By Nayara Figueiredo
SAO PAULO (Reuters) – Agrishow, the largest agricultural fair in Latin America, this week generated a record turnover of 11.243 billion reais in sales intentions of machinery and equipment for agriculture, storage and irrigation, organizers said on Friday. .
High costs for the industry and increase in the prices of machinery with more technological advances contributed to a 287% surge in business compared to the 2019 edition, the last in person before the pandemic. There is also a favorable scenario for investment due to the level of capitalization of rural producers.
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Sales intentions exceeded the initial expectation of 6 billion reais for the fair held in Ribeirão Preto (SP).
According to the Secretary of Agriculture of São Paulo, Francisco Matturro, the numbers need to be evaluated based on certain parameters.
He said that part of the high financial performance is due to the increase in the prices of machines, in the wake of higher expenses for production in the industry, linked to limitations in obtaining imported parts.
“We had for three years a total disorganization of the supply chain, of agricultural machinery components and raw materials. So that raises costs and, consequently, prices”, he told journalists in an internet broadcast.
Matturro, who is also president of Agrishow, pointed out that logistical issues inflated the sector.
“We have total disorganization in maritime traffic, which also changes prices,” he said.
On another front, the advancement of technology in agricultural machinery in recent years has also led manufacturers to readjust the values of equipment.
“We have machines today with much more embedded technology than we did three years ago,” added Matturro.
The president of the Sectorial Chamber of Agricultural Machinery and Implements (CSMIA) of Abimaq, Pedro Estevão, said that the heated demand in the sector, with the agricultural crop remunerating well the producers, opened space for investments.
“We are at a very promising moment, with high profitability in the sector and this influences the purchase of machines”, he said. “And there is also an increase in the planted area; if you don’t have more machines, you can’t plant”.
In the 2021/22 harvest, the area planted with grains and cereals should grow 4.4% in Brazil, to 72.8 million hectares, according to data from the National Supply Company (Conab).
With that, Estevão projects a 5% advance for the chains of machinery, equipment for irrigation and storage in agribusiness this year, “with an upward bias”, compared to the 88 billion reais mark registered in 2021.
On the issue of financing resources, the president of the sectoral chamber stated that “there is no lack of money, the problem is the interest”, noting that even beyond the Safra Plan there are sources of private credit.
The communication director of the automaker Case IH for Latin America, Eduardo Penha, said that the company at Agrishow should have at least twice the sales of the 2019 edition, although there is still no final balance of the business.
(By Nayara Figueiredo)
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