increase font size
Melinda Haley from data analysts Kynetec.
Following a couple of bumper sales years when the rolling year-to-date figure for 2022 hit about 16,250 tractors, it looks like things are changing in the Australian farm machinery landscape.
At the recent 2023 Tractor and Machinery Association of Australia annual conference, Melinda Haley from data analysts Kynetec shared her thoughts on the current challenges being encountered by the tractor, combine and baler industry.
With figures to the end of June 2023 falling by around 16%, Haley suggested that the largest factor is still supply chain issues, with shipping quarantine queues being the most prominent.
“Coming off a strong 2022 sales year, we correctly predicted a slowdown in tractor sales into 2023,” she explained. “It was well known that the record sales that were driven by the perfect storm of positive climate, commodity prices and the boosted instant tax write off scheme were not sustainable over the longer term.”
Haley added that the sector was now facing some head winds – namely higher land prices, average commodity prices and lower crop yields; coupled with high agricultural lending, increasing interest rates and the end of the increased instant asset write off scheme.
“Land prices in the central wheat belt are up between 165-168% in the last five years, interest rates have increased while grain prices have settled to 2020 levels. Certainly, these are challenging times when looked at in snapshot, but not unexpected,” she said.
Year to date (YTD), sales of new tractors in the up to 60hp and over 60hp categories are down by 15% and 17% respectively after the busy previous selling period. Baler sales were down 32% on the rolling 12 months, while combines bucked the trend, up by an impressive 78% YTD – with sales increases seen in all states other than NSW. Haley also provided an overview of the Australian farm machinery distribution network, noting that single business outlets had dropped 5%, from 269 to 256. Meanwhile, group business outlets climbed 4% from 394 to 408 – with the total number of outlets remaining static.
“Australian farmers are also experiencing slightly drier conditions than this time last year, with approximately 65% in average conditions or better, however a dry finish is expected,” she concluded.
Having already hit the headlines for recycling broken 2.4 metre vineyard posts into 1.8 and 1.6 metre, half and quarter posts for agriculture, Repost recently hit the milestone of one million posts recycled, diverting the CCA treated posts from landfill.
New Zealand-based company Robotics Plus, a specialist in agricultural automation, has announced an agreement for it to be acquired by Yamaha Motor to form Yamaha Agriculture.
Among the regular exhibitors at last month’s South Island Agricultural Field Days, the one that arguably takes the most intensive preparation every time is the PGG Wrightson Seeds site.
Silage making is both a science and an art, but Claas says it offers onboard technology featured in its Claas Perfect Partners to help farmers make silage more efficiently and effectively.
Since Donald Trump’s import tariff announcement, the world has been on a wild economic ride.
New Zealand's TBfree programme has made great progress in reducing the impact of the disease on livestock herds, but there’s still a long way to go, according to Beef+Lamb NZ.
With much of the North Island experiencing drought this summer and climate change projected to bring drier and hotter conditions, securing New Zealand’s freshwater resilience is vital, according to state-owned GNS Science.
OPINION: Otago farmer and NZ First MP Mark Patterson is humble about the role that he’s played in mandating government agencies to use wool wherever possible in new and refurbished buildings.
For Wonky Box co-founder Angus Simms, the decision to open the service to those in rural areas is a personal one.
The golden age of orcharding in West Auckland was recently celebrated at the launch of a book which tells the story of its rise, then retreat in the face of industry change and urban expansion.
Everyone from experienced veterinarians and young professionals to the Wormwise programme and outstanding clinics have been recognised in this year’s New Zealand Veterinary Association (NZVA) awards. As part of a series looking at this year’s rural winners, Leo Argent talked with Ginny Dodunski, winner of the Veterinary Impact Award for raising the profile of the Wormwise programme.
OPINION: The appendage swinging contest between the US and China continues, with China hitting back with a new rate of…
OPINION: The irony of President Trump’s tariff obsession is that the worst damage may be done to his own people.
