L'export of agricultural machinery made in Italy continues to be a key pillar for the sector, despite the decline in domestic sales in the country in recent years. Global demand, in fact, has remained high, supporting the business of national agricultural mechanicsalthough a decline was recorded in 2023. Awaiting complete figures for 2024, the sector closed the previous year with a record turnover of EUR 16.4 billion, marking an increase of 6% compared to 2022 (Source: AgroNotizie).
This outstanding result was largely driven by the exports of tractors, agricultural machinery, components and landscaping equipmentwhich constitute approximately 70% of the value of Italian production.
In 2023, tractor exports decreased slightly in terms of units compared to 2022 (-4.2%, with 42,146 machines), but increased by 17% in terms of value, from a turnover of just over 1.7 billion to almost 2 billion euro (Source: FederUnacoma processing of Istat data).
Thanks to these results, Italy is now ranked fourth in the 2023 ranking of the leading tractor exporting countries, preceded only by Germany, the United States and France.
With regard to the export of other agricultural machinery, which is tracked by weight rather than number of units, a similar trend as for tractors can be observed. In 2023, in fact, there was a decline of 3% in terms of weight, but a increase of 7.4% in value compared to 2022, rising from EUR 4.7 billion to EUR 5 billion. This growth was made possible by the increase in export turnover both within the EU27, with an increase of 7.2%, and outside the EU, with an increase of 7.7% (Source: elaborations FederUnacoma on Istat data).
As Lorenzo Galanti, Director General of the ICE Agency, said during the last presentation of Eima 2024: "The agricultural machinery sector represents a true excellence of made-in-Italy technology. In particular, we are recognised for our expertise in solutions for small and medium-sized crops, which mainly concern high value-added crops“.
While playing a prestigious international role, theexport of agricultural machinery Italy faces several challenges, especially in non-EU markets. Ongoing conflicts and geopolitical tensions have had a significant impact on the sector. In particular, the escalating conflict in the Middle East has hit the sector hard. This has caused a drastic drop in transits through Bab el-Mandeb and the Suez Canal.
As a result, ships transporting goods between Europe and Asia were forced to circumnavigate Africa, a significantly longer and more expensive route. Among the sectors most affected by the crisis in shipping by sea is the agricultural machinery sector.
What are the foreign countries buying more tractors produced in Italy? During the past year, the main buyers of Italian tractors were non-EU European countries, which absorbed 16% of the total, or over 6,700 machines. The Americas followed, with a share of 11%, corresponding to about 4,600 units.
Looking at individual countries, the France is confirmed as the main trading partner for Italian tractors, with exports exceeding 344 million euro. This is followed by Germany with almost 252 million, Turkey with over 182 million and the United States with over 171 million. The other countries in the Top Ten of 2023 are predominantly European, with the exception of South Africa, and the value of exports to these countries is growing compared to 2022 (Source: Elaborations FederUnacoma on Istat data).
L'Europe remains the largest market for other agricultural machinery produced in Italy. The biggest buyers of agricultural machinery other than tractors, however, are the United States, with exports worth almost 706 million euros. In second and third place are France, with over 632 million, and Germany, with around 510 million, respectively. The ranking 2023 of the main importers of Italian machinery is dominated by European countries, with the sole exception of Chile.
The value of theexport of agricultural machinery to the main EU markets is almost always on the rise compared to 2022. However, as with tractors, the growth in value is attributable to a list price increase rather than an increase in exported volumes. In fact, according to a FederUnacoma sample survey, the number of machinery exported in 2023 decreased compared to 2022 in almost all segments, with the exception of handling and transport equipment.
Exports have played a crucial role for the sector, growing steadily over the last decade until 2023, with a increase of 9.3%.
As far as non-European countries are concerned, despite the general contraction of the global market, the GATE countries (*Growing, Ambitious, Transforming, Entrepreneurial*), including India, Vietnam, Türkiye, Saudi Arabia and United Arab Emiratesshowed a strong demand for Italian agricultural machinery, recording a growth of 46.9% in 2023. This increase is particularly significant in an economic context characterised by uncertainties and geopolitical challenges, highlighting the ability of Italian producers to adapt and respond to the specific needs of these rapidly changing markets.
In addition, further markets are opening up in South-East Asia, which offer interesting opportunities for Italian producers. Last year, L'Indonesia imported 106 Italian tractors, as well as a significant number of other agricultural machinery, according to data from FederUnacoma. This growing interest in Italian products in Indonesia reflects not only the quality and innovation of Italian agricultural machinerybut also the growing need to modernise agriculture in these regions to increase efficiency and productivity.
The focus on these emerging markets could lead to closer collaboration between Italian companies and local partnersfacilitating access to new technologies and know-how.
The ability to penetrate these markets not only strengthens the presence of Made in Italy internationally, but also contributes to diversifying sources of incomereducing dependence on traditional markets and increasing the resilience of the Italian agricultural sector.
The Italian exports to the United States continue to show a positive trend. In the last three yearsthe number of tractors exported increased from 2,981 to 3,052 units, an increase in value of more than 61 million euro. At the same time, exports of agricultural machinery increased in value by almost 200 million euro in the same period.
In 2024, this growth will continue. In the first four months of the year, trade between the US and Italy exceeded 320 million euros, marking a increase of 7.6% compared to the same period in 2023 (Source: Istat data processed by FederUnacoma).
Currently, the United States absorbs 14.5% of Italian exports in the agro-mechanical sector, positioning itself as the top trading partner, ahead of France and Germany. In the first four months of 2024, US imports of Italian operating machinery grew by 12.6% (250 million euro), while those of tractors decreased slightly (-6.7%, or 71.2 million euro).
US farmers particularly appreciate the wide range of products, technological innovation and the possibility to customise equipment offered by the made in Italy.
The Italian agricultural sector is adapting to the principles of theAgenda 2030focusing on the adoption of technologies 4.0 to improve productivity and sustainability. Key innovations include intelligent tractors, telemetry systems and advanced communication protocols such as ISOBUS.
These tools not only optimise the efficiency of field operations, but also address the growing labour shortageunderlining the growing importance of the agricultural machinery operator as an expanding profession. This development could have positive repercussions on theexport of agricultural machineryas the adoption of advanced technologies makes Italian products more competitive and attractive in international markets.
In a context characterised by global challenges, Italy continues to focus on innovation and institutional support to maintain its position as a leadership in international agriculture. Italian institutions are working to create a favourable environment for innovation, promoting research and development and facilitating access to foreign markets.
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We offer not only strategic consulting but also a targeted operational support to help companies navigate the complexities of international trade, identifying growth opportunities and developing effective entry strategies. For any further information please contact contact us.
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