Brazil has modernized its industries that produce agricultural machinery and became a competitive exporter in 2004. Brazil’s big growth in exports of tractors and harvesters came in response to the expansion of markets in recent years.
The growth is also due favorable exchange rate, the growth of agricultural production in Latin America, and government programs to modernize agricultural equipment.
Data from the Brazilian Institute of Geography and Statistics (IBGE) demonstrate a 90.4% increase in tractor sales abroad in 2004, compared to 2003.
The accelerated growth in sales in this sector is verified in a study conducted by the National Association of Vehicle Manufacturers (Anfavea).
Their survey points to a 42% increase in tractor exports last year. Export sales amounted to 23,500 units. The increase in harvester sales abroad came to about the same percentage, 40%.
4,200 Brazilian harvesters were sold abroad. The financial return, combining the two sectors, amounted to US$ 1.7 billion in 2004, 60% more than in 2003.
According to executives of the sector, the growth in exports was driven primarily by the higher prices of commodities, such as soybeans, which led to an increase in the cultivated area and the sale of machinery in Brazil. Brazil’s sales abroad in 2004 are a reflection of the world’s agricultural expansion.