Tractor sales increase 19% in quarter
WELLINGTON: Strengthening commodity prices and strong demand from lifestyle block owners are driving a lift in tractor sales.
The Tractor and Machinery Association said overall tractor sales were up more than 19% for the first quarter of the year compared with the corresponding period in 2020.
Association president Kyle Baxter said farmers and rural contractors were feeling more confident about the outlook and were investing in new equipment.
There had been increases across every horsepower sector, and a nearly 60% increase in sales in the predominantly cropping and contracting segments of 150 horse powerplus, Mr Baxter said.
‘‘From a finance point of view, conditions were positive for the sector with the combination of strengthened confidence and commodities resulting in the big lending institutions looking favourably at the agricultural industry.’’
There had also been a 30% increase in sales of the sub40 horsepower machines — a category dominated by lifestyle block owners.
It was thought a lift in lifestyle block sales postCovid19, as well as people spending more time at home, was helping sales in this category, Mr Baxter said.
While the association’s members were enjoying the increased demand, continued inbound and outbound supply chain challenges were an ongoing problem, he said.
‘‘Global manufacturing constraints are still very much a reality, as plants continue to work through Covid restrictions in their respective countries, but the flow of equipment into New Zealand is increasing steadily.
‘‘This will offer much welcome relief for customers who are requiring new pieces of equipment to be put to work straight away.’’