TMA cuts forecast as sales steady

By: Gary Northover

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The Tractor & Machinery Association of Australia cuts has cut its nationwide sales forecast by 2,000 for 2019 as sales show signs of steadying

TMA cuts forecast as sales steady
Sales of agricultural tractors have begun to show signs of steadying across the nation. Image courtesy Getty Images

 

Sales of agricultural tractors have begun to show signs of steadying across the nation and while down on the recent record run, continue to represent a reasonably healthy level of activity.

This, of course, does exclude those drought affected regions of NSW, Northern Victoria and southern Queensland.


The drought will contribute to the value of Australian farm production falling a forecast 4 per cent to $58 billion for the 2018-19 financial year, the Australian Bureau of Agricultural and Resource Economics and Sciences says.


Sales for the month were down 13 per cent against the same month last year and are now down that amount – 13 per cent on a year to date basis.

As a result, a forecast sales level of around 10,500 tractors is anticipated this year, down from the 12,500 unit levels of the past few years.

Dealers around the country are reporting that inventory levels are plentiful and that now is a great time to buy.  Despite the general tightening of bank finance, support is still available at the right price further enhancing buyers prospects.

We saw slight improvement in the large over 200hp range in the month, leaving the Year to Date number down 9 per cent. The 100–200hp (75–149kW) range fell away considerably, down 22 per cent for the month and now 18 per cent behind for the year.

At the lower end, the 40–100hp (30–75kW) range sits 11 per cent behind last year following a 19 per cent decline in March and the under 40hp market has started the year slowly, off another 20 per cent in March and now 13 per cent behind for the year.

Around the nation, the New South Wales market continues to struggle with March sales down 20 per cent on last year, now 25 per cent behind for the year.

Victorian sales were again down, this time 16 per cent for the month, 11 per cent year to date and Queensland saw another dip, this time 10 per cent for the month leaving that state 6 per cent behind for the year.

Elsewhere, WA had a booming month, sales up 23 per cent for the month now sitting 6 per cent ahead of last year.

South Australia dipped a further 26 per cent, Tasmania now sits 14 per cent ahead of last year and sales to the NT are 21 per cent up.

Combine Harvester Sales continue to struggle with advice from many dealers that the forward ordering of new machines has been less than promising.

Good stock levels remain available around the country so if demand improves, dealers will be ready to deal.

Baler sales continue to boom after a quiet 2018, now 120 per cent up on the same time last year.

Finally, sales of out front mowers were down for the month, now sitting around 19 per cent down on a yearly basis.

Lastly planning is well underway for the annual TMA Conference. This year’s event will be held on July 16 at Hyatt Place Melbourne at Essendon Fields and will present a focus on better understanding the customer of tomorrow.

This event is a must for all manufacturers, dealers and suppliers to industry and promises to be a highlight of the year. Ticketing and sponsorship details will be released soon and can be found on the TMA website: www.tma.asn.au

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