Supply issues continue to hamper tractor sales and prices rise as a result, according to the Tractor & Machinery Association
Sales of Agricultural tractors were down in April by 3 per cent on the same month last year and are now 11 per cent behind for the 2022 year to date.
This is still a strong level of sales for the industry which continues to be severely hampered by supply issues.
Exacerbating the challenges associated with getting machines, most members are now reporting solid price increases being passed on by their factories after a few years of largely absorbing these movements.
Of note is the supply of steel with Ukraine – reportedly responsible for a large share of the world’s production – being severely impacted, leading to price increases across the board.
Demand for Agricultural Machines is presently very strong worldwide and here in Australia with the Temporary Full Expensing Program set to run until June 2023 along with continued demand for Australia’s farming produce, we expect activity to remain strong.
Indeed, a recent survey of dealers has found that the majority expect turnover to remain unchanged for the outlook period
Looking at sales across the nation, results varied somewhat in April.
Beginning in NSW sales were again down 21 per cent for the month and are now 13 per cent behind last year. Queensland was up 12 per cent as deliveries delayed in March due to the inclement weather took placeto benow 1 per cent behind and Victoria was 19 per cent up on last April due mainly to supply of small hp units and is now 4.2 per cent down on the year to date (YTD).
Sales in Western Australia recorded another drop this time 5 per cent for the month to be 27 per cent off YTD, South Australia also dropped 8 per cent. Tasmania was again down, this time by 15 per cent whilst sales into the Northern Territory were down 21 per cent.
Looking at the performance reporting categories, the small under 40 hp (30kw) category was strongly up 20 per cent to be 2 per cent off YTD. The 40 to 100hp (30-75kw) range was up 3 per cent in the month to remain 2 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 15 per cent compared to the same month last year, and is now 33 per cent off YTD. The big end of the range is experiencing the worst of the supply chain delays as members report lengthy lead times out of the factories due to everything from steel supply to the ongoing shortage of computer chips.
Combine Harvester sales are yet to commence for the year; however, dealers are reporting healthy pre order interest for machines which should lead to another strong year’s sales.
Baler sales were down in April and are now down 20 per cent compared with the last yearand sales of Out – Front Mowers finished down a whopping 44 per cent.
Planning is well underway for the 2022 TMA Conference which has been scheduled for Wednesday July 20th to be held at the Hyatt Essendon Fields in Melbourne. Tickets are now on sale and can be found on the TMA Website