Ag machinery sales continue upwards momentum

The tractor and agricultural machinery market has delivered a mixed bag of results in the month of July, due in large part to prevailing drought conditions in the eastern part of the country, according to the Tractor and Machinery Association of Australia’s (TMA) latest sales report.

Tractor sales in the under 40hp segment led the charge, up 12 per cent on last month as activity in Victoria powers ahead. At the other end of the scale, the above 200hp segment was quiet, down 12 per cent for the month and now nine per cent down on a year-to-date basis.

In between these two segments, the 40 to 100hp range was up five per cent and now sits three per cent ahead year-to-date, while the 100 to 200hp segment was down six per cent in the month but remains 10 per cent ahead of last year.

State-wise, tractor sales numbers in NSW and Queensland took a dive, painting a bleak picture of the dry conditions both states are currently facing.

NSW sales were down four per cent in the month and are now in line with last year, whereas Queensland sales are now two per cent behind last year after dipping nine per cent in the month of July.

On the other end of the spectrum, WA recorded a whopping 24 per cent increase in sales in July and now sits 10 per cent ahead of last year. Victoria had a big month as well, driven largely by sales of the under 40hp range, up 17 per cent in the month.

Tractor sales in Tasmania took the first dip in quite a while, down 20 per cent for the month but still 10 per cent ahead year-to-date. The picture in SA is solid, with sales increasing by three per cent up in July and now 10 per cent ahead of last year.

“Combine harvester sales remain quiet, however many dealers are hoping for a late flurry of orders to clear inventory that was ordered some months back,” said TMA Executive Director, Gary Northover.

“Year-to-date we’ve sold around 125 units where a typically ‘hoped for’ year might yield in excess of 800 machines, we should get a better picture of how this market will perform in the next two to three months.”

Baler sales lifted slightly in July but remain well behind on a 12 month basis. Finally, sales of out-front mowers continue to struggle to meet the big sales numbers achieved in 2017, sitting at six per cent below last year.