Australian machinery dealers have reported strong tractor sales in May, with the national average for the month up 12 per cent year-on-year.
Tractor and Machinery Association of Australia executive director Gary Northover said the result was largely due to the improvements in larger tractor deliveries, following a number of months of poor supply.
Mr Northover said dealers were reporting plentiful order books but continued to struggle with 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," he said.
Tractor sales are sitting 6pc behind for the year-to-date, with just one month remaining in this financial year.
NSW sales increased 10pc after several months of reduced sales and are now 9pc behind 2021 figures.
Queensland was up 16pc and is sitting 3pc ahead for the year-to-date.
Victoria was up 14pc and is in line with last year's figures, which Mr Northover said was mainly due to the supply of small horsepower units.
In Western Australia sales recorded a big increase thanks to the arrival of large horsepower machines, up 26pc for the month but sitting 18pc behind for the year-to-date.
Sales in South Australia fell 14pc, while figures in Tasmania and the Northern Territory increased 17pc and 89pc, respectively.
Mr Northover said the underlying demand for agricultural machines remained very strong, not just locally but worldwide.
"Price rises are continuing and it would seem that many of these appear to be baked in, most notably relating to shipping costs," he said.
"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."
The under 30 kilowatt (40hp) range was up 14pc to finish 1pc ahead for the year-to-date.
Sales in the 30 to 75kw (40 to 100hp) category increased 11pc for the month and are head 4pc for the year-to-date.
In the 75 to 150kw (100 to 200hp) range sales increased for the first month in some time, up 6pc on May 2021 and finishing 10pc behind for the year-to-date.
After suffering from a lack of supply, Mr Northover said sales in the 150kw (200hp) plus range increased 27pc month-on-month but remain 25pc behind for the year-to-date.
Mr Northover said harvester sales have commenced and there was every expectation of another 1000 plus year as the renewal of drought-depleted fleets continued.
With the hay season yet to kick off, baler sales remained subdued and were down 20pc year-on-year. Sales of out-front mowers were down 24pc.
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