The agricultural machinery sector began 2024 in contraction. In the domestic market, accumulated sales in January and February were 36% lower than in the previous year. The sector employs around 110 thousand workers.
The numbers are from the Brazilian Association of the Machinery and Equipment Industry (Abimaq). The agency released the data on Wednesday 27th.
Domestic agricultural machinery market
In total, the domestic agricultural machinery market moved 6,100 units between January and February. That’s 3,500 less than the previous year. The reduction occurred in both the tractor and harvester segments — fundamental equipment for the agribusiness.
In the case of tractors, the drop reached 58%. For harvesters, the retraction was 34%.
The reduction in the number of agricultural machines sold led to a drop in revenue. In the first two months of the year, the sector’s revenue closed at R$7.5 billion — 30% lower than in the same period of the previous year.
Due to the results, the association is evaluating reviewing the projections for 2024. The scenario could be worse than previously predicted, as revealed by Pedro Estevão Bastos, president of the Agricultural Machinery and Implements Sector Chamber of Abimaq.
“Taking into account economic and climate factors, we expect a decline of 15% by the end of 2024,” he said. “But the sample from January to February is already higher. If it continues like this, it will be difficult for us to recover in the second half of the year, which tends to be better.”
Tags: Agricultural machinery sales collapse
