Tractor sales down again as inventory levels improve

New tractor sales in Australia slid further in October to be 24 per cent behind the same time last year, according to the Tractor and Machinery Association of Australia’s (TMA) latest sales figures.

While the level of decline appears high, around 12,000 tractors have been sold in 2023 which is in line with what is traditionally regarded as a strong year for sales, the TMA added.

“For some months now, we have been reporting a slowdown in demand due to the predicted onset of drier weather along with the ongoing increases in interest rates,” said TMA executive director, Gary Northover.

“Clearly there is still solid demand for new machinery in the market as recent rains have brought some encouragement to farmers in the near term.”

Stock availability across the country continues to improve with dealers reporting solid inventory levels, the TMA added.

“Supply chain bottlenecks appear to be easing due mainly to the lower volumes of machines coming into the country. This is particularly the case for containerised freight which is moving smoothly,” Northover said.

“Ro-Ro (Roll On Roll Off) freight continues to present the odd challenge due mainly to the stringent quarantine regulations in place which can have the effect of sidelining entire shipments if a single problem is detected. This can be particularly stressful for time sensitive deliveries such as those required for harvest.”

All states experienced a significant drop in new tractor sales last month. Queensland was down 26 per cent YOY to be 21 per cent behind year-to-date, while NSW was down 34 per cent YOY to be 25 per cent off YTD.

Victoria was off 27 per cent YOY and 28 per cent behind YTD while Western Australia was in line with last year and remains 19 per cent behind YTD.

South Australia recorded another big decline, down 45 per cent to sit 20 per cent behind YTD and Tasmania was off 17 per cent for the month, 21 per cent down YTD. Lastly, sales in the NT declined by eight per cent YOY to sit 13 per cent behind YTD.

All machine categories experienced big drops in numbers with sales in the under-40hp category down by 41 per cent for the month to be 25 per cent behind YTD.

The 40 to 100hp range was also down 32 per cent YOY and is now 25 per cent behind YTD. The 100 to 200hp category recorded a 19 per cent drop YOY to sit 25 per cent behind YTD while the 200hp plus range was down eight per cent YOY to be 16 per cent behind last year.

In October, sales of combine harvesters also slowed somewhat to now sit in line with last year with just under 800 units sold so far in 2023.

Baler sales enjoyed another healthy rise and are now 15 per cent ahead YTD . Finally, sales of out - front mowers are down by around four per cent compared to the same time last year.

“In summary, there has been a noticeable pullback in machinery sales and whilst the current sales volumes can be described as good, we remain cautious about the outlook for 2024 where the full impact of climate conditions, commodity prices, machinery price rises, and higher interest rates have a fuller effect,” Northover concluded.