Sales dip for broadacre but up for hay

Tractor and Machinery Association July report

Machinery
Tractor and Machinery Association executive director Gary Northover

Tractor and Machinery Association executive director Gary Northover

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Tractor and Machinery Association July report

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Tractor and Machinery Association executive director Gary Northover has described the first financial year month of agricultural equipment as downbeat.

This comes as no surprise to attendees of the TMA's annual conference, held in Melbourne last month.

"The general mood in the group was one of caution with regard to the sales outlook with each new month bringing a whole new set of surprises," Mr Northover said.

"Indeed this was reflected in July sales where we saw a sharp drop as it becomes clear that sales were generally brought forward in June to coincide with the end of the financial year thus leaving a gap in demand for the start of the new year."

Mr Northover said said the conference was strongly attended by manufacturers, dealers and affiliates from across Australia.

"Delegates were treated to a range of presentations centred around the theme "Know Your Customer" in an effort to sharpen the focus on the needs of tomorrow's customer," he said.

Speaking to the July machinery sales figures, Mr Northover said overall tractor sales were down 17 per cent on the same month last year and behind 11 per cent on calendar year to date.

"Falls were felt in all size categories with the larger end copping the brunt," he said.

"Sales in the 200 horsepower (150 kilowatt) and above range were down substantially, 24pc behind for the month.

"The 100 to 200hp (75-150kW) segment also suffered a big drop down 18pc for the month, remaining 14pc behind last year.

"The 40 to 100hp (30-75kW) range was also down, and it was a similar story in the lower under 40hp (30kW) range."

Mr Northover said unsurprisingly it was NSW experiencing the greatest drop, with sales now back 21pc on last year, following a 31pc drop in July.

"Queensland is showing modest signs of recovery, only 3pc behind for July and now 6pc behind last year. Victoria had a particularly down month 24pc behind and are now 9pc behind on a full year basis.

"South Australian sales continue to lag noticeably, another 30pc drop in July sees them now 20pc behind YTD."

Mr Northover said Western Australia was powering along.

"Out in the West business continues to flourish with a solid July up 7pc now puts them 10pc ahead of last year," he said.

"Lastly Tasmanian sales are having a good year, up 24pc in July and now 9pc ahead YTD and sales in the NT dropped 10pc for the month now 3pc behind last year."

Mr Northover said harvester sales continued to decline due to conditions in northern NSW.

"Full year estimates remain in the range of 550 units to occur. This is down from the mid 800's level of the past few years." he said.

"Baler sales continue to perform well as the demand for hay is still strong."

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