Tractor sales dropped across the board in May, however a more realistic comparison of the current market is expected from July onwards
Sales of tractors were down again in the month of May, with just over 1,000 units sold across Australia.
This was 26 per cent less than the same month last year and brings the year-to-date position to a level which is 25 per cent behind the corresponding period.
May and June 2023 were the last two months of the Federal Government’s temporary full expensing program which drove sales to unprecedented levels.
As a result, a more realistic month to month comparison is expected to appear from July onwards as the impact of this incentive disappears.
Overall, the TMA is still forecasting a healthy 2024 for sales as winter rains across the country deliver ideal growing conditions for the foreseeable future.
Dealers are reporting strong demand for items such as seeders and weed spraying equipment, which is generally a precursor to strong tractor demand.
Looking at the state-by-state picture, Queensland was down 15 per cent against the same month last year, to be 17 per cent behind year to date.
New South Wales was down 31 per cent for May and is now 29 per cent behind for the year, while Victoria was down by 29 per cent this month and sits 21 per cent below last year.
Western Australia reported a drop of 29 per cent for the month, to be down 8 per cent compared with the same time last year.
South Australia had another big drop, down 25 per cent, and is now down 24 per cent on the year to date.
Tasmania was off 39 per cent for the month with sales in the Northern Territory being the only one to increase, finishing 11 per cent up.
Sales of the 200hp plus (150kw plus) range, which have been largely positive all year, experienced a complete turnaround.
They were 41 per cent down compared to the same month last year, but remain 7 per cent ahead year to date.
The small, under 40hp (under 30kw) category was down by 9 per cent for the month to be 24 per cent behind year to date.
The 40hp to 100hp (30-75kw) range was also down again, this time by 37 per cent, and is now behind 35 per cent for year to date.
Lastly, the 100hp to 200hp (75-150 kw) category was down 14 per cent to be 19 per cent off for the year.
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 30 per cent down on the same month last year with difficult growing conditions for hay and are now 5 per cent behind year to date.
Finally, sales of out-front mowers were again up, this time by around 9 per cent in the month.
TMA conference
This year’s TMA Conference scheduled to be held on Thursday July 18 at the Melbourne Cricket Ground, a venue the association last visited in 2017.
Continuing the theme of Towards 2030, the conference will feature an exciting line-up of speakers on critical industry issues such as AI in agriculture, farm safety 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.
Finally, the TMA’s annual State of the Industry report is now available for download on the association’s website.