Tractor sales continue to sit at healthy levels, with its overall dollar value showing an improvement compared to last year, the Tractor and Machinery Association says
Around 850 tractors were delivered across the nation in the month of April, representing a sales figure 12 per cent behind the same month last year.
This represents a continuation of the shift back to more healthy levels following multiple years of high sales.
With around 3,500 units sold so far this year, we are on track to record a sales figure in the 11,000 to 12,000 tractor range for 2024.
Notwithstanding this, conditions in the market remain very competitive, with some dealers reporting large stock holdings and challenges associated with recent price increases.
It is therefore not unusual to find some sharp deals in the market today.
Looking at the state-by-state picture, Queensland was down 13 per cent against the same month last year to be 18 per cent behind for the year to date.
New South Wales was down 22 per cent and is now 28 per cent behind for the year, while Victoria recorded an increase of 3 per cent, putting the state’s year-to-date figure 18 per cent below last year.
Western Australia reported a small rise of 1 per cent to be in line with the same time last year.
South Australia had another big drop, with April’s figure down 18 per cent and being down 24 per cent for the year to date.
Tasmania was off 42 per cent for the month, with sales in the Northern Territory finishing 30 per cent down.
Sales of the 200hp plus (150kW plus) range were again the best of the machinery categories with a 1 per cent rise on the same month last year.
This rise means year to date sales in that category are up 32 per cent.
The small, under-40hp (under 30kW) category was down by 3 per cent for the month to be 28 per cent behind for the year to date.
The 40hp to 100hp (30-75kW) range was also down 32 per cent and is now behind 35 per cent year to date.
Lastly, the 100hp to 200hp (75-150 kw) category was down 6 per cent, putting it 21 per cent behind for the year.
This mix of sales means that while the market is down in volume terms on the same time last year, it is in fact up 14 per cent in dollar terms.
This result highlights the approach many larger farmers take with their fleet replenishment strategies.
Many machines are now being sold on three or five-year leases which are programmed into customers’ capital cycle.
Even though the agricultural market may experience some rapid movements, we are seeing a more stable outcome when it comes to larger machinery purchases.
Sales of combine harvesters are yet to materialise, however dealers are reporting a healthy forward order book and expect another solid season.
Baler sales finished steady on the same month last year with difficult growing conditions for hay and are now in line year to date.
Finally, sales of out-front mowers were again up, this time by around 57 per cent in the month.
TMA Conference
This year’s TMA conference is scheduled to be held on Thursday July 18 at the iconic Melbourne Cricket Ground, a venue the association last visited in 2017.
Continuing the theme ‘Towards 2030’, the conference will feature an exciting line-up of speakers on critical industry issues such as AI in agriculture, attracting women to the workplace, effective marketing strategies, personal financial planning and more.
There will also be the regular economic update from Westpac’s Justin Smirk and the state of industry report from Kynetec.
Tickets are now on sale at the TMA website www.tma.asn.au, while the association’s annual State of the Industry report is available for download online.