The Argentina agricultural machinery market is expected to register a CAGR of 7.3% during the forecast period. Argentine agriculture continues to grow strongly, and the trend is reflected in the sale of new agricultural equipment. In 2017 the machinery sales increased by 80% in Argentina. The reason for the increase in sales is the expansion of the financing lines of banks, which offer affordable rates and terms. Added to this is the rise in the prices of contractor services, which leads producers to buy their own agricultural machinery.
Key Market Trends
Low Farm Productivity Drives the Market
The population in Argentina is increasing rapidly but the agricultural land is constant, so there is a huge gap between demand and supply. Agriculture machinery aids in increasing the farm productivity, increase the yield and reduces wastage. Machine based on the latest technology such as precision seeder, fertilizer spreader etc. reduces the wastage and activities such as sowing can be done effectively utilizing all the available space. Machinery like combine harvester eliminates the wastage of harvested products and increases the efficiency of farming, supplying food to more people.
Rise in the Farm Machinery Imports
The import value agriculture machinery market has been continuously increasing since last few years even though it has a strong domestic production. the main reasons for importing farm machinery are high demand and unavailability of machinery with latest technology. Domestic production of Argentina is mostly concentrated on small scale machinery like tractors, cultivators etc. Large scale machinery such as combine harvesters are imported from countries like Germany, France and The United States.
The Argentina Farm machinery market is consolidated with few players holding major share in the market. Agrale, Massey Ferguson, Deere and Company, AGCO group, Randson SA are some of the major players in the market. Argentina agricultural machinery companies are not only competing on the basis of product quality or product promotion but are also focused on other strategic moves, like acquisitions and expansions in order to acquire a larger share and expand their acquired market size.
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