increase font size
Kyle Baxter
Machinery dealers around the country have reported a substantial increase in sales of both tractors and farm equipment compared with the same time last year.
The Tractor and Machinery Association of New Zealand (TAMA) president Kyle Baxter says the big increases reflect a continuing catch up in on-farm vehicle investment, as farmers look to the future.
"This significant increase isn't an accidental one, nor a blip," he told Rural News.
"It requires sustained customer and supplier confidence over a 12-month period - because any required product is ordered and arrives in the country to meet their demand."
For the first six months of 2021, overall unit sales were up 35%, representing 450 more tractors sold than the same period in 2020.
When broken down into individual horsepower sectors, the under 50hp lifestyle sector increased more than 40%, while the 60-80hp segment - largely delivered into the horticulture sector rose by 50%.
The mainstream 100-140hp segment was up more than 30%, while 180-250hp cropping and contracting tractors increased by more than 50%.
While the market is predicted to remain strog for the rest of 2021, there are several challenges impacting on it, says Baxter.
"We are hearing from our members that ongoing production stoppages in global factories, due to Covid lockdowns and community outbreaks, continues to affect manufacturing timeframes.
"Europe continues to be a rapidly changing space by the day. As one country announces a 'return to normal' date, another country announces new control measurs to help stem the spread of the virus."
Meanwhile, global logistics dominate many discussions between TAMA members and their suppliers and customers. There appears to be no relief in sight, with increased shipping times looked set to continue well into 2022.
"Almost every point of the logistics supply chain is affected, with reports of delays of an extra 90 days in receiving a container load of equipment from Europe, not being uncommon," Baxter says.
"Reduced air cargo space, due to fewer flights globally, is also adding to the cost of air freighting spare parts and causing delays in getting urgent parts into the country."
He says the cost of shipping a container here has also increased drastically, coupled with the fact that some containers only carried one to four machines, driving up the freight cost of each item shipped.
Baxter also notes that raw materials used to build equipment are also under upward price pressure. He says many manufacturers are already signaling or passing on manufacturing price increases related to increased raw material costs.
"Our members are particularly concerned about the strong inflationary surge of raw materials, which is affecting many components used in the build of equipment," he adds.
Steel, representing 30 to 40% of the average production cost of farm machinery, has more than doubled in price from €550 to €1250 per ton. Meanwhile, aluminum has risen by 22% copper by 63%, rubber is up 67% and foundry products have increased by over 90% during the last nine months.
"Labour shortages remain another major concern for the tractor and machinery industry," Baxter says. "We need to be able to access overseas workers to help with the immediate shortfall for the upcoming season.
"We'll be working on behalf of our members, to ensure that these issues are highlighted and implementing possible courses of action to address this shortfall."
With effluent management never far from the thoughts of legislators and farmers becoming increasingly aware of the nutrient values of dairy effluent, innovate ideas for the convenient storage and subsequent discharge are always of interest.
While the average size of a tractor in India is much smaller than in Europe or North America, the market is booming, with a record 915,474 tractors sold last year – five times greater than the Western European and three times larger than North American markets.
In what appears to be a casualty of the downturn in the agricultural sector, a well-known machinery brand is now in the hands of liquidators and owing creditors $6.6 million.
Morrinsville based Power Farming Group has launched a flagship New Zealand facility in partnership with global construction manufacturer JCB Construction.
Made in New Zealand looks at the wealth of design and manufacturing ability we have in New Zealand, creating productive and cost-effective products for the agricultural sector. This week machinery editor Mark Daniel takes a closer look at TRS Tyre and Wheel Limited with managing director Nigel Sherborne…
Two major red meat sector projects are getting up to a combined $1.7 million in funding from the New Zealand Meat Board (NZMB).
Angus Barr and Tara Dwyer of The Wandle, Lone Star Farms in Strath Taieri have been named the Regional Supreme Winners at the Otago Ballance Farm Environment Awards in Dunedin.
OPINION: The distress that the politicians and bureaucrats are causing to the people of Wairoa and the wider Tairāwhiti is unforgivable.
Dairy
Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.
Telco infrastructure provider Chorus says that it believes all Kiwis – particularly those in the rural areas – need access to high-speed, reliable broadband.
OPINION: The new government has clearly signalled big cuts across the public service.
OPINION: Your canine crusader is not surprised by the recent news that New Zealand plant-based ‘fake meat’ business is in…
