Spring Sees Green Shoots Of Growth For Grass And Tractors

By Jaiden Drought

Third Quarter YTD New Tractor Deliveries ahead of last year by 9%.

September YTD tractor deliveries at 2,153 units continue to reflect the tentative and embryonic signs of growth. The September YTD result represents a 9% lift on last year and is indicative of overall primary sector grower and contractors increased confidence. This is being driven largely by the continued strong performance of dairy with another high payout and the continued strengthening of beef and lamb pricing.

Total September month deliveries at 367 units represent a strong 18.4% lift on the same month last year. This is all good news for TAMA member dealers and wholesalers. In the latest TAMA dealer sentiment survey a whopping 75% of dealer respondents were projecting a significant lift in new tractor sales over the next six months. It definitely feels like the Governments Investment Boost Tax Incentive scheme launched in July is kicking in. Dealers are also projecting sales increases in new hay and harvesting tools which are again well ahead of previous periods, and this is all very encouraging on the back of the projected new tractor sales.

The key tractor category driving performance across both islands is the 150-200 Hp, which at the end of the September quarter was ahead of last year by 34.4%. It’s an encouraging performance. It is worth noting however that there is still a degree of caution despite the forward-looking optimism that is building as many farmers, particularly in the South are still playing catch up after 2-3 years of low farm gate pricing. This is seeing spending being focused on maintenance type projects.

There is, however, no denying that the overall outlook looks to be positive. As we come through spring, good grass growth supporting the strong dairy, beef and lamb prices, is driving economic recovery and boosting overall farmer confidence. This confidence is producing solid forward tractor and machinery orders, which is welcome news for TAMA members across the country.

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