Victoria shines in the 2014 machinery market
Agriview’s Alan Kirsten takes a look backwards in the ag machinery business and says except for Victoria there were few highlights for 2014, in what has proved to be another tough year.
AS usual it was a mixed year in 2014 for new machinery sales. Sales of new tractors were below 2013 levels for most months of the year. By the end of November the market was down by around 6 per cent and that was where the industry expected the market to end up by the end of the year. However December took everyone in the industry by surprise when the market delivered a record December result of 1276 tractors. This unexpected outcome pushed the end year market to within 1.5 per cent of the 2013 result, all up 10,403 tractors were sold in 2014, just 155 fewer than in 2013. Power demand varied considerably in 2014, with the under 40 horsepower engine for the lifestyle market remaining strong and demand lifted by 4 per cent to 2688 units. The utility tractor in the 40100hp segment retreated by -7 per cent to 3569 units but in the end this was almost offset through a 5 per cent lift in the 100-200hp row crop market, which realized sales of a healthy 2597 units. The broadacre 200hp plus market recorded a -6.9 per cent decline in sales with 1549 units sold, 114 fewer than in 2013. Around the states saw demand in Queensland drop by just under 15 per cent due to the continuing poor seasonal conditions that prevailed for most of the year. In total there were 2162 tractors sold, which was 371 fewer than in 2013. However, demand in NSW fared better, with the market there falling by just under 5 per cent from 2929 units in 2013 to 2792 in 2014. Victoria was the stand out of the three east coast states with the market increasing by a whopping 13.4 per cent to 2896 units. This was the best result received for that state in more than 20 years. Demand in Tasmania slipped by 7 per cent to 286 units and in South Australia it retreated by 6.7 per cent to 927 units. In the Northern Territory sales held at 2013 levels with 122 tractors sold. Western Australia was the other good news story with the market growing by just under 9 per cent to 1217 tractors – which was 97 more than in 2013. This was the second best result for the state in the past 25 years, bettered only by 2009 when 1301 tractors were sold. Moving onto the combine harvester market, in 2014 it retreated for the third year in a row, with only 621 new machines sold, 81 fewer than in 2013. Although this figure was not wholly unexpected as the hangover of second hand machines held by dealers dampened their appetites to trade further on new sales. The baler market continued its journey back into positive territory with a strong 24.2 per cent lift in sales. In total there were 771 balers sold, this was the best result since 2009 when 857 were sold. Round baler sales lifted 11.4 per cent to 490 units, small square balers lifted 42 per cent to 81 units and large squares lifted just under 53 per cent to 200 units. Looking ahead into 2015 the machinery industry we are predicting that new sales will be slightly down on 2014’s results despite the fact last year’s winter crop ended a lot better than most people expected. The falling Australian dollar will also be a significant help for exports and the recent rains in central and southern Queensland and northern NSW will see the return of confidence in those areas but it will not be enough to drive further growth in demand. Contact: Alan Kirsten Agriview P: 03 9372 0645 E: email@example.com