Agricultural Machinery Industry: New Synergies to Tackle Markets

A strong synergy between industry, agriculture, and the trade and services system is the way to strengthen the agro-industrial Made in Italy and to face the new market challenges. This message was conveyed during the annual assembly of FederUnacoma, the federation within Confindustria that represents manufacturers of machines, equipment, and components for agriculture, held this afternoon in Zola Predosa (province of Bologna). The agricultural machinery industry—one of the excellences of Italian manufacturing, with over €16 billion in revenue and 70% of production directed towards foreign markets—is affected by all the economic variables that impact industry and those that affect agriculture. It must therefore contend with a complex scenario, characterised in recent years by raw material costs, energy costs, and also by climate anomalies and low agricultural incomes. But the scenario now appears even more complex due to new geopolitical arrangements and the new geography of trade. Developing strategies in line with the times is therefore the theme on which prominent representatives of the industrial world, agriculture, and institutions have confronted each other. The conference, held in the context of the assembly on the theme "Global and Regional Markets: Challenges and Opportunities for the Agricultural Machinery Industry," was opened by Maurizio Marchesini, Vice President of Confindustria for Labour and Industrial Relations. "FederUnacoma is a true point of reference not only for agricultural machinery manufacturers but also for those who see the combination of mechanisation and digital technologies as a driver of progress and development. In this context, the dual transition and food security are the top agenda items for sector companies. However," said Marchesini, "it must be kept in mind that transition policies that are too short-term or imposed can harm the production system. We hope that the new Institutions will inaugurate a new era centred on business development, putting aside choices inspired by ideological and anti-industrial attitudes." In this framework, the Vice President of Confindustria emphasised that security, in all its aspects, becomes a central element. "Now we must reach a correct definition of employer and union representation as soon as possible and jointly identify concrete proposals to present to political decision-makers because," Marchesini added, "only those who know the workplaces and their intrinsic challenges can and have the responsibility to do so."

The theme of strategies for agricultural development was addressed by FAO Deputy Director-General Maurizio Martina (in a video link from Rome), who recalled the crucial role of the sector in ensuring food security, which has become a hot topic again after the COVID crisis and recent military conflicts, as well as in preserving natural resources and ensuring the healthiness of productions. Agricultural activity is also called upon to play an important social role, allowing families and rural communities to improve their quality of work and life. Agricultural mechanics thus form an integral part of every process and policy in the sector, as it emerged from the meeting, enabling the optimisation of production factors and the application of innovative farming techniques.

However, such policies must necessarily take into account the geo-economic scenario and the many variables characterising the current conjuncture. Gabriele Pinosa, President of Gospa Consulting, said that this phase is influenced by what analysts call the 'inflationary awakening.' "This phenomenon is driven by multiple factors, primarily linked to the end of hyper-globalisation, which is giving way to the regionalisation of markets with the consequent reconfiguration of supply chains. But the 'inflationary awakening,'” explained Pinosa, "is also connected to extreme climatic and geopolitical events, the energy transition, the new economic models of China and India, and the possible inflationary default only under conditions of financial repression." In this context, in addition to the issue of significant US public debt, there are also uncertainties about the future arrangements of Europe. Specifically, those related to the new political balances being defined in Brussels, such as the upcoming elections in France and the strategies of the German government to counteract internal economic difficulties. "In short," said Pinosa, "we are facing an increasingly complex scenario, where managing trade and developing a policy for Made in Italy products will require greater commitment."

In this perspective, Italian companies can rely on the profitable collaboration and strong support of the ICE Agency, which, thanks to its extensive structure, can operate concretely in the most diverse contexts. But the structure of ICE," recalled the Agency's President, Matteo Zoppas, "is also organised to analyse scenarios, evaluate possible market evolutions, and provide companies with appropriate tools for different needs. Collaborating to realise the numerous internationalisation initiatives promoted by FederUnacoma, as well as the trade fairs organised by the Federation in Italy and abroad, first and foremost EIMA International, which have grown significantly in recent years," it was emphasised during the assembly, "thanks to the support of the Agency. Among the activities carried out by ICE for Italian manufacturers are the incoming of qualified foreign operators to Italy (only at EIMA 400 selected operators) and the many promotional events for Made in Italy in specific target markets around the world. Trade fair collectives, business missions, and assistance through 87 offices worldwide. "Particular attention is dedicated by the Italian Government and the ICE Agency to the Mattei Plan and the potential that opens up in Africa, a continent undergoing an important transition towards the modernisation of agricultural economies. Together with FederUnacoma, in addition to the centres of competence and structured and systemic training activities for agricultural entrepreneurs and trainers, it is essential to organise together with the rest of the system-country (Simest, Sace, CDP, and governmental institutions) to intercept all forms of investment that," said Zoppas, "international bodies are planning for the infrastructural development of the African continent, which this Government has foresightedly become a leader through the Mattei Plan. Among the main priorities identified are the management of water resources and the development of cultivable areas, the effectiveness and efficiency of agricultural production through the technological excellence offered by agritech Made in Italy, the undisputed leader in the sector worldwide."

The development of the agricultural sector, which cannot do without the agri-mechanical industry and technological innovation, thus requires a collective approach that, as reiterated several times during the proceedings, fully involves the business world and the political-institutional world. The Italian experience, with the strong synergies between the manufacturers' association and the Ministry of Agriculture, Food Sovereignty and Forests, can be a model of public-private partnership. "The mechanical sector represents a cornerstone of our economy; a sector that not only provides essential tools for modern agriculture but also plays a crucial role in technological innovation and has contributed to making Italian agrifood a competitive and cutting-edge sector," said Minister Francesco Lollobrigida, present with a video message at the General Assembly. For this reason," Lollobrigida explained, "the ministry has been working since the early months to ensure adequate support for innovation, making operational the European interventions provided by the CAP and the PNRR; establishing the new innovation fund with €250 million; increasing from €35 million to €90 million the resources allocated to the primary sector by the ISI-Inail call. But synergies in support of mechanisation are just one of the fields of collaboration between the Ministry and the Manufacturers' Association. Another is related to the organisation of major cultural and outreach events. In this perspective, Minister Lollobrigida has formalised the collaboration with FederUnacoma for the G7 Meeting ofAgriculture, which will be held from 21 to 29 September on the island of Ortigia, in Syracuse, and which has among the topics on the agenda also the contribution that the agri-mechanical industry can make to strengthening the primary economy. "Mechanisation is very important because it contributes to the growth and innovation of agriculture even in many developing countries. For this reason," commented Lollobrigida, "it also plays a central role in the Mattei Plan to accompany African nations in a process of growth and development that does not require the simple sending of agricultural machinery, but above all the transfer of the knowledge that Italy has acquired in its long history."