitive advantage by creating a grain with quality that is already attracting the attention of international mills around the world.
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THE OWNER of Brazil: a farmer who came from laundries, created an ’empire’ and today runs a company valued at R$ 42 billion after tripling its value in less than a year and receiving a billion-dollar investment from the USA.
Tractor Priced at US$ 450 Thousand, 517 Horsepower, and Technology Superior to Luxury Imported Cars
Initially, Fendt began selling the 1050 Vario tractor in Brazil, considered one of the most powerful in the world. The model delivers 517 horsepower and works in various aspects of the field, such as soil preparation, planting, and transporting grains or sugarcane.
The Price Draws Attention. Each unit costs US$ 450 thousand and arrives in the country through direct import from Germany. Although the company has limited the sales volume, it has not disclosed the exact number of tractors available.
During an event with journalists held in São Paulo on the 23rd, the president of AGCO in Latin America, Luís Fernando Felli, highlighted the brand’s premium positioning. According to him, “Fendt is the Ferrari of tractors.” He also stated that the machines have “more embedded technology than a luxury imported car.”
Meanwhile, the group Bom Futuro, a cotton producer, completed its first purchases of the 1050 Vario. However, the company did not reveal how many units it negotiated.
Another important differentiator involves operational efficiency. According to the manufacturer, the tractor intelligently distributes power between the rear and front axles, which operate independently. As a result, the equipment optimizes fuel consumption even in high-demand operations.
New Models, National Production, and Million-Dollar Investment in Innovation
In addition to the high-performance tractor, Fendt decided to expand its operations in Brazil. Starting in 2020, the brand announced the sale of the Ideal harvester and the Momentum planter in the national market.
AGCO will produce the harvester at the factory in Santa Rosa (RS). At the same time, the company will assemble the planter at its facility in Ibirubá (RS). However, the prices for these equipment had not yet been defined.
Out of the total of R$ 150 million invested, the company allocated R$ 60 million to adapt the production lines at these factories. In parallel, it invested the remainder in purchasing the property in Sorriso and in the process of “tropicalization” of the products, adjusting the machines to the conditions of the Brazilian field.
In the case of the Ideal harvester, innovation stands out. The equipment uses sensors and cameras that provide real-time data to the operator. Connected to a tablet, the system allows controlling the type of harvest even outside the cabin. To develop this machine, the company invested US$ 250 million, the largest investment of its kind ever made by AGCO.
Meanwhile, the Momentum planter gained prominence for being, according to Fendt, the largest in the market with fertilizer distribution directly in the planting line. Fully developed in Brazil, the machine keeps each row in constant contact with the soil, regardless of speed or terrain variations. As a result, the producer achieves a more uniform and efficient planting.
Global Expansion, Aggressive Goals, and Credit Scenario in Agribusiness
Fendt’s arrival in Brazil is part of a global expansion strategy. In the last two years, the brand has also entered markets such as United States, South Africa, Australia, and Asian countries. Now, the company plans to gradually advance to other Brazilian states and later to other countries in South America.
Furthermore, Fendt has set an ambitious goal: to sell 20,000 tractors in 2020. Currently, the AGCO group operates in 150 countries, employs more than 20,000 employees, and operates with 4,200 dealerships, with 600 in South America. In the year prior to the announcement, the company reported revenue of R$ 9.4 billion.
The three products aimed at the Brazilian market were presented during the Agrishow 2019, held in Ribeirão Preto (SP). However, the launch came at a time of uncertainty, as resources from the Moderfrota program, linked to the BNDES, had run out under the 2018/2019 Crop Plan.
Nevertheless, executives downplayed the impact. According to Felli, uncertainty does not represent a determining factor. José Galli, director of Fendt South America, emphasized that the limited volume of units and the profile of customers reduce the dependence on subsidized credit.
Do you believe that super high-tech and high-priced tractors represent the future of Brazilian agribusiness?
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