Brazil Agricultural Irrigation Machinery Market is projected to register a CAGR of 6.5% during the forecast period (2020-2025).
- Brazil is among the ten countries with the largest irrigated areas on the planet, a study conducted by the National Water Agency reported in 2017. The country's 6.95 million hectares are of food production is done using irrigation techniques.
- The country uses four types of irrigation methods, namely, surface irrigation, sprinkler irrigation, localized and subterranean irrigation methods.
- Though irrigation leads to excess water use in the country, even then it contributes to the growth in productivity and reduction in unitary costs along with the optimization of irrigation supplies and equipment.
Key Market Trends
Drip Irrigation System Dominates the Market
The drip irrigation segment is projected to witness one of the highest CAGR during the forecast period. As coffee is one of the major crops cultivated in Brazil, the profitability index of the conventional coffee production system was much lower than the drip-irrigated production system. The increasing scarcity of fresh water in arid and semi-arid regions has driven the necessity of the application of strategies that can save water, but without impacting the crop yields. Even banana crops in the country were irrigated by different drip systems, differences between normal water application and drip irrigation were observed in the effective water extraction zones indicating the effect of soil water distribution as a consequence of the irrigation systems on water extraction by the banana. Thus, most of the crops are covered under this system in the country and therefore this segment is boosting the market growth of the overall agricultural irrigation machinery market.
Growing Demand for Coffee
Brazil is the world's largest coffee producer and produces around 25% of the world's supply of coffee. Brazil has improved its irrigation systems and farmers have added new species of coffee to revive agriculture in the region to overcome a devastating drought in the year 2016. According to the FAO database, the production of coffee in the country grew from 2684.5 thousand tons in 2017 to 3556.6 thousand tons in 2018 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, product quality, and reduced production costs. Such technologies, like efficient irrigation systems, contributed to increase coffee farmers’ income. Thus, the adoption of irrigation systems led to increased sales of irrigation machinery in the country. This, in turn, would boost the overall agricultural irrigation machinery market.
The agricultural irrigation machinery market in Brazil is consolidated and is dominated by major manufacturers since farmers prefer international companies for assurance of quality and after-sales services offered by the big companies. The drive of water conservation efforts in the country is propagating the sales of micro-irrigation systems which in turn is estimated to witness substantial growth in the near future. This is expected to benefit major companies, such as Nelson Irrigation, Netafim, Jain Irrigation Systems Ltd., Valmont Industries, Lindsay Corporation, etc.
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