New Zealand - Country Commercial Guide
Agriculture Equipment

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Last published date: 2021-08-10

Overview

New Zealand is one of the largest global exporters of dairy commodities.  It also exports large volumes of beef and sheep meat, wool, fruit, vegetables, and wine.  Agriculture is the leading sector in New Zealand.  Farm production is influenced by consumer trends – in 2020 New Zealand’s organic sector was valued at US$455 million. 

Fluctuations in global commodity prices combined with end users of New Zealand agriculture products are intrinsically linked to this country’s demand for agricultural equipment and supplies.  New Zealand farmers are constantly seeking to improve farm production and reduce their own workload. Innovative technologies/mechanization are important to help reduce labor costs and complete farm tasks more efficiently.

Innovation is key to successfully entering this market.  

From the United States, New Zealand’s big-ticket imports are mowers and large-horse powered tractors (100-hp and up), center-pivot irrigation systems, and agricultural implements.  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.)  The New Zealand Tractor and Machinery Association announced sales up to May 2021 are up on the previous year due to strengthening commodity prices, giving farmers and rural contractor the confidence to invest in new equipment.

In its May 2022 budget, the New Zealand Government announced funding totaling approximately US$120 million:

  • for environmental advisory services for farmers, foresters, growers and indigenous Maori land-owners (US$74 million),
  • to help the transformation of the forestry, wood process, food and beverage and fisheries sectors (US$25 million), and
  • to help maintain and lift animal welfare practices across New Zealand (US$20 million)

The announcement follows a pre-budget announcement of approximately US$440 million to tackle agricultural emissions, including through the Centre for Climate Action on Agricultural Emissions and accelerating carbon sequestration through forestry.

In May 2022, New Zealand’s apple industry announced its intentions to be spray free by 2050.

Agricultural Equipment Data

Agricultural Equipment Data

 

2019

2020

2021

2022 (Estimated)

Total Local Production

(Estimated)

250

250

250

250

Total Exports

170.9

172.9

195.4

200

Total Imports

495.2

355.3

569.1

600

Imports from the US

 

76.7

48.5

73.6

80

Total Market Size

574.30

432.4

623.7

650

Exchange Rates

1.45

1.42

1.41

1.55

Unit: USD Millions

Source:  Global Trade Atlas (GTA)

Leading Sub-Sectors

  • Energy:  Climate Change
  • Environmental Technology:  Water Management
  • ICT:  Agriculture Technology

Opportunities

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

Climate change and its effects on agriculture will spur demand for new environmental technologies. Water management is a key sub-sector affected by climate change as a result of changes in average temperatures, rainfall, and climate extremes.  It is particularly important for New Zealand’s international image and economic growth to have clean safe drinking water and waterways in urban and rural areas.  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 to a change in pests and diseases and create demand for technologies to monitor and measure insect swarms.

Resources

Trade event:  Fieldays is an annual trade event held in Hamilton, New Zealand that 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.  

New Zealand Government agencies active in this sector:

New Zealand private sector organizations active in this sector: