Population Growth Driving Demand for Agricultural Technologies

At the EIMA exhibition held from November 6-10 in Bologna, Italy, the Italian Agricultural Machinery Manufacturers Federation (FederUnacoma) hosted a conference presenting a market analysis of the agricultural machinery sector. Several key points were discussed during the event.

Population growth, a major driver of the increasing demand for agricultural technologies, will play a pivotal role in Africa, especially in countries like Nigeria, Ethiopia, and the Democratic Republic of Congo.

While established markets in Europe and North America will continue to invest heavily to maintain high-quality standards, major players in Asia, such as India and China, are expected to stabilize their mechanized farming practices after significant advancements in recent years. However, the most dynamic growth is anticipated in Southeast Asia and Africa.

Regions experiencing rapid population growth will see a surge in demand for agricultural machinery. These areas are undergoing significant agricultural development and require more advanced technologies to address the challenges of feeding expanding populations.

Indonesia is a prime example. With a population approaching 300 million, it ranks among the world’s most populous nations and is poised for continued demographic growth. Over the past 15 years, Indonesia’s imports of agricultural machinery have steadily increased, rising from EUR 140 million in 2009 to nearly EUR 700 million in 2023—an average annual growth rate of 8.6%. Looking ahead to 2024-2027, imports are expected to continue growing at an annual rate of 6.7%.

Other Southeast Asian countries are also experiencing strong growth in agricultural machinery imports. Vietnam, with a population of 100 million, anticipates an annual growth rate of 6.2% over the next four years. The Philippines, home to 110 million people, expects imports to grow by 7.8% annually. Meanwhile, Thailand, with 71 million residents, is projected to shift from a slow growth rate of just 1% per year over the last 15 years to a more robust increase of 6.8% annually from 2024 to 2027.

Population growth will also be a key driver in Africa, where regions like Sub-Saharan Africa are expected to account for 50% of global population growth by 2050. Nigeria, which already has 230 million people, is projected to exceed 400 million by 2050, making it the third most populous country in the world. Ethiopia and the Democratic Republic of Congo, both with populations exceeding 100 million, are also expected to experience significant growth, entering the ranks of the 10 most populous countries over the next 20 years.

In Nigeria, only 46% of cultivable land is currently being used for agriculture, while the Democratic Republic of Congo is utilizing just 10% of its arable land. Expanding agricultural land is a top priority for these countries, and as they look to bring more land into production, the demand for agricultural technologies will increase dramatically. Over the next few years, agricultural machinery imports in Ethiopia and the Democratic Republic of Congo are projected to grow by 7% and 12% per year, respectively, from now until 2027. This growth is expected to accelerate even further over the next two decades.

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The organisational machine of EIMA International, the world exhibition of agricultural machinery that will hold its 45th edition in Bologna from 9 to 13 November, is in full swing. In these very days the offices of FederUnacoma, the association of agricultural machinery manufacturers that is the direct organiser of the event, are fine-tuning the full calendar of themed events that have always punctuated the five days of the exhibition. While it is still being worked out, the programme already appears to be rich in content, including press conferences, conventions, exhibitions in the demo area, seminars and workshops. In the foreground, political and economic issues relating to the development of the agro-mechanical sector, which are the focus of the press conference presenting the event, scheduled for Tuesday 8 November.

The meeting is an opportunity to take stock of developments in the world market for agricultural machinery, with an analysis of possible short and medium-term trends. Political and economic scenarios will be discussed again on Wednesday 9 November, with geopolitical analyst Dario Fabbri opening a window on the military conflict between Ukraine and Russia, and the consequences for the agricultural sector and the agro-mechanical industry.

Moreover, the next edition of EIMA is an important moment of debate with politicians and representatives of institutions – delegations of European and Italian parliamentarians will be present in Bologna – called upon to define strategies for the sector, which has to deal with structural and long-term crises, such as those linked to global warming and drought. Together with technological innovation, the climate emergency is one of the strong themes of the Bologna event.

Various meetings have already been scheduled on this subject, from the workshop on “Climate change: risk management”, promoted by FederUnacoma and Agia/CIA (Wednesday 9 November), to the seminar entitled “Sustainable use of water – EUWAY Project” organised again by AGIA/CIA (Thursday 10 November), and the conference on “The challenge of water. Accessible technologies for developing countries” organised by FederUnacoma/CEFA. The digitalisation of mechanical vehicles, the spread of precision agriculture, the new frontiers of automation and artificial intelligence are fundamental for the sustainability of the primary sector, and it is precisely these technologies that are at the centre of the meeting scheduled for Friday 11 November by the Agricultural Industry Electronics Foundation (AEF), while the meeting organised by the Agricultural Robotics Association (FIRA) on Thursday 10 November looks in particular at systems for highly automated agriculture. Agriculture 4.0 will also be discussed at the meeting of the Smart Agrifood Observatory which, also on Thursday 10 November, will take stock of the spread of digital technology in the agricultural and agrifood supply chain.

Also dedicated to technology, the award ceremony for Tractor of the Year 2023, organised by Trattori magazine, is scheduled for Wednesday 9 November. The Tractor of the Year finalist models will parade in the impressive outdoor demo area of EIMA International, specially set up between halls 35 and 37.

Also worth mentioning among the appointments at the Bologna event is the “Contractor of the Year” award ceremony promoted by “Il Contoterzista” magazine and scheduled for Friday 11 November. A brand new item at EIMA 2022 is the “Garden E-motion” event, promoted by Comagarden, which consists of a programme of demonstration tests of vehicles and equipment for gardening and landscaping, set up in an open-air area inside the exhibition centre and centred on different types of machines.

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In the first nine months of the year, tractor registrations grew by 43.8%, and strong increases were recorded for all other types of machinery. The excellent performance of the domestic market combined with the growth of exports – says Alessandro Malavolti, president of the manufacturers – will lead to an overall turnover of the Italian industry of no less than 14 billion Euros by the end of the year. 

 The Italian agricultural machinery market is moving at record pace. In the first nine months of the year, tractor registrations – according to data processed by FederUnacoma on the basis of registrations provided by the Ministry of Transport, and released this afternoon in Bologna – grew by 43.8% compared to the same period of 2020, with 18,500 units sold; combine harvesters grew by 50.4% with 358 units; transporters grew by 18.9% with 497 units sold, trailers grew by 27.3% (7,459 units) and, finally, agricultural telehandlers, which with 1,156 vehicles sold in the nine months showed an increase of 78.4%.

As far as operating machines and equipment are concerned, the “Barometer” survey carried out by FederUnacoma shows that 83% of companies recorded an increase in turnover in the first half of the year, and 54% recorded increases of more than 20%. A very positive year also for the components sector, which, according to Comacomp (FederUnacoma) surveys, saw an increase in turnover in the first half of the year for 94% of the companies surveyed, with 67% recording increases of more than 20%. FederUnacoma calculations forecast overall increases of around 25% by the end of the year.

“The good performance of the domestic market is combined with the growth that the sector is recording at global level, and this is driving the production of Italian industries that are particularly competitive on foreign markets. The value of exports of tractors in the first six months of the year rose to 846 million euros with a trade balance of 494 million (+65%), while for other agricultural machinery the first half of the year reached an export value of over 2 billion euros (+24%), for a trade balance of over 1.37 billion euros (+19%).”

explained FederUnacoma President Alessandro Malavolti during the conference.

“The excellent phase of the domestic market combined with the growth in exports suggests a very substantial increase in Italian production which should reach 14 billion euros by the end of the year, with a growth of 22.4% compared to the previous year. Such significant growth percentages are due to a certain extent to the recovery from the crisis of the ‘Covid’ year 2020, but they depend above all on the success of the tax incentives for agricultural machinery 4.0, and the need for farms to upgrade their technological equipment to meet the new market challenges.”

concluded Malavolti.

After the suspension due to the health emergency, the World Exhibition of Agricultural Machinery will be presenting itself with a large number of exhibitors, important innovations and a calendar of appointments of political interest. Businesspeople will arrive from all over the world for an event that – says FederUnacoma general manager Simona Rapastella– has a very high technical content but is also a formidable ‘relations machine’.

The 44th edition of EIMA International, the world exhibition of machinery, equipment and components for agriculture and landscaping, to be held in Bologna from 19 to 23 October, is set to get underway with impressive figures. The event, the first international event in the sector after the suspension of trade shows activities imposed by the health emergency, will be attended by 1,350 exhibiting companies, 350 of which are foreign, representing over 40 countries and displaying more than 40 thousand models in the 14 specialised sectors and 5 theme shows (“Components”, “Green”, “Energy”, “Digital” and “Hydrotech”) in which the event is divided.

During the presentation press conference held this afternoon in Bologna, Simona Rapastella, General Manager of FederUnacoma, the Italian federation of manufacturers that organises the event, commented:

“The number of exhibitors is very positive if we consider that, due to force majeure connected to Covid restrictions, companies from some important countries are missing, such as China or India, which were present with more than 300 industries at the last edition and which should return, together with manufacturers from other countries, in the next edition in November 2022”.

Apart from the limitations still in force for some areas, EIMA 2021 confirms its international character. During the five days of the exhibition, in addition to agricultural entrepreneurs and mechanization technicians, businesspeople from all over the world are expected at the Exhibition, including official delegates selected by the ICE offices (about 300 representing 60 countries), interested in negotiating the purchase of machinery that responds to the specific needs of the various farming and business models.

A wide range of categories, new products and absolute previews are the traditional strong points of the event. The Technical Innovation Competition has been confirmed, which rewards the innovative solutions designed by manufacturers for all types of agricultural work (on display in the Quadriportico area).

There will also be the finalist models of the Tractor of the Year, which for the first time will be able to parade in an open-air arena, where machines for bioenergy chains can also be seen.

“As well as being a great promotional and commercial showcase, EIMA has always been a great ‘relations machine’  and this is a fact of strategic importance, because the agricultural machinery industry is part of a complex system, in which close interactions are necessary between the agricultural world, the industrial world, research activities, environmental issues, and political and administrative guidance and coordination activities. The Bologna exhibition is recognised as the forum that connects all these players, the place where agro-industrial supply chains are increasingly closely connected and where the future of agriculture is planned”.

said Rapastella.

The 2021 edition of EIMA International is indeed one of the most interesting from a political perspective. The Government will be present through the Undersecretary of the Ministry of Foreign Affairs Manlio Di Stefano; and the chairmen of the Agriculture Commission of the Chamber and Senate, together with delegations of the members of these commissions, will also be visiting the exhibition for a discussion on the best policies for the sector.

The President of the Emilia Romagna region, Stefano Bonaccini, the Mayor of Bologna Matteo Lepore, the ICE Board Member Daniele Vaccarino and all the councillors for agriculture of the Italian regions will also be present at EIMA, along with a large delegation of MEPs. A much awaited moment, for its political but also cultural content, is the Conference that Paolo De Castro will hold at EIMA on the inspiring principles and challenges of the Community Agricultural Policy, in streaming connection with all agricultural organizations and the agro-food chain, as well as with national and Community institutions.

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