Agricultural Mechanics: a Key Factor for the Development of the Mediterranean
Latest generation agricultural technologies are strategic to counteracting the effects of climate change in the Mediterranean region. The need to fill the mechanization gap or to overhaul an obsolete vehicle fleet is driving the demand for machinery. Investments in the Mediterranean basin will pick up again in the three-year period 2026-2028.
At this historical moment, characterized by a new geography of markets, the Mediterranean area can acquire a strategic importance for economic activities with profitable partnerships for both the countries of the northern shore and those of the southern shore. From Southern Europe to the Balkans, from North Africa to the Middle East, the economies of the region, although vastly disparate, are in many ways complementary and present several elements favorable to trade relations, especially in the agro-industrial sector. A further accelerator of demand for goods is that of the return to conditions of economic growth, especially in the Balkan and North African areas, where for 2025 the EBRD forecasts GDP increases of between 4% in the Maghreb, 3% in Romania and Bulgaria and 2.6% in Greece. This was the scenario presented by the Italian Agricultural Machinery Manufacturers Federation (FederUnacoma), during the press conference to open Agrilevante, held this morning at the headquarters of CIHEAM (Centre International de Hautes Etudes Agronomiques Méditerranéennes) in Bari.
The Mediterranean basin is therefore at the center of attention for its economic potential, but also finds itself facing critical issues and emergencies that might affect its development; especially those related to climate change. Desertification, floods, erosion, transformation of ecosystems, together with the proliferation of new pathogens are phenomena that the countries of the region have to face in the short and long term. “The answer to these critical issues can come first and foremost from agriculture, and it can only be a highly technological response. New generation mechanization - said the president of FederUnacoma, Mariateresa Maschio, in a press conference - is able to offer low environmental impact vehicles, equipment for working on arid lands, systems for optimizing water resources, high precision machinery for monitoring crops and for phytosanitary defense". Precisely for this reason, the demand for agricultural machinery and technologies is expected to grow, continuing the trend of recent years. Not only countries with the need to fill the mechanization gap are investing in mechanical vehicles, but also those that need to overhaul their fleet of vehicles.
In North Africa, where almost the entire need for agricultural machinery is met through supplies from abroad, between 2022 and 2024 the demand in value for agricultural machinery grew by 22.2%, going from EUR 611 to 747 million, according to the surveys provided by the research company Exportplanning. The data for the last three years also show a modest increase in the Balkan area (+8% between 2022 and 2023), followed by a 6% drop in 2024, largely due to the decline in foreign demand from Croatia (-8%) and Serbia (-23%) which was not offset by the good performance of Greece (+6.6%). Turkey also showed growth (going from EUR 881 million to 1.74 billion between 2022 and 2023), only to slow down in 2024 (EUR 1.47 billion). In Israel, supplies from abroad have been heavily affected by the war: imports fell by 22.4% in 2023 and by a further 14% in 2024. “According to Exportplanning forecasts, the first months of 2025 should not see significant trend reversals, but the second part of the year may see a slight recovery in demand. Such a recovery - concluded the president of FederUnacoma - should also take place throughout the Mediterranean region during 2026 and in the following two years".
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Latest generation agricultural technologies are strategic to counteracting the effects of climate change in the Mediterranean region. The need to fill the mechanization gap or to overhaul an obsolete vehicle fleet is driving the demand for machinery. Investments in the Mediterranean basin will pick up again in the three-year period 2026-2028.
The eighth Agrilevante the international exhibition of innovative mechanics and agriculture is being held at the Mediterranean Agronomic Institute (CIHEAM) in Bari. The organizational machine was running at full speed, with 75% of the total available surface area already allocated. New generation technologies for typical Mediterranean products, with operators and delegations from 40 countries expected. The Levante Green showcase for green care, and the meeting of the Club of Bologna are featured at this year's event states Simona Rapastella, General Manger of FederUnacoma.
The end-of-year results show a significant decrease in sales for all main types of machines. The drop is due to an increase in production costs combined with the difficulty of access to credit by buyers. The negative trend is also being seen in Europe and North America.
Registration data for the first nine months of the year show declines for all vehicle types. An increase in list prices along with a drop in agricultural incomes and the wait for new incentives are the causes behind the current downturn.