Ag equipment sales dip in October

The slight lift in tractor sales in September failed to last as sales numbers dipped further in October, now sitting 11 per cent last year’s figures, the TMA (Tractor and Machinery Association of Australia) reported.

With two months left in 2019, the organisation has forecasted total tractor sales to be around the 11,000 unit mark this year, a drop of about eight per cent overall from previous years.

“Whilst down on the past five years of 12,000 plus sales, it still represents a healthy market place,” said TMA executive director, Gary Northover.

“The unknown in all of this is the margin being achieved, which in recent times has been severely challenged.”

Falls in sales were recorded across all tractor size categories other than the under-40hp range which lifted by three per cent for the month, but still remaining eight per cent behind last year.

Sales in the 200hp and above range were down substantially - 25 per cent behind for the month and now five per cent behind year-to-date (YTD). The 100 to 200hp segment also suffered a big drop - down eight per cent for the month to sit 12 per cent behind last year. The 40 to 100hp range was also down 12 per cent now sitting 13 per cent behind last year.

Across the country, Victoria and Tasmania delivered the good news on the tractor sales front. Sales in Victoria increased by 11 per cent for the month now sitting three per cent behind last year. “Strong activity in the dairy sector along with a very healthy degree of optimism amongst wine growers is felt to be behind this rise,” Northover said. Tractor sales in Tasmania now sits five per cent ahead YTD.

NSW continues to suffer big declines with a further 21 per cent drop in October, now 20 per cent behind last year. Queensland slipped 14 per cent for the month and is now seven per cent behind for the year. “There have been pockets of strong sales activity in the coastal regions of these states but this has not been enough to offset the drought affected inland markets,” Northover said.

The usually strong Western Australian market had a quiet month - down 14 per cent but still ahead of last year by around four per cent. South Australia suffered another 30 per cent drop in October, now 27 per cent behind last year. Sales in the NT also dropped for the month, now seven per cent behind last year.

Sales of combine harvesters continue to struggle with levels well down on previous years, the TMA said. Markets in the North and North West regions of NSW especially have come to a standstill through the drought period, it added.

Due to the ongoing drought, demand for hay remains strong and as such, baler sales continue to enjoy a bumper year. October sales were up another 11 per cent on last year and are now 26 per cent ahead on a YTD basis.

Out front mower sales bounced another seven per cent in the month in response to the grass growing season, now sitting just behind last year on a yearly basis.