Friday, 19 July 2024 10:55

Global ag tractor sales: volume down, value up

Written by  Mark Daniel
The total number of tractors sold last year topped 2.2 million units, marking an 8% decline compared to 2022, while revenue rose 2% to $57 billion. The total number of tractors sold last year topped 2.2 million units, marking an 8% decline compared to 2022, while revenue rose 2% to $57 billion.

With 2023 behind us, the global market for agricultural tractors closed with a decline in terms of units, but with growth in terms of value.

The total number of tractors sold reached around 2.2 million units, marking an 8% decline compared to 2022, while revenue rose to $57 billion, representing a 2% increase.

Looking at the broader picture, complementing that $57 billion related to tractors, other types of farm machinery notched up $73 billion (+2%) and farm machinery components delivered sales of $34 billion (+5%), for a total industry revenue of $164 billion, up 3% compared to 2022. The increases were driven by higher price lists, in turn, driven mainly by inflation and the increased cost of raw materials.

Globally, individual markets showed varying results, primarily due to the performance of harvests and agricultural incomes. India confirmed a total of 915,000 tractors sold, a result like the record volumes reached in 2022, while China stalled at around 380,000 units, a significant 28% decline compared to the previous year.

The United States recorded a total of 250,000 tractor sales, an 8% decline, attributed to the contraction of agricultural incomes, partly due to reduced exports of commodities to the Chinese market and increased competition from other producing countries in international markets.

Europe achieved sales of 158,000 tractors, a 5% decrease said to be a consequence of insufficient agricultural profitability and partly due to unfavourable weather conditions that negatively impacted some crops. Within the market, France saw a 2% increase to 36,400 tractors registered, Germany remained stable with 28,900 units, while in contrast, Italy dropped by 13% to 17,600 units, and Spain an even steeper decline of 18%, finishing at 7700 units.

Beyond the four major markets, Turkey grew by 16% to nearly 78,000 tractors, Canada was back by 10% at 28,000 tractors and Russia recorded 36,000 units sold, in line with the registrations of the previous year. Sales in Japan remain unchanged at 34,000 units.

Industry forecasts for the near future still predict high global demand, although the market is likely to be increasingly exposed to climatic and geopolitical variables. Globally, declines in cereal production in Ukraine and Russia have tended to be offset by increases in Brazil, Australia and India. Industry sources suggest that this might result in a new “geography” for the machinery and technology industries, with a decline in tractor sales, but with an increase in horsepower and revenues.

More like this

Rein 'Deere' spreads Christmas cheer

The Brandt Hastings team, joined by Rudolph the Red-Nose Rein ‘Deere’, spread holiday cheer this week at the Hawke’s Bay Hospital children’s ward.

GEA launches robotic milkers

Milking technology provider GEA Farm Technologies is introducing its first automatic milking system (AMS) in New Zealand.

A JAC for all trades

While the New Zealand ute market is dominated by three main players, “disruptors” are never too far away.

Compact design, more capabilities

Case IH has added to its telescopic loader range with the introduction of the Farmlift 626, said to offer a more compact design, reduced turning radius for greater manoeuvrability and lower overall height.

Pushing the boundaries

Can-Am is pushing the boundaries of performance with its Outlander line-up of all-terrain vehicles (ATVs) with the launch of the new 850 and 1000R models, said to offer industry-leading horsepower, increased suspension travel and refined handling.

Featured

New UHT plant construction starts

Construction is underway at Fonterra’s new UHT cream plant at Edendale, Southland following a groundbreaking ceremony recently.

National

Machinery & Products

GEA launches robotic milkers

Milking technology provider GEA Farm Technologies is introducing its first automatic milking system (AMS) in New Zealand.

More front hoppers

German seeding specialists Horsch have announced a new 1600- litre double-tank option that will join its current Partner FT single…

Origin Ag clocks up 20 years

With roots dating back to 2004, Origin Ag was formed as a co-operative business model that removed the traditional distributor,…

» Latest Print Issues Online

The Hound

Dark ages

OPINION: Before we all let The Green Party have at it with their 'bold' emissions reduction plan, the Hound thought…

Rhymes with?

OPINION: The Feds' latest banking survey shows that bankers are even less popular with farmers than they used to be,…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter