Argentine agricultural machinery and equipment exports increased 11 %
to November 2017 while local sales increased 79 % at the third quarter
of 2017. The use of installed capacity in the sector also rose up to 78
% as September 2017 from the low of 50 % in 2015.
Argentine agricultural equipment and machinery export values would rose up
in 2017. As November 2017, exports from this sector reached 63.5 million
dollars increasing 11 percent comparing the same period of 2016 when the
exports accounted 57.1 million dollars, based on INDEC data.
In the domestic market, sales went up 79 % to the third quarter of 2017
comparing with the same period of 2016, based on INDEC quarterly report.
Correlating with the last values, the physical production of agricultural
machinery in the South of Santa Fe increased 23 % in the first half of 2017
compared with the first half of 2016.
The elimination of export duties and restrictions, the larger planted area
of wheat, corn and sunflower and the bigger production of the whole grains
and oilseeds improved agricultural equipment sales accounting both national
and imported ones helping the incorporation of newer technologies in a key
sector for our country.
Key indicators of the Argentine Agricultural equipment sector
According to CAFMA Report titled “The Argentine Agricultural Equipment
Industry”, in our country there is a large history of the development of
the national industry at the same time of the Agricultural equipment
According to this entity, this is the main sector of the Capital goods
market in Argentina which has high-level technology processes and
high-quality products in leader firms. It has highly committed
entrepreneurs with highly qualified workers generating a strong export
growth in recent years with diversification in the five continents. The
greater national production in the last three years - in particular in
segments of harvesters and agriculture tractors – allowed an increasing of
the argentine participation in the local market.
The sector experienced a strong recovery in 2016. Below we show relevant
indicators of this industrial sector, according to CAFMA report:
• In 2016, sales in the domestic market reached $ 19,800 million,
representing approximately 0.40% of the domestic GDP of that year. In the
first nine months of 2017, sales reached a total of $ 22,300 million.
• The production of the sector represents 1.5% of the national industrial
• Approximately 850 companies integrate this sector. There is a marked
heterogeneity within the sector with a strong presence of SMEs from
• In the province of Santa Fe, 47% of the companies are located, 30% in
Córdoba and 20% in the Province of Buenos Aires.
• It is estimated that it provides 40 thousand direct jobs - mostly skilled
labor personnel - and approximately 50 thousand indirect jobs. The average
is estimated at around 60 employees per company.
Exports accumulated to November 2017 grew by 11% compared to the same
period of 2016
The exports of agricultural machinery achieved in 2017 to mark a break in
the downward path that had been registered in recent years. As of November
2017, exports in the field of agricultural machinery recorded an
accumulated of 63.5 million dollars, marking an increase of 11% compared to
57.1 million dollars in the same period of 2016.
For the export analysis, agricultural products under the machinery and
equipment group were based on CAFMA (Argentine Chamber of Manufacturers of
Agricultural Machinery) reports, the Ministry of Foreign Affairs and
individual export data from companies within the sector. The items
accounted for were:
Machinery and equipment
• Harrows, plows, disc harrows and cultivators
• Soil preparation & cultivation equipment
• Agriculture Spraying Equipment
• Silos, grain dryers, extractors and baggers.
• Hay & forage equipment
• Other agriculture equipment
• Grain, cotton and fruit harvesters
• Agriculture Tractors
• Other Self-propelled machinery
In 2017, sales measured in argentine pesos could double the amount of
Sales of agricultural machinery in pesos in the first nine months of 2017
registered an increase of 79% compared to the same period last year,
according to INDEC data. Taking into account that in the 4th quarter sales
and production in this sector are accelerated seasonally, the values in
pesos of 2017 could more than double the value of 2016. This estimate is
based on the historical trends of the sector and for 60% of optimistic
sales expectations after the 3rd quarter of 2017 according to a survey
conducted by CAFMA. To this is added the investment expectations survey, in
which at least 90% of respondents expect to maintain or increase the level.
The high percentage of companies in the segment of increase of investment
(46.7%) is explained, according to CAFMA, by the incorporation of
technology to the productive process and increase of the financing lines by
the financial sector.
Increased use of installed capacity, which went from 50% to 78% from
September 2015 to September 2017
According to CAFMA's report for the third quarter of 2017, "the
Agricultural Machinery Manufacturing Sector continues to maintain an
important dynamism. With these figures, the sector is heading to close two
years of strong recovery and growth, 2016 and 2017, after the stagnation
verified in the 2014-15 biennium. "According to the report," this scenario
is implying high - and growing in many cases- levels of activity and
expectations, whose main driving force is the significant performance of
agriculture in the domestic market, whose demand pulls both local
production and imports. "Reflecting on these factors, the average level of
utilization of the installed capacity of the Sector as of September 2017
reaches 78%. This value had a strong recovery if we take into account the
50% reached in September 2015.
Physical production in the Southern region of Santa Fe increased by 23%
in the first half of 2017 compared to the same period of 2016
The increase in the sector is also evident in the reports of metallurgical
activity of the Industrial Center of Las Parejas for the South Region of
Santa Fe. According to this entity, the production of the agricultural
machinery improved 23% in the first semester of 2017, to the same period of
2016. The values of this entity coincide with what is indicated above. The
use of installed capacity went from 68% to 79% in said Region. The segment
of Soil preparation & cultivation equipment grew by 33%, Agriculture
Spraying Equipment 14%, Agriculture Equipment parts by 30% and silos by 7%.