Tractor sales down in February as supply challenges remain
Sales of agricultural tractors were down in February, although they remain at very high levels, due to the ongoing challenges with supply.
As we have previously stated, dealers continue to cope with the challenges associated with managing workforces around COVID-19 restrictions, the ongoing shortage of stock and now the impact of the devastating rain events on the East Coast.
The entire supply chain for tractors is presently being impacted but it appears that it is locally at Australian ports where the longest delays are being experienced.
Unloading of both containerised freight and roll-on, roll-off freight is extremely slow at present and it is perhaps timely that the Productivity Commission has begun an enquiry into the efficiency of the Maritime Logistics System.
Tractor sales across the nation were down in February by 13 per cent compared to the same month last year and this reduction was felt in all states.
Beginning in NSW sales were down 3 per cent for the month and are now 2 per cent behind last year. Queensland was down 5 per cent to be now 1 per cent behind and Victoria was 20 per cent behind last February and is now 9.0 per cent down on the year to date (YTD).
Sales in Western Australia recorded another drop this time, 35 per cent for the month to be 32 per cent off YTD, South Australia also dropped 5 per cent. Tasmania was again down, this time by 22 per cent whilst sales into the Northern Territory dropped 46 per cent.
Looking at the performance reporting categories, the small under-40hp (30kw) category was down 9 per cent, to be 3 per cent off YTD. The 40 to 100hp (30-75kw) range was the only bright spot again, up strongly 6 per cent in the month to remain 6 per cent ahead YTD and the 100 to 200hp (75-150 kw) category was down 18 per cent.
The large 200 hp (150kw) plus range was again down, this time by 34 per cent compared to the same month last year and is now 38 per cent off YTD.
As we wrote last month, Combine Harvester sales finished last year above the 1,000 units mark for the first time since 2011. The order intake period for 2022 is presently underway and dealers are reporting strong interest with the only issue potentially preventing another good year being supply.
Baler sales were down 33 per cent in February and sales of Out – Front Mowers finished down 26 per cent on the same month last year.
Demand for agricultural machines is presently very strong worldwide and there are many reports of pricing pressures being felt throughout the market.
Most manufacturers appear to be exercising restraint with moderate increases only being applied. It remains to be seen if this continues with the various inflationary pressures in play at present and with the Temporary Full Expensing Program set to run until June 2023, we expect demand to remain high.
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