Agricultural machinery sales are anticipated to remain sluggish for the next few months.
The South African Agricultural Machinery Association (SAAMA) reported that the 400 new tractors sold nationwide in April 2016, was 11,1% down on the 450 units sold in April 2016. Year-to-date, the April 2016 new tractor sales of 2 145 units, was 10,4% down on the 2 394 units sold for year-to-date, April 2015.
SAAMA reported that 21 new combine harvesters were sold in April 2016, which was 27,6% lower than the 29 units sold in April 2015. 73 new combine harvesters had been sold nationally for year-to-date April 2016, down 26,3% on the 99 units sold for year-to-date April 2015.
SAAMA’s chairperson, Wynn Dedwith, said that SA’s farmers wanted answers to a number of questions before making purchasing decisions on agricultural machinery.
Dedwith said that these questions included, “What yield are they going to get on their standing crops? What is going to happen to the exchange rate of the rand? What are the weather prospects for next season? What are input costs and financing prospects for the next crop going to be?”
SAAMA’s secretary, Dr Jim Rankin, said that the SA agricultural machinery industry was currently expecting new tractor sales for the 2016 calendar year to be 15% to 20% lower than those of 2015.