Market Trends of Australia Agricultural Machinery Industry
Rising Preference for Farm Mechanization
Australian agriculture faces prominent problems of climate inconsistency and increased local competition in key export markets. As a result, Australian farmers are adopting innovative techniques, such as increased use of data science, automation, communication technologies, and modern agricultural machinery, including tractors, harvesters, and irrigation machinery. Moreover, the growing population, along with the rise in labor costs and increasing investments by leading agricultural machinery manufacturers, such as AGCO Corporation, Deere & Company, and Kubota, in their product lines, is influencing the market in the country.
According to the Tractor and Machinery Association of Australia, the equipment most in demand includes self-propelled boom sprayers, high-density balers, tracked tractor technology, and automated feeding systems. Australia is a strategic export market for the US exporters of agricultural machinery and equipment. Almost 95% of all farm machinery and equipment used in Australia is imported, and the demand is expected to increase. Most of Australia's farm tractors, harvesting, and haymaking gear come from Europe and the United States. The red-hot demand is being driven by improved seasonal conditions in many areas. Australia is an ideal target market for machinery manufacturers supplying products and services to the agricultural sector. Thus, with continued labor scarcity, increased food security concerns, and declining cropland area, the need for advanced agricultural machinery is expected to rise during the forecast period.
Demand Surges for Cultivators and Tillers in Australia
Cultivators in Australia play a pivotal role in readying the soil for planting, burying crop residue to warm the soil, weed control, and ensuring proper water and nutrient distribution for the growing crop. The market for used tiller machinery is witnessing a surge in demand, primarily due to its affordability, making it an attractive option for budget-conscious customers, especially small-scale farmers. With a focus on minimizing agricultural expenses, Australian small-scale farmers are propelling the market forward. This surge in demand is further fueled by a shrinking agricultural workforce and rising labor costs. Notably, Australia boasts the world's fourth-highest wage rates, as highlighted in a report by the Australian Farm Institute. Additionally, initiatives like concessional loans from the Regional Investment Corporation (RIC) and investments in agriculture by the Rural Research and Development Corporations (RDC) are set to bolster the market in the coming years.
