Anuário da Indústria de Implementos Rodoviários 2018

64 L ast year Brazil produced a record 240.6 million tons of crops. This is the engine that drives the highway implement and agricultural machinery sectors. The Systematic Survey of Agricultural Production, produced by Brazil’s official statistics office, the IBGE, forecasts output of 229.3 million tons.This fall is down mainly to a 0.4% reduction in soybeans, a 12.4% reduction in corn and a 5.5% reduction in rice production - three crops that account for 93.1% of Brazil’s arable output. Despite this decline on 2017, IBGE researcher Carlos Antônio Barradas says that in 2018 the harvest is expected to be the second largest since record began, in 1975: “In 2017 we had a somewhat atypical year because it was favored by ideal weather conditions.In 2018 the weather will not be so much of a help. Nevertheless, the forecast is good,” says Barradas. This is being reflected in road implements. The COO of of Randon’s Assembly Division , Alexandre Gazzi, forecasts market growth of at least 15% in 2018 on 2017. “2017 was a turning point in the market’s decline over the last three years.Despite the political instability that lingers in Brazil, we can see that the new economic scenario, driven by the fall in interest rates and inflation, together with positive sectors such as agribusiness, has contributed to the recovery of road implements, albeit still moderately compared with recent years,” he says. Sales of semitrailers and trailers domestically totaled 24,928 units in 2017, compared to 23,187 in 2016 - growth of 7.5%, says ANFIR. Gazzi also welcomes the fact that Brazil’s state-owned development bank, BNDES, is offers credit to micro, small and medium-sized companies to purchase road implements via the Finame system, with up to 100% of the cost covered. “BNDES funds have always been the major source of support for business growth, especially in a segment like ours - heavy equipment, with a high added value .However, we believe that other funding mechanisms have emerged naturally as interest rates have fallen - such as CDC, leasing and consortiums,” says Gazzi. Other options are banks owned by assemblers and financial services, such as Banco Randon. Librelato, which makes trailers, semitrailers, bi- trains, tri-trains, road trains and bodies, sold 3,552 heavy transport products last year and about five hundred for light trucks .This year it forecasts growth of 20%, according to José Carlos Sprícigo, CEO of the company: “The economy is beginning to show positive signs of recovery with low interest rates, economic expansion in sectors that were had been stagnant for two years, such as forestry, iron and steel, and higher profitability in the agricultural sector this year along with strong demand for new trucks,” says Sprícigo. The executive adds that there are other positive signs ahead and only one negative: the October elections. Despite the industry’s confidence in yet another good harvest, sales of highway and agricultural machinery have not yet reacted.In the first two months of 2018, 4,000 units were sold, 30% down year on year, according to Anfavea. However, production suggests the curve is positive. In the first two months of 2018, 6,600 units were produced - 1.4% up year on year.Last year total sales of highway and agricultural machinery were 42,400 units. Elisangela Lopes, technical advisor to the Brazilian Farming Confederation (CNA), says that even with slightly lower production forecast for 2018, demand for logistics remains huge for agribusiness.”Since production reached 180 million tons a year, we have not had adequate infrastructure to transport crops,” she says. In 2009 production was 108 million tons - mainly soybeans and corn - and 84% was exported via the ports of Santos and Paranagua, she says. These two ports now account for 80% of exports. Lopes says this is because a lot of highways are in bad condition, which makes certain roads a priority. Access by truck to other Brazilian ports, waterways and railways is not yet ready. “The CNA has suggested prioritizing the completion of 83 km of BR-163, the completion of the Pedral do Lourenço highway [halted over environmental issues], authorization for use of private terminals in the North and Northeast, leases of public ports, bidding for the new grain route in 2018 , and the paving of BR-020 to transport products from the west of Bahia,” she says. “ Since the new agricultural frontiers were opened up, infrastructure has not been prepared to transport output. One of the solutions is also more highways.We suggest concession grants which would lower tolls and offer more legal certainty to investors,” she says. This harvest should again help the highway implement and agricultural machinery sectors, despite a slight downturn in grain production The right boost MERCADO | THE MARKET | MERCADO