The Romania Agricultural Tractor Machinery Market is valued at 298.2 USD million in 2020 and is estimated to grow at a CAGR of 15.6% over the forecast period to reach 908.5 USD million by 2028.
Romania is bestowed with fertile soil and abundant opportunities for growth in the agricultural sector, however, farmers control a minimum amount of arable land per tenant. The agricultural industry is influenced by numerous small farms which co-exist with few large farms, increasing the competitiveness of the market.
The agricultural sector contributed roughly 4% to the overall GDP of the country, with the crop production index at 101.3 in 2016, according to the Food and Agriculture Organization of the United Nations.
The population of Romania stands at 19.64 million in 2017, based on estimates provided by the United Nations. According to a World Bank report, the employment percentage in the regional agricultural sector stands at 22.91% in 2017 as compared to 23.1% in the previous year.
The practice of subsistence farming is widespread in the country, owing to rapid urbanization leading to the decline in acreage of cultivable land. This has emphasized the optimization of available arable land to the full extent so that the demand for food is met. According to statistics provided by the World Bank, the percentage of arable land decreased from 39.8% in 2010 to 38.1% in 2015.
A report published by the Factor Regional Development Center (FRD Center) puts the area covered by Romania at 23.8 million hectares, out of which the agricultural sector is approximately 14.7 million hectares.
Agricultural tractor machinery thus plays an essential role in the realization of the required productivity target of the country, with the regional companies focused on increasing the market penetration of end-products in an attempt to boost sales revenue. The Romanian farming sector is characterized by small farms and holdings (92.2% of the holdings are less than 5 hectares), but with a growing number of vast farms, closer to the river Danube.
The primary crops in Romania include wheat, rye, barley, and maize grains. Data provided by the Food and Agriculture Organization of the United Nations indicates the regional cereal crop yield at 3971 kg per hectare in 2017.
Market Dynamics
Drivers
- Growth in adoption of tractors for agricultural purposes
- Rise in demand for agriculture end-products
Restraints
- Lack of maintenance and high cost
- Rise in urbanization and practice of subsistence farming
Rise in demand for agriculture end-products
The country witnesses high end-user demand for agricultural commodities, with vegetables and legumes such as peas, beans, potatoes, barley, and lentils at the forefront of the overall agrarian crop growth.
A fluctuating food production index of Romania, provided by the Food and Agriculture Organization (FAO), United Nations, indicates that the current machinery volume of the region is insufficient to cater to the growing needs of the overall population, and as such the market presents numerous opportunities for growth and expansion for new tractor machinery units.
Steady growth in per capita consumption of agricultural products in the region has indicated the need for increased productivity of crop yield, although it faces stiff challenges in the form of declining arable land. The role of tractor machinery expands as such owing to the need to achieve sustainable agricultural production from existing acreage of land.
AGCO Corporation Company Profile
AGCO Corporation is a global leader in the design, manufacture, and distribution of agricultural equipment. AGCO Corporation carries well-known brands like Challenger, Fendt, GSI, Massey Ferguson and Valtra. AGCO Corporation delivers agricultural solutions to farmers worldwide through a full line of tractors, combine harvesters, hay and forage equipment, seeding and tillage implements, grain storage, and protein production systems. The company focuses to reduce material cost, improve productivity in all area and lower product through intelligent engineering. The company has more than 20,000 employees all around the world. The company has distributed there products through 4,200 independent dealers and distributors in 150 countries.
About Us:
DataM Intelligence was incorporated in the early weeks of 2017 as a Market Research and Consulting firm with just two people on board. Within a span of less than a year, we have secured more than 100 unique customers from established organizations all over the world.
For more information:
Sai Kiran
Sales Manager at DataM Intelligence
Email: [email protected]
Tel: +1 877 441 4866
Website: www.datamintelligence.com