Brazil was the main market for New Holland’s agricultural division over the past two years. The machine manufacturer had revenues of between US$6 and US$6.5 billion last year worldwide. The Brazilian market accounted for more than US$1 billion, approximately 15%.
Despite this, there is no forecast of investments directed to the country in the coming years. According to the global president of New Holland, Carlo Lambro, the brand is well positioned industrially in the country. Approximately 4% of New Holland’s annual revenue is allocated to investments, but there is no breakdown of destination or purpose.
In Brazil, the focus is to increase the range of products, invest in services, customer support and connectivity. “The future of agriculture is in Brazil,” said Lambro.
Global revenue was a record, even though in the Americas and Europe it remained practically stable. The Middle East and Africa drove the result upwards, while Asia fell.
For the brand’s president, despite all the difficulties, 2023 was a positive year.
Agribusiness accounts for approximately 80% of the CNH group’s revenue. New Holland represents 50% of this share.
Situation
In a press conference during the 29th Agrishow, The brand’s managers spoke about the scenario of the global financial and agricultural markets.
Lambro cited geopolitical instability, with wars affecting logistics and oil prices, as well as important elections in several countries.
In agricultural commodities, he noted stabilizing prices, falling subsidy levels, and high input and energy costs.
O Vice President of New Holland in Latin America, Eduardo Kerbauy, highlighted the recent climate challenges, but celebrated the prospect of an increase in area in Brazil in the coming years. Kerbauy also said that “agriculture is diverse”. While soybeans and corn suffered significant losses in the summer harvest, other crops are experiencing very good times, “even records”, the vice president mentioned coffee, oranges, rice, beans and potatoes.
The Brazilian market for tractors and harvesters is expected to fall by 10% to 15% in 2024. New Holland’s revenue is expected to vary in line with this downturn in the sector.
Despite the drop, Eduardo Kerbauy expects a slight increase in the brand’s market share. Currently, the manufacturer’s share is 25% in tractors and 33% in grain harvesters in Brazil.
