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June 9, 2022

Tractor sales enjoy a bump in May

Sales of Agricultural tractors in May were up by 12% on the same month last year and are now 6% behind for the 2022 year to date. This strong result is largely due to the improvements in larger tractor deliveries following a number of months of poor supply.

The prevailing theme in the market appears to be if you have the stock, you will get the sale and this is testing customers’ brand loyalty more now than at any time in recent memory, particularly in the small to mid-range tractors.

Underlying demand for Agricultural Machines remains very strong, not just locally but worldwide.

Here in Australia customers have extremely supportive markets for their products and with the support of the Temporary Full Expensing Program (set to run until June 2023) are taking the opportunity to renew their fleets. Dealers are reporting plentiful order books but continue to struggle with supply. As we reported last month, price rises are continuing and it would seem that many of these appear to be baked in, most notably relating to shipping costs. Industry experts advise that the introduction of ever more stringent regulations (not just environmental) is leading to cost increases that are having to be passed on.

Looking at sales across the nation, results were strong across the board with NSW sales up 10% following a number of down months to be now 9% behind last year. Queensland was up 16% to be now 3% ahead year to date and Victoria was 14% up on last May due mainly to supply of small hp units and is now in line with last year.

Sales in Western Australia recorded a huge lift with the arrival of large hp machines, up 26% for the month but still  18% off YTD , South Australia dropped 14%. Tasmania was up by 17% whilst sales into the Northern Territory were up 89%.

Taking a look at the performance reporting categories, the small under 40 hp (30kw) category was strongly up 14% to be 1% ahead YTD. The 40 to 100hp (30-75kw) range was up 11% in the month to remain 4% ahead YTD and the 100 to 200hp (75-150 kw) category was up for the first month in some time, 6% ahead in May to be 10% behind YTD.

The large 200 hp (150kw) PLUS range was the stand out this month after suffering from a lack of supply, 27% ahead of the same month last year with more opportunity ahead, still 25% off YTD.

Combine Harvester sales have now started to occur and there is every expectation of another 1,000+ year for this product as the renewal of fleets depleted by the drought continues.

The outlook for Balers remains subdued as the Hay season is yet to get going, down in May again and now down 20% compared with  last year and sales of Out – Front Mowers finished down again by 24%.

Just a reminder that the 2022 TMA Conference is being held on Wednesday July 20th at the Hyatt Essendon Fields in Melbourne. Tickets are now on sale and can be found on the TMA Website