Market Trends of South America Agricultural Machinery Industry
This section covers the major market trends shaping the South America Agricultural Machinery Market according to our research experts:
Increase in Area Harvested
There has been a significant increase in agricultural land under cultivation. Agricultural mechanization in the country has shifted from traditional tools to sophisticated machinery to meet the targets of capacity enhancement, timeliness of farm operations, and efficient utilization of inputs. It has also been observed that the percentage growth of tractors, pump sets, and threshers has been higher in marginal and smallholding categories as farmers are more aware of the importance of mechanization.
Tractors Dominate the Machinery Market
The use of tractors brought about an important change in the agricultural mechanization in the country. The introduction of tractors as a power source provides the possibility of covering large agricultural areas in short periods. Due to the significant increase in row crops and horticultural crops, there is an increasing usage of tractors. According to the Brazilian Department of Agriculture, around 70% of the farmers own 500 acres or more. Manual plowing, harvesting, and other operations are found to be unfeasible and time-consuming. The growth observed in the sales of tractors is an important indicator of the advent of farm mechanization. Tractors tend to act as a source of power whereby various agricultural machines can just be attached to it. This co-dependency makes the purchase of tractors increasing over the years.
