Record year for tractor sales

Just when you think the tractor market could not get any stronger following outstanding sales results in 2016, the latest figures released by the Tractor and Machinery Association of Australia (TMA) has revealed that tractor sales in 2017 has pushed past previous year’s numbers.

Overall, tractor sales were up 8.1 per cent in unit numbers (9.4 per cent in dollars) for 2017, recording a total figure of 12,674 machines sold.

“Conditions supporting tractor sales in Australia were very healthy in 2017,” said TMA Executive Director, Gary Northover.

“Suppliers continued their support of the local market with many new models, attractive finance deals and a competitive used equipment space enabling healthy trade-ins.”

December saw sales of under-40hp tractors dip by 5.2 per cent on the previous month, but finished the year 7.6 per cent up on the previous year.

Sales across all tractor horsepower segments have recorded an increase from 2016, with the 100-200hp range taking the cake with a whopping 11.7 per cent rise. The 40 to 100hp range was up 5.5 per cent, while the 200hp and above segment was up eight per cent year-on-year.

“We have, for some years, seen healthy growth in under 40hp sales representing the 'leisure' market underpinned by the dairy sector,” Northover said. “Overlaying this has been strong demand for larger tractors driven by a generally optimistic outlook supported by the ongoing drive for productivity improvements.”

“An exceptionally strong December capped off what has been a remarkable year driven by widespread activity in large tractors as well as small machines in all states.”

State-wise, Victoria was down slightly in December, but NSW and Queensland had strong months, up 26 per cent and 11 per cent respectively.

WA was flat for the month and was the only region down on the previous year, six per cent behind.

South Australia continued its strong run, finishing the year eight per cent up from 2016 numbers, while Tasmania had a blockbuster month, finishing the year 25 per cent ahead.

Combine harvester sales were down a little in December but landed on the same number as 2016's at 867 units sold.

“The year for harvesters has certainly seen its challenges with harvest levels down on previous year’s record,” Northover said.

“Suppliers have seen stock levels rise in response to anticipated demand and this has led to some sharp deals being done. We expect this to continue into 2018 as new models are released requiring the current range to be moved on.”

Baler sales were down considerably following a bumper 2016. “Most suppliers expect a steady improvement in 2018 as more normal conditions return,” Northover said.

Last but not least, sales of out-front mowers powered upwards to finish 2017 three per cent ahead of the previous year.

“Predictions for the year ahead remain generally optimistic, although one would be brave to predict a better year for tractor sales than we have seen in 2017,” Northover concluded.