The season for the agricultural machinery industry in Brazil started this month, February, with ShowRural in the state of Paraná. The first of three fairs in Southern Brazil.
Optimism is returning after a difficult year, in which sales went down due to the economic crisis, political instability and uncertainties over the release of financial resources for the sector.
The agricultural sector informed the federal government about the need for an extra 1,5 billion BRL for the Moderfrota credit line (farmers who need to modernize their agricultural equipment). According to the Ministry of Agriculture, if there is demand, it will be possible to invest more money into the sector. 9,0 billion BRL will be the amount initially available, to be followed by 5,0 billion BRL, then another 2,5 billion BRL.
Due to this credit, the expectation for the coming fairs is positive. Claudio Bier, president of the Agricultural Machinery Industry Federation of Rio Grande do Sul – SIMERS, estimates that the business from the Expodireto-Cotrijal fair, which occurs in the city of Não-Me-Toque from March 6 to 10, will cover the losses of last year. A growth rate of 12% to 13% is expected. This includes the sales of irrigation equipment.
The trade fair calendar begins with the ShowRural in February and ends with Expointer in September. In between there is Expodireto-Cotrijal. The expectation is to return to the levels of 2013 / 2014, with growth between 20% and 25% – according to Siegfried Kwast, director of Brazilian machinery company Fockink.
New Holland projects an increase of 15% to 20% in sales in 2017. Alexandre Blasi, commercial director for New Holland, points out that there is a combination of positive factors: a stable climate, a more predictable dollar, good prices for commodities and availability of credit for acquisitions. Besides that, after the sales boom of 2012 / 2013, four years have passed. There are already farmers that need to replace existing equipment.
ShowRural February 2017: http://www.showrural.com.br/ (PORT)
Expodireto-Cotrijal March 2017: http://www.expodireto.cotrijal.com.br/ (PORT)
Expointer September 2017: http://www.expointer.rs.gov.br/ (PORT)
More information about the agricultural equipment industry and the fairs in Southern Brazil can be obtained via NBSO Brazil in contact with Luiz Bueno – Deputy Representative NBSO Brazil / Porto Alegre at email@example.com or tel. +55 51 3378 114
Source: ZH newspaper
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