Wednesday, February 21, 2024

Ag equipment deliveries returning to normal

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Sector comes out of two years of supply chain issues caused by covid-19 and Russia’s war on Ukraine.
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Deliveries of agricultural equipment are returning to normal levels after two years in which machinery dealers grappled with manufacturing delays and supply chain constraints.

Summer and autumn deliveries of equipment are markedly better than the same periods in 2022, the Tractor and Machinery Association of New Zealand said. 

TAMA president Kyle Baxter said he is hearing and seeing first-hand that the flow of equipment into NZ has increased.

“This has offered much welcome relief for customers who are requiring their new piece of equipment to get to work straight away,” Baxter said.

April 2023 tractor delivery figures were 28% down on the same month in the previous year, but April 2022’s figures were greatly inflated by a combination of manufacturing delays and global supply chain issues during the spring and summer of 2021, which meant a lot of tractors were delivered to customers three to six months later than planned.

There was a marked difference in tractor deliveries between the North and South Islands, with the former impacted by the wet summer and the effects of Cyclone Gabrielle resulting in a greater reduction, of 32%. 

The North Island also tends to have higher volumes of orchard and horticulture tractors, and the effects of the weather disruptions this year have flowed on to tractor delivery. 

In the South Island, the overall reduction in tractor deliveries has experienced a more modest 18% reduction in units. 

Overall, most ag dealerships are still reporting strong demand in customer orders for spring deliveries of ag tractors and equipment, which is assisting in the overall confidence still being felt across many regions and sectors. 

While this year has displayed reductions across the board, the overall market is still tracking above average when compared to other years that had been labelled as strong tractor volumes, coupled with strong order books being reported. 

The overall result for 2023 is still looking favourable at this point, Baxter said. Imports of ag equipment still require 8-12 months manufacturing lead times and “many of our members are also turning their eyes to beyond 2023, as they confirm production slots of equipment that is expected to arrive at NZ around early-mid 2024, to ensure that supply continues to meet demand”.

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