Tractors. Dynamic demand but delays hold back deliveries
Supply delays slowed tractor sales in Italy (-3%) in the first two months of the year. The increase in the value of exports in 2022 (+14.6%) and the growth of used machinery on the domestic market indicate that demand for agricultural machinery is still as lively abroad as in Italy. FederUnacoma: to strengthen the technological endowment of the Italian machinery fleet it is necessary to invest in the latest generation of mechanical equipment. The contribution of public subsidies is fundamental
The supply crisis, which had already led to a downturn in the Italian tractor market in 2022, is also affecting the sector's performance in this first part of the year. Statistics on registrations, referring to the months of January and February and processed by FederUnacoma on the basis of information provided by the Ministry of Transport, show a drop in sales equal to 3% compared to the same period of 2022, or 3,223 units. In this first part of the year, manufacturers are still recording delays in deliveries - explained FederUnacoma president Alessandro Malavolti during the press conference held this afternoon at Agriumbria. However, the scenario appears to be more favourable, thanks to a cooling of prices and a greater ability on the part of companies to manage the variables linked to supplies.
This capacity has emerged above all on foreign markets where, as ISTAT data indicate, Italian made products have performed well. Overall, agricultural machinery exports exceeded 6 billion euros in value in 2022, with a growth of 14.6% compared to 2021. The largest share was for operating machinery and equipment (EUR 4.7 billion and +17.3% over 2021), while the tractor segment rose to EUR 1.8 billion, marking +8.4%.
Foreign trade figures therefore point to good development potential for Italian manufacturers this year. The domestic market also expresses substantial demand, but an increasing share is being met by the purchase of second-hand vehicles. "The buying and selling of used vehicles is a negative phenomenon," explained Malavolti, "because it represents an obstacle to investment in the latest generation of machinery. Data on transfers of ownership speak of more than 51 thousand used tractors, more than double the number of newly registered ones". The technological renewal of the Italian machinery fleet is also affected by competition from emerging countries, which, it was emphasised, export machinery to Italy that is poor in technology but competitive on price. "In order to encourage the introduction of innovative technologies and practices in Italian agriculture," concluded Malavolti, "it is essential that the system of public incentives is not lacking and that the criteria for granting them are effective and correct".
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In the first four months of the year, the US market increased by 7.6% imports of agricultural machinery made in Italy, thus becoming Italy’s main trading partner in the agromechanical sector. Italian machines appreciated for innovative content, customisation possibilities, reliability. The appointment with EIMA 2024 expected by US operators to familiarise themselves with the wide range of technological solutions able to meet every need of North American agriculture.
The Vice President of Confindustria, Maurizio Marchesini, the Deputy Secretary-General of FAO, Maurizio Martina, the President of ICE, Matteo Zoppas, and the economic analyst, Gabriele Pinosa, discuss strategies to address the new geography of agricultural production and agri-mechanical commerce. The assembly concludes with a message from the Minister of Agriculture, Francesco Lollobrigida, highlighting the incentive system and announcing the G7 Meeting of Agriculture as an opportunity to promote Italian agricultural and agri-mechanical products.
The year 2023 ends with a decline in tractor sales, but with an increase in revenue due to higher manufacturing costs. India remains the leader in terms of the number of units, while the United States and Europe record declines in sales, with a more substantial decrease observed in China. Climatic variables, as well as geopolitical factors, are increasingly crucial in different regions of the world.
The domestic market for agricultural machinery continues to decline. From tractors (-19.2%) to combine harvesters (-40%) and telescopic handlers (-28.3%), all types of agricultural machinery have seen a significant decline in sales compared to the same period in 2023. The decline is attributed to the reduction of 4.0 incentives, delays in the National Recovery and Resilience Plan (PNRR), and the stagnation of agricultural incomes.