Sales of Agricultural tractors were down in February although remain at very high levels, due to the ongoing challenges with supply. As we have previously stated, dealers continue to deal with the challenges associated with managing workforces around Covid restrictions, the ongoing shortage of stock and now, on the East Coast the impact of the devastating rain events.
The entire supply chain for tractors is presently being impacted but it appears that it is locally at Australian Ports where the longest delays are being experienced. Unloading of both Containerised freight and RoRo is extremely slow at present and it is perhaps timely that the Productivity Commission has begun an enquiry into the efficiency of the Maritime Logistics System.
Sales across the nation were down in February by 13% compared to the same month last year and this reduction was felt in all states. Beginning in NSW sales were down 3% for the month and are now 2% behind last year. Queensland was down 5% to be now 1% behind and Victoria was 20% behind last February and is now 9.0% down YTD.
Sales in Western Australia recorded another drop this time, 35% for the month to be 32% off YTD , South Australia also dropped 5%. Tasmania was again down, this time by 22% whilst sales into the Northern Territory dropped 46%.
Taking a look at the performance reporting categories, the small under 40hp (30kw) category was down 9%. to be 3% off YTD. The 40 to 100hp (30-75kw) range was the only bright spot again, up strongly 6% in the month to remain 6% ahead YTD and the 100 to 200hp (75-150 kw) category was down 18%.
The large 200 hp (150kw) PLUS range was again down, this time by 34% compared to the same month last year and is now 38% off YTD.
As we wrote last month, Combine Harvester sales finished last year above the 1,000 units mark for the first time since 2011. The order intake period for 2022 is presently underway and dealers are reporting strong interest with the only issue potentially preventing another good year being supply.
Baler sales were down 33% in February and sales of Out – Front Mowers finished down 26% on the same month last year.
Demand for Agricultural Machines is presently very strong worldwide and there are many reports of pricing pressures being felt throughout the market. Most manufacturers appear to be exercising restraint with moderate increases only being applied. It remains to be seen if this continues with the various inflationary pressures in play at present and with the Temporary Full Expensing Program set to run until June 2023, we expect demand to remain high.
Planning is well underway for the 2022 TMA Conference which has been scheduled for Wednesday July 20th to be held at the Hyatt Essendon Fields in Melbourne. Tickets will be on Sale shortly, keep up to date on our newly revamped website or on Facebook.