DROUGHT continues to hit the agricultural machinery market hard, with sales figures in eastern states indicating the checkbooks are remaining in farmers pockets, whether it be for the purchase of a header or a lawnmower.
Tractor and Machinery Association (TMA) executive director Gary Northover said sales of agricultural equipment were predominately pulled down by the eastern states.
“Tractor Sales in NSW in particular were particularly impacted, down 25 per cent on last month,” he said.
Queensland’s drop was less dramatic but still negative, falling 1pc this month and ending 2pc behind on year to date.
Mr Northover said Victoria was back compared to July figures, but remained in line with last year. The picture elsewhere in the country was starkly different.
“Sales in West Australia were again strong, up 10pc on last month and remaining 10pc ahead year to date, while business is booming in South Australia, up 14pc for the month and now up 11pc for the year.”
Mr Northover said when the data was broken down by tractor categories, it was obvious both ends of the scale, small and large were suffering the most.
“The commonly held view appears to be that we may have reached a bit of a saturation point when it comes to the large end of the range,” he said.
“And the smaller tractors, long dominated by the leisure market, may also be experiencing a pause after running hot for so long.”
Mr Northover said the full picture would unfold in the coming weeks.
“Drought combined with a bag of economic forces including exchange rate, interest rates and improving overseas demand are all set to have an impact.”
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