last year theItalian capital goods industry continued its growth path (+10,7%) with foreign sales of 55,4 billion euro. This is what emerges from the data processed by the Federmacchine Group, exceeding the result of 2018 and thus recording a new record.
With reference to the distribution of sales, the share of turnover achieved in Italy stood at 35,7%. 27,2% of the total was destined for other EU countries. The Community area therefore absorbed about 63% of the Italian sector turnover. Exports to North America (11,1%) and Asia (9,7%) follow. Non-EU Europe acquired 7,9% of the total.
The sub-fund is growing in all major markets
In 2022, the sector is grown in all major markets excluding China and UK. Best of all, in terms of growth, Mexico and India have done. The main target markets were: the USA (4,7 billion, +17,1%), Germany (3,8 billion, +8,6%) and France (2,4 billion, +11,9%).
In this regard, the Italian industry of agricultural machinery is increasingly driven by exports, which represent 70% of the sector's turnover. The sale of tractors and agricultural machinery abroad reached 6,5 billion last year, growing by 3,5 percentage points compared to 2021. These become 24,5 if we consider the five-year period 2017/2022 and 37,6 taking into consideration the decade 2012/2022.
Route to Africa
If until recently i agricultural vehicles exported mainly ended up in Europe and the USA, now they're on course also towards emerging countries such as those of theSub-Saharan Africa where, from 2017 to 2022, the export of tractors increased by 26%. African agriculture is still almost entirely to be mechanized and requires investments and machinery to increase productivity: a huge opportunity for Italian manufacturers and concessionaires.
Huge potential to develop
Africa hosts the 60% of the arable land fallow of the world, a huge potential still untapped. Over the past 20 years, sub-Saharan agricultural production has grown at an average annual rate of +4,3%, against a global average rate of +2,75%. today many African countries are self-sufficient or net exporters of agricultural products.
In the future the agricultural sector is expected to grow further if we consider that Africa will be responsible for more than half of the increase in the world's population, as foreseen by the UN by 2050.
Aware of the future challenges and the need to improve the production system now, governments adhering to the African Union have agreed to allocate the 10% of public spending on agriculture with the Maputo Declaration (2003). Although to date only Malawi regularly spends 10% of its budget in the primary sector (the others are limited to 2-3%), the signatories are still open to innovating their agriculture even with investments in more modern machinery from abroad .
90% of farmers work with their own strength or with the use of animals
80-90% of African farmers perform still operations with own workforce or animals shooting. Especially in sub-Saharan Africa, small farmers, women and young people cultivate small plots of land using backward solutions and often dealing with long periods of drought. Due to the enormous technological gap compared to other countries and the difficult climatic conditions, the continent has very large margins for development. Already between 2019 and 2021, the use of mechanization was growing with an annual increase of 10% in sales of tractors.
At businesses they are required simple machines, easily usable by untrained operators. In sub-Saharan countries, low- and medium-powered tractors are especially required for managing implements with reduced widths. There is also demand for rotary cultivators and motor hoes, ideal for managing small fields and growing fonio. Some states, such as Senegal, have increased rice production and the use of irrigation. In these cases, combines and hullers are needed, as well as motor pumps and hose reels.
