Agriculture Machinery Demand will Increase- As per TAFE.
The global agriculture equipment including tractor market will increase from because of the impact of the long-term growth in food demand, driven especially by Asia and Sub-Saharan Africa, according to the chief executive officer (CEO) of the world’s third-largest tractor maker-TAFE.
Demand for grain will rise to about 4.5 billion tones in 2050 from 3 billion tones in 2010 giving rise to farm mechanization, said by Srinivasan during an interview at Bloomberg News headquarters in New York on Monday.
The global market for tractors will slip to about 1.68 million in 2015 from 1.8 million last year but will recover and expand to 2.15 million in 2020, said Srinivasan, 55, who is also chairman of the family owned company.
TAFE sees growing demand for mechanization beyond tillage, in areas such as harvesting, as labor becomes more expensive while the government pushes for improved domestic food security, Srinivasan said.
Precision farming technology, which utilizes electronic sensors, wireless devices and data analytics to help improve yields, is a “good enabler” for increasing productivity as well, Srinivasan said. Manufacturers will have to be “pragmatic” in using the technology in India, as the needs of the country’s farmers are different from those in North America, whose farms are typically much larger, she said.