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31/08/2017 - 07:00hs
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Brazilian exports of agricultural machinery up 83%

Foreign sales totaled USD 487 million from January to July. According to the sector’s association, shipments are returning to historic levels after two years of decline.



São Paulo – Brazilian exports of agricultural machinery and equipment reached near USD 487 million from January to July, up 82.7% over the same period of last year, according to data released this Wednesday (30) by the Brazilian Machinery and Equipment Industry Association (ABIMAQ). In July, foreign sales totaled USD 71.3 million, an increase of 84% over the same month of 2016.

Press Release/John Deere

Pulverizers are among the main items sold by the sector

According to Cristina Zanella, from ABIMAQ’s Economy and Statistics Department, the growth seen this year up until now occurred due to the basis used in comparison, which stands below the shipments historical average, thus the significant variations. “In the last two years there was a strong decline in the monthly average and now exports are returning to normal levels,” she said.

Brazil’s main markets in this sector are neighboring countries, with Argentina and Paraguay as highlights, but the country also sells to other regions, such as the Arab world, with Sudan as the largest market. The most important items traded are harvesters, soil pulverizers and threshers, according Zanella.

For her, the current upward trend seen by exports should continue. “Of course, this relies on the foreign exchange peg, but [foreign sales] should vary around the historic monthly levels,” she said.

Total

Meanwhile, Brazil’s total exports of machinery and equipment reached USD 4.81 billion from January to July, an increase of 4.7% over the same period of last year. In July, shipments totaled USD 727 million, an increase of 20.2% over the same month of 2016.

According to Zanella, in this case foreign sales continue to stand below the historical average, despite the growth seen. She added that, historically, the monthly average varied around USD 1 billion and now it fluctuates from USD 700 million to USD 800 million.

“But there was a recovery early this year, because since the domestic market is down, many companies have opted for the foreign market, even with reduced profitability and, in some cases, losses,” she pointed out. Besides, according to her, multinational companies from the sector established in Brazil have been redirecting orders for machinery and equipment to their Brazilian branches.

*Translated by Sérgio Kakitani

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