Bologna, Italy - The agricultural machinery sector is impacted by factors affecting both industrial and agricultural economies. In recent years, high raw material and energy costs, driven by geopolitical tensions, along with restrictive monetary policies to curb inflation, have reduced credit access and slowed investments.
The agricultural economy has seen limited improvement in production and profitability. The 2024-25 season is expected to maintain similar cereal volumes as last year, with increases in Australia, the USA, and India, but a decline in Europe due to weather conditions. Global meat production rose slightly by 0.7%, driven by South America and Oceania, offsetting declines in China, North America, and Europe.
The performance of the agricultural and industrial sectors has impacted the global agricultural machinery market. Rising costs, limited credit access, and challenges in the primary sector have led to reduced investments in new technologies, as highlighted by FederUnacoma at the EIMA International press conference in Bologna.
Tractor sales dropped 12% globally in the first half of 2024, with declines in major markets like India, China, the US, and Western Europe. The second half of the year is unlikely to see a recovery, with total sales expected to fall below 2 million units, the lowest since 2016.
Ms. Mariateresa Maschio, President of FederUnacoma, said, “From a medium and long-term perspective, the need for agricultural technologies for the primary sector is destined to grow, driven by constantly developing agriculture, and the increase in the global population, which is estimated at 10 billion people by 2050, will make it necessary to increase agricultural production by 50% compared to current levels. The agricultural machinery sector is facing a crucial challenge, not only in terms of increasing production yields, but also in terms of sustainability. The agricultural machinery sector must produce technologies that adapt to the most diverse environmental and climatic contexts, and that support agriculture in solving problems related to the lack of water resources and the loss of soil fertility”.
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