Market Trends of Garden And Orchard Tractors Industry
Orchard Type Tractor Lead the Market
- Farmers utilize orchard-type tractors for a range of activities, from establishing and maintaining lawns and gardens to managing fruit crops and vines. These versatile tractors cater to operations across the spectrum, from small farms to large corporate agricultural entities, especially those focusing on labor-intensive, high-value crops and specialized tasks. Their lightweight and compact design, coupled with a tight turning radius, ensures optimal traction across diverse terrains.
- Countries such as China, India, and Brazil are witnessing a surge in demand for orchard tractors, bolstered by robust government support. A notable instance is the Kisan Tractor Yojana Subsidy, an active initiative by the Indian central government, which offers farmers a generous 50% subsidy on the on-road price of tractors. In a similar vein, China's financial authority, in a bid to bolster the 2023 spring plowing and support farmers, allocated a fresh round of subsidies worth 10 billion yuan (USD 1.46 billion) for purchasing agricultural materials, as announced by China's Ministry of Agriculture and Rural Affairs (MOA).
- As populations grow and food demands escalate, the drive for increased crop yields and productivity is fueling the orchard tractor market. Orchard tractors primarily cater to crops such as mangoes, grapes, and apples. The Asia-Pacific region, a dominant player in grape and apple production, reports grape harvests spanning 2.05 million hectares and apple harvests covering 3.38 million hectares. Additionally, the expanding acreage of these crops further propels orchard tractor sales.
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North America Dominates the Market
- North American governments are increasingly prioritizing the expansion of parks and green spaces, responding to a growing trend of families visiting public areas. In 2022, the U.S. government, through its Outdoor Recreation Legacy Partnership (ORLP) program, allocated USD 61.1 million. This funding targets 26 cities across the U.S., with goals to create new parks and trails or to undertake significant renovations of existing ones. Concurrently, Canada is rolling out its most ambitious nature conservation initiative yet. The campaign aims to protect thirty percent of the nation's lands and waters by 2030. With an investment of USD 8 million, Canada is zeroing in on three crucial natural areas in Ontario, ensuring these greenspaces benefit future generations. As developments in public gardens and parks surge, the demand for garden tractors in the U.S. is set to increase.
- The United States, Canada, and Mexico stand out as major producers of orchard crops. According to the Food and Agriculture Organization, the harvested area for oranges in the United States spanned 116 thousand hectares, while Mexico's harvested area reached 335 thousand hectares in the year 2022. However, the production phase for orchard crops is notably labor-intensive. Given its dependence on hired labor, North America's orchard industry is acutely affected by rising labor costs and the availability of farm workers. As the farm labor market tightens, securing workers for orchards—especially during critical growing seasons and harvest times—becomes increasingly expensive. Notably, the growth rate of hourly wages for farm labor has surpassed that of non-agricultural production workers. Consequently, the use of orchard tractors has become essential for managing key production tasks.
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