Tractor sales drop in February due to supply challenges

Tractor and Machinery Association of Australia executive director Gary Northover said sales across the nation were down in February by 13 per cent compared to the same month last year.

Mr Northover said this dip was due to the ongoing supply challenges the machinery industry was facing.

"As I've 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," he said.

"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 in NSW were down 3pc for the month and are sitting 2pc behind last year.

Queensland was down 5pc for the month to finish 1pc behind year-to-date, while Victoria was down 20pc for the month and 9pc YTD.

Western Australia recorded a drop of 35pc for the month to land 32pc behind for the YTD, while South Australia dropped 5pc.

Sales in Tasmania were down 22pc and sales in the Northern Territory dropped 46pc.

In the breakdown of performance reporting categories, the small under 30kw (40hp) category was down 9pc to be 3pc below YTD.

Mr Northover said the 30 to 75kw (40 to 100hp) range was the only bright spot, up 6pc for the month to remain 6pc ahead YTD.

The 75 to 150kw (100 to 200hp) category was down 18pc.

The large 150kw (200hp) plus range was down by 34pc compared to the same month last year and was sitting 38pc behind for the YTD.

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Mr Northover said dealers were reporting strong interest in harvester sales, with supply being the only potential issue preventing another good year in this category.

Baler sales were down 33pc in February and sales of out-front mowers finished down 26pc for the month.

Mr Northover said demand for agricultural machines is 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," he said.

"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."

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