Market Trends of Mexico Agricultural Machinery Industry
Drip Irrigation holds a Significant Share of Irrigation Machinery
The agricultural sector is a major component of the Mexican economy, with more than 20 million people, or about 15% of the country’s population, working in the sector. The country faced major challenges from frequent droughts and extreme weather conditions, such as floods and hurricanes. The unpredictability of climate change is disturbing traditional farming practices and making it challenging for farmers to plan their cultivation cycles. Many farmers face declined yields, increased crop failures, financial hardships, and food insecurity. To overcome these challenges, Mexican farmers are adopting innovative planting, growing, and harvesting techniques, including climate-smart irrigation practices, to maintain higher yields.
In the state of Sonora, farmers use drip irrigation systems to conserve water. The Mexican government is providing subsidies to farmers to adopt climate-smart practices, and other non-government organizations are providing training and technical assistance to farmers. These initiatives result in the higher adoption of drip irrigation systems in agricultural production, which supports enhancing agricultural production. For instance, vegetable production in Mexico in 2021 was 14.8 million metric tons, which increased to 15.6 million metric tons in 2022, as per the FAO.
Moreover, players in the market are collaborating to launch new drip irrigation systems, which are anticipated to support the growth of the drip irrigation market in the country. For instance, in November 2023, Rivulis and Dragon-Line formed an exclusive distribution agreement in North American countries, including Mexico, to launch a new Dragon-Line Mobile Drip Irrigation System based on a newly developed Rivulis drip line product for this application.
The Tractor Market is on an Upward Trajectory
The Mexican tractor market is experiencing robust growth, driven by various factors that contribute to its expansion. The increasing demand for mechanized agriculture has propelled the tractor market forward. As farmers in Mexico seek to enhance efficiency and productivity in their operations, adopting tractors equipped with advanced technologies has become imperative. This can be witnessed by the data released by ITC Trade Map, which states that the country imported tractors valued at USD 393.6 million in 2022, which increased to USD 1,081.3 million in 2023. The rising regional population also necessitates greater food production, prompting farmers to invest in modern and powerful tractors that can handle larger-scale cultivation. Furthermore, government initiatives and subsidies are pivotal in stimulating the tractor market.
The growing trend of precision farming has also significantly contributed to the surge in tractor sales. Tractors equipped with GPS and other precision technologies enable farmers to optimize resource utilization, reduce wastage, and improve overall farm management. As a result, precision farming has become a key driver, propelling the tractor market toward sustained growth. In conclusion, a confluence of factors, including mechanized agriculture, government support, and precision farming, collectively propels the country’s tractor market forward, fostering innovation and driving technological advancements in the sector.
