SAAMA Press Release – August 2016
August 2016: Tractor and Combine Harvester Sales
Retail sales of agricultural equipment during August 2016 were as follows:
|Equipment Category||Unit Sales||Percentage change, %||Unit Sales||Percentage change, %|
|August – Month||August – Year-to-date|
|Tractors||460||589||-21.9||3 863||4 562||-15.3|
August tractor sales of 460 units were 22% down on the 589 units sold in August last year. On a year-to-date basis tractor sales are approximately 15% down on those for the same period of the previous year. August combine harvester sales of six units were significantly down on the 15 units sold in August last year. On a year-to-date basis combine harvester sales are approximately 14% down on last year.
Although market sentiment is still positive, farmers in the summer cropping regions are now cautiously awaiting the onset of the summer rainfall season. Local and international weather services point to the El Niño effect having reversed into a weak La Niña effect. This would mean more favourable prospects for normal summer rains than we have seen for some time. 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.
Industry expectations are still that 2016 tractor sales will be down on last year, perhaps by between 15 to 20%.
Chairman: South African Agricultural Machinery Association
Contact: Mr. Lucas Groenewald (082) 804-8463 or Dr. Jim Rankin (011) 453-7249