São Paulo – Sales of agricultural machinery grew by 23.8% last year, with 68,500 units sold in Brazil, the best figure since 1976. In December, 3,880 units were sold, as against 4,738 in November, a decline of 18.1%. Compared with December 2009, the result in the last month of 2010 was 28.9% lower. The output reached 88,700 units, as against 66,200 in 2009, representing growth of 34%.
In 2011, according to projections of the National Association of Vehicle Manufacturers (Anfavea), the performance of 2010 should be at least matched. To Milton Rego, the vice president of the Anfavea for the agricultural machinery segment, subsidized financing, both from the federal government for family farming and from state-level governments, have benefited the industry.
"The Mais Alimento [More Food] program of the Ministry of Agrarian Development, implemented in 2008, has helped increase the demand for tractors, leading to the emergence of up to 20,000 new farmer buyers per year." He claimed that in some cases, the purchases have been financing without interest.
Besides, Rego underscored that since 2005, farmers have been encouraged to invest in modernizing their equipment.
Exports of agricultural machinery have grown by 26.5% in 2010, when 18,600 units were sold, a figure lower than in 2008, when 30,200 units were exported. To Milton Rego, there might be a decline in shipments due to international competition in 2011.
The leading targets for Brazilian machinery include the Mercosur, Latin America, especially Peru and Colombia, and Africa.
*Translated by Gabriel Pomerancblum
