Sales of agricultural tractors continued their strong run in May with an 18% rise on the same month last year. The last 12 months have now seen in excess of 15,700 tractors sold in this country which is 37% ahead of the previous 12-month period. The strength of the market continues to surprise many as the challenges being experienced with supply combined with the continuation of the extraordinary demand would suggest that these numbers remain beyond expectations.
Many in the industry see the upcoming June/July period as likely to see a testing time as the Federal Government’s Instant Asset Write Off Scheme comes to an end, even though it is to be continued for a further 2 years in the form of the “Temporary Full Expensing” program.
A major contributor to the supply challenges being experienced has been the creation of bottlenecks in Australian Ports. We have been in discussion with the Federal Minister David Littleproud on this matter and have been advised that a range of pilot projects is to be established in conjunction with importers with the aim of reducing red tape and improving productivity whilst maintaining biosecurity standards. We will monitor these projects with interest as they unfold.
All states reported strong activity with Victoria reporting an increase of 6% on May last year now sitting 32% ahead for the year, Queensland was up 19% to be 35% up YTD and NSW was again up, 30% on the same time last year and now 78% for the YTD.
Western Australia sales picked up another 13% to be 48% ahead for the year, sales in South Australia reported a 34% increase for the month and finally Tasmania finished the month 5% behind.
All performance reporting categories enjoyed rises again this month with the under 40 hp (30kw) range up 22% for the month to be 47% ahead YTD. The 40 to 100hp (30-75kw) range was again up strongly 28% in the month (50% YTD), the 100 to 200hp (75-150kw) category was up 5%. (29% YTD). The large 200 hp (150kw) PLUS range had another strong rise up 21% and is now 60% ahead for the year.
Sales of Combine Harvesters are yet to get going, however dealers continue to report a healthy level of enquiry.
Baler sales dipped again for the month but are still up 33% on an annualised basis and sales of Out – Front Mowers were steady and remained 33% ahead of the same time last year.
The ACCC released its report on the Agricultural machinery market this month which contained a number of key recommendations concerning warranties, right to repair and use of data. The TMA is yet to formally respond to these recommendations but will continue to work with all stakeholders to ensure that appropriate outcomes are achieved for the industry.
We are fortunate to have Mick Keogh, Deputy Chairman of the ACCC scheduled to speak at the upcoming TMA Conference to be held once again this year in Melbourne at the Hyatt Essendon Fields on Tuesday July 20th which will be a great opportunity to further explore the findings.
Gary Northover, Executive Director TMA