Last week, I made the long voyage to New Zealand. After landing in Auckland, I began to make my way down through the countryside.
It’s summer out here and the weather has been quite pleasant, despite the smoke from the wildfires in Australia drifting over the Kiwi skyline.
In New Zealand, the dairy industry is without doubt the largest agricultural sector, supporting the majority of the agricultural contractor’s workload.
Of the 3,315 new tractors sold this year, 2,047 of those were sold in the North Island
The 10-year average for new tractor sales in New Zealand is 3,800 units.
Meanwhile, last year they hit a new high of 4,640 units, and this year up to the end of October sales are at 3,315 units.
Of the 3,315 new tractors sold this year, 2,047 of those were sold in the North Island and the remaining 1,267 were sold in the South Island.
The South Island tends to buy a larger tractor as for the most part the farms are bigger and most of the tillage farms are in the south too.
Compare this to Ireland. Our 10-year average is 1,785 units. Last year, we sold 1,984 units, while this year up to the end of October there have been 1,913 units sold.
Lifestyle farms
The New Zealand tractor sales figures for 2019 year to date include the 0-40hp bracket, which accounts for 20% of their total sales.
These tractors go to what’s known as lifestyle farms, which are essentially very small holdings which are classified as hobby farms.
In Ireland, FTMTA figures show that the 0-50hp bracket only accounts for as little of 2% of 2019 year-to-date total sales in Ireland.
In New Zealand, the 100-150hp bracket accounts for 35% of new sales
The 50-100hp power band in New Zealand mostly comprises tractors that have been sold for horticultural use for enterprises such as kiwi fruit, apple orchards or vineyards.
It makes up over 25% of their market. Meanwhile in Ireland, the 50-100hp bracket only accounts for 7.5% of 2019 sales to date.
In New Zealand, the 100-150hp bracket accounts for 35% of new sales, while in Ireland this bracket accounts for 61% of our total new tractor sales.
As we move up through the power bands, the 150-200hp bracket accounts for over of 12% in New Zealand and almost twice this at 22% in Ireland.
The 200hp+ bracket accounts for 8% in New Zealand and 7% in Ireland.
No imports
Another factor leading to higher sales of new tractors in New Zealand is the fact they import little or no used tractors. This is down to two main reasons.
Firstly, biosecurity is taken very seriously at the ports. All shipping containers with used equipment are thoroughly inspected.
If any product or item within a container shows any sign of dirt or contamination, the container has to be sent for expensive fumigation.
Something else interesting is that New Zealand has no engine emission standards like we have in the EU
Secondly, New Zealand’s isolated geographical positioning means there’s no market with a used supply that’s close by.
The cost of bringing a tractor in from Europe is quite high. Although Australia is their closest neighbour, tractor specifications are significantly different between the two countries.
Something else interesting is that New Zealand has no engine emission standards like we have in the EU.
This means they can buy new tractors without all the emission regulation technology, allowing them to run a simpler tractor which contributes to a lower buying price.
Like Ireland, the average tractor being sold nowadays in New Zealand is around 120hp and climbing. All in all, this year’s figures show tractor sales are down 16.4% in New Zealand, while Irish figures are almost on par with last year’s figures.
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