Tractor sales continue to soar as wharf disputes threaten supply

It was another stellar month for tractor sales in Australia as numbers continue to soar, with September 2021 sales up a whopping 30 per cent from the same month last year.

According to the Tractor and Machinery Association of Australia's (TMA) latest sales report, all states enjoyed modest to strong growth in tractor sales last month.

The Northern Territory has now recorded its second consecutive month of sales growth of over 100 per cent, with its September 2021 figures a good 125 per cent increase on the same time last year.

New South Wales, which has been on a hot streak for nearly 18 months now, was up 32 per cent for the month and now 50 per cent ahead year-to-date (YTD). Queensland also enjoyed a 46 per cent increase year-on-year (YOY), now up 28 per cent YTD, while Victoria was up 10 per cent on the same time last year and is now 16 per cent up YTD.

Sales in Western Australia soared again with a 45 per cent lift for the month in preparation for what promises to be a bumper harvest season, now 35 per cent ahead for the year. South Australia was up 12 per cent for the month while Tasmania finished 25 per cent ahead YTD.

All power categories have enjoyed strong rises for the year. The sub-compact, under 40hp range was up 13 per cent in September due to ongoing supply challenges but remains 17 per cent ahead YTD. 

The 40 to 100hp range was again up a strong 38 per cent in the month, now three per cent up YTD. The 100 to 200hp category was up 12 per cent to sit two per cent ahead YTD. The large 200hp and above category had another strong month, up 92 per cent YOY and now sits 69 per cent ahead YTD.

Combine harvester sales continue to hold strong, with numbers up 33 per cent on last year.

Baler sales dipped slightly for the month to sit four per cent behind last year’s outstanding season. Finally, sales of out - front mowers are still strong, up 11 per cent YTD.

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With continuing strong demand for new machinery within the industry, the biggest challenge remains supply, with recent wharf disputes adding another layer of complexity, said the TMA.

Recently, industrial disputes in Western Australia have affected the timely delivery of machines, adding to delays already caused by COVID.

“While some dealerships report adequate supplies of harvesters, only a week or so ago, ships carrying harvesters and other ag machinery were turned away from wharves at Fremantle,” said TMA executive director, Gary Northover.

Ag machinery freight business, Wallenius Wilhelmsen (WWL), is one carrier which has been forced to divert at least three shipments to other ports recently. WWL said the ongoing dispute between QUBE and the Maritime Union of Australia (MUA) continues to disrupt its shipping services in the port of Fremantle.

WWL added the dispute has been ongoing for 11 weeks and is now causing significant supply chain disruptions, with vessels being diverted to other ports.

"We are exploring all opportunities available to us, with the main focus on minimising customer impacts, and greatly regret this challenging situation for our customers," said Wallenius Wilhelmsen Oceania Senior Vice President, Kim Buoy.

The dispute between the MUA and Qube Ports is only affecting the Port of Fremantle as WWL’s operations at all other Australian ports have gone ahead as per normal.

“The TMA has been highlighting similar problems with wharf disruptions for two years now and while diverting ships is a short-term solution, it will no doubt add pressure to eastern states capacity, which has its own COVID challenges,” Northover added.