Tractor sales show confidence in primary industry continues

29 May 2017

Tractor sales show confidence in primary industry continues

Sales of tractors are remaining steady in the year to date compared to last year, demonstrating continuing confidence within the primary industry, says NZ Tractor and Machinery Association (TAMA) Vice President, Roger Nehoff.

Mr Nehoff said in the four months to the end of April, the total number of tractor sales was 803 compared to 796 during the same period in 2016, demonstrating that overall New Zealand’s primary industry was stable and coping with weather events and any volatility in the global markets.

The YTD figures, compiled by TAMA, show sales increases in the horticulture and viticulture industries in Northland, Hawke’s Bay and Marlborough. There was a sales decrease in the Bay of Plenty and Auckland, however.

“In spite of the adverse weather events, the growth in horticulture and viticulture looks set to continue, especially with the current kiwifruit boom, expansion of apple production and continuing growth in the New Zealand wine industry.”

Tractor sales in Marlborough had increased nearly 120% compared to January through April last year while sales in the Hawke’s Bay had increased by 50%. This was driven by the planting of more grapes and the need to replace an aging fleet.

Several traditional dairy, sheep and beef regions (Taranaki, Otago and Central North Island) are reflecting the positive signals in the economy with growth. Among the standouts was Taranaki, whose tractor sales almost doubled compared with the same period last year. This is considered to be due to confidence lifting with dairy farming customers, coupled with the need to replace or update aging machinery prior to winter.

Mr Nehoff said, overall, tractor manufacturers were positive about 2017.

Anecdotal feedback from farmers at the recent field days in Feilding and Kirwee was that there was more confidence in the market and this would be reflected in farmers replacing machinery.

Ends

© Scoop Media