Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

NZ tractor sales rise to four decade high in 2014

NZ tractor sales rise to four decade high in 2014 on buoyant rural economy

By Tina Morrison

Jan. 15 (BusinessDesk) - New Zealand tractor sales rose to their highest in almost four decades last year, reflecting a buoyant rural economy as farmers benefited from strong prices and good growing conditions.

New tractor registrations surged to 3,038 in calendar 2014, up 4.7 percent on 2013 and at the highest level since 3,129 in 1976, according to New Zealand Transport Agency data. Spending on farm buildings also rose, with the value of consents up 24 percent in the year though November to a six-year high of $322 million, according to Statistics New Zealand data.

Farmers stepped up their spending on big-ticket items like tractors and buildings last year, reflecting low interest rates, record prices and good growing conditions in the 2013/14 farming season. Spending is likely to fall this year as farmers face higher interest rates, lower prices and with drought conditions spreading through the East Coast.

"The 2013/14 farming season was pretty good. Profitability and the willingness to spend was pretty strong and that came through in tractor registrations," said Bank of New Zealand senior economist Doug Steel. "As we sit today though, things have turned a bit south. Dairy prices have fallen a long way through calendar 2014 and growing conditions are starting to deteriorate as the El Nino weather pattern takes hold and we have seen farmer confidence fall."

Farmers are also facing higher interest rates following the Reserve Bank's 100 basis points of hikes last year, he said.

"Those positive factors have turned around whether it be for the weather, prices or interest rate settings, so with confidence down, spending is likely to follow suit."

A weaker local currency this year may also push up the cost of imported tractors, Steel said.

He expects tractor registrations will decline this year for the first time since 2010.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Frog Recruitment: Kiwi Workers Reluctant To Make Business Trips Across The Ditch Despite Trans-Tasman Bubble Opening

When the trans-Tasman travel bubble opens today, many Kiwi companies won't be rushing to buy an air ticket, reluctant to cross the ditch to do business. The latest survey conducted by leading recruitment agency, Frog Recruitment of nearly 1,000 New Zealand ... More>>

Tourism: Employers Welcome Back Working Holidaymakers

Tourism businesses gearing up for the return of Australian visitors from next week will be relieved to learn that they will also have access to an offshore pool of much-needed job candidates, Tourism Industry Aotearoa says. Tourism employers around ... More>>

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>


Stats NZ: Prices For Transport And Housing Rise In March 2021 Quarter

Higher prices for transport and housing led to a 0.8 percent lift in the consumers price index in the March 2021 quarter, Stats NZ said today. Prices for getting around rose in the March quarter. Transport prices rose 3.9 percent, the biggest quarterly ... More>>

Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>

ALSO:

Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>