Another Big Month For Ag Machinery In Australia In October
The month of October has been another outstanding one for agricultural equipment sales with Combine Harvesters the clear standout. The long-promised lift in Combine Harvester sales has now materialised with half the years’ supplies delivered in October, a mammoth effort despite the challenges associated with the well documented slowdowns at the various Australian Ports! This now puts the full year position at around 1,000 units, a figure not seen for some years.
Tractor sales across the nation were also again strong with a rise of 16% on the same month last year. This now sees the year-to-date figure 30% above last year with a running rate now approaching 17,000 tractors per annum.
Whilst there remain considerable supply challenges and long lead times, current demand is being satisfied by aggressive ordering by dealers back in 2020 in anticipation of strong ongoing activity.
Sales have been strong in all states fuelled by the expectations of a bumper season coming up supported by the Government’s various company tax incentive programs.
Beginning in NSW which has been on a positive run for around 18 months now, up 20% for the month and now 46% ahead YTD, Queensland was again strong up 10% now up 26% YTD and Victoria was up 12% and is 16% up YTD.
Sales in Western Australia recorded a mammoth 56% lift for the month in support of what is developing into a big harvest season, now 37% ahead for the year. South Australia was steady and now 15% ahead YTD, Tasmania dipped 3% and sales into the Northern Territory enjoyed an 8% rise.
All performance reporting categories have enjoyed strong rises for the year, beginning with the under 40 hp (30kw) range which was up 8% in October despite ongoing supply challenges and remains 16% ahead of last year.
The 40 to 100hp (30-75kw) range was again up strongly 15% in the month, now 30% up YTD, the 100 to 200hp (75-150kw) category was up 21% to now be 24% ahead YTD. The large 200 hp (150kw) PLUS range had another strong rise of 24% and now sits 64% ahead of last year.
Baler sales were down significantly as the impact of the previous two years of record sales takes effect on demand, they remain 24% behind last year’s outstanding season. Finally, sales of Out – Front Mowers are steady, up 5% YTD.
With regards to the forward outlook, the expected drop off in 2022 coinciding with the end of the previously mentioned government programs is looking less likely to occur with each month. The general strength of the agricultural market combined with such things as the ongoing restocking of fleets following the droughts and bushfires, along with the growth in tree changers becoming hobby farmers is leading to the view that we may say a continuation of these buoyant conditions beyond initial expectations. There is still a way to go, and we will watch with interest.