Sale of agricultural machinery will be good in 2023 even with a possible drop, says executive – 03/27/2023 – Market

The projection of sales of agricultural machinery for 2023 points to a reduction of 3.5% compared to last year, but, if the scenario is confirmed, it will be good for the sector. The assessment is by executive Eduardo Kerbauy, New Holland’s vice-president for Latin America.

In office since February, Kerbauy also assesses that the fear of part of agribusiness with the government of President Luiz Inácio Lula da Silva (PT), which he qualifies as natural, should decrease over time and will not impact sales in the sector. The sector mostly supported former president Jair Bolsonaro (PL).

He also stated that the lack of components for the machines, a recurring problem in the pandemic, has been partially resolved, which has reduced the waiting time of farmers for certain product models.

Anfavea (National Association of Motor Vehicle Manufacturers) projected sales of 65,000 machines this year, compared to the 67,385 sold last year – growth of 19.4% compared to the 56,418 units sold in 2021.

“If it’s -3% or 0%, in that range over there, what was last year? It was a very good year. There’s little variation compared to last year, that’s the reading I do. And the year past was interesting”, said the executive.

According to him, in the agronomic part there is no doubt about how the year will be, with climate concerns involving Argentina, Uruguay and part of Rio Grande do Sul and with forecast of record harvest in the country.

“In the agronomic part, in Brazil as a whole, we expect a record harvest, with very interesting prices. Then there is the conjuncture. With the change of government, it generated a bit of caution, or fear, about what will happen . I think it’s natural. Regardless of bias, it’s natural when there’s a change in the government that you expect. I think that little by little the crop is consolidating, the harvest starts to arrive and agriculture sees that its function is to produce”, he said.

Therefore, in his assessment, long-term projections do not change and the fear of rural producers is also due to the agricultural financing policy that will be launched by the government.

“You may have some fear, ‘wow, will some specific line of financing appear?’, ‘will there be a reinforcement in some line of financing?’, ‘would it be better for me to wait to see if there will be investment, focus, on the small or on the big?” ‘. As you harvest, you forget and life goes on.”

Upon taking over the manufacturer’s Latin America division, the executive, who has been with the company for 18 years, replaced Rafael Miotto, who became the new president of CNH Industrial (which encompasses brands such as New Holland and Case) for the region. Until then, Kerbauy ran the brand in Brazil, now under the management of Cláudio Calaça Júnior.

Kerbauy told the Sheet that the lack of components on the market, registered across the sector during the Covid-19 pandemic, was partially resolved, with a reduction in the queue, which still exists, for machines.

“Today you can find a lot of machines available in the dealership network now, ready for delivery, most of them. Those that you need some more specifics, I would say [ter] from one to four months [de espera]. [Na pandemia] It’s hard to say, but you had, depending on the product line, up to six, seven, eight months, so you go down little by little.”

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Industrial Driver’s License
Founded: 2013 as CNH Industrial, covering brands such as New Holland and Case from 1842
Revenue: $17.8 billion (2021)
Factories in the world: 38
Number of employees: 35 thousand worldwide
Main competitors: John Deere, AGCO (Massey Ferguson, Valtra and Fendt), Caterpillar and Volvo

The journalist traveled at the invitation of New Holland