Tractor sales surge forward

February has turned out to be another strong month for tractor sales as overall figures show a seven per cent jump from last month, and a four per cent increase on the same time last year, according to the Tractor and Machinery Association of Australia’s (TMA) latest sales report.

Breaking down the categories, tractors in the 100 to 200hp range recorded the strongest growth - up 28 per cent on last February’s figures. The sub compact 40 to 100hp category also experienced a healthy increase of five per cent on last year.

However, sales in the over-200hp category took a dive, recording a drop of 20 per cent on last February.

TMA Executive Director, Gary Northover, said there is no cause for concern at this point.

“We expect this category to ‘even out’ in the coming months, and will try not to read too much into one month’s results,” he said.

Sales in the smaller 40hp ‘leisure’ category also took a slight plunge of seven per cent from last year.

“We suspect that the variable weather conditions being felt across Australia will be impacting this category and we further suspect that, because much of the leisure market is privately funded, a period of stock market and interest rate uncertainty may also have a dampening effect on demand,” Northover said.

Activity across all regions of Australia is strong, with the exception of WA.

Queensland and New South Wales were both up two per cent month-on-month despite drought conditions in February. Queensland now sits four per cent ahead of last year and NSW seven per cent up.

The Southern States of Victoria and Tasmania both had strong months - Victoria up 12 per cent for the month, now six per cent ahead of last year and Tasmania a whopping 48 per cent on last month.

WA recorded a drop of seven per cent from last month, while South Australia and the Northern Territory were both steady.

On another note, the harvester and baler markets have both experienced a couple of slow months.

“Following a record 2017, expectations are somewhat muted for harvester sales this year,” Northover said.

“Some dealers are reporting a quieter order period over the new year and indications are that the time for a pause in new purchases might be expected.”

The sale of out front mowers were again strong and are now up four per cent on the same time last year due to healthy grass growth.

“Looking ahead, expectations are once again high for another strong year in the agricultural equipment market, although not without its challenges,” Northover adds.

He says agricultural machinery manufacturers and importers worldwide are beginning to see a return to strong demand, especially in the US and Europe, for farm machinery.

“After many years in the doldrums, this lift in confidence is reportedly having an impact on the supply chain with manufacturers reporting delays in the supply of such things as, steel, rubber and bearings,” he says.

”This will ultimately impact supply to the Australian market, inevitably pushing out lead times so clever forecasting and smart application of used equipment could be the order of the day.”