RuralScene Issue 6 : ARTICLE 3

Machinery sales triumph over snow, ice, volcanic ash and a weak euro

By Bill Pepper MRICS

Brrrr … that was a cold one! Unfortunately, 2010 finished just as it started - me dressed like “Scott of the Antarctic” and a December auction day featuring sub zero freezing temperatures which tested the most ardent of sale goers and auctioneers alike. With these thoughts in mind, a quick review of the year might just be of interest to one and all, writes Bill Pepper.

The year kicked off disappointingly. With snow affecting many parts of the country, both kit and buyers were in short supply, all of which resulted in one of the worse sales in the 20 or so years I’ve been with Cheffins. February was fortunately much better and indeed proved a record sale for the month. With nearly 400 freshly entered tractors of which 65% sold, trade Europe-wide was more than bullish much to the relief of everyone and it was great to feel ‘back in business’ after the flat and frosty start.

The momentum carried over to March, another record tumbled and this month proved to be the best sale of the year with almost £5 million of kit being sold.. It was at this point that it became quite obvious that Spain was a nation which was emerging as a strong buyer for John Deere tractors. The main flamboyant buyer from this country provided a certain amount of entertainment to all and sundry, particularly vendors, as bidding often far exceeded reserves for the models of desire - fortunately, the Spanish were present at almost all our sales throughout 2010.

May sales hit by volcanic ash

Climatic conditions affected the May auction, this time, bizarrely, ash erupting from an Icelandic volcano. While expectations were high, the combination of the weakening Euro, economic uncertainties in Greece, Spain and Portugal, doubts about the newly formed UK coalition government, the aforementioned dust in the sky AND the age old problem of reserves set too high, all amounted to a lack lustre and frustrating sale.

The summer sales were very much in line with hopes and expectations as a comprehensive selection of tractors, plant and machinery all came under the hammer. Top end tractors were generally fought over by the Spanish, Germans, Dutch and Polish and it was interesting and encouraging to see a couple of the newer entrants into the EU, the Romanians and Bulgarians, beginning to find their feet and purchase some fresher kit.

In the older tractor section, prices most definitely increased as the classic and near classic Massey Ferguson 100, 200, 500 and latterly 600 series all met with sometimes feverish bidders particularly when a fiery mixture of East African, Cypriots and Lebanese were present. Even with many of these models being over 30 years old, the combination of basic usability, availability of spare parts together with good ol’ solid British mechanics, all amounted to a product with outstanding reliability and longevity and certainly the models of choice for emerging agricultural economies.

Trade for Zetor, Belarus, Ursus and the like was dominated, unsurprisingly, by the Polish and demand for these did yo-yo from month to month. Certainly, the more modern, cleaner and mechanically sound examples made the money although the straight from hedgerow ones didn’t and with scrap verging on £200/ton, an unhappy ending was the fate for some of these!

In summary, despite some of the biggest climatic and economic challenges which have beset the sales and, indeed, the UK, 2010 proved a more than acceptable year and we all look forward to New Year with plenty of hopes and opportunities.

A few fact and figures to mull over with a glass of Christmas cheer would include:

Total number of lots offered over the last 12 months: 29,000

Total number of tractors sold over the last 12 months: 3200

Number of countries tractors exported to over the last 12 months: 68

Total gross value sold over the last 12 months: over £41 million