Tractor Sales still strong, stock issues beginning to appearPosted by Mim Monkivitch, 07th September 2020
The sale of Agricultural tractors continues to gather pace with August reporting another big increase, up 19% on the same month last year and now up 21% 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.
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 COVD safe workplans all have which impacts supply.
Activity across the states remains quite solid with the continued recovery in NSW the standout up a whopping 52% on the same time last year and now sitting 28% ahead for the year.
Victoria reported another strong month, up 15% and now 29% ahead year to date meanwhile Queensland was up 5% to be 13% up for the year.
Western Australia sales were in line with the same month last year but remains 2% 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% up YTD, activity in Tasmania remains strong, now 21% 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% for the month and now sits 24% ahead for the year to date.
The 40 to 100hp (30-75kw) range was again up strongly 27% now 22% ahead for the year.
The 100 to 200hp (75-150kw) category saw its first dip in some time, down 6 % but still up 31% for the YTD whilst sales in the large 200 hp (150kw) PLUS range where again down another 2% leaving this category 7% 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% down on last year.
Baler sales were again strong, remaining up 27% year to date whilst sales of Out – Front Mowers were down a touch but still 14% ahead of the same time last year.
The TMA/Agriview State of the Industry report for 2019 is now available for purchase. Please email :
firstname.lastname@example.org if you require a copy. The price is $50.00 (+GST).
Gary Northover, Executive Director, TMA