The value of yearly new tractor sales in Australia remains above $2 billion, despite the number of units sold coming back in 2023. The results were reported in the Tractor and Machinery Association of Australia’s annual State of The Industry Report, which delves into tractor and machinery sales at a granular level.
There were 13,344 tractors delivered across the nation last year, worth an estimated $2.1bn. This was a 25 per cent unit decrease on 2022 but only 7pc behind the national five-year average. Overall, the value of new units lifted by 1.8pc, which was predominantly driven by the sales of lesser horsepower vehicles decreasing.
Across the agricultural machinery market, turnover reached $5.9b last year, with greater harvester sales helping offset lower tractor numbers. There were 1061 combine units sold, which was 29pc up on the five year average. The overall value of combine harvesters and headers was $1.17bn. This was driven by a 110pc increase in class 10 combine units sold and 222pc growth in class 10 combine values. Class 8 to 10 combines now account for 88.5pc of all units sold and 90pc of value.
The self-propelled sprayer market grew and was worth an estimated $756m. Tillage and seeding equipment also improved and was valued at an estimated $510.6m.
The total value of balers, hay tools and windrowers reached $246m. This was underpinned by windrower sales, which had a 67pc increase on last year’s value, and baler sales, which were up slightly on 2022. Growth in baler sales was underpinned by large rectangle balers, which had 33pc growth on 2022.
TMA executive director Gary Northover said the report highlighted a return to more ‘normal’ national sales in 2023. “We were coming off the back of two very, very strong years (for machinery sales),” he said.
Buying behaviour also changed in the second half of 2023, due to the federal government’s instant tax write-offs, or temporary full expensing, changing to only applying to equipment priced at $20,000 or less, replacing the former unlimited price arrangement introduced during the COVID-19 pandemic. “Selling 12,000 tractors a year is still a good year,” Mr Northover said. “In those two years of 2021 and 2022 we got close to 20,000 sales (each year). “We think we’ll sell between 11,000 and 12,000 tractors this year. While this is well below the peak, it’s still a healthy year for the industry.”
Exploring how the various states and territories fared in 2023:
Queensland
There were 3222 tractor units sold in 2023, which was 22.8pc down on the previous year, but only 2.7pc back on the five year average.
Tractor sales were valued at $429 million, which was 6.8pc up on 2022 and 27pc higher than the five year average.
The area in Queensland that performed the strongest for year-on-year unit growth rate was Ingham, up 16pc.
Western Australia
There were a number of areas in WA that bucked the national trend of lower sales.
Bindoon in the Midlands reported 57pc growth in unit sales, while in the southern area Corrigin rose 43pc and Kulin 29pc.
Overall, there were 1391 units sold into WA, only 1.7pc down on the five year average.
Values were worth an estimated $379m.
Victoria
The strongest performing areas in Victoria were Warracknabeal, up 42pc, and Boort, rising 18pc. Overall, the state recorded sales of 3018 units, down 29.9pc on 2022 and lowering 17.4pc on the five year average.
Sales were valued at $417m, down 10.5pc on 2022.
New South Wales
NSW was the state with the highest overall sales at 3979 units. This was 26.4pc down on 2022 and 7.7pc back on the five year average.
Sales were valued at $672m.
The best performing areas were Forbes with 15pc growth year-on-year, Narrandera rising 8pc and Gunnedah up 6pc.
South Australia
The state performed relatively strongly for 2023 sales.
Saddleworth in the Mid North had significant year-on-year unit growth, up 60pc. This was followed by Kadina on the Yorke Peninsula, rising 49pc. The Eyre Peninsula also had spots with good growth, with the Tumby Bay area rising 35pc and Wudinna 40pc.
Overall, there were 1116 units sold, down 5.7pc on the five year average.
Tasmania
The value of tractor sales in Tasmania in 2023 was estimated at $54m.
There were 493 units sold, down 21.7pc on 2022.
Northern Territory
A much smaller market than the rest of Australia, only 125 units were moved in the Northern Territory in 2023.
The State of The Industry report is produced by global leader in data and analytics Kynetec.
April 2024 report
National tractor sales in the month of April were 12pc behind the same month last year with about 850 units delivered across the nation.
Queensland was down 13pc against the same month last year, to be 18pc behind year to date. NSW was down 22pc and is now 28pc behind for the year and Victoria was up slightly, 3pc, to be 18pc below last year.
Western Australia reported a small rise in April of 1pc, to be in line with the same time last year.
South Australia had another big drop down, 18pc, and is now down 24pc year to date.
Tasmania was off 42pc for the month with sales in the NT finishing 30pc down.
Sales of the 200hp (150kw)-plus range were the best with a 1pc rise on the same month last year, up 32pc year to date. The small under 40hp (30kw) category was down by 3pc for the month to be 28pc behind year to date. The 40 to 100hp (30-75kw) range was down 32pc and is now behind 35pc year to date. The 100 to 200hp (75-150 kw) category was down 6pc, to be 21pc off for the year.
“This mix of sales means that, whilst in volume terms the market is down on the same time last year, in dollar terms it is in fact up 14pc,” Mr Northover said.
“This highlights the approach many larger farmers take with their fleet replenishment strategies. Many machines are now being sold on three or five year leases, which are programmed into customers’ capital cycle so even though the agricultural market may experience some gyrations, we are seeing a more stable outcome when it comes to larger machinery purchases.”
