Victoria tractor sales lift

After a rather soft start to the year, new tractor sales figures nationwide have picked up slightly last month to sit behind February 2019’s figures by just two per cent, according to the Tractor and Machinery Association of Australia’s (TMA) latest report.

Across the country, Victoria and Tasmania were the only two shining lights recording lifts in sales of 13 per cent and six per cent respectively on February last year.

Activity in the north east remains subdued with NSW down six per cent on last February while Queensland is behind by 18 per cent.

The Western states weren't any better with sales in Western Australia down seven per cent for the month and South Australia down six per cent from February last year.

“Whilst there was some very welcome, widespread rainfall throughout February, it will take some time to translate to improved sales and judging by the level of optimism being seen in the market, an overall improvement is hoped for,” said TMA executive director, Gary Northover.

“Optimism can be fleeting however as at the time of writing, the ASX has suffered its biggest one day fall since the global financial crisis and the longer term impact of the Coronavirus pandemic remains unclear.”

February sales were once again strongest in the 100 to 200hp category, up nine per cent. The 200hp and above range was down six per cent for the month, the 40 to 100hp range also down by nine per cent and the under 40hp range again struggled, down five per cent.

“It’s this smaller ‘leisure’ market that we expect to struggle a little over the coming months,” Northover explained.

“Traditionally, this market has been sensitive to the general wellbeing of the economy and with recessionary conditions imminent, demand could suffer.”

In other farm machinery categories, combine harvester sales continue to suffer with only a small number of sales completing in February.

“The forward orders position is not great so most business will be completed from existing stock, of which there appears to be plenty,” Northover said.

Baler sales have taken another dip in February and are now down 36 per cent on last year.

“Expectations remain high though for a very strong year once again,” Northover said.

Sales of out front mowers, on the other hand, jumped in February and are now 10 per cent behind the same time last year.