Sales of Agricultural tractors have fallen dramatically in the month of May, down 23% compared to the same month last year. With around 800 tractors only sold this represents one of the lowest points in the cycle for around five years and now sits at 12% below the same time last year with decreases being felt across all size ranges and all states.
The combination of drought in the southern states of Victoria and South Australia and flooding in New South Wales has had a significant impact on demand and whilst there have been positive signs in the market for some time, these have now been dashed.
Looking around the states we find that Queensland was down 35.4% for the month and now sits 12% below year to date. NSW had another significant drop, down 22% to be 11% down year to date. Victoria was down once again this time by 23% for the month and is now 19% behind year to date and SA recorded another large drop of 35% for the month since sitting 19% down year to date. Sales in WA, which have been steady for some time, recorded a 10% decline in May and are now even with the same time last year. Meanwhile in Tasmania, sales are up 2% and the Northern Territory sales are now down 9% year to date.
Declines were seen in all of the four reporting size categories with the under 40 hp (30kw) range down 32% for the month is now off 3% year to date. The 40 to 100 hp (30-75kw) range had a 12% drop and now sits 7% behind year to date, the 100 to 200hp (75-150 kw) was off 28% and is now 14% down year to date and the large 200 hp (150kw) PLUS range was off 19% and is presently 25% behind year to date.
Sales of Combine Harvesters enjoyed a small bump, up 15% for the month and now sit 17% ahead year to date albeit on very small numbers. Expectations for the full year still sit at around the 700 harvester range compared to previous years of more than 1,000 sales.
Baler Sales were once again down dramatically, this time by 62% for the month and are 39% behind year to date and finally sales of Out Front Mowers was down 8% are now 31% behind year to date.
The outlook remains a very challenging one as reflected in the recent TMA dealer business sentiment survey which can be found on our website www.tma.asn.au . Dealers are expecting a continuation of challenging conditions for some time to come, there remains plenty of inventory in dealers yards and numerous incentives in play aimed at attracting buyers.
Just a reminder that the annual TMA conference is being held on July 24th at the Hyatt Essendon Fields and tickets are now on sale, once again on the TMA website.