Australian tractor sales continue to climb
Despite port bottlenecks and supply-chain delays, tractor sales are unabated, with high horsepower monsters showing the strongest gains, writes Gary Northover.
Sales of agricultural tractors continued their strong run in May, with an 18 per cent rise on the same month last year.
The past 12 months have now seen in excess of 15,700 tractors sold in this country, which is 37 per cent ahead of the previous 12-month period. The strength of the market continues to surprise many in the industry, as the challenges experienced with supply combined with the continued extraordinary demand would suggest that these numbers remain unsustainable.
Many in the industry expect June and July to be a testing time as the Federal Government’s Instant Asset Write Off Scheme comes to an end, even though it will continue for a further two years in the form of the Temporary Full Expensing program.
Bottlenecks in Australian ports have been a major contributor to the recent supply challenges. The Tractor and Machinery Association has been advised by Federal Agriculture Minister David Littleproud that a range of pilot projects are to be established in conjunction with importers, aiming to reduce red tape and improve productivity while maintaining biosecurity standards.
All states reported strong sales activity in May, with Victoria reporting an increase of 6 per cent compared to the same month last year, and now sitting 32 per cent ahead for the year.
Queensland was up 19 per cent to be 35 per cent up year-to-date, and NSW was again up, 30 per cent on the same time last year and now 78 per cent year-to-date.
Western Australia sales picked up another 13 per cent to be 48 per cent ahead for the year, sales in South Australia reported a 34 per cent increase for the month and finally Tasmania finished the month 5 per cent behind.
All performance reporting categories enjoyed rises again this month with the under-40hp (30kw) range up 22 per cent for the month to be 47 per cent ahead YTD.
The 40-100hp (30-75kw) range was again up strongly 28 per cent in the month (50 per cent YTD).
The 100-200hp (75-150kw) category was up 5 per cent, (29 per cent YTD).
The large 200hp-plus (150kw) range had another impressive rise up 21 per cent and is now 60 per cent ahead for the year.
Sales of combine harvesters are yet to get going, however dealers report a healthy level of inquiry.
Baler sales dipped again for the month but are still up 33 per cent on an annualised basis and sales of out-front mowers were steady and remained 33 per cent ahead of the same time last year.
The ACCC released its report on the agricultural machinery market this month, which contained a number of key recommendations concerning warranties, right to repair and use of data.
The TMA is yet to formally respond to the recommendations but will continue to work with all stakeholders to ensure appropriate outcomes are achieved for the industry.
ACCC deputy chairman Mick Keogh is scheduled to speak at the upcoming TMA Conference to be held in Melbourne at the Hyatt Essendon Fields on Tuesday July 20, which will be a great opportunity to explore the findings.
• Gary Northover is Tractor and Machinery Association of Australia executive director
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