This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 1/9/2020
Overview
 
 201520162017
Total Market Sizen/an/an/a
Total Local Production0.10.10.2
Total Imports195194193
Imports from the U.S.253832
Source:  Transaction database—USD million—Products under HS codes:  8424, 8432, 8433, 8434, 8435, 8436, 8437, 8479, 8701, and 8716.

Agriculture, which makes up about six percent of GDP, plays a leading role in Uruguay’s economy, politics, and society. Stimulated by rising prices of international agricultural commodities and increased land prices, Uruguayan farmers invested heavily in the maintenance of their agricultural machinery and equipment. As exports grew, imports of agricultural equipment jumped 25 percent from 2012 to 2013.  When the prices of international commodities fell and Uruguay’s economy slowed to one or two-percent growth in 2016-2017, imports declined sharply. Uruguay should continue to present opportunities for U.S. suppliers of agricultural machinery during the next several years. The U.S. market has traditionally been the second or third largest supplier. In 2018, the United States decreased its market share to 16 percent, down from 20 percent in 2017 (behind Brazil with 31 percent and above Germany and China with 7 percent each). U.S. brands manufactured mostly in Brazil and Argentina do very well in the market, but Chinese brands have been gaining ground. Although demand has declined, there is room for pre-owned and refurbished machinery.  In 2017, the Ministry of Agriculture began requiring a mandatory phytosanitary certificate for all used machinery imported into Uruguay. This requirement caused some U.S. machinery to be rejected and increased the cost to import machinery.  Apart from tractors, which are imported mostly from Europe, U.S. machinery is highly regarded and is competitive.  In 2018, Uruguay remained the world’s fourteenth largest dairy, ninth largest rice, and tenth largest soybean exporter.

Leading Sub-Sectors
The market for agricultural equipment is almost fully supplied by imports. The best sales prospects for U.S. equipment are as follows (not ranked):
· Data collection equipment such as global positioning systems, yield monitoring, soil sampling, crop and field scouting, and remote sensing technologies used for monitoring soil properties and crop conditions. Only a fraction of agricultural producers currently operate such equipment.
· Laser-controlled earth-leveling machinery.
· Computerized management systems (used for livestock). Agri-food machinery and equipment used by food processing companies such as grain processing equipment, fruit and vegetable processing equipment (separation, cleaning, etc.), meat processing equipment, poultry production equipment may also provide opportunities.
· Chutes to discharge harvested grains into different storage devices.
· Advanced turbine sprayers, and associated pumps.
· Combines and other harvesting equipment.
· Agricultural tractors: sales of refurbished tractors have been increasing. U.S. brands are well regarded.
· Parts and accessories for harvesters and tractors: demand is expected to increase because of increased utilization of machinery.
· Cultivators and other solid preparation equipment (including plows, harrows, cultivators, seeders, and fertilizer spreaders).
· Greenhouse and other vegetable production equipment: of particular interest is the growth of greenhouse production of organic products that according to some estimates has more than doubled over the last five years. Uruguay has officially branded its natural and organic products “Uruguay Natural.”
· Irrigation equipment: increasingly used to improve yields in Uruguay’s unpredictable rainfall environment. An irrigation law passed in 2017 that provides incentives for irrigation equipment should propel its use.
· Dairy equipment: Uruguay is a major producer of dairy products and the world’s fourteenth largest exporter.
· Storage buildings such as silos. Prefabricated light, inexpensive farm storage buildings have a good market in Uruguay.

Opportunities
Given periodic water scarcities in Uruguay, irrigation and well-drilling equipment should have excellent market opportunities.  The government has announced incentives for the use of irrigation equipment. Equipment that helps improve agricultural efficiency would also be attractive to Uruguayan producers, considering the need to increase harvest volumes to supply international markets.
Pre-owned and refurbished machinery with good post-sales service will find good prospects if a supplier will ensure reliable and steady part supplies.

Web Resources

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.