Farmer's Weekly (South Africa)
Tractor and combine harvester sales normalise
Tractor and combine harvester sales continued their downward trend in July. The number of tractors sold during the month decreased by roughly 15% from 660 units to 563, with the year-on-year (y/y) sales declining by 25% from 4 715 units to 3 499. This was according to the latest South African Agricultural Machinery Association (SAAMA) statistics.
Eight combine harvesters were sold in July, down 75% from the 32 units sold in the same month in 2023. Yearon-year combine harvester sales fell by more than 63% from 359 units to 132.
Willie Human, chairperson of SAAMA, ascribed the decline in sales to the normalising of the market at much lower levels than were experienced over the past few seasons. “Industry expectations are that tractor sales will be 20% to 25% down on last year,” he said.
Wandile Sihlobo, chief economist at Agbiz, said the persistent decline in sales since the start of the year was unsurprising and aligned with expectations.
“Sales of the past few years were driven by years of ample grain and oilseed harvest that coincided with high commodity prices and boosted farm income. This year, however, midsummer drought resulted in a 21% y/y decline in the summer grain and oilseed harvest, with high interest rates adding pressure on farmers’ finances.”
He pointed out that 2022 tractor sales amounted to 9 181 units, which was 17% higher than the previous year, and the highest annual sales figure of the past 40 years.
Combine harvesters also had an excellent performance in 2022, with sales increasing by 38% y/y to 373 units, the highest since 1985. –