Sale of tractors to surpass the 2004 level
Gazeta Mercantil - 05/12/2008
The record crop, productivity, and price of the grains are being crucial for the resumption of the sale of agricultural machines in Brazil. Between January and April this year 15,645 thousand units were sold, 54% more than in the same period of 2007. In the case of tractors, the sale reached the levels of 2004, the best year for the sector, according to Milton Rego, director of the National Association of Automobile Manufacturers (Anfavea). "The harvesters are the only machines still under the levels from that year. That because the greatest consumer, the Midwest, is still under a slower recovery", explains Rego. He says the annual sale of tractors between 2002 and 2004 remained between 29 thousand and 33 thousand units, a volume that, in 2007, reached 30.7 thousand units and that, in 2008, should initially grow 10%. "In June we will review this projection which was made in the beginning of the year", says the officer. The fact is that until April the sale of tractors is already 48.6% greater than in the four first months of 2007. On its turn, the sale of harvesters in the three years from 2002 and 2004 reached 5.5 thousand harvesters a year on the average. This volume was of 2.3 thousand units in 2007, less than half. This year, the sales are two times greater than in the same period of 2007; however, it is still far from reaching the "golden years" of the sector. The rhythm of the foreign market also speeds up after years of strong retraction. "The positive moment for the grains irradiates all through South America", explains Rego. 9,623 machines were exported between January and April, a growth of 37% compared to the same period of four months from 2007. As a result of the valuation of the Real in relation to the Dollar, the income has not increased in the same rate. It was in US$ 4.5 billion, only 16.3% more than in last year's same period, whereas the growth in volume was 37% greater. "The agricultural income in the Mercosur is also good. Producers are starting to invest in technology again and the recovery is at satisfactory levels", says Rego.