Tractor sales dip in February

Following a strong start to the year, tractor sales have fallen slightly compared to last year’s figures but remain at very high levels, the Tractor and Machinery Association of Australia (TMA) reported.

According to its latest sales figures, tractor sales dropped by 13 per cent in February 2022 compared to the same month last year, with this dip in numbers felt across all states.

In New South Wales, sales were down three per cent for the month and now sitting two per cent behind last year. Queensland was down five per cent to sit one per cent behind. Victoria was 20 per cent behind last February and is now nine per cent down year-to-date.

Sales in Western Australia recorded a 35 per cent drop for the month while South Australia fell by five per cent year-on-year. Sales in Tasmania also dipped, this time by 22 per cent while sales into the Northern Territory also fell by 46 per cent YOY.

“As we have previously stated, dealers continue to deal with the challenges associated with managing workforces around COVID-19 restrictions, the ongoing shortage of stock and now, on the East Coast, the impact of the devastating rain events,” said TMA executive director, Gary Northover.

“The entire supply chain for tractors is presently being impacted but it appears that it is locally at Australian ports where the longest delays are being experienced.

“Unloading of both containerised and roll-on/roll-off freight is extremely slow at present and it is perhaps timely that the Productivity Commission has begun an enquiry into the efficiency of the Maritime Logistics System.”

Horsepower-wise, only the 40 to 100hp range recorded an increase in sales, more specifically up six per cent in the month to remain six per cent YTD. The under-40hp category was down nine per cent to be three per cent behind YTD. The 100 to 200hp category was down 18 per cent.

The large 200hp plus category, which has been enjoying large spikes in sales last year, was down by  34 per cent YOY to sit 38 per cent behind YTD. 

Following a record-breaking 2021, TMA is once again expecting another solid year for combine harvester sales.  With the order intake period for 2022 presently underway, dealers are already reporting strong interest with the only issue potentially preventing another good year being supply.

Finally, baler sales were down 33 per cent in February and sales of out-front mowers dropped by 26 per cent compared to the same month last year.

“Demand for agricultural machines is presently very strong worldwide and there are many reports of pricing pressures being felt throughout the market,” Northover said.

“Most manufacturers appear to be exercising  restraint with moderate increases only being applied. It remains to be seen if this continues with the various inflationary pressures in play at present and with the Temporary Full Expensing Program set to run until June 2023, we expect demand to remain high.”