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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.”
The market is in decline in the United States, Canada and Brazil. In Europe, sales are falling in Germany, France and Spain. Turkey is experiencing a sharp decline, whilst the economic strategies and policies implemented by India and China are driving purchases in both countries.
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