UNSURPRISINGLY tractor sales have continued to decline in drought stricken NSW.
Tractor and Machinery Association, executive director, Gary Northover said while NSW continues in decline, figures were better elsewhere.
“Following a dramatic downturn in September where sales of tractors dropped markedly, October has seen a steadying of the ship with a slight recovery in machine sales occurring,” he said.
“This was partly due to some end of year financial planning from some manufacturers which may have over-inflated the position a little.”
Mr Northover said nationally tractor sales were down 2.5 per cent compared to last October, and are broadly in-line with last years figures to date.
“Queensland and WA recorded slight improvements, up around 1pc each for the month. WA a healthy 8pc up on last year, and Queensland still trailing, down 3.5pc year to date,” he said.
“Victorian sales continue to track last year whilst the bumper years in Tasmania, up 8pc, South Australia, up 10%) and Northern Territory (up 8%) round out the story.
“NSW are having a difficult time, the month was down another 13pc and now sits 8pc behind last year.”
Mr Northover said the 75 to 150 kilowatt (100 to 200 horsepower) range of tractors, performed strongly, with sales up 14pc for the month and 8pc up on last year.
“This segment, normally associated with row cropping has been strong for some time now and reflects the healthy state of our vegetable, horticulture and viticulture segments nationwide,” he said.
He said the range above 150kW (200hp) was up 26pc, mainly due to end of financial year deliveries.
“These tractors tend to be most closely associated with broadacre farming and we are beginning to see signs of abatement in the demand for large tractors due not only to the climatic conditions but also in response to the ongoing consolidation being seen in large broadacre operations,” he said.
“Ultimately, owners of this size range demand an adequate return on their investment and we expect to see greater emphasis on machine utilisation before the next buying cycle resumes.”
Mr Northover said activity in the smaller size ranges was reasonably hard hit.
“This segment, which contains the leisure market appears to track domestic economic sentiment in many ways and we believe that a measure of caution is now being applied in response to such things as the Banking Royal Commission, share market volatility and the pending election cycle,” he said.
Mr Northover said header sales were back, with only 233 delivered in October, while balers were recovering.
“The expectation is that this will be about as good as it gets for harvesters this year as suppliers begin to look towards sales programs for 2019,” he said.
“Baler sales have made a recovery off what was a cyclical low and are now 13pc up on last year.
“Once again out-front-mowers were slow, down 27pc for the month and now 14pc behind last year.”
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