Sudden break of sales of farm equipment in the beginning of the year

Buenos Aires, May 10th. No good news for the Ag Equipment industry in Argentina. According to the latest report of the National Institute of Statistics and Census (INDEC) sales of farm machinery stopped at the first quarter of the year.

During this period 1,661 tractors were sold versus 1,664 during the same period of 2017 and 331 combines versus 344. After the assumption of President Macri, this is the first year when sold of machinery do not increase year over year. In the first quarter of 2015 (one of the worst year to Ag Equipment industry), it was sold only 980 tractors and 230 combines. Two years later, in the same period sales climb up to 1.664 and 344 respectively.

But imported machinery continues increasing its share in Argentina market. In fact, its sales continued growing from 2017. This year in the first quarter it was sold 164 imported combines versus 129 a year ago, while Argentinean combines declines from 215 units to 167. In the case of tractors, imported units grew from 269 to 477 while national ones decline from 1,395 to 1,184.

The share of imported equipment from first quarter 2015 to 2018 grew from 8% also from tractors and combines to 29 and 50% respectively.
According to RIA Consultores’s report, the drought and the consequent cut on the grain output are the main reason to the break of the sales. “First, there are 20 million metric tons of soybean and seven million of corn less than a year ago. Second, farmers who were able to harvest the crops or were able to maintain the grain in his silobags, are sitting on their grain expecting better prices and the stabilization of the currency”, explain the report.