Agricultural mechanisation: a complex global scenario

The President of FederUnacoma Mariateresa Maschio described, before the assembly of manufacturers, the potential of the market, but also the set of economic and geopolitical variables that can hinder trade

Demand for agricultural machinery is growing globally, but markets are fragmented and the variables to be managed are increasingly complex. This is in summary the scenario described by Mariateresa Maschio, President of the Federation of Italian Agricultural Machinery Manufacturers FederUnacoma, during the Annual Assembly of the Federation. The global trade of tractors has grown at an average annual rate of 4.7% over the past 15 years, and forecasts for the 2024-2027 period indicate an average annual increase of 4.9% - explained the President of FederUnacoma. Meanwhile, an even better trend is observed for other types of agricultural machinery and equipment, which have grown at an average rate of 5% per year over the last 15 years and are expected to grow at an average rate of 5.4% until 2027. However, for this forecast to materialise, we must hope that weather patterns - which have become increasingly unpredictable in recent years due to ongoing climate change - become more favourable, ensuring production volumes and agricultural incomes that encourage investment. On the industrial front as well - it was explained during the Assembly - insidious variables are represented by the cost of raw materials and energy. These could experience further increases if the conflict in the Middle East were to escalate, potentially driving up machinery prices and favouring countries that produce low-cost technologies, aiming to capture market shares even in Western markets. However, increasingly influential factors are those represented by geopolitical dynamics—from sanctions on Russia to import tariffs introduced by many countries and the protectionist policies of emerging economic powers like India and China—which can limit the export potential of the Italian industry. Geopolitics also influences trade routes and logistics costs - reminded the President of FederUnacoma. Consider that the systematic attacks by Yemeni Houthis on cargo ships transiting through the Bab el-Mandeb Strait and the Suez Canal (crucial nodes in Euro-Asian connections) have already caused a collapse in transits (-65% at Bab el-Mandeb and -50% at Suez). This has forced ships to take alternative routes, with shipping costs more than doubling in May of this year compared to 2023. In this scenario there is no shortage of new development opportunities for the agro-mechanical industry - it was stressed during the FederUnacoma Assembly - and interesting markets for Italian producers could be the Southeast Asian countries such as Thailand and Indonesia, equidistant from the blocks of China and the USA, and the rapidly developing African countries such as Nigeria, Kenya, Ghana. Further impetus for activities on the African continent - it was also noted - should come from the Mattei Plan, to which the Federation can contribute by analysing needs and providing technological solutions. To mitigate critical factors and seize new opportunities - concluded President Mariateresa Maschio - stronger support from politics and institutions is needed, with differentiated programmes for accessing various foreign markets, and increasingly swift and flexible intervention and financial support tools.