Tractor sales begin to retreat

Year-to-date sales to the end of February 2023 show 440 tractors were sold - compared to 592 units for the same period in 2022 - a fall of 25.7%.

The largest drops were reported in the 0-40hp lifestyle sector, falling by 45% to 82 units. While in the sector between 40 and 150hp - the key agricultural machines - had an average fall of 27% to 247 units over the period. One area bucking the trend was the 200hp+ classification, where 53 units showed an increase of 29%.

The combined figures represent a rolling 12-month average of 4,307 tractors, falling from the peak of 4,656 units recorded in August 2022. Looking at the spread between the North and South Islands, the North saw sales for the period of 272 units (-30.6%), while the South achieved 168 units (-16%).

TAMA general manager Phil Holden suggests that despite a fall of 7.5% in the rolling 12-month average, a market of 4,307 units is still a good result. He warned that the figures should be viewed with a little caution as many manufacturers are still experiencing extended shipping times that might be distorting the numbers.

TAMA president Kyle Baxter says 2022 was a big-big year for tractor sales, while the start of 2023 has seen retreat to 2021 levels.

"At this stage, whether that trend will continue further into the year, we just don't know, although there might be some headwinds emerging."

Baxter suggests that dealers will be looking closely at their order books, trying to identify if there are any emerging trends.

"Are they 60-70% or only 20% full?" he asks.

Baxter also notes that it's probably still too early to get a clear picture of the numbers of tractors and machinery damaged in Cyclone Gabrielle.

"The trick will be understanding whether affected farmers and landowners will be using capital for repairs or replacement," he says.