Demand hurting supply as tractor sales boom continues

Tractor sales are still strong, but the ag machinery industry is beginning to feel the pressure to supply stock with the increase in demand.

Tractor sales were up 19 per cent in August, to be 21 per cent ahead for the year.

TRACTOR sales are still strong, but the ag machinery industry is beginning to feel the pressure to supply stock.

The ongoing demand for agricultural produce, combined with favourable weather conditions across the nation and the government’s instant asset write off scheme, are supporting record sales volumes.

However, dealers are saying that delivery times are drawing out as demand and coronavirus restrictions in the US and Europe compound delays.

Tractor sales were up 19 per cent in August compared to the same time last year, to be 21 per cent up on for the year to date.

“As we have been flagging in recent months though, the issue of supply has now become a factor with some product normally expected to be ex stock now being subject to six to eight-week delivery times,” said Gary Northover, executive director of the Tractor & Machinery Association of Australia.

“Product coming out of Europe and the US continues to be hampered by factory-based restrictions with reasonable demand in home markets compounding these delays.

“Locally, dealerships continue to operate under COVID-safe work plans, which impacts supply.”

Mr Northover said activity across the states remained solid with the continued recovery in NSW the standout “up a whopping 52 per cent on the same time last year” and now sitting 28 per cent ahead for the year.

Victoria reported another strong month, up 15 per cent and now 29 per cent ahead for the year to date.

“The increase in sales numbers is again due almost entirely to the ongoing strength in the smaller end of the market supported by the instant asset write off scheme,” Mr Northover said.

“The under 40hp range was up 58 per cent for the month and now sits 24 per cent ahead for the year to date.”

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