fbpx
Print this page
Tuesday, 26 July 2016 12:55

Some bright spots in soggy tractor market

Written by 
Large tractor sales down, Kiwis are buying more compact tractors. Large tractor sales down, Kiwis are buying more compact tractors.

Tractor sales are holding despite the dairy downturn, says NZ Tractor and Machinery Association president Mark Hamilton-Manns.

Second quarter tractor sales declined by 8.5% versus the same quarter last year.

Several segments increased however. The consumer segment grew 15%, as more Kiwis bought 20–60hp compact tractors for lifestyle blocks, hire fleets and some commercial applications.

The 121–140hp, 141–180hp and 181–250hp segments also grew by 39%, 116% and 125% respectively. These tractors are mostly used in arable and dry stock farming and by contractors.

Sales in Northland, Auckland, Bay of Plenty, Wairarapa and Nelson grew because of strong growth in horticulture and viticulture.

Sales in the dairy segment (100–120hp) declined by 15%.

"Dairy farmers are still buying," Hamilton-Manns says. "Our members have noticed they're taking longer to make decisions, and often choosing a machine with lower specifications. In some cases, cabs are considered a luxury and are gone from shopping lists.

"Dairy farmers are still prepared to purchase if there is a strong return on investment. Often replacing a tractor or machine will reduce annual expenditure as repairs and maintenance costs are generally less on a new machine and often covered by warranty. Newer tractors are also more fuel efficient."

"The consumer market is also competitive now, with great deals. But inexperienced consumers... buying machinery often underestimate the importance of the availability of parts, service and warranty support.

"A great deal upfront may be expensive later. Our advice is to buy from a recognised NZ dealer for sure access to parts and service."

The tightening dairy market is prompting tractor makers and retailers to provide training, aftermarket support and parts supply to help keep customers' machines operating, Hamilton-Manns says.

"And our manufacturers are investing heavily in R&D to meet off-road emissions regulations, integrate technology into machines and reduce operating costs."

More like this

Changing of the guard at TAMA

Deere NZ territory manager Jaiden Drought was elected new president of the Tractor and Machinery Association (TAMA) at its August annual meeting.

Signs of life in Aussie farm machinery market

Following a couple of bumper sales years when the rolling year-to-date figure for 2022 hit about 16,250 tractors, it looks like things are changing in the Australian farm machinery landscape.

Watch out!

OPINION: A mate of the Hound’s reckons the recent number of tractor sales, or more correctly, a lack of them, is a warning sign of a coming rural recession.

Tractor sales begin to retreat

Recent reports from the Tractor and Machinery Association (TAMA) suggest that the recently buoyant tractor market might be 'coming off the boil'.

50-year career in farm machinery celebrated

After 50 years of working closely with farmers and contractors, Paul Wilkins has been awarded the Tractor and Machinery Association's (TAMA) 2022 President's Award for Service to the Industry.

Featured

Sheep drench resistance costly

Analysis by Dunedin-based Techion New Zealand shows the cost of undetected drench resistance in sheep has exploded to an estimated $98 million a year.

Dairy sheep and goat turmoil

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.

Hurry up and slow down!

OPINION: We have good friends from way back who had lived in one of our major cities for many years.

National

Govt urged to reduce ETS units

The Climate Change Commission wants the new Government to reduce NZ Emissions Trading Scheme (ETS) auction volumes as son as…

Dairy sheep, goat woes mount

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand…

Machinery & Products

All-terrain fert spreading mode

Effluent specialists the Samson Group have developed a new double unloading system to help optimise uphill and downhill organic fertiliser…

Can-Am showcases range

Based on industry data collected by the Motor Industry Association, Can-Am is the number one side-by-side manufacturer in New Zealand.