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.

Australian Farmers & Dealers Journal - - News -

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: alan.k@agriv­iew.com.au

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