São Paulo - The farm machinery manufacturers recognize that 2009 was a year focused on sales of low-power tractors, primarily due to incentive programs such as More Food. Historically, the machines of up to 99 horsepower (hp) have always had a slice of more than 50% of the market, but reached impressive 76% last year. This growth curve, however, has begun to show signs of change in the first three months of 2010.

 

Between January and March this year, 28% of sales of tractors in Brazil were machines above 100 horsepower, compared to a share of 24% in 2009, according to data from the National Association of Vehicle Manufacturers (Anfavea). Increased demand for higher power machines tend to confirm as of today in Agrishow 2010 in Ribierão Preto, the largest fair of agricultural technology in Latin America.

"We have no doubt that this year will be very good. The market should grow 15% over the 2009 results and has identified that the demand for tractors over 100 hp is quite heated, which should raise again the average power of the national fleet "said Francesco Pallaro, commercial vice president for Latin America of CNH.

 

One reason for the enthusiasm of the assembly was the extension of the Investment Support Program (SIP) by December this year. The plan reduces the interest rate to 4.5% and Finame favors the acquisition of larger tractors. The measure was created in 2009 as support to the sector on the financial crisis and had effect until the end of last year.

 

In addition to government support, the record production of grains in the 2009/10 cycle with good yields also create a favorable environment for the resumption of the sector this year. "Argentina is also resuming its grain production," says Andrew Carioba, senior vice president of AGCO to South America.

 

And they are exactly the tractors that pull the market's recovery machines. In March 5490 units were sold, including wheel tractors and crawler. The result surpasses by 26.5% to sales recorded in February this year and 58.7% performance in March 2009. With this, the first quarter closed with sales of 13,427 tractors, up 52.5% over the same period last year.

 

For industry, last month was the best March in history. 6600 units were sold, including tractors and harvesters, a result which represents a growth of 24.5% compared to 5300 units in February and 61% over March last year. In the first quarter, sales totaled 16,500 units, up 51.9% on the first three months of 2009. (AI)