Agricultural Machinery, Irrigation Equipment, Parts, and Components
Market Overview
Argentina will continue to be an important market for agricultural equipment in 2012. Traditionally, the U.S. has been the second largest foreign supplier to the country with a 25 percent share of imports, the largest importer being Brazil. Agricultural-based exports generate two thirds of Argentina’s foreign exchange earnings. Due to solid international commodity prices, the agricultural machinery market continues to grow, and agricultural machinery imports are projected to reach USD 1.2 billion in 2013, a 35 percent increase from 2010.
The traditional U.S. brand names are market leaders. With the exception of the larger tractors that are 250 HP and above and other state-of-the art equipment, most imports originate in Brazil where many of the world’s leading international firms have manufacturing facilities.
The growth trend anticipated for 2011 and beyond has been affected by recent government regulations to limit the outflow of foreign exchange. To do so, the Secretary for Foreign Trade has implemented a Non-Automatic Import Licensing System (NAILS), which presents new challenges to within the import market.
Sub- Sector Best Prospects
Irrigation Equipment: The Argentine market for irrigation systems has been growing over the past several years following the expansion of area under cultivation. While irrigated land has more than doubled in the past fifteen years, still only five percent of farmland is currently under irrigation, and studies by specialists indicate that at least 20 percent of the total farmland could benefit from undergoing irrigation. U.S. products represent over 50 percent of total imports in this sector which is largely dominated by foreign suppliers.
Parts and Components: This subsector currently represents approximately ten percent of the annual sales value of tractors and harvesters. Gradually, the Argentine agricultural sector is becoming more of a technology-based industry. Producers are seeking new technologies to increase yields and offset increases in costs. Small and medium sized U.S. firms can be part of this trend by supplying parts and components to local manufacturers who in turn contribute between 15 and 35 percent of the total market.
Opportunities
Products offering cost savings on the use of seed, fertilizer, and agrochemicals are in high demand.
Information technology services for agricultural figures via wireless connections and Wi-Max networks are more readily needed as well. There is also a market for seeder pumps, GPS, data collection equipment for soil analysis, crop yields, remote sensing applications, and sprayer nozzles.
It is important to note that used machinery and parts cannot be imported into Argentina. The same applies to remanufactured and/or reconditioned equipment and parts.
Key Figures
(In US$ thousands) |
2009 |
2010 |
2011est |
2012est |
Total Market Size |
730,000 |
945,000 |
985,000 |
1,115,000 |
Total Local Production |
200,000 |
250,000 |
320,000 |
360,000 |
Total Exports |
120,000 |
85,000 |
97,000 |
105,000 |
Total Imports |
650,000 |
780,000 |
820,000 |
860,000 |
Imports from the U.S. |
170,000 |
202,000 |
220,000 |
235,000 |
Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources:
- Total Local Production: CAFMA (Argentine Agricultural Machinery Association)
- Total Exports: Argentine Customs
- Total Imports: Ministry of Economy
- Imports from U.S.: Ministry of Economy
The growth trend anticipated for 2011 and beyond has been affected by recent Government regulations to limit the out flow of foreign exchange. To do so, the Secretariat for Foreign Trade has implemented an import licensing system.
Trade Events
The following trade shows attract the vast majority of buyers of agricultural machinery and equipment in Argentina.
Event: |
|
Dates: |
July 18-30, 2013 |
Place: |
La Rural Exhibition Center, Buenos Aires |
Organizer: |
La Rural de Palermo S.A. |
Description: |
This will be the 123nd edition of this traditional show. |
Event: |
|
Dates: |
March 2014 (TBD) |
Place: |
Province of Buenos Aires |
Organizer: |
Expochacra S.A., local subsidiary of Exposium, France |
Description: |
The traditional ExpoChacra and FeriAgro shows have joined together to create this single, much-needed industry venue that will serve as a meeting point, where exhibitors display their agriculture products, services, and equipment to an interested audience. |
Useful Links
- Association of Agricultural Technology Chambers (Spanish)
- National Institute of Agricultural Technology (INTA) (Spanish)
- Argentine Rural Society (SRA) (Spanish)
- Argentine Association of Regional Consortiums for Agricultural Experimentation (AACREA)
- Agrositio.com (Agricultural Industry Portal) (Spanish)
U.S. Department of Agriculture
Contact Information
Please feel free to contact the U.S. Commercial Service Argentina Specialist mentioned below for additional information or assistance.
Elizabet Simon
Agricultural Machinery Sector Specialist
U.S. Commercial Service Argentina
Embassy of the United States of America
Av. Colombia 4300
C1425GMN Buenos Aires, Argentina
Phone: (54-11) 5777-4619
Fax: (54-11) 5777-4203
Email: Elizabet.Simon@trade.gov
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