Tractor sales drop 17.8% to 478 units in January
South African Agricultural Machinery Association says for the whole of 2016 sales fell by 11.3% to 5,855 units as drought caused uncertainty about crop yields
Tractor sales fell 17.8% year on year in January to 478 units after surging 27.8% in December to 349 units. For the whole of 2016 sales fell 11.3% to 5,855 units, according to the South African Agricultural Machinery Association (Saama). Tractor sales were hurt in 2016 due to uncertainty about crop yields and exchange rates, whether the weather had transitioned from a dry El Niño global cycle to a wet La Niña cycle, land restitution issues and farm worker shares in farms. In 2017, maize farmers now have to face a new pest as the Agricultural Research Council, Plant Protection Research Institute has confirmed that the fall armyworm was positively identified from samples collected in Limpopo. "The lower tractor sales [in 2016] reflect a high degree of caution in the market. Many farmers do not yet have the cash flow, after last year’s drought, to finance the purchase of new tractors. In addition, general rain in February is needed to see the maize crop through to its full potential," ...
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