New Zealand - Agriculture EquipmentNew Zealand - Agriculture Equipment

Overview

New Zealand is one of the largest global exporters of internationally-traded dairy commodities.  It also exports large volumes of beef and sheep meat, wool, fruit, vegetables, and wine. 

Fluctuations in global commodity prices are intrinsically linked with New Zealand’s demand for agricultural equipment.  For the past three years, New Zealand’s primary exports have increased on the previous year but as the 2019 global economy weakens, New Zealand’s commodities will be impacted.  During 2019, the New Zealand Government will draft legislation on water quality, climate change, carbon-farming and biodiversity.  Outcomes potentially will shape farmers immediate procurement decisions.

From the United States, New Zealand’s big-ticket imports are combine harvesters, large-horse power tractors (100-hp and up), center-pivot irrigation systems, and agricultural implements.  In 2017, the United States was the leading source of combine harvesters and after Germany, the United States is the second most important market for tractors.  (Although John Deere is the leading tractor brand, new John Deere tractors are mainly manufactured and imported to New Zealand from outside the United States.)

New Zealand farmers are constantly on the lookout to improve farm production and reduce their own workload. Labor costs are a significant farm expense, so mechanization is important to help reduce costs.  The New Zealand market is receptive to new technologies/mechanization to help get farm tasks done more efficiently.  Innovation is key to successfully entering the market.  

Appointing a local distributor is a popular arrangement used by other U.S. companies entering the New Zealand market.  There are several nationwide organizations specializing in importing and distributing agriculture equipment.  Fieldays is an annual trade event held in Hamilton, New Zealand which attracts approximately 130,000 attendees affiliated with agribusiness.  Fieldays is an important platform for manufacturers/suppliers to showcase their products to the New Zealand farming community.  

Unit: USD Millions

Source:  Trade Policy Information System (TPIS), Common Data Platform

Leading Sub-Sectors

Mechanization upgrades will continue to be a key part of the agribusiness equipment sector.

Climate change and its affects on agriculture will spur new environmental technologies.  Water management is one of the key sub-sectors affected by climate change as a result of changes in average temperatures, rainfall, and climate extremes. Water is a valuable commodity and ensuring clean safe waterways nationwide is important to New Zealanders both town and country. Farmers are faced with achieving compliance with environmental regulations while maintaining profitability.  This is most notable in the dairy sector. 

Climate change is expected to contribute too to a change in pests and diseases and create a demand for technologies to monitor and measure insect swarms.

Opportunities

Irrigation: Although irrigation is associated with horticultural crops, in New Zealand approximately 50% of irrigators are used to spray dairy effluence from milking sheds and years onto the land. Consumers have an increasing influence on farm practices which in turn is helping create a demand for new irrigation equipment to manage dairy waste water.

Supply chain solutions: A growing trend by consumers is knowing where food is grown/comes from which in turn means technologies for supply chain solutions will be required.

Internet/wifi network technologies   

Web Resources

Dairy New Zealand:
Federated Farmers:
Fieldays Trade Event:
Fonterra:
Ministry of Primary Industries: