New Tractor Sales down by 11 percent for the year to date

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Following on from a solid September result, October Sales for Agricultural tractors have suffered another decline down 9% for month and now 11% behind last year.

With two (2) full months of the 2019 year to go, the industry should report total sales of around 11,000 tractors. Whilst down on the past five (5) years of 12,000 plus sales, it still represents a healthy market place. The unknown in all of this is the margin being achieved, which in recent times has been severely challenged.

Falls were felt in all size categories other than the under 40hp (30kw) range in all states with the exception of the Victorian market which recorded a 11% rise for the month now sitting 3 % behind last year. Strong activity in the dairy sector along with a very healthy degree of optimism amongst wine growers is felt to be behind this rise.

Across the nation, it continues to be NSW suffering the greatest declines with a further 21% drop in October, now 20% behind last year. Queensland slipped 14% in the month and is now 7% behind for the year. There have been pockets of strong sales activity in the coastal regions of these states but this has not been enough to offset the drought affected inland markets

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Western Australia had a surprisingly quiet month down 14% but still ahead of last year by around 4%. South Australian Sales have gone from bad to worse with a massive 30% drop in October, now a full 27% behind last year. As previously reported, there appears to be a high degree of Used Equipment activity meeting demand there. Lastly Tasmanian sales continue to be strong, now 5% ahead YTD and sales in the NT dropped for the month now 7% behind last year.

Sales in the 200hp (150kw) and above range were down substantially, 25% behind for the month and now 5% behind YTD. The 100 to 200hp (75-150kw) segment also suffered a big drop down 8% for the month remaining 12 % behind last year. The 40 to 100hp (30-75kw) range was also down 12% now sitting 13% behind last year. The only bright spot was the under 40hp (30kw) range, up 3% in October but remaining 8% behind on a yearly basis.

Combine Harvester Sales continue to struggle with levels well down on previous years. Markets such as the North and North West regions of NSW have essentially come to a stop through this drought period.

Demand for Hay remains strong and as such Baler Sales continue to enjoy a bumper year. October sales were up another 11% on last year and are now 26 % ahead on a year to date basis.

Finally, sales of Out Front Mowers bounced another 7% in the month in response to the grass growing season, now sitting just behind last year on a yearly basis.

The TMA continues to represent the industry on a number of fronts, most notably in the area of Farm Safety. We have been working with WorkSafe Victoria in particular on a range of issues including quad bike safety, telehandler licencing and general communication and awareness. Members can follow progress on these matters in our quarterly newsletter and on our website at www.tma.asn.au