The turnover of agricultural machinery fell by more than 50 percent

By: STA Date: 2024. 06. 07. 09:30

The willingness of Hungarian farmers to purchase machinery continued to rise continuously for years, until the first quarter of the previous year.In recent years, thanks to the call for tenders and the favorable financing environment at the time, several players in the sector have implemented investments planned for 3-5 years in advance. However, the recession occurred from the second quarter of 2023, the situation on the grain market, the increased prices of machinery and the weakening financing possibilities, as well as the running out of tenders, made farmers more cautious and forced them to wait.

(Photo: Pixabay)

In 2023, machine sales decreased by 25 percent, this decline was only slightly compensated by the 6 percent higher turnover of spare parts purchases. The greatest decrease affected the market of tractors and grain harvesters. In 2024, the machinery market continued to shrink, until March of this year, sales of agricultural machinery fell by 56 percent compared to a year earlier. For the repeated growth of machine sales, in addition to tenders, the effectiveness of management is definitely necessary.

The year 2024 will be the year of waiting, in addition to bank loan promotions and leasing alternatives, the new tender opportunities may bring back the desire of farmers to invest in machinery

Individual farms and cooperatives bought HUF 39.5 billion worth of new agricultural machinery and equipment in the period January-March 2024, which was 56 percent less than the turnover of a year earlier. In the same period, 19.8 billion forints were spent on parts, which was 2 percent higher than sales in the first quarter of 2023. Despite the significant decline, agricultural producers continued to spend the most money on the purchase of power machinery, which accounted for 54 percent of the total value of agricultural machinery investments. Within the total sales, among the control machines, tractors represented 35 percent, and grain harvesters 6 percent.

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