Tractor sales bouncing back

After a bumpy first half of 2019, the agricultural machinery market is showing signs of recovery with tractor sales and demand across most of the country remaining strong, particularly in Western Australia.

According to the Tractor and Machinery Association of Australia (TMA)’s latest machinery sales report, overall tractor sales remain down 1.5 per cent for the month of June and remain 10 per cent behind last year.

“The Australian agricultural tractor sales market continues to demonstrate a wide variation in activity,” said TMA executive director, Gary Northover.

“Many parts of the country are in fact unaffected by drought and as a result, machine demand has remained strong, particularly in the West.

“It is the drought affected regions of NSW and Northern Victoria that continue to struggle.”

Sales in WA continue to outperform all other states, recording another 14 per cent jump in June, although still trailing behind year-to-date numbers by 10 per cent.

One of the usual underperformers, drought stricken Queensland, appear to be bouncing back with a nine per cent lift in sales for the month but still remaining 10 per cent behind last year.

Sales continue to be a challenge in Victoria, now seven per cent behind for the year. NSW continues to struggle with another nine per cent drop in sales in June, now sitting 20 per cent behind last year.

Elsewhere, sales in South Australia are down 20 per cent for the year, Tasmania is up seven per cent while the Northern Territory is in line with last year.

“It appears that the combination of a Federal Coalition Government re-election, reduced interest rates and some suitable rainfall has led to an end of financial year push from many customers,” Northover said.

“Fortunately, dealers are well stocked and have generally been able to deliver to this demand.”

Across the tractor horsepower segments, the 200hp-and-above range continued to lead the charge in June, up another nine per cent and now one per cent ahead of last year.

The 100-to-200hp segment was steady but remains 14 per cent behind on a yearly basis. The 40-to-100hp range was down four per cent, now sitting 12 per cent behind last year. It is a similar story in the under-40hp range, down two per cent and sitting 10 per cent behind last year.

Sales of combine harvesters continue to struggle with the full year estimate remaining around the 550 unit mark, down from the mid-800 level of the past few years. According to TMA, this is partly due to the decline in grain production in northern NSW.

Baler sales continue to perform well, now 20 per cent up on last year, as the demand for hay remains strong.

Sales of out front mowers also increased by 25 per cent in June, now sitting around 12 per cent behind on a yearly basis.