Huge growth is expected from the Australian agricultural equipment market by 2026
Australia’s agricultural industry has gone from strength to strength over the last few years, with produce and stock increasing dramatically and the asset market booming. This can be chalked up to several reasons, such as favourable weather conditions and the reliance on home-grown produce during lockdown. Whatever the reasons may be, Australia’s agricultural sector appears to be creating lucrative opportunities for many players in the market.
While agricultural productivity has been rising over several years, there have been many businesses citing an inability to source enough workers to keep up with production. The rising cost of labour in Australia has affected many industries, and has created a barrier for businesses trying to meet demand.
And while generally speaking, the increased cost of labour negatively impacts the ag sector, some data is pointing towards it as a catalyst for great change across the industry, one that will drive lucrative sector growth as businesses turn towards mechanisation in agricultural machinery in order to meet production demand.
Australia is one of few countries considered self-sustainable in food production. And Australia’s ag industry is only predicted to grow over the next decade. In Australia, over 239,000 workers are needed across the country to keep up with the demand for food production. And as labour costs continue to rise, businesses have become less able to fund their production needs. This is where innovation and mechanisation have come in to save the day… and crops.
Automation and high-tech ag equipment have far-reaching applications and can increase productivity in a variety of ways. The most popular ag technology being implemented across Australia comes in the form of automated vehicles, mobile phone app controlled machinery and drones that monitor ideal crop conditions. Implementing these technologies can increase the productivity of crop yield and also reduce the number of human workers needed to handle tasks like chemical handling and spraying.
Benefits of using mechanisation in Australia ag:
- Increased efficiency
- Reduced production time
- Reduction in manpower
- Improved health & safety for workers
Some of the challenges faced by Australian ag businesses:
- High production costs and low yield
- Risk mitigation
- Quality control
- Overseas production
And while turning towards mechanisation seems an inevitable and profitable turn for the industry, there are still many insiders who are concerned about the long-term costs and challenges associated with moving to a machine-dependent business module. Most of these concerns surround the upfront expense of purchase, exorbitant shipping costs to receive assets from overseas, the high cost of interest rates for equipment loans, and the cost of warranty and repairs.
Luckily for businesses, the Australian government is aware of the challenges ag operations face when it comes to financing equipment. And to assist, the government provides a range of concessions and credit loans to farmers who need to purchase or repair ag equipment located in Australia. There are also taxation measures to help with some fees like asset depreciation on agricultural assets. Benefits are available from initiatives like AgriStarter Loans, Agricultural Innovation Goal, Rural Research and Development Corporation (RDC) and Regional Investment Corporation (RIC).
And while Pickles already offers a marketplace of used agricultural assets, we also understand the need to first offload current equipment to fund or offset the next purchase. If you’re looking for assistance to buy or sell your agricultural machinery, you can speak to one of Pickles’ ag experts for more information! Or simply scroll our current range of ag items while you toss up your options and veggies.