English Translation:
The Secretary-General of the “Agrievolution” organization, Charlie O’Brian, and President Ignacio Ruiz presented influential global trends in agricultural equipment and production at the conference held during EIMA 2024 in Bologna, Italy. It was also announced that “Agrievolution” has transitioned from an Alliance to an Association status, enabling closer collaboration with other global organizations dedicated to sustainable agriculture. The next “Agrievolution Summit” is scheduled for September 1-3, 2025, in Buenos Aires, Argentina.
Key Trends in Global Agriculture
Various regional growth patterns in crop production are driving greater mechanization worldwide, while the unstable economic situation, due to high interest rates and inflation, creates challenges in demand for agricultural machinery. Over the past decade, the agricultural machinery sector has seen significant changes: an increase in the number of companies in Asia and a decrease in Europe, as well as employment growth in America, Asia, and Europe. According to 2021 data, there are 16,000 companies employing 810,000 people across 75 countries working in the agricultural machinery sector.
Production and Exports at Record Levels
Global agricultural machinery production reached a record $210 billion in 2021, with $80 billion in trade. The European Union remains the leading producer and exporter of agricultural equipment. Among the most significant export categories in 2023 are tractors (total export value of $23 billion with a growth potential of 37%), combines ($4.5 billion with a growth potential of 30%), sprayers ($3.971 billion with a growth potential of 28%), and seeders ($1.73 billion with a 25% growth potential).
Market Trends by Region
Regional trends highlight different challenges and opportunities. In Argentina, a strong recovery in production was observed after the 2023 drought, though economic reforms have led to fluctuations. In China, demand for large tractors has decreased due to low grain prices and limited return on investment, while France reported its lowest grain yield in the last 30 years and a 15% drop in equipment sales in 2024. Italian farmers are increasingly adopting precision agriculture technologies, although new machinery registrations are declining. In Japan, high temperatures and natural disasters caused a severe rice shortage, doubling the price but still not significantly boosting the market. Spain and Turkey face similar challenges, where subsidies and economic instability affect equipment purchases.
Future Outlook
Globally, unstable prices and economic uncertainty remain challenges, but there is optimism for the long-term recovery of the agricultural equipment market. The U.S. market has seen a decline due to recession and falling farmer incomes, but low future interest rates are expected to boost equipment demand. “Agrievolution” continues to operate in its new association status, which will enable stronger collaboration with global partners toward developing sustainable and technologically advanced agriculture.