Market Trends of Brazil Agricultural Irrigation Machinery Industry
The Drip Irrigation Segment is Expected to Dominate the Market
Ensuring a stable food supply in the context of increasing extreme climate events is a major global challenge to achieving the Agenda 2030 goals in Brazil. As one of the main producers and exporters of agricultural products, Brazil is committed to providing healthy and nutritious food to meet national and global food security. For instance, according to ITC Trade Map data, Brazil's export of corn was 43,389,352 metric tons in 2022, which increased to 55,893,042 metric tons in 2023. Consequently, agricultural machinery like drip irrigation can help achieve the desired productivity results. Farmers or producers may fail to notice, but there can be constant frustrations of harvests and compromised crop quality due to incrustation and obstruction problems of the emitters. This can unbalance the irrigation machinery and fail to supply the plants with water and nutrients correctly. Hence, when stakeholders incorporate suitable agriculture irrigation machinery, it helps achieve the required output.
The benefits of drip irrigation are mostly seen in large, cropped areas, usually operated by major companies. Over the years, the number of small-scale farmers that use drip irrigation has increased as the commercial benefits outweigh the initial investment cost. Some of the crops that are cultivated using drip irrigation systems are coffee, sugar, and soya beans. The regions in Brazil that extensively use modern irrigation systems for cultivation are Parana, Rio Grande Do Sul, Sao Paulo, Mato Grosso Du Sul, Goias, and Ninas Gerais. Even with local water conditions from water in the So Francisco River and the AQUA4D irrigation system, incredible productivity results were obtained in grape production with water treatment incorporated into the system. Growers in the Sao Francisco Valley were able to produce exceptional results. The area had a 27% boost in productivity and a 14% increase in the quality of the production. Even other crops growing in Brazil, like horticultural greenhouse products, have received desired productivity results after the use of innovative irrigation machinery.
Coffee Holds a Significant Share by Crop Type Due to Increasing Demand
Brazil is the world's largest coffee producer and produces around 25% of the world's coffee. Brazil has improved its irrigation systems, and farmers have added new species of coffee to revive agriculture in the region and overcome a devastating drought in recent years. According to the FAOSTAT database, the production of coffee in the country grew from 2,985,581 tons in 2021 to 3,172,562 tons in 2022, 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 and product quality and reduced production costs. Such technologies, like efficient irrigation machinery, increased coffee farmers' income. Thus, adopting irrigation types like drip irrigation has increased sales of irrigation machinery in the country. This, in turn, would boost the overall agricultural irrigation machinery market.
Further, drip irrigation machinery is the most efficient method of irrigating, particularly for Brazilian agriculture, considering the types of crops grown in the country accompanied by water scarcity prevailing in the country. Coffee is one of the major crops cultivated in Brazil. The profitability index of the conventional irrigation systems used for coffee production is much lower than that of the drip-irrigated production system. The increasing scarcity of fresh water in arid and semi-arid regions has driven the necessity of applying strategies that can save water without impacting crop yields. Thus, most crops like coffee are covered under this machinery system in the country.
