Argentina: Agricultural Equipment & Technology

U.S. suppliers of agricultural equipment and “ag-tech” solutions that help farmers increase efficiency and realize cost savings can be attractive offerings in the Argentine market even in the face of existing headwinds.

Given the country’s history as an agricultural powerhouse, the local farm machinery manufacturing sector grew to over 700 companies, and according to local statistics, domestic production of agricultural machinery and equipment (e.g., seeders, sprayers, hand tools, etc.) accounts for around 80 percent of total demand.   Moreover, local content requirements imposed by previous governments have caused multinationals to incorporate more than 50 percent of local components into their manufactured equipment. 

While these challenges have slowed activity for U.S. companies in the sector, the government of Argentina is developing a 10-year project, “The National Promotion of Investment and Agricultural Exports,” aimed at increasing the volume of Argentine agriculture exports by 35 percent and creating new jobs for the sector.  This plan, coupled with the opportunity to produce additional crops to meet the need resulting from the Russian invasion of Ukraine, could result in business opportunities for U.S. exporters of agricultural equipment, especially with specialized or niche offerings.

Argentina’s main agricultural outputs include soy, wheat, and maize, as well as a world-class wine sector, and numerous cattle ranches.  U.S. agriculture equipment and technology, including smart irrigation systems, precision resource management tools, and livestock farming technology, are all well suited for the market. 

For additional information on this industry, including market analysis, trade events, contacts, and the products and services that the U.S. Commercial Service can provide to help you succeed in the Argentine market, please contact Elizabet Simon, Industry Specialist.