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. 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.  Farm production is influenced by consumer trends.

Innovative technologies/mechanization are important to help reduce labor costs and complete farm tasks more efficiently.  An uptake by farmers of electric vehicles (including tractors) reflects New Zealand Government policy which sets a target for all greenhouse gases except for methane from agriculture and waste to reach net zero by 2050.  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.

Agrichemicals and fertilizers contribute to New Zealand farm production.  New Zealand pastoral soils are naturally low in phosphorus and sulfur. In May 2022, New Zealand’s apple industry announced its intentions to be spray free by 2050.  In 2020 New Zealand’s organic sector was valued at US$455 million. 

Table: Agricultural Equipment Data

Unit: USD Millions

Source:  TPIS, Office of Trade and Economic Analysis, Department of Commerce

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.  New Zealand farmers are constantly seeking to improve farm production and reduce their own workload.

Climate change and its effects on agriculture will spur demand for new environmental technologies. Climate change will affect what and how much New Zealand can grow or harvest, both on land and in the sea.  Unpredictable weather already suggests some years will be more or less productive than others.  For the first six months of 2023, various horticultural regions in New Zealand have experienced flooding effecting farm production. The New Zealand Government’s May, 2023 Budget acknowledged the importance of climate resilient infrastructure.  Climate change is expected to contribute to a change in pests and diseases and create demand for technologies to monitor and measure insect swarms.

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. 

Resources

Trade event:  Fieldays is an annual trade event held in May 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:

• Government Electronic Tenders
• Ministry of Primary Industries
• Ministry of Business, Innovation and Employment
• Statistics New Zealand

New Zealand private sector organizations active in this sector:

• KPMG
• Rural News
• Tractor and Machinery Association