Sales of agricultural tractors have exceeded 15,800 units sold for the financial year ended June which is a full 29% ahead of the previous year following a 1% increase in June. This is an outstanding result for the industry and whilst there is cause for celebration, perhaps the focus of this celebration should equally be on the job done by Manufacturers, Importers, Dealers and Suppliers to industry in getting this job done in such extreme conditions.
Delivering such a result against a backdrop of lockdowns, social distancing restrictions, supply challenges, staff shortages 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% in June to finish the year 57% ahead. Victoria was down 2% for June to be 18% up for the year, Queensland up 4% for the month ending 25% up.
Sales in Western Australia dipped 9% in June to be 34% ahead for the year, sales in South Australia reported a 13% decrease for the month to be 10% up full year, Tasmania finished 24% ahead for the year and Sales into the Northern Territory enjoyed an 11% yearly rise.
All performance reporting categories enjoyed strong rises for the year with the under 40 hp (30kw) range up 27% following a 20% dip in June. The 40 to 100hp (30-75kw) range was again up strongly 5% in the month,34% for the year, the 100 to 200hp (75-150kw) category was steady, ending the year up 20%. The large 200 hp (150kw) PLUS range had another strong rise up 41% and was 57% ahead for the year.
Sales of Combine Harvesters have begun in earnest, up 50% on the previous June with dealers reporting solid forward order books.
Baler sales have continued to drift off their recent highs but ended the year up 23% and sales of Out – Front Mowers have finished the year strongly recording a 33% 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 scheme will continue to support demand. Farming conditions and demand for product are in a good place with locations such as Western Australia looking very prosperous.
Offsetting these positives to some degree are the ongoing supply challenges due both to the factory capabilities and the previously reported shipping challenges. 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% lifts occurring in Europe and finally, spare parts supply is being stretched in all directions at the moment, and is having an impact on the supply chain.
Lastly the TMA has decided to press ahead with its Annual Conference, to be held once again this year in Melbourne at the Hyatt Essendon Fields on Tuesday July 20th. It is disappointing that many of our interstate visitors will be unable to attend but hopefully we can all fully reassemble again next year.