August Tractor sales strong amid supply concerns

By: Gary Northover, Executive Director of the Tractor & Machinery Association

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Sales of agricultural machinery are at record highs, but the issue of supply is now becoming a factor, according to the Tractor & Machinery Association.

August Tractor sales strong amid supply concerns
NSW led the charge for this month's tractor sales, the TMA says.

 

The sale of Agricultural tractors continues to gather pace with August reporting another big increase, up 19 per cent on the same month last year and now up 21 per cent year to date.

The ongoing demand for agricultural produce combined with favourable weather conditions across the nation, supported by the Federal Governments Instant Asset Write Off program are supporting record sales volumes.


Check out the TMA's July sales report here 


As we have been flagging in recent months though, the issue of supply has now become a factor with some product normally expected to be ex stock now being subject to 6–8 week delivery times.

Product coming out of Europe and the US continues to be hampered by factory-based restrictions with reasonable demand in home markets compounding these delays. Locally, dealerships continue to operate under COVID-safe workplans which impacts supply.

Activity across the states remains quite solid with the continued recovery in NSW the standout up a whopping 52 per cent on the same time last year and now sitting 28 per cent ahead for the year.

Victoria reported another strong month, up 15 per cent and now 29 per cent ahead year to date meanwhile Queensland was up 5 per cent to be 13 per cent up for the year.

Western Australia sales were in line with the same month last year but remains 2 per cent behind last year, due mainly to the reduced demand for large tractors in the broadacre sector.

Sales in South Australia continue to rally with another strong month now 31 per cent up YTD, activity in Tasmania remains strong, now 21 per cent ahead for the year.

The increase in sales numbers is again due almost entirely to the ongoing strength in the smaller end of the market supported by the Instant Asset Write off scheme. The under 40hp (30kw) range was up 58 per cent for the month and now sits 24 per cent ahead for the year to date.   

The 40 to 100hp (30-75kw) range was again up strongly 27 per cent now 22 per cent ahead for the year.

The 100 to 200hp (75-150kw) category saw its first dip in some time, down 6  per cent but still up 31 per cent for the YTD whilst sales in the large 200 hp (150kw) PLUS range where again down another 2 per cent leaving this category 7 per cent behind YTD.  

Demand for large tractors is being impacted by a range of factors including the persistent drought in regions within Northern NSW and Southern Queensland and the ongoing challenges being felt in the west. Further pressure is being felt as a result of recent price increases.

With regards to other products, sales of Combine Harvesters remain steady with most product now in place for the upcoming harvest season. The full year picture is likely to be around 15-20 per cent down on last year.

Baler sales were again strong, remaining up 27 per cent year to date whilst sales of Out-Front Mowers were down a touch but still 14 per cent ahead of the same time last year.

The TMA/Agriview State of the Industry report for 2019 is now available for purchase on the TMA’s website. Go to www.tma.asn.au for full details.

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