Combine, tractor sales continue to surge

Sales of new tractors in Australia rose by 19 per cent in April compared to the same period last year and there are no signs of slowing down, the Tractor and Machinery Association of Australia (TMA) reported.

In the last 12 months, over 15,500 tractors have been sold in this country which represents a 38 per cent rise from the previous 12-month period. The last time sales were anywhere near these levels was back in 1984, the TMA claimed.

“The level of demand being seen in the market continues to surprise with many suppliers reporting buyers bringing forward purchasing plans to take advantage of the Federal Governments financial incentives,” said TMA executive director, Gary Northover.

“The challenges in meeting this demand are showing no signs of abating however with shipping and port clearance delays having a significant impact on delivery times.

“We are receiving reports of a more than doubling of shipping times being compounded by the shortage of containers and the bottlenecks being experienced at Australia’s ports. As a result, suppliers are having great difficulty guaranteeing delivery times which is hampering confidence in the supply chain.”

As a result, dealers are putting in plenty of forward orders to compensate for the delays, with order levels sitting well above what would be considered normal, Northover said. This posts a risk of oversupply in the event of a slow down in demand, he added.

“These challenges are not confined to the agricultural machinery industry with construction and automotive likewise affected,” Northover said.

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Most states continue to report strong activity albeit showing signs of slowing down, especially in Queensland and South Australia.

Victoria had a steady month with its numbers sitting in line with April last year and is now 32 per cent ahead for the year. NSW was once again the standout, with its numbers up 73 per cent on the same time last year and is now 95 per cent up YTD.

Western Australia sales picked up 20 per cent to be 58 per cent ahead for the year while Tasmania finished the month seven per cent ahead.

Elsewhere, sales in South Australia reported a 14 per cent decrease YOY while Queensland was down five per cent for the month but still up 40 per cent YTD.

All performance reporting categories continued their growth streaks.

The under 40hp range went up 24 per cent for the month to be 55 per cent ahead YTD while the 40 to 100hp range was again up strongly 33 per cent in the month to sit 58 per cent YTD.

The 100 to 200hp category recorded an increase of six per cent compared to the same time last year, and is now 38 per cent ahead YTD. The large 200hp and over range, which has struggled for most of last year had another strong rise in April, up 18 per cent YOY and is now 70 per cent ahead for the year.

The order intake season for combine harvesters is now well underway and dealers are reporting strong demand for what is expected to be another great harvest season later this year, the TMA said.

The past 12-month period has seen combine sales surpass the 650 unit mark, compared to 530 units in the previous 12 months.

Baler sales dipped for the month but are still up 34 per cent YTD. Out-front mowers maintained a strong momentum and is now 32 per cent ahead of the same time last year.