SAAMA Press Release – July 2016

July 2016:  Tractor and Combine Harvester Sales

Retail sales of agricultural equipment during July 2016 were as follows:

Equipment Category Unit Sales Percentage change, % Unit Sales Percentage change, %
July – Month July – Year-to-date
2016 2015 2016 2015
Tractors 451 665 -32.2 3 403 3 973 -14.3
Combine Harvesters 14 12 16.7 132 146 -9.6

July tractor sales of 451 units were 32% down on the 665 units sold in July last year.   On a year-to-date basis tractor sales are approximately 14% down on those for the same period of the previous year.   July combine harvester sales of 14 units were two units more than the 12 units sold in July last year.   On a year-to-date basis combine harvester sales are approximately 10% down on last year.

Market sentiment still remains positive.   However, with the maize harvesting having been delayed in some areas, farmers are still waiting to see what their crops will yield.   The late rains, particularly in the east of the summer rainfall areas, will have helped a lot with winter wheat and the upcoming summer crops.   Nevertheless, it is likely that the market will continue to be depressed for the next month or two.   Thereafter, the market will be driven mainly by weather conditions as they develop in the summer cropping areas.

Industry expectations are still that 2016 tractor sales will be down on last year, perhaps by between 15 to 20%.

Lucas Groenewald
Chairman: South African Agricultural Machinery Association

Contact: Mr. Lucas Groenewald (082) 804-8463 or Dr. Jim Rankin (011) 453-7249