Market Trends of Brazil Agricultural Machinery Industry
Tractors Segment Dominates the Market
- Tractors is the largest segment in the market studied. The vast and diverse Brazilian terrain, which ranges from the humid tropics to arid regions, demands robust and adaptable machinery. Tractors meet these needs effectively by offering the ability to handle different types of soil and crops, making them a preferred choice for Brazilian farmers. Along with this, soybean, corn, wheat, tobacco, grape, apple, sugar cane, cassava, and beans are the major crops grown in the country. Tractors are widely used in these crop types in the country to enhance the efficiency and productivity of farming operations. The growth in the area under these crops is aiding the market. As per FAOSTAT, the area harvested under wheat in Brazil grew from 2.7 million ha to 3.1 million ha from 2021 to 2022, thereby boosting the usage of tractors.
- Along with this, the cost-effectiveness of tractors plays a crucial role in their dominance. While the initial investment in tractors can be substantial, the long-term benefits in terms of increased productivity and reduced labor costs make them a worthwhile investment. This supports the tractor sales in Brazil during the study period. For instance, the sales of farm tractors grew from 13,287 in 2020 to 18,843 in 2021, according to the Association of Equipment Manufacturers.
- Brazil has seen significant advancements in tractor technology. Modern tractors are equipped with features such as GPS navigation, automated systems, and advanced engines that enhance their performance and efficiency in the market. In 2024, Fendt launched the new 700 Vario tractor series in Brazil. The models include the Fendt 726 Vario (263 HP) and Fendt 728 Vario (283 HP). These tractors have Vario transmission for improved handling, high fuel economy, and minimal slip. They also feature the Fendt Dynamic Performance concept, providing an extra 20 HP as needed for each specific job. Thus, the benefits of increasing productivity and cost-effectiveness, coupled with technological advancements, are expected to drive market growth during the forecast period.
Understand The Key Trends Shaping This Market
Download PDF
Haying and Forage is the Fastest-growing Machinery Type
- Haying and forage machinery is the fastest-growing type of agricultural machinery in the Brazilian market. Mowers, balers, windrowers, forage choppers, fodder processors, rakers, and tedders are the machinery included in the haying and forage type. Brazil's vast livestock sector is a major driver of haying and forage machinery use. The country is one of the largest beef and dairy producers globally, and the production is expected to grow during the study period. For instance, according to the US Department of Agriculture, beef production in Brazil grew from 9.5 billion kg in 2021 to 9.8 billion kg in 2022. This necessitates a reliable and efficient supply of forage to feed its herds. This demand drives farmers to invest in advanced haying and forage machinery to ensure a steady and reliable supply of feed, thereby aiding the segment’s growth.
- Additionally, the demand for animal-based products is also observed to be growing in the country. As demand for animal products continues to grow, so does the need for high-quality, cost-effective forage. Corn is used as one of the major forage crops in Brazil. According to FAOSTAT, the area harvested under corn in Brazil grew from 18.9 million ha to 21.0 million ha from 2021 to 2022. The growth in forage crop cultivation is anticipated to increase further in the coming years, boosting the country's forage machinery sales.
- Furthermore, dairy production and livestock play an important role in the Brazilian economy. However, due to the constant challenges of providing high-quality food to animals, rural producers have been looking for effective methods, such as haymaking, to ensure adequate nutrition. Therefore, to better understand the techniques and benefits of haymaking, the major companies are coming forward with training on machinery usage in the haymaking process. For instance, in 2024, Massey Ferguson launched the web series “Hay and Action” in the Brazilian agricultural market. This offers a comprehensive view of the haymaking process with the usage of machinery, as well as testimonials from hay producers from different regions of the country, which supports the awareness and usage of the machinery among Brazilian farmers. Therefore, the growing production of livestock sectors, coupled with the rising usage of forage crops and innovative practices by the major companies, is expected to drive market growth during the forecast period.
