Posted On: 2021-01-14
Increasing government support to agriculture sector through numerous agricultural policies, programmes and projects for the country’s economic development is anticipated to drive the demand for farm tractors in Nigeria over the coming years - 6Wresearch
The increasing trend of agriculture machinery hiring centres under private ownership, along with growing government efforts to increase farm mechanization in Nigeria, the market demand for farm tractors has seen an increase in recent years. However, the outbreak of the COVID-19 pandemic brought a decline in market revenues during the year 2020 as a result of fall in demand due to decreasing income and supply chain disruptions in the country owing to the movement restrictions and imposition of nationwide lockdown to curtail the spread of coronavirus. Moreover, recovery is expected in market revenues post-2021, with a gradual opening of economic activities and supply chain returning to normalcy would have a positive impact on the Nigeria farm tractor market in the coming years.
According to 6Wresearch, the Nigeria Farm Tractor Market size is projected to grow at a CAGR of 18.1% during 2020-2026F. Several policies being undertaken by the government of Nigeria to ensure food security and increase farm productivity would increase farmers’ income, which in turn, would augment the demand for farm tractors across the country during the forecast period. Several new enterprises are providing agriculture equipment to small farmers on rental basis, NAMEL and TOHFAN are such enterprises that aim to improve farm mechanization in Nigeria and provides the farm equipment on rental basis. The increasing number of such enterprises would bode well for the farm tractors market in the country over the coming years.
According to Alpana Tyagi, Research Analyst, 6Wresearch, “40 HP- 100 HP segment contributed a major share in the Nigeria farm tractor market revenues during 2019 and is anticipated to maintain its dominance during the forecast period as well, on account of increasing usage of 40-100 HP tractors in farming activities. The 40 HP- 100 HP category comprises of the tractors that are most commonly purchased by the agriculture cooperatives and hiring centres.
Owing to the growing focus of the government on improving the state of agriculture in Nigeria and increasing the rate of farm mechanisation, the demand for 40 HP- 100 HP segment tractors would flourish over the coming years.” Alpana further added.
According to Anmol Dhanju, Research Associate, 6Wresearch, “On account of its suitability for several agricultural activities such as ploughing, harrowing, levelling, pulling, seed drill, operating threshers, and pumps through its P.T.O., the four-wheel drive tractors acquired a major share in Nigeria farm tractors market revenues in 2019 and would continue to lead the market during the forecast period as well.
The two-wheel drive tractors market revenues are also anticipated to grow at a faster pace over the coming years as the aforementioned tractors are widely used for small and micro farms.” Anmol further added.
“Nigeria Farm Tractor Market (2020-2026F)” report provides an in-depth analysis with 12 figures and 5 tables, covered in 72 pages. The report estimates and forecasts the Nigeria farm tractor market by Power Rating and Drive Type. The report provides an unbiased and detailed analysis of the on-going trends, opportunities/high growth areas and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.