Primary sector areas offer encouraging opportunities
Tractor sales down but primary sector areas offer encouraging opportunities
The New Zealand tractor market continues to feel the effects of a depressed dairy economy as overall sales have declined by around 14% compared with the same period last year.
Tractor and Machinery Association (TAMA ) President, Mark Hamilton-Manns said:
“Certainly dairy payouts have impacted traditional sales. However, many customers are now choosing tractors with less-expensive options to ensure that plant replacement continues.”
Dairy-dominated markets have seen reductions in sales volumes with Waikato seeing 19% fewer sales, Taranaki 36% and Southland 31%.
Mr Hamilton-Manns said: “We are seeing declining demand for 2WD tractors throughout NZ. Once the mainstay of all major brands, 2WD tractors represent just 2% of all tractor sales in New Zealand.
“Although we expect tractor sales will lag behind last year, we are confident that the buoyancy enjoyed in viticulture, beef and sheep, and contractors, will ensure we finish the year strongly with around 3,200 unit sales.
“Marlborough’s burgeoning viticulture sector alone has created industry growth of around 7%, and we expect this will mean demand for tractors.
Mr Hamilton-Manns said TAMA’s member companies are continuing to support the productivity of farmers and contractors and have introduced new products and invested in parts support and technician training.
“We represent around 97% of all tractors sold in New Zealand and have great understanding of their horsepower and regional distribution trends throughout the country.
“Understanding the size and spread of our market is a key reason for agricultural machinery and associated industries belonging to TAMA.
“It is fair to say we have a little bit of work to do in enjoying the same level of membership from machinery importers, however, we have a renewed focus on membership to increase the relevance and value of industry data throughout the sectors in which we operate.”