Deere & Company estimates that Brazil will become its second-largest global market within the next five to ten years, surpassing Europe in sales of tractors, harvesters, and other agricultural equipment.
The forecast is based on the expansion of Brazilian agricultural production, particularly soybeans, corn, and sugarcane. According to Cristiano Correia, Vice President of Production Systems for Latin America, “no other region shows a compound growth rate in grain production comparable to Brazil’s over the next decade.”
The Illinois-based company is holding its first Investor Day in Brazil in over a decade in 2025, gathering around 40 investors from North America, Europe, and Asia.
Deere projects a 27% increase in Brazil’s planted grain area by 2035 and expects corn-based ethanol production to double during the same period.
While overall sales in South America are expected to remain stable in fiscal year 2025, the company forecasts over 10% growth in shipments from its factories to dealerships in the same timeframe, according to Correia.
Source: Bloomberg Read The Article
PSR Analysis: In recent years, equipment sales in Brazil have been affected by declining commodity prices, which reduced farmers’ purchasing power and led to lower inventory levels at dealerships. This created pent demand for fleet renewals and capacity increases. Commodities price should recover in the medium term and growth of Agricultural Equipment in Brazil for the medium-long term is in line with our forecast.
Fabio Ferraresi is Director, Business Development, South America, for Power Systems Research
