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Market news with TMA’s Gary Northover reports on an end-of financial year sales boost for agricultural tractors
Sales of agricultural tractors exceeded 15,800 units in the last financial year
MARKET
Sales boom
The end of the financial year saw a boost for tractor sales
Sales of agricultural tractors have exceeded 15,800 units sold for the financial year ended June 30 – a full 29 per cent ahead of the previous year, following a one per cent increase in June.
This is an outstanding result for the industry and, while there is cause for celebration, perhaps the focus should be on the job done by manufacturers, importers, dealers and suppliers to industry in achieving this under such extreme conditions.
Delivering such a result against a backdrop of lockdowns, social distancing restrictions, supply challenges, staff hortages and climatic extremes is a credit to the industry.
A more detailed look at the numbers reveals that all states have reported increases on the previous year, with NSW leading the pack, up 10 per cent in June to finish the year 57 per cent ahead.
Victoria was down two per cent for June to be 18 per cent up for the year and Queensland was up four per cent for the month, ending 25 per cent up.
Sales in Western Australia dipped nine per cent in June to be 34 per cent ahead for the year, South Australia reported a 13 per cent decrease for the month to be 10 per cent up full year, Tasmania finished 24 per cent ahead for the year and sales into NT enjoyed an 11 per cent yearly rise.
All performance reporting categories enjoyed strong rises for the year, with the under-40 horsepower (30kW) range up 27 per cent, following a 20 per cent dip in June.
The 40 to 100hp (30–75kW) range was again up strongly five per cent in the month,34 per cent for the year, the 100 to 200hp (75–150kW) category was steady, ending the year up 20 per cent.
The large 200hp (150kW) plus range had another strong rise up 41 per cent and was 57 per cent ahead for the year.
Sales of combine harvesters have begun in earnest, up 50 per cent on the previous June, with dealers reporting solid forward order books.
Baler sales have continued to drift ff heir recent highs but ended the year up 23 per cent and sales of out-front mowers have finished the year strongly recording a 33 per cent rise.
Looking forward, whilst it is hard to see the levels of the past year being repeated, there is no doubt that demand is still hot.
The federal government’s Temporary Full Expensing Program, which essentially replaces the Instant Asset Write-Off cheme, will continue to support demand. Both farming conditions and demand for product are in a good place, with locations such as Western Australia looking very prosperous.
Offsetting these positives are the ongoing supply challenges due both to the factory capabilities and the previously reported shipping challenges, with these issues also impacting the supply of spare parts.
Dealers’ ability to supply current demand will be wholly dependent on the ordering done last year, with current orders being quoted at 9–12 months away in many instances.
Pricing pressures are likely to be experienced in the year ahead with reports of 8–11 per cent pricing lift occurring in Europe.
Gary Northover is executive director of the Tractor & Machinery Association of Australia (TMA). He can be contacted on (03) 9813 8011 or at gary@tma.asn.au
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