Rain needed to freshen SA tractor sales

National tractor sales, currently 5,7% down compared to last year, will likely remain depressed if the rains don’t arrive soon in the dry western parts of South Africa’s grain production regions, said Jaco du Preez, national sales manager for New Holland Agriculture.

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The SA Agricultural Machinery Association (SAAMA) reported that October 2013 tractor sales of 935 units were 7,3% down on the 1 009 units sold nationally in October 2012. However, while last month’s combine harvester sales of 33 units were 2,9% down on the 34 units sold in October 2012, year-to-date October 2013 sales of 333 units were 5% up on the 317 units sold last year.

“Fairly widespread rain fell in the eastern parts of the country during October and this enabled many farmers to plant their summer crops,” said SAAMA chairperson Callie Human. “Most of the western parts of the country are still very dry and farmers need significant rainfall before they can begin planting in these areas.”

Du Preez explained that as most agricultural machinery was imported, prices would likely keep increasing into the new year as the rand remained weaker against major foreign currencies.

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“Current industry predictions are that tractor sales in the 2013 calendar year will be in the order of 7 500 units, 5% down on 2012 sales,” said SAAMA’s Dr Jim Rankin.