Changes mooted for machinery network

And according to Tractor and Machinery Association (TMA) executive director Richard Lewis, the change should place machinery dealers in a strong position.

"Twenty years ago there were 2000 agriculture machinery outlets in Australia and today there are 659," Mr Lewis said. "The total group outlets (more than one branch) are 334 while the sole dealership outlet is 325.

"Farmers and suppliers are looking for specialised service and as demand increases, groups also will increase but there will still be space for single outlet dealers offering good service.

"This year we'll probably see between 12 and 15 dealer acquisitions with half of those foreign-owned but there is a barrier to entry of new players, who manufacture products in China and India, for example.

"There just isn't enough dealership outlets to accommodate new business.

"This also means existing players like short-line suppliers will have to change the way they go to market.

"And dealerships hold all the cards in the small distribution network we have in Australia."

Commenting on machinery sales, Mr Lewis said it was obvious in WA there was an over-supply of used combine harvesters.

"But I don't think it's too great a worry because it's a cyclical thing," he said. "New combine sales are down throughout Australia and the 12 months to June figure is 697 sold.

"That compares with the 2013 figure of 1002.

"Interestingly in WA, the new Claas 9 headers are now accounting for 25 per cent of sales.

"The tough task for dealers will be to move the trades to make way for new sales later in the year."

Mr Lewis said the tractor market in WA was stable with an upward sales movement in models rating 150kW (200hp) and above.

"Nationally tractors sales are on par with previous years and hopefully hitting the 10,000 sales mark will become a regular occurrence.

"Year-to-date figures put sales at 4924 units with WA's figure at 578."

The stand-out this year was hay equipment with a national record of 5380 units sold in the June to June period.

"An unseasonably warm yet wet autumn has contributed to the sales of mowers and slashers," Mr Lewis said. "Hopefully this will translate to baler and rake sales later in the year.

"It's up from a very low base but it's a good positive," Mr Lewis said.