Doing Business In Argentina

Agricultural Machinery, Equipment and Parts
Overview Return to top
2005 2006 2007 (estimated)
Total Market Size 1,095 1,640 1,950
Total Local Production 780 1,115 1,400
Total Exports 55 73 150
Total Imports 370 598 725
Imports from the U.S. 65 71 95
Millions of USD. Exchange Rate: 1 USD=3.10 Argentine Pesos
Sources: Instituto Nacional de Estadistica y Censos-INDEC (National Statistics and Census
Institute) and CAFMA (Cámara Argentina de Fabricantes de Maquinaria Agrícola).
2007 import market share: Brazil: 77.7%, U.S.: 13 %, Germany: 3.1%, Uruguay 2.1%. Other:
25.9%.
Argentina is one of the largest producers and a leading exporter of agricultural produce.
In spite of the fact that agriculture has long been Argentina's leading economic sector
and there are many local manufacturers of agricultural machinery established a century
ago, this sector will continue to offer opportunities for selected U.S. suppliers of parts for
agricultural machinery and some specialty equipment for specific crops during the next
several years. Much of the locally produced equipment relies on parts supplied from
abroad. Argentine farms are generally large; therefore, they are ideally suited to
incorporate a wide range of American technology. Demand for agricultural equipment to
improve the quality and yield of crops and to reduce costs will continue to be in demand.
Argentina has many climates, from temperate to tropical, that yield a wide variety of
crops, including fruits, cotton, peanuts, and citrus products.
In terms of import market share for parts and components, the United States is the
largest supplier after Brazil with a 13 percent market share. Regarding agricultural
machinery, in recent years U.S. firms started supplying Argentina from their Brazil-based
subsidiaries, to benefit from the MERCOSUR customs union. Imports from Brazil are
not subject to import duties nor taxes and Brazil’s market share for ag machinery is
almost 80 percent. The market for parts and components can be estimated at 30 million
dollars in 2007.
Best Prospects/Services Return to top
Sales opportunities for U.S. exporters exist since exports of locally made agricultural
machinery grew 77 percent in 2007. Specific products include: specialty crop harvesting
equipment (grapes, sugar, apples and pears, potato, olives, stone fruits, citrus, etc.),
equipment for precision agriculture, global positioning systems, devices to measure
harvested outputs, advanced turbine sprayers and associated pumps, and critical parts
for general agricultural machinery such as transmissions, electronics, etc. Demand for
3/4/2008