Tractor sales spike in December

The new tractor market in Australia has ended 2019 on a strong note with December sales up 7.5 per cent in comparison to this time last year, according to the Tractor and Machinery Association’s (TMA) latest sales report.

The organisation said the trend-defying spike was due to an “end of year rush”.

Despite the increase, overall sales in 2019 were still behind 2018’s by nine per cent, with just over 11,000 units of tractors sold.

“Whilst a pleasing end to the year, it remains to be seen to what extent dealers have brought forward future sales in order to finish the year positively,” said TMA executive director, Gary Northover.

“Despite achieving what is a fairly positive result, expectations for 2020 remain somewhat pessimistic with a predicted level in the range of 9000 to 10,000 tractors, well down on the recent peak years of 12,000 plus sales,” he said.

“The continuation of severe drought, water shortages and crippling bushfires are having a devastating effect on many of our major industries in most states.”

Across the states, Victoria led the pack as it finished 2019 up 22 per cent on the previous December, sitting in line with 2018 figures.

Queensland sales also finished strong, up six per cent for the month but finished the year down seven per cent. NSW continued to struggle, falling another 12 per cent in December and now down on 2018 numbers by 20 per cent.

The market in Western Australia managed to stay afloat as it finished the year in line with 2018 but down six per cent in December.

Times were tough in South Australia in 2019, down 21 per cent on 2018 while Tasmania and the Northern Territory reported the only regional increases - up five per cent and four per cent respectively.

December sales were strongest in the larger size ranges. Sales in the 200hp-and-above range were up five per cent behind for the month but finished the year five per cent behind. The 100 to 200hp was again strong, up 15 per cent for the month but still trailing nine per cent behind 2018. The 40-to-100hp range was also up 10 per cent to sit 12 per cent behind the previous year.

The under-40hp range struggled, down five per cent in December to sit 10 per cent behind on a yearly basis.

Combine harvester sales finished the year 20 per cent behind 2018 with very little being reported in the way of forward orders. “Compounding this is the level of overhanging inventory, some as old as two years now which will likely be clogging up the supply chain as new models begin to hit the market,” Northover said.

On the other hand, demand for hay had been strong all of last year resulting in a bumper year for baler sales-particularly large square balers-which finished the year 15 per cent ahead of 2018.

Out front mower sales dropped considerably, down 42 per cent from December 2018 figures and finishing five per cent behind for the year.

“The market for agricultural equipment in 2019 ended with some very distinct winners and some very distinct losers,” Northover said.

“Tractor sales in Victoria have been strong as has been the case in WA. Baler sales have boomed as farmers turn failed crops into forage. Combine harvester sales have stalled as the broadacre market suffers and self-propelled sprayers have also struggled.

“We expect 2020 to be even more challenging.”