Tractor sales records keep tumbling

Despite supply strains, tractor sales have now been at record levels for 12 months in a row, writes Gary Northover.

The Valtra A Series tractor. Tractor sales across the nation have stayed strong. Picture: Supplied

TRACTORS have completed their 12th consecutive month of record sales to be 34 per cent ahead on an annualised basis compared to the same time last year.

Last year, tractor sales passed the 13,000 units per year mark for the first time in about 40 years, and the market is currently tracking above that level at about 14,000 units per year.

February sales were up 74 per cent on the same month last year, reinforcing the extent of the challenges felt by the industry 12 months ago.

The current sales activity is even more remarkable given the supply strains being experienced across the supply chain, although there are early signs that this may be improving.

Since mid-2020, supply of product from manufacturing facilities in Europe, the US and Asia have been heavily affected by COVID-19 lockdowns and social distancing requirements. An indicator of this is the amount of shipping activity through Australian ports, which was reported to be about 40-50 per cent of normal capacity mid-last year. This has now improved to about 90 per cent of normal capacity.

Activity in February was strong in all states, with NSW again the standout up 104 per cent on the same time last year and now 107 per cent up for 2021 year to date.

Victoria reported a solid lift up 53 per cent, sitting 43 per cent ahead for the year, meanwhile Queensland was up 61 per cent, to be 62 per cent up year to date.

Western Australia sales picked up 92 per cent to be 72 per cent ahead for the year, sales in South Australia were solid, 83 per cent up and finally Tasmania finished the month 45 per cent ahead.

The increase in sales numbers is spread evenly across the four reporting categories, supported by the Instant Asset Write-Off scheme. The under 40hp (30kw) range was up 66 per cent for the month (73 per cent year to date).

The 40-100hp (30-75kw) range was again up strongly 68 per cent in the month (63 per cent year to date), the 100-200hp (75-150kw) category was up 55 per cent (50 per cent year to date).

The large 200hp-plus (150kw) range enjoyed another strong rise, up 141 per cent and is now 110 per cent ahead for the year.

Sales in this category of larger tractors have been the most heavily hit by supply issues and there is now evidence of the backlog of orders from 2020 coming through.

The Federal Government’s Instant Asset Write-Off scheme is due to expire on June 30, so expect a continuation of the strong demand for machines until that date at least.

Sales of combine harvesters are in a period of hiatus, with the usual order-intake season now well underway.

Baler sales were up 55 per cent on the same month last year and are expected to remain strong this year, while sales of out-front mowers are still flying, up 51 per cent ahead of the same time last year.

The TMA’s Annual Conference is to be held once again this year in Melbourne at the Hyatt Essendon Fields on Tuesday, July 20.

Full event details will be available soon. We hope people will take the opportunity to come together again, after what feels like a very long break.

• Gary Northover is Tractor & Machinery Association executive director

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