Market Trends of Argentina Agricultural Machinery Industry
Low Farm Productivity Drives the Market
- The population in Argentina has been increasing rapidly, but the agricultural land is limited, resulting in a huge gap between demand and supply. According to Food and Agriculture Organization Corporate Statistical (FAOSTAT) database, the land area of agriculture in the country was 108,381 thousand hectares in 2020 which is constant in all the years except in 2017, with 111239 thousand hectares in the country. However, it may increase in the coming years.
- Agriculture machinery aids in increasing farm productivity and yield and reducing wastage. Machine based on the latest technologies, such as precision seeder and fertilizer spreader, reduces wastage, and activities, such as sowing, which can be done effectively utilizing all the available space. Machinery like combine harvesters eliminates the wastage of harvested products and increases farming efficiency, supplying food to more people.
- The primary sector has a fundamental role in the country's economy, with innovative technologies, such as precision agriculture, gradually finding space. The demand for agricultural machinery is potentially very high, as well as for specialized crops and fruit and vegetables. According to European Food Agency (EFA), the machinery market is flourishing again in 2022 with a 16.7% increase in sales compared to the previous year, which will grow the market during the forecasting period.
Understand The Key Trends Shaping This Market
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Rise in the Farm Machinery Imports
- The import value of the agriculture machinery market has been continuously increasing for the past few years, even though it has a strong domestic production. The main reasons for importing farm machinery are high demand and the unavailability of machinery with the latest technology. So, In 2022, John Deere announced it has selected new companies for its Startup Collaborator program, which seeks to deepen the relationship of the multinational with innovative emerging companies, boosting new technology solutions for Argentina's Agriculture machinery in the field of farm operations. This will develop the growth of the market in the coming years.
- According to International Trade Center (ITC) Trade, the United States is the largest supplier of agriculture machinery with the highest market share of 26.5%, followed by Brazil and Germany. In 2021, the Deputy Minister of Rural Economic Development of Guatemala and Argentina agreed to increase cooperation and trade between both countries. Argentine cooperation will be focused on Guatemalan rural development, particularly on enhancing the agricultural sector's competitiveness, technology transfer, and improvement of the agricultural machinery equipment adapted to family agriculture which is aimed at increasing productivity through sustainable management of water resources and land use. This cooperation will further open the Guatemalan market for Argentine agricultural machinery.
- The domestic production of Argentina is mainly concentrated on small-scale machinery like tractors, cultivators, etc. The agriculture industry's leading digital farming platform, Climate FieldView, has commercially launched in Argentina for the upcoming growing season. Already widely adopted globally, FieldView is transforming how farmers manage their operations with data-driven digital tools. The platform arrives in Argentina for the growing season to help farmers get the most out of each hectare.
- Developed and delivered by The Climate Corporation, a subsidiary of Bayer and a leader in digital innovation for agriculture, FieldView is the complete digital farming platform on the market. It helps farmers gain a deeper understanding of their fields year-round with tools that allow them to easily collect and store data, optimize management decisions quickly and efficiently, and help reach their yield potential while minimizing the application of crop inputs. This will help domestic companies develop large-scale farm machinery and grow the market during the forecasting period.
