No signs of slowing for tractor market

October was another bumper month for the tractor market, with tractor sales up 3.6 per cent year-on-year (YOY) and now sits 2.1 per cent ahead year-to-date (YTD), according to the Tractor and Machinery Association of Australia’s (TMA) latest figures.

TMA executive director, Gary Northover, said this month’s results across the categories and states are a bit of a mixed bag, resulting in a ‘winners and losers’ situation which could be the first signs of a tapering in the market.

In terms of the tractor categories, the winners were the small under-40 hp category and the large over-200hp category.

The under-40hp category was up 15 per cent to sit nine per cent ahead YTD; while the 200hp and above category was up a whopping 44 per cent compared to this time last year, and is now four per cent up YTD.   

On the other hand, the 40 to 100hp range was down seven per cent YOY to still sit two per cent ahead YTD; while the 100 to 200hp category also dipped six per cent in October and is now three per cent behind YTD.

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Looking at sales across the country, the winners in October were Queensland, Western Australia, South Australia and the Northern Territory which all enjoyed great results. Sales in Queensland were up 32 per cent to sit 14 per cent ahead YTD, while Western Australia also powered ahead to end up two per cent ahead YTD.

South Australia enjoyed a 30 per cent lift in the month to now be just two per cent behind YTD, while sales into the Northern Territory remain 12 per cent up on last year.

NSW, Victoria and Tasmania weren’t faring as well as the others, with sales in NSW experiencing a drop of four per cent for the month and are now one per cent behind last year. In Victoria, sales were down by 10 per cent compared to last October but remain in line on a full year basis.

Activity in Tasmania also dipped again, this time by 11 per cent.

“Reports of this year’s harvest are indicating a record level for many regions, not withstanding the weather events rolling through the nation and this is being reflected in combine harvester sales,” Northover said.

On a YTD basis, harvesters are up eight per cent on last year with the bulk of the season’s new deliveries to occur over the coming weeks.

Baler sales have failed to fire yet again and are now down 36 per cent compared to last year.

“This hay season has been a poor one due to wet weather conditions along with reports that growers have reduced hay crop plantings due to the continual rise in input costs and the lower return from hay production,” Northover said.

Last but not least, out-front mower sales dipped by 20 per cent in October.

While sales of farm machinery have continued to forge ahead despite rising interest rates and costs of living, the future remains foggy, the TMA said.

“The near-term outlook for equipment sales remains difficult to predict,” Northover said.

“There appears to be a very gradual return to normality on the shipping front but any benefits this might deliver to the supply chain are likely to be offset by ongoing challenges in production, particularly for European suppliers.

“We have for some time been experiencing challenges in component supply for everything from computer chips to tyres, but as we head into the Northern winter, the crippling effect of energy supply shortages is further impacting production.

"All these factors combined with ongoing input price increases is making for a very challenging time for all.”