Overview
Uruguay Exports and Imports of Agricultural Equipment, USD Millions | |||
Year | 2022 | 2023 | 2024 |
Total Exports to World | 8 | 7 | 6 |
Total Imports from World | 558 | 438 | 402 |
Imports from the US | 81 | 67 | 74 |
Trade Surplus/Deficit | +81 | +67 | +74 |
Exchange Rates | 41.43 | 39.13 | 41.38 |
Source: SP CONNECT- Global Trade Analytics Suite – USD million
HTSUS: 8424, 8432, 8433, 8434, 8435, 8436, 8437, 8479, 8701, and 8716.
Exchange rate: (Simple average [(Value at January 1+Value at December 31)/2])
Source: BEVSA
Between 2022 and 2023, Uruguay’s total Agricultural Equipment exports declined by 12.5 percent, followed by another 14.3 percent drop in 2024. Imports decreased significantly by 21.5 percent in 2023 and continued to fall by 8.2 percent in 2024. Imports from the United States fell by 17.3 percent in 2023 before rising again by 10.4 percent in 2024. Over the same period, the United States’ trade surplus with Uruguay contracted by 17.3 percent in 2023 but grew by 10.4 percent in 2024. In 2024, the United States ranked as the second largest supplier of agricultural equipment to Uruguay, accounting for 18.4 percent of total imports, following Brazil, with 43.3 percent of the share. The main products imported from United States in this category were harvesting and threshing machinery (with 29.5 percent of the total) and agricultural, horticultural and forestry machinery for soil preparation and cultivation as well as lawn and sports ground rollers, and their respective parts (with 28.6 percent of the total).
Agriculture, which makes up about 12 percent of Uruguay’s GDP (though roughly 70 percent of exports are agriculture-based), plays a key role in Uruguay’s economy, politics, and society. Rising prices of international agricultural commodities and increased land prices incentivized Uruguayan farmers to invest heavily in machinery and equipment in recent years. These factors also promoted the development of an incipient domestic agricultural small machinery production industry. There are currently 20 agricultural machinery manufacturers in the country, which mainly export to countries in the region such as Ecuador or Paraguay. The Government of Uruguay gives tax incentives to the domestic agricultural machinery sector to promote investment in the sector.
The U.S. market has traditionally been the second or third largest supplier of agricultural equipment. Since 2017, the U.S. market share has been around 15 percent, behind Brazil but above Argentina. U.S. brands manufactured mostly in Brazil and Argentina do very well in the market, but Chinese brands have been gaining market share. There is increasing demand for agricultural technology, including pre-owned and refurbished machinery from the United States. For machinery imports, the Ministry of Agriculture requires a phytosanitary certificate for all used machinery imported into the country. Irrigation equipment has seen a robust increase recently, with potential for further investment in this field.
Leading Sub-Sectors
Uruguay imports nearly all its agricultural equipment. The best sales prospects for U.S. equipment are (not in ranked order):
- 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. Currently, only a fraction of agricultural producers use this type of equipment and there is increasing interest.
- Laser-controlled earth-leveling machinery.
- Computerized management systems (used for livestock).
- Food processing machinery and equipment used by food processing companies such as grain processing equipment, fruit, and vegetable processing equipment (separation, cleaning, etc.), meat processing equipment, and poultry processing 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.
- Greenhouses and other vegetable production equipment: Production of organic products in greenhouses, 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 due to Uruguay’s unpredictable rainfall. An irrigation law passed in 2017 provides incentives for the use of irrigation equipment.
- Dairy equipment.
- Prefabricated, lightweight, and inexpensive farm storage buildings are potential opportunities.
Opportunities
Most agricultural machinery is not subject to import duties when entering the Uruguayan market. This is noteworthy because U.S. products in this sector are often more competitive versus machinery imported from Mercosur countries. Given periodic water scarcity in Uruguay, irrigation and well-drilling equipment demonstrate strong market potential. Equipment that improves agricultural efficiency is also attractive to Uruguayan producers. Pre-owned and refurbished machinery with good post-sale service has good market potential if suppliers ensure a reliable and stable supply of repair parts.
There is consistent interest and notable potential for technological solutions that enhance efficiency and production. Uruguay presents growing commercial opportunities in the irrigation sector, driven by the country’s efforts to improve agricultural productivity, climate resilience, and water management in the face of increasingly frequent droughts. Demand is rising for efficient, technology-driven irrigation systems—including drip, pivot, and smart irrigation solutions. Public programs and subsidies are helping stimulate investment, particularly among medium and large producers. However, challenges remain, including limited access to financing for smallholders, variability in water availability by region, and the needed investment to pump water to extended areas. Companies offering integrated, scalable solutions and strong local partnerships are well-positioned to succeed in this evolving market.