TRACTOR sales have eased slightly for the first quarter but machinery dealers remain upbeat about the prospects of the market.
The latest tractor sales figures from Agriview show 2334 tractors were delivered in Australia for the first quarter, down 3 per cent on the same period last year.
Agriview managing director Alan Kirsten said while demand for new tractors had been subdued since February, retailers were not nervous.
"The mood from machinery dealers is quite positive," Alan said.
"Don't forget 2009 was a record year for tractor sales and you can't expect to come off a 50 per cent investment allowance without a slight easing of sales," Alan said.
The dealer sentiment has been reiterated at many field days this year where interest in large-ticket items such as high horsepower tractors and combine harvesters was low.
In contrast, interest and demand for smaller machinery such as slashers has been good.
Demand for second-hand machinery has also been steady, which is helping dealers' cashflow.
"There is plenty of second-hand stock moving at the moment and dealers have reported good demand for late-model second-hand tractors," Alan said.
Victoria has proved a standout in first quarter tractor sales, posting a 9 per cent rise compared with the first quarter of 2009.
The 545 tractors delivered in Victoria for January to March was 45 more than the same time last year.
Alan said most new sales were for tractors of more than 60kW engine power.
"Victorian tractor sales were a pleasant surprise," Alan said.
"For example, in the Mallee-Loddon region, sales were up 26 per cent for the first quarter and most of those sales were for tractors under 30kW or tractors above 120kW."
Victorian tractor sales for the quarter equate to about $48 million.
A poor 2009-10 crop harvest has been reflected in a flat market for combine harvesters where deliveries of new machines were down 55 per cent on the first quarter last year.
Sales of quad bikes have also slowed.
According to the latest Federal Chamber of Automotive Industries statistics, quad bike sales were down almost 12 per cent for the first quarter to 3363.
