Red-hot agriculture machinery market – Farm Weekly


NEW and second-hand agricultural equipment gross sales are anticipated to prime $4 billion for The primary time nationwidely this yr, with a doc first half-yr of tractor gross sales in WA contributing.

However inventory scarcitys and supply delays out to 12-18 months from overseas “supply factories” are limiting mix harvester and hay gear gross sales quantitys and worth in WA, Based mostly on Alan Kirsten, managing director of agricultural equipment gross sales market evaluation agency Agriview Pty Ltd.

Presenting remotely from Melbourne, Mr Kirsten gave an enterprise efficiency overview final Friday to Greater than 40 agricultural equipment sellers, restoreers and constructors On the Farm Machinery and Industry Affiliation (FM&IA) of WA convention – returning this yr after a COVID-19 imposed recess final yr.

“In greenagain phrases, we have been shut toly a $4 billion enterprise final yr And that is distinctive (given COVID-19’s influence on worldwide current chains and delivery),” Mr Kirsten said.

“By The prime of this yr It is going to be a $4b enterprise And there is extra To return.

“What actually staggers me is that it is simply 373 companies placing by way of $4b worth of equipment gross sales.

“That in itself Goes To current its personal differ of factors – not proper now, but in three To 5 yrs’ time As quickly as we now Want to assist And restore the gear That is going by way of now.

“We will not discover enough technicians and whereas we (supplier networks) Might be addressing this problem ourselves, it Does not Appear to be taken critically by governments.

“We’d like A lot of employment and To draw people to our enterprise, as a Outcome of assisting the gear going forward Goes to be the problem.

“From the statistics it Is apparent 2020 was a stand out yr at a nationwide (gross sales) diploma and 2021 is heading The identical method.”

Mr Kirsten informed the convention The latest quarterly survey of 80-100 equipment sellers, Agriview carried out for the Tractor and Machinery Affiliation, conagencyed 68 per cent deliberate To enhance their workforce and 17.4pc of them thought their turnover would enhance Inside The subsequent six months.

“In the meantime everyone is in The identical state of affairs, They will promote no matter They will get from the factories – it’s good occasions,” he said.

“Order books are full and There Is not any signal of a decline in gross sales, but market share is being decided by what You will Have The power to bodily Pay money for On the second.”

Some sellers have been being hindered by current scarcitys Greater than others and digital elements and implement tyres have been two of the troublesome-to-acquire gadgets primarytaining again potential gross sales in some market parts.

Mr Kirsten said regardless of supply delays, demand reprimaryed Fantastic throughout the agriculture equipment sector and was anticipated To primarytain by way of into subsequent yr.

However he said “current catch up” Might be obscuring market trfinishs and it was More probably to be 2023 earlier than they have been clearly uncovered.

“I might anticipate by 2023 the (gross sales) quantitys will Start to Decelerate – They are not going to fall off a cliff, but They will sluggish,” Mr Kirsten predicted.

He said nationwide tractor gross sales Inside The primary six months of this yr have been up 31pc yr-on-yr by quantity – 6987 models As in contrast with 9150 – and up 46pc in worth, from $810 million to $1.18b.

“We have simply accomplished tabulating the figures for July They typically’re up An further 20pc, so We’re As a lot Since the 7500 (models purchased) mark after seven months,” he said.

“On a rolling 12-month basis, nationwide tractor gross sales stand at 15,802 models.

“(By The prime of the yr) Which Might Even be shut toly 19,000 tractors and, For As prolonged as I even have been Inside the stats recreation, we’ve by no means acquired shut to that diploma.

“The final time we acquired Near that was in 2007.”

National mix harvester gross sales have been up 15pc to 154 (134) and on a rolling 12 months basis stand at 692 models.

Mr Kirsten said based on harvest predictions throughout the nation, mix demand and demand for parts for them are More probably to spike in September, October and November.

“It (WA’s predicted bin-burster harvest) Goes to be very heavy again finish, so everyone Might be very bullish about mix gross sales this yr,” he said.

“Some are saying They might go to Greater than 1000 And we’ve not carried out that For A very Very prolonged time.”

National baler and hay devices gross sales eased 18pc – Right dpersonal to 198 (242) Inside The primary six months – and on a rolling 12-month basis stand at 1251 models.

“That is simply current scarcity, There’s not a scarcity of demand,” Mr Kirsten defined.

“Even on regionally-made stuff There is a ready itemizing as a Outcome of producers Can’t get supplies and these figures are on delivered models.”

In The primary half of this yr in WA tractors gross sales have been at doc levels, up 34pc yr-on-yr in quantity to 882 (659) and up 47pc in worth to $197.1m ($134.1m), he said.

On a rolling 12-month basis tractor gross sales are 22pc up at 1407 models – furtherly a doc Outcome.

In that market half, gross sales of tractors rated at beneath 60 horsepower have been up 43pc to 230 (161 Inside the corresponding six months final yr) and over 60hp gross sales have been up 31pc to 652 (498).

On a rolling 12-month basis to The prime of June, beneath 60hp tractor gross sales have been up 34pc to 474 (353) and over 60hp up 17pc to 933 (798).

The Most very important gross sales enhance – to 324 models (218) – Inside the 2020-21 monetary yr was in 200hp plus tractors which look like setting a gross sales doc this yr, Mr Kirsten said.

“Way of life tractors”, As a lot as 60hp and the largest market sector by quantity, are furtherly heading for a doc, he said.

First-half WA mix harvester gross sales have been dpersonal 79pc to 10 (48) and on a rolling 12-month basis have been dpersonal 45pc at 147 (266) on the corresponding interval – The backside quantity purchased Prior to now 9 monetary yrs..

“That (gross sales decline) was Merely as a Outcome of we Might not get them,” Mr Kirsten said.

“We cleaned them out final yr – that’s why these figures are dpersonal.

“The first half Result’s The backside since 2014 and the 12-month rolling Result’s The backside since 2011, but Which will change by The prime of the yr.”

Baler gross sales have been dpersonal 70pc – six As in contrast with 20 Inside The primary six months final yr – but on a rolling 12-month basis have been up 10pc to 124 models, with demand Once again outstripping current.

Complete WA baler gross sales of 124 models in 2020-21 was The very biggest Prior to now 9 monetary yrs, with annual gross sales trfinishing up for the previous six yrs.

Spherical balers have been Hottest, with 64 models purchased And huge squares balers second Hottest, with 48 purchased in A unbroken rising trfinish.

Last yr, nationwide tractor gross sales primeped 10,000 for the Tenth consecutive yr and the 23.6pc gross sales enhance, to 13,639 models, was The very biggest yr-on-yr enhance since 1989.

Mr Kirsten described 2020 as an “distinctive yr” for tractor gross sales.

National mix gross sales rebounded 25pc to 672 models and baler gross sales have been The very biggest since 1981, at 1295, a 37pc enhance on the earlier yr.

Completely different hay devices gross sales have been up 39pc To solely beneath 3000 models, which was The very biggest diploma since Agriview started amassing information on that market half in 2009.

Complete worth of nationwide agriculture equipment gross sales final yr was $3.8b, As in contrast with $3.1b in 2019.

Tractor gross sales generated $1.4b ($1.3b) and have been up 9pc, mix harvester gross sales $439.9m ($359.3m), up 22pc, balers, hay devices and windrower gross sales $335.7m ($241.3m), up 39pc and self-propelled sprayer gross sales $450m ($334.4m), up 35pc yr on yr.

Sales of “other agriculture gear” generated most income at $785m ($575m), An enhance final yr of 37pc.

In WA final yr, tractor gross sales enhanced 1pc to 1185 models, whereas mix harvester gross sales declined 26pc to 185.

Last yr WA baler gross sales have been The very biggest since 2007, up by 31pc to 138 models.

Sphericals baler gross sales have been up 17pc to 74, huge squares balers have been up 56pc to 50 purchased and solely 14 small squares balers have been purchased, Just Just like the earlier yr.

Completely different hay devices gross sales have been The very biggest on doc, up 43pc to 260 models.

Complete worth of agricultural equipment gross sales in WA final yr primeped $352.4m ($449.1m), with tractor gross sales worth Right dpersonal to $198.3m ($252m), regardless of a small enhance in quantity purchased.

Combine harvester gross sales generated $123.9m ($175.8m), whereas balers, hay devices and windrower gross sales generated $30.2m ($21.3m) – The one half To enhance gross sales worth final yr.

“WA was out of step with The Reprimaryder of the nation final yr, but I really feel you’ll Get back into step this yr, having seemed On The outcomes for The primary half of the yr,” Mr Kirsten said.


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