August tractor sales drop 46 per cent YOY

The fall in tractor sales continues in August with only 900 units sold in the month, leading to a drop of 46 per cent compared to the same month last year.

This puts the year-to-date figure 22 per cent behind this time last year, with sales numbers falling right across the nation and in all size categories.

According to Tractor and Machinery Association of Australia’s (TMA) executive director, Gary Northover, there are several factors driving the “correction”, as the market comes off an unprecedented period of sales activity.

“Machinery prices are high and look to be remaining so, recent interest rate rises are impacting the cost of finance and the expectations of a drier summer have caused some farmers to reconsider their machinery purchases,” he said.

“Despite this, we remain on track for a total year’s sales volume of around 12,000 to 13,000 units, which by any measure is considered a strong year for the industry.”

In addition, logistical challenges are still affecting the industry, although they appear to be confined to RoRo (Roll on Roll off) products.

“Because of the ongoing delays in processing machines through quarantine inspections, availability of shipping space remains limited thus putting continued pressure on delivery times,” Northover said.

“The situation does not appear likely to fix itself overnight and as such, all importers are having to make contingency plans to ensure stock arrives within reasonable lead times.”

Across the country, all states experienced double-digit drop in sales, with Victoria recording the worst result - a 56 per cent dip compared to this time last year. The state now sits 29 per cent behind YTD.

Queensland was down 43 per cent and 18 per cent behind YTD while NSW was down 44 per cent YOY to be 22 per cent off YTD.

Sales in Western Australia reported a drop of 44 per cent to remain 21 per cent behind last year while South Australia recorded a 46 per cent decline and now sits 13 per cent behind YTD.

Tasmania was down by 16 per cent for the month and 24 per cent down YTD while sales in the NT were 53 per cent down YOY and 16 per cent down YTD.

Falls were experienced in all machine categories where the small under 40hp category was down by 31 per cent for the month and is now 21 per cent behind YTD. The 40 to 100hp range was down 47 per cent YOY and is 22 per cent behind YTD.

Meanwhile, the 100 to 200hp category recorded a 58 per cent drop to sit 26 per cent behind YTD while the 200hp plus range also dipped, this time by 43 per cent to remain 15 per cent behind last year.

After a few strong months, combine harvester sales slowed somewhat with around 400 units delivered in the year so far, which is 49 per cent up on the same time last year.

“With reports of a strong winter harvest and expectations of a healthy summer crop, we appear to be in for another outstanding year ahead for combines,” Northover said.

Baler sales rose again in August and are now 14 per cent ahead on a year-to-date basis. Finally, sales of out-front mowers remain in line with the same time last year.