The South African Agricultural Machinery Association (SAAMA) reported that year-to-date, tractor sales decreased by roughly 15% for the corresponding period 2015.
Moreover, the August combine harvester sales of six units were significantly down on the 15 units sold in August last year. Year-to-date, combine harvester sales are approximately 14% less than the corresponding period last year.
Lucas Groenewald, chairperson of SAAMA, said that local and international weather services have announced that the El Niño weather phenomenon has transformed into a weak La Niña, which should result in more favourable prospects for normal summer rains.
“However, the legacy of the poor rainfall conditions in recent years will not be quickly resolved and the market is still going to face difficult times in the short term. Weather conditions and, to a lesser extent, the exchange rate will be the main drivers for the rest of 2016,” he said.
“The industry is still selling equipment at a normal rate as it is a very competitive market. Although market sentiment is still positive, farmers in the summer cropping regions are now cautiously awaiting the onset of the summer rainfall season,” he added.
Industry expectations are that tractor sales for 2016 will be between 15% and 20% lower than total tractor sales for 2015.
