In­dus­try View

Ma­chin­ery sales forg­ing ahead

Farms & Farm Machinery - - Contents -

July has seen an­other par­tic­u­larly strong month for sales of agri­cul­tural equip­ment across Aus­tralia off the back of what was a record June.

The im­pact of dry con­di­tions in many parts of Aus­tralia has been par­tic­u­larly no­tice­able in WA and SA where tractor vol­umes are down, how­ever re­cent rains there have pro­vided a spark of hope of a re­turn to healthy sales con­di­tions.

Tractor sales across the na­tion were up 5.6 per cent on last month and are now 10 per cent above the same time last year.

Sales in Queens­land were the stand­out, up 22 per cent on the pre­vi­ous month and now sit­ting 14 per cent up on last year.

Vic­to­rian sales were again strong and now sit 28 per cent up on last year, NSW is right in line with last year, while ac­tiv­ity in the NT and Tas­ma­nia have been par­tic­u­larly strong, both sit­ting nearly 30 per cent up on last year.

As stated ear­lier, Western Aus­tralia and South Aus­tralia have seen a slow­down in tractor sales com­pared to last year; the West in par­tic­u­lar has been hard­est hit and is now 11 per cent down on the same time last year.

The strength of the un­der-40hp or ‘leisure’ mar­ket con­tin­ues to sup­port many in the in­dus­try, grow­ing a fur­ther 15 per cent this year on what was a strong 2016.

The larger end of the lo­cal mar­ket is also quite strong with many new tractor mod­els im­press­ing cus­tomers with new lev­els of per­for­mance.

The 100hp to 200hp range is up 12 per cent on last year and the larger range above 200hp sits about 8 per cent ahead.

The distri­bu­tion of sales con­tin­ues to re­flect the move to­wards larger ca­pac­ity trac­tors and, with ex­ten­sive com­pe­ti­tion in the mar­ket, buy­ers are cap­i­tal­is­ing on the op­por­tu­nity to up­grade.

Com­bine har­vester sales are ex­pected to oc­cur in vol­ume over the next two months in time for har­vest and we should see an­other healthy year, al­though winter weather con­di­tions may dampen sales some­what this year.

Har­vester sales tend to oc­cur on the ba­sis of around 50 per cent com­mit­ted at the end of each har­vest and around 50 per cent pur­chased from stock units that man­u­fac­tur­ers im­port in an­tic­i­pa­tion of fur­ther sales.

We are see­ing some signs of cau­tion in the mar­ket which are be­ing re­flected in for­ward de­mand.

Baler sales have been a lit­tle down on last year’s very high num­bers due in part to the vari­able weather con­di­tions and fi­nally, sales of out-front mow­ers, linked to the leisure mar­ket, con­tinue to sur­pass last year’s num­bers.

Gary Northover is ex­ec­u­tive direc­tor of the Tractor & Ma­chin­ery As­so­ci­a­tion of Aus­tralia (TMA). He can be con­tacted on (03) 9867 4289 or

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