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17 SEPTEMBER 1999 ------------------------- TRACTORS DRIVE ON TRACTOR sales in Ireland have been making some healthy strides forward during the past two years. From a low point in 1997, when

2290 units were sold, 1998 saw an increase of 20% to bring the total to 2700. For the first three months of 1999, sales are showing yet another 20% increase. Pinning down the precise

reasons for these increases is not immediately obvious. Low prices for beef, lamb, and pork have been prevalent and cereal returns have suffered from poor harvesting conditions – not

conditions conducive to wild investment in new machinery. Crops which have shown reasonable returns, albeit erratically this year, have been potatoes and, to a lesser extent sugar beet. But

the comparative success of these two crops alone cannot explain the continued increase in the sales of tractors and certain other sectors of the machinery market. For the solution, or at

least, part solution, we must look to the UK tractor market which has been depressed to the point that the second hand market for tractors has all but dried up. Used tackle shortage Ireland

has traditionally been a keen buyer of used tractors and, it is widely believed, a shortage in this department has helped to promote new sales in the province. Continuing low interest rates

have also clearly encouraged growers to buy new machinery. A country renowned for its ability to grow grass, sales of mowers, balers and forage harvesting equipment represent an important

part of the machinery business over all. Silage operations are fast becoming the domain of the contractor with this sector now involved in making some 95% of Irelands silage. As a result,

sales of smaller mowers have declined slightly yet the market for round balers and bale wrappers have remained steady at about 500 and 350 units per year, respectively. Increased contractor

activity – due in part to the shortage of labour in the agriculture sector – has resulted in the introduction of more powerful tractors far beyond the countrys 80-90hp average. And along

with them have arrived larger sprayers, fertiliser spreaders, ploughs and other cultivation equipment. It is estimated that contractors are now responsible for up to 80% of Irelands

machinery sales. Overall, Irelands agricultural machinery market borders on the reasonable. Clearly affected by market forces it is perhaps fairing better than might be expected. &#42