Recovery of Brazil’s Agricultural Machinery Sector After Global Decline

Published on: October 23, 2025

“…Brazil remained resilient, with growth in units sold, especially tractors…”

Rodrigo Junqueira is general manager of AGCO and vice president of Massey Ferguson South America. Junqueira holds a degree in agricultural engineering from USP, an MBA in marketing from ESPM, and a specialization in the Executive Development Program from Fundação Dom Cabral and Kellogg School of Management.


Rodrigo Junqueira, AGCO

AgriBrasilis – Why was there a global downturn in the agricultural machinery sector?

Rodrigo Junqueira – The global agricultural machinery market has experienced a period of decline, mainly impacted by macroeconomic factors, commodity price fluctuations, and adjustments in equipment inventories. However, Brazil has remained resilient, with growth in units sold, especially tractors, due to the need to increase productivity without expanding the cultivated area.

The country continues to play a strategic global role, mainly due to its potential to harvest up to three crops per year. In addition, Brazilian agribusiness is responsible for feeding around 800 million people worldwide, which reinforces its importance on the global stage.

AgriBrasilis – What is the forecast for market recovery?

Rodrigo Junqueira – Recovery should occur gradually. For Brazil, the outlook is positive, with expectations of a consistent recovery, driven by good harvests and investments in technologies that increase productivity and reduce operating costs.

According to data from the Brazilian Association of Machinery and Equipment Manufacturers (Abimaq), domestic sales of tractors and harvesters grew 47.1% in August 2025 compared to the same period in 2024. The expectation is for an annual increase of between 6% and 10%. This more balanced scenario has stimulated new investments, especially in segments such as sugarcane, citrus, coffee, and livestock, which remain strong.

AGCO remains optimistic and plans to launch at least three innovative solutions per year, focusing on precision agriculture, connectivity, and clean technologies.

AgriBrasilis – What are the impacts of the US “tariff hike” on the sector?

Rodrigo Junqueira – The imposition of 50% tariffs on Brazilian products exported to the United States represents a challenge for international trade. However, AGCO operates as a global company, present in several regions, which allows flexibility to mitigate the impacts of these measures. We are continuously working on building scenarios and adopting preventive actions to minimize the effect on the end customer. Our commitment is to farmers, and we work to ensure that farmers continue to have access to products, services, and parts with the same efficiency.

“…market is moving towards diversification of energy sources, maintaining a focus on efficiency and…”

AgriBrasilis – Many telemetry systems and sensors are underutilized in the field. Is there such a thing as “too much technology”?

Rodrigo Junqueira – Technology is a strategic tool that allows you to monitor machine performance, optimize inputs, and increase productivity. Digitization requires farmers to know how to get the most out of these resources. Through PTx, AGCO has been investing heavily in solutions that simplify data access and integration to connect equipment of any brand and help transform data into practical and efficient decisions. We believe that the future of productivity lies in using information in a simple, accessible, and measurable way.

AgriBrasilis – Is corn ethanol really on its way to replacing diesel?

Rodrigo Junqueira – Corn ethanol is a promising alternative, especially in the context of the search for cleaner and more sustainable solutions. However, the complete replacement of diesel still depends on factors such as infrastructure, logistics, and technological adaptation. The market is moving towards diversification of energy sources, maintaining a focus on efficiency and reducing environmental impact.

AgriBrasilis – What is still preventing electric tractors from being more widely adopted in agriculture?

Rodrigo Junqueira – The main challenges are battery range, initial cost, and availability of charging infrastructure. The technology exists, but for large-scale expansion in the Brazilian countryside, innovation, demand, and economic viability must be aligned. The sector continues to invest in clean, connected, and sustainable solutions, balancing innovation and operational reality.

 

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