Market UpdatePosted by Marlo Dutton, 19th June 2014
May saw a dramatic drop in new tractor sales to almost a 20% decline month on month. Primarily driven by the under 60 horsepower range, it goes to show that the farm machinery sector is not immune from poor consumer sentiment and reduced spending due to a tough Federal Budget announcement. The fall was not limited to the “lifestyle” bracket of tractors, however as these numbers have a large impact of the overall results, the segment has come off hard.
In some good news however, the hay tools market has held up well into May and expected to hold for June. This is an unseasonal but a welcome one in a market segment that has done it tough over the past 5 years. An unseasonably warm yet wet Autumn has contributed to the sales of mowers and slashers – hopefully this will translate to baler and rake sales later in the year. Used equipment is still the talking point of the industry as dealers endeavour to move their trades to make way for new sales later in the year.