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

Farming smarter with technology

The National Fieldays is an annual fixture in the farming calendar: it draws in thousands of farmers, contractors, and industry professionals from across the country.

Fencing smarts from the Emerald Isle

While a leading New Zealand brand seems to have a stranglehold on the local electric fencing market, a company from the Green Isle seems to be making significant inroads, particularly in the Northern Hemisphere.

Featured

National

Top innovators announced

The Fieldays Innovation Award winners have been announced with Auckland’s Ruminant Biotech taking out the Prototype Award.

A big win for wool!

State-owned social housing provider Kainga Ora is switching to wool carpet for its new homes.

Machinery & Products

Calf feeding boost

Advantage Plastics says it is revolutionising calf meal storage and handling, making farm life easier, safer, and more efficient this…

JD's precision essentials

Farmers across New Zealand are renowned for their productivity and efficiency, always wanting to do more with less, while getting…

» Latest Print Issues Online

The Hound

Arise Sir Paddy

OPINION: Missed out on a knighthood in the King’s Birthday Honours, again?

Ivory bloody towers

OPINION: The antipathy the previous government had for farmers no longer holds court on the Beehive’s 9th floor, but it’s…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter