Prospects for dealers and machinery manufacturers at the beginning of last year looked less than promising as far as tractor sales were concerned as the slide in demand experienced through 2019 continued into the first four months of 2020.
Pushed by strong demand of producers, favored by higher international commodity prices, the Argentinian Chamber of Agricultural Machinery Manufacturers (Cafma) reports that the sector has committed 99% of the orders that will take place until the end of the year.
Growth rates remained solid in June, though growth moderated sequentially on much tougher comps for large ag, said Analyst with RW Baird Mircea “Mig” Dobre in a recent note.
According to analysis from Yaroslav Navrotsky, Ph.D. at the Ukrainian Department of Investment and Logistics of the National Research Center Institute of Agrarian Economics, tractor production in Ukraine has decreased noticeably over the last 4 years.
A total of 154,522 tractors were registered in the EU in 2020, down 2.6% from 158,607 in 2019, according to the Axema 2021 Economic Report. 2020’s tractor registrations also represented a 1.8% increase from the 151,880 tractors registered in the EU in 2018.
Several industry representatives expressed their concerns about the lack of resources released by Brazil’s federal government since last year. However, many of them are optimistic due to the high commodity prices and strong demand for exports.
As Brazil’s Anfavea stopped releasing sales numbers by the end of last year, the market now can only rely on quarterly data divulged by the country’s National Federation of Distribution of Automotor Vehicle (Fenabrave).
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In this episode of On the Record, brought to you by Associated Equipment Distributors, we take an initial look at the Dealer Business Outlook & Trends Report and what dealers are forecasting for 2025.