THE value of Australia’s agricultural machinery sales in 2022 was $5.6 billion, up 9 percent on the 2021 total, according to the Tractor & Machinery Association’s The State of the Industry 2022 report released this week.
“Strong demand from customer groups combined with the ongoing support provided by the Federal Government’s Temporary Full Expensing program drove the industry to new highs,” TMA executive director Gary Northover said.
Demand for new tractors remained stable, rising just 3pc.
This increase remained constant for the value too, up 3pc on 2021 to hit $2.1B.
“Overall, the growth in units has come through the lifestyle less than 60HP range – increasing by 10.8pc.
“The driver for value growth has come through the 200+ HP range, increasing 6.2pc or $64M.”
The value of combine harvester and header sales increased by around 10pc in 2022, with $1B worth of new machines sold, and on the back of “massive growth” in 2021.
TMA figures show 1145 combine harvesters were sold in 2022 to break the record of recent years of 1081 units set in 2021.
Sales of tillage and seeding machinery also improved, and are estimated to have reached $460M from a “nice steady rise” in both units and value.
Hay and forage equipment sales have continued to decline on the 2021 results, and are
nowhere near the record 2020 sales; sales of balers, hay tools and windrowers totalled
Year-on-year growth in total unit numbers in major grain-growing regions was led by Gawler in South Australia on 88pc, followed by Goondiwindi in Queensland with 58pc, and Nyngan in New South Wales with 48pc.
Victoria’s Swan Hill on 43pc and Ouyen on 42pc, and Western Australia’s Wongan Hills on 44pc and Narrogin on 42pc, where the other notably strong performers.
Further drop in March
Tractor sales slipped again in March, down 10pc on the same month last year, according to the latest TMA monthly sales report also released this week.
This has now led to a year-to-date result which is 19pc behind last year.
“It is now apparent that the combination of relatively high interest rates, increased machinery costs and some availability problems is having a dampening effect on demand.”
“With the Temporary Full Expensing program due to end on June 30, there may be a spurt in sales in the coming months to come as we play a game of wait and see.”
Sales of combine harvesters continue to surprise, with another 28 units sold in March as buyers stock up ahead of harvest season later in the year.
|TRACTOR SALES||Mar 2023 vs Mar 2022||Q1 2023 vs Q1 Mar 2022|
|New South Wales||-16pc||-25pc|
By segment, the small under 30kw category is down 3pc on the month, and Mr Northover said this “leisure” market was particularly sensitive to interest rate rises.
The 30-75kw range was down 12pc on the month and is 21pc behind year to date, and the 75-150kw category dropped 22pc for the month and 26pc year to date.
Sales in the large 150kw plus range jumped 8pc but sit 29pc behind last year.
Mr Northover said while tractor sales figures were down across the board, this was off historically high levels and.
“The much-hoped-for soft landing appears likely; whilst machine numbers are down, the dollar value is a mere 3pc behind last year.
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