Egypt Agricultural Machinery Market Outlook to 2021 – Consolidation of Small Farm Holdings and Improving Credit Conditions to Foster Future Growth” covers aspects such as the market size on the basis of sales volume and revenue for Tractors, Combine Harvesters, Rice Transplanters and Tractor Implements. Further segmentation for Tractors by Horsepower, segmentation of Rice Transplanters by the number of rows and Tractor Implements has been showcased by products. The report also covers the market share, competitive landscape and warranty policies of agricultural equipments. In addition to this, the report also covers the mechanization rate, land under cultivation, farm holding structure, production of major crops, cropping pattern, average usage of agricultural equipment. Regulatory policies, the import duty structure, certification and emission standard, subsidies and financing options are covered in government regulation. This report will help industry consultants, agricultural machinery manufacturers and dealers, retail chains, potential entrants and other stakeholders to align their market centric strategies according to the ongoing and expected trends in the future.
The total land under cultivation was evaluated at ~ thousand hectares during 2011, inclining to ~ thousand hectares during 2016. Cereals including wheat and maize, rice and vegetables have been the most cultivated crops in the country. Total land under wheat cultivation inclined from ~ million hectares in 2011 to ~ million hectares during 2015.
The level of intensive and extensive agriculture utilized by farmers is directly dependent on the land holding size, price of agricultural machinery, cost of labor and the intensity of irrigation facilities. North Egypt is dominated by farmers having small land holding size with lack of efficient irrigation facilities. While the cost of renting agricultural machinery is cheap, the cost of labor is even lower in this region due to which extensive farming is predominant in North Egypt. Conversely, South Egypt is characterized by large mega farms (~ to ~ hectares) set up by Arabs from neighboring countries who prefer the use of high powered machinery to ensure high efficiency and productivity.
There is large disparity in mechanization levels across Egypt. The overall mechanization rate in the country for planting and harvesting was evaluated at ~%. The Egyptian irrigation system is one of the most complex systems in the world. The country’s irrigation system comprises of three main components, the man‐made water body created since the construction of the Aswan High Dam, delivery and distribution networks and on‐farm irrigation.
Domestic agricultural companies which import agricultural machinery into the country are exempted from paying customs tax or import duty and are required to pay the sales tax only. However, commercial and foreign companies importing agricultural machinery into the country need to pay an import duty of ~% levied on FG/CKD and SKD goods in addition to the sales tax of ~%.
Market for Agricultural Equipments
The revenues generated from the sale of agricultural tractors in Egypt is estimated to incline from USD ~ million during 2017 to USD ~ million during 2021, achieving a CAGR of ~% during the period 2017-2021. While the revenues generated from the tractor segment is poised to increase in the future, contribution by this segment to overall agricultural machinery market revenues is anticipated to decline to ~% during 2021 from ~% during 2017. Central and South Egypt will continue to dominate sales of agricultural tractors above 120 HP while North Egypt will witness higher sales of low powered agricultural tractors.
The revenues generated from the sale of combine harvesters in Egypt inclined from USD ~ million during 2011 to USD ~ million during 2016, witnessing a high growth of ~% during 2012. The total combine harvester sales in Egypt inclined from a meager ~ units during 2011 to ~ units during 2016.
Rice transplanters are technically advanced machines that are mainly used by owners of large mega farms, the Egyptian government and a few local agricultural machinery rental agencies.
Central and South Egypt is dominated by mega farms owned by large agricultural companies and the Egyptian Government. The availability of irrigation facilities coupled with high soil fertility have resulted in higher productivity of land in these regions. The farm holding structure in North Egypt is relatively low, ranging from ~ feddan. This region is dominated by small farmers, mainly located near the delta region and around the Nile River. Price, land holding size and properties of soil are the most important parameters that farmers consider before purchasing agricultural machinery, especially farm tractors. Other important factors include the type of crop cultivated, after sales service and credit availability.
Key Topics Covered in the Report:
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