Agricultural machinery, first quarter down but market remains strong

14.04.2022
The first three months of the year show a decline in sales of agricultural machinery compared to the same period in 2021. The market contraction is organic compared to the record levels reached in the first quarter of last year. Incentives continue to support the market but geopolitical uncertainties may weigh on the coming months

The machinery market held up well in the first quarter of the year, albeit with a drop compared to the record volumes reached in the same period of 2021. Registration figures, processed by FederUnacoma on the basis of registrations provided by the Ministry of Transport, indicate a total of approximately 5,400 units sold for tractors, down 9.9% compared to the first quarter of last year when registrations were up 57.6% on 2020.

In the first three months of 2022, sales of combine harvesters reached 41 units, down 26.8% compared to the previous year (in the first quarter of 2021 they had grown by 180% compared to 2020), while registrations of tractors with loading platforms reached 132 vehicles, down 10.2% compared to the first three months of 2021 (+21.5% compared to 2020). Trailers and telehandlers also remained at high levels, closing the first part of the year with 1,944 (-8.2%) and 309 (-18.7%) units sold, respectively. Also for these two types of machines, the drop in 2022 has a relative weight, as it refers to a quarter that in 2021 had seen record increases in registrations (compared to 2020: +37.4% for trailers, +86.3% for telehandlers).

After a 2021 marked by extraordinarily high sales volumes for the agricultural machinery market, the setback observed from January to March can therefore be considered organic, as demand for agricultural technology continues to be strong. The transition towards agriculture 4.0, with investments for the purchase of the latest generation of mechanical equipment, and the simultaneous presence of several financing instruments for the purchase of agricultural machinery (credit for 4.0, Nuova Sabatini, NRRP, PSR, Bando ISI-Inail) contribute to supporting this demand. However, as the year progresses, sales trends will inevitably be affected by very significant economic factors.

"We find ourselves in a contradictory economic phase since, while the demand for machinery is going well, price volatility and difficulties in the supply of raw materials, which have been greatly exacerbated by the war in Ukraine, are threatening market growth," explains Alessandro Malavolti, president of FederUnacoma. The commodity emergency is not only affecting the agricultural machinery industry, making production processes much more expensive, but is also affecting the agricultural sector which, driven by a generalised increase in costs (especially those relating to energy and fertilisers), is seeing its own investment capacities decline. "In this scenario - Malavolti concludes - it is necessary to combine very short-term strategies with a long-term strategic vision, also aimed at exploring new channels and supply methods for raw materials".


The latest FederUnacoma press releases

15.07.2022

Food safety: Kenya focuses on agricultural mechanisation

The population of the African country has gone from 16 to 55 million in just 40 years, with a cultivable surface area of no more than 20% of the national territory. The acquisition of mechanical technologies to improve land productivity and make better use of the few available water resources is crucial. Italian-Kenyan cooperation in the sector is growing. Presentation of the 45th edition of EIMA International, the exhibition of agricultural machinery that offers the most suitable technologies for the country's needs.
13.07.2022

Italian-Ugandan cooperation: meeting at EIMA International

The major exhibition of agricultural machinery, held in Bologna from November 9 to 13, will be attended by a delegation of Ugandan businessmen, interested in the most innovative technologies for increase the country’s productivity. The great variety of crops in Uganda and the different models of farm require the breadth of range that Italian industry can offer, within the framework of an increasingly solid technical and commercial cooperation.
11.07.2022

EIMA 2022: the relaunch of cooperation between Ethiopia and Italy

Presented in Addis Ababa, the 45th edition of EIMA, the great exhibition of agricultural machinery promoted by the Federation of Italian Manufacturers. Important role played by the ICE Agency, which is organising the presence at the Bologna Exhibition of a delegation of Ethiopian trade operators. Agriculture is becoming increasingly strategic in the economy of African countries, which are expressing a demand for specific machinery for the crops and agricultural business models in the various countries.
28.06.2022

The new FederUnacoma officers

The annual general meeting of FederUnacoma, held this afternoon in Varignana (Bologna), included among the items on the agenda the voting for the renewal of some federation bodies and for the assignment of positions for two new associations joining the Federation.

Italian Implements Manufacturers Association
Italian Self-Propelled Machinery Manufacturers Association
Italian Tractors Manufacturers Association
Italian Components Manufacturers Association
Italian Garden Machinery Manufacturers Association