The Covid-19 pandemic caused a shortage of imported components for the manufacture of agricultural machinery in the country and the war in Eastern Europe caused industries to suspend exports to Russia and Belarus. Despite these factors, the industry forecast is that sales will grow 5% this year.
With the agricultural fairs already held at the beginning of this year breaking sales records, manufacturers of harvesters, tractors and sprayers are betting on the planning and management of the Brazilian farmer to overcome the difficulties of the year.
Logistical problems that were already part of the sector’s routine became more evident with the war, such as port congestion, lack of containers, ship delays, pressured freight and changes in air routes.
At John Deere, the supply and production scenario “continues to be very challenging”, according to Marcelo Lopes, the brand’s sales director in the country.
Valtra’s sales director, Alexandre Vinicius de Assis said that the supply of machines remains unstable, impacted by the shortage of raw materials in the last two years as a result of the pandemic. He also stated that the brand has been working continuously with suppliers to equalize the situation.
“We expect that, during the second half of the year, this scenario will be more balanced. That’s why we also warn about the importance of the producer planning the investment in technology, making a good planning for the acquisition of machines and not waiting for the moment of planting or harvesting.”
Regarding the impacts of the war, Assis stated that there is concern about the increase in production costs and availability of inputs, especially diesel and fertilizers.
At Case, Vice President Christian Gonzalez said the war further complicated an already complicated scenario.
“The problem of the war will impact my client more, mainly agriculture, the plants. There is the question of fertilizers”, he said. “We are suffering but for other reasons, Covid, lack of external labor, excess demand.”
The concern of Eduardo Kerbauy, director of Market Brazil at New Holland Agriculture, is that Russia and Ukraine are major global producers of palladium and neon gas, raw materials used in semiconductors.
“The prolongation of the military conflict could impact production in an important way, but it is not yet possible to assess this. As we are a multinational company, we benefit from global agreements with suppliers of systems linked to the semiconductor chain, which allows us to have some stock,” he said.
Despite the difficulties, manufacturers estimate that the market will grow this year. Among the factors that converge to this bet, according to the sector, are the fact that the rural producer comes from good harvests last year, with good productivity and positive profitability to invest and include more technology in the business.
“The Brazilian market for agricultural machinery and equipment is heated, with an expectation of growth of 5% in 2022, and Agrishow should reflect this moment”, said Eduardo Nunes, marketing director for Massey Ferguson for Latin America.
Agrishow (International Fair of Agricultural Technology in Action), the main reference in Brazilian agribusiness, starts this Monday (25) in Ribeirão Preto (313 km from São Paulo), after not having been held in the last two years due to pandemic.
The event, which will continue until Friday (29), is expected to bring together 150,000 Brazilian and foreign visitors.
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