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 Machinery sales upturn gains momentum 

Machinery sales upturn gains momentum

25/03/2008 5:37:00 PM
The unprecedented demand for farm machinery has been verified by the men and women at the coal face when it comes to supplying farmers with their mechanisation needs, the dealers.

Backed by the latest figures from the national Tractor and Machinery Association of Australia, on behalf of the manufacturers, the message is the same - order as early as possible to avoid disappointment.

There’s many a reason to dust off the cheque books but the ongoing swing to biofuels production in the US remains the principal cause of looming supply shortages.

The manufacturing plants of the main line machinery manufacturers are at, or near, full-capacity as they ramp of production to meet the insatiable demands posed by that nation's ethanol industry.

Suddenly, farmers have money in their pockets and the move to replenish old equipment shows no signs of slowing. Australian trends are mirroring overseas developments but for different reasons.

The drought may be retreating, after a punishing run of seasons, plus commodity price rises that see wheat at $400/t plus, and sorghum prices at better levels too, look to be the primary drivers.

On the downside, however, fertiliser and chemical prices have more than doubled during the course of the last year, plus fuel prices have quadrupled since 2003.

Leading Queensland farm machinery dealers the David Evans Group has been closely tracking the upturn in the fortunes of the state's farm machinery industry.

Spokesman Chris Skillington says there’s ‘a fair bit of confidence’ in the air.

You can listen to his comments in the attached video.

Meanwhile, long-term Case IH dealer, Agnorth's principal, John Ferguson (pictured), Ayr, North Queensland, late last month said local business had been quiet in the aftermath of recent dumping rains.

That said, the business has managed to sell a couple of giant cane harvesters and, courtesy of taking on the Agco franchise a year or so ago, also has just sold a powerful Challenger tracked tractor.

"So we can't complain and weíd be doing better than last year," he said.

On the back of the recent rains, the busy dealership also said it also had been receiving quotes on small tractors for hay making and general station work - from graziers out west.

SOURCE: Extract from Queensland Country Life machinery annual, published March 27.

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Case IH dealers Agnorth's principal, John Ferguson, Ayr, Qld.
Case IH dealers Agnorth's principal, John Ferguson, Ayr, Qld.
25/03/2008 | The unprecedented demand for farm machinery has been verified by the men and women at the coal face when it comes to supplying farmers with their mechanisation needs, the dealers.

30/06/2008 | A series of polls conducted around the country last week have pointed to dangerous times ahead for Labor's grip on power in all States and Territories.
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