Here’s What’s Trending in the Australian Ag Machinery Sector
Following the recent 2024 Tractor and Machinery Association annual conference, held in Melbourne, Kynetec’s Melinda Haley shares key takeaways from her presentation of the Australian tractor, combine and baler industry.
The Australian sales for the first half of 2024 have shown corrective factors after a couple of record years. First half year tractor sales are down 30% on the same time last year, with combine and baler sales being down 50% and 20% respectively.
“The record sales we had seen off the back of the Australian Government’s instant asset write-off scheme are now equalizing. The numbers we are seeing are bringing us back in-line with pre-covid disruptions,” Melinda explains. She continues “When looking at tractor sales, sales of 200+ horsepower were least impacted, which relates to the location of larger grain farms, particularly in WA. This state has been less volatile than the eastern states in recent years, so less correction would be expected.”
Melinda also presented the results from the Tractor and Machinery Association’s triannual dealer sentiment survey run by Kynetec. She reported that, not surprisingly, dealer sentiment leans towards a decreased satisfaction in levels of turnover, which aligns with an increase in both new and used machinery inventory.
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In addition, a farmer pulse sentiment survey conducted by Kynetec one week prior to the conference revealed that machinery sales are not expected to pick in the short term.
Melinda concluded, “Farm Management Deposit scheme values to the end of June 2024 indicate that the economic health of all industries across the board is not something to be concerned about. Farmers’ economic outlook from our pulse survey showed a trend towards improved conditions. This is reinforced by the current climatic forecast which suggests good chances of an average finish to the cropping season, alongside forecasted improvements to farmers terms of trade.”
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