Friday, 23 June 2023 09:55

2023 returning to normal levels

Written by  Mark Daniel
TAMA president Kyle Baxter says imports of ag equipment are still sitting at 8 to 12 months lead times. TAMA president Kyle Baxter says imports of ag equipment are still sitting at 8 to 12 months lead times.

While tractor deliveries for the year-to-date April 2023 showing a 28% reduction compared to the same period in 2022 seems dramatic, a closer look provides a clearer picture into the market dynamics.

For the same period in 2022, tractor deliveries were greatly inflated from the combined effects of manufacturing delays and global supply chain constraints. That means a large numbers of tractors were delivered 3 to 6 months later than originally intended.

Geographically, the North and South Islands have seen a marked difference in deliveries. The North has been affected by an extremely unsettled summer and the effects of Cyclone Gabrielle, resulting in a reduction of 32% in tractor deliveries. It has also seen the typically higher volumes of orchard and horticulture tractors included in the yearly numbers severely constrained.

In the South, the overall reduction in deliveries has tracked to a more modest 18%. Most southern regions have experienced favourable summer weather patterns, delivering good crop growth and yields.

Overall, most ag dealerships are currently reporting strong demand for spring deliveries of tractors and equipment. This means that despite the year-to-date reduction, the market is tracking above average and the overall result for the year is still looking favourable.

TAMA president Kyle Baxter reports that imports of ag equipment are still sitting at 8 to 12 months lead times. He says many member companies are planning beyond 2023 and striving to confirm production slots, for arrivals to NZ landing in early-mid 2024, whichever way the market trends.

“I’m seeing and hearing first-hand that the flow of equipment into New Zealand has increased, which in turns provides customers with product from dealer stock,” Baxter explains. “This offers a welcome relief for customers who are requiring new equipment to go to work straight away.”

More like this

Handy cordless shearing keeps on top of dirty jobs

Designed and assembled by David Short, a farmer and former shearer, Handypiece is a cordless shearing handpiece for portable shearing and tail trimming, powered by a long-life, rechargeable lithium battery.

Shearing legend hooked on CanAm

Sir David Fagan, world-renowned competitive sheep shearer with 642 shearing titles worldwide and a knighthood to his name, now runs beef and dairy operations near Te Kuiti with wife Wendy and son Jack.

Featured

Aussie farmers get A$8.60/kgMS as opening milk price

Australian dairy farmers supplying Fonterra are getting an opening weighted average milk price of A$8.60/kgMS for the new season or around NZ$9.26/kgMS -  NZ74c less than New Zealand suppliers, based on the current exchange rate.

National

Machinery & Products

» Latest Print Issues Online

The Hound

Silver Thin Farms

OPINION: The Hound hears that tension was in the air at the recent Silver Fern Farms AGM, with the board…

Bugs for lunch

OPINION: The ongoing saga of the quality of school lunches continues.

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter