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.
Cultivators and Tillers are in High Demand
In Australia, cultivators are majorly used to prepare a proper seedbed for the crop to be planted into, to bury crop residue in the soil (helping to warm the soil before planting), to control weeds, and to mix and incorporate the ground to ensure the growing crop has enough water and nutrients to grow well during the growing season. The used tiller machinery also has a significant demand in the market due to its lower price, targeting low-income customers, such as small-scale farmers. The main objective of small-scale farmers in the country is to incur low agricultural expenses during the cultivation process, which will drive the market during the forecast period. The agricultural equipment industry, including cultivators and tillers in Australia, is driven by the drastic decline in the population involved in farming and agriculture and increasing labor costs. According to the Australian Farm Institute report, Australia has the fourth highest wage rate in the world. Furthermore, support from RIC (Regional Investment Corporation), such as concessional loans on behalf of the Australian government for farm businesses, agri starter loans, and the RDC (Rural Research and Development Corporations) investment in agriculture, will drive the market during the forecast period.
