Agrishow projects record sales driven by the dollar and large producers – 04/26/2023 – Market

Driven by the favorable exchange rate of the dollar, the moment of strong agricultural production in the country and the capitalization obtained by large rural producers, the Agrishow (International Agricultural Technology in Action Fair), which will be held in Ribeirão Preto (313 km from São Paulo) , plans to break a new sales record.

Last year, the event reached R$ 11.243 billion in sales of agricultural, irrigation and storage machines (R$ 11.77 billion, in inflation-adjusted values). It was the return after two years of interruption due to the Covid-19 pandemic.

Those about the 2023 edition fall especially on grain producers in the Midwest, who are the main target audience for the sale of machinery.

The region has 16 of the 20 richest cities in Brazilian agribusiness, and 10 of them are in Mato Grosso —including the leader, Sorriso. This makes the banks project to double the volume of agricultural credit released during the five days of the agricultural fair.

The scenario in the countryside has been very favorable for agriculture, despite problems such as the drought in the South or the recent drop in commodity prices.

This Wednesday (26), the consultancy Datagro published a study that projects a record volume and revenue in exports from the complex linked to soy (in grain, bran and oil) this year.

The consultancy points to a 16.1% increase in exports compared to 2022, reaching 118.1 million tons, compared to 101.68 million last year. If confirmed, the number will surpass the record, of 105.03 million tons in 2021.

For Datagro, despite the decline in average prices, the volume to be shipped should generate a 9.4% increase in revenues, which could reach US$ 66.47 billion.

Sugarcane, the main crop of agribusiness in São Paulo, should increase by 4.4% in the 2023/2024 harvest, reaching 637.1 million tons, according to Conab (Companhia Nacional de Abastecimento), thanks to the improvement in productivity and expansion of area in the country.

Sugar production should reach 38.77 million tons, the second highest mark in the historical series. The same Conab projects that the country will harvest 13.8% more grains this year than in the previous cycle.

The fact that the value of the machines has risen should also contribute to sales reaching figures even higher than last year. Banks project to double the financed volume at the fair, but predict that the amount of business will grow between 20% and 30%.

At the launch of Agrishow, Pedro Estevão, president of the Agricultural Machinery and Implements Sector Chamber of Abimaq (Brazilian Association of Machinery and Equipment Industry), said that large farmers have been buying and that the market is “very different between small and big”.

“We imagine that they will increase the area once again, and to increase the area they need to buy machines. As the increase is greater in the Midwest, which uses large machines, the market continues to buy”, he said.

Abimaq is one of the organizers of Agrishow, the main reference in agricultural technology in Latin America, alongside Abag (Brazilian Association of Agribusiness), Anda (National Association for the Diffusion of Fertilizers), Faesp (Federation of Agriculture of the State of São Paulo) and SRB (Brazilian Rural Society).

Since the resumption of events in 2022, agricultural fairs have achieved significant financial movements.

In March, Tecnoshow Comigo, in Rio Verde (GO), announced revenues of R$ 11.1 billion. Show Safra, in Lucas do Rio Verde (MT), negotiated BRL 9.2 billion, while Expodireto Cotrijal, in Não-Me-Toque (RS), traded BRL 7.043 billion.

As a comparison, the 2019 Agrishow, the last one before the interruption due to the health crisis, sold, in values ​​updated by the IPCA, R$ 3.7 billion.

“The agricultural machinery market has performed very well in recent years. Even with factors that interfered, such as the high interest rate and mismatches with the supply chain, we closed 2022 with a growth of 19.4% compared to 2021 , according to Anfavea”, said Eduardo Penha, Case’s marketing and communication director for Latin America.

Trimble’s marketing manager, Giancarlo Fasolin, said the agricultural sector sees no signs of slowing down, despite recent drops in the prices of some crops.

“Of course, prices [do agronegócio] they fell because of the volume that will come, but agriculture will continue thriving”, he said.

SICKNESS

When the 2023 edition of Agrishow was presented at the beginning of the month in Ribeirão Preto, there was practically no criticism of the agricultural policies of the government of President Luiz Inácio Lula da Silva (PT). But there was friction with the government after the president of the event, Francisco Matturro, warned Minister Carlos Fávaro (Agriculture) that former president Jair Bolsonaro (PL) would participate in the opening.

Bolsonaro arrived at the 2022 edition after a motorcyclist blocked traffic around the farm where the fair takes place and paraded through the streets of the event on horseback.

The Ministry of Agriculture confirmed that Matturro will not be at the opening of the event. Agrishow now hopes to convince you to go at least on another day.

The fair will have 800 national and foreign brands exhibited in an area of ​​530 thousand square meters, where the producer will be able to compare the machines of the most varied companies, see the operation in the field demonstrations and finance in his bank within the event itself. 190 thousand visitors are expected between Monday (1st) and Friday (5th).

The Agrishow will be held at km 321 of the Antônio Duarte Nogueira highway, in Ribeirão Preto, from 9 am to 6 pm.