Article
outh Africa’s agricultural machinery industry experienced a rough start of the year with tractor and harvester sales down by 26% y/y and 50% y/y in January 2019
Published: 02/07/2019
While we didn’t anticipate the magnitude of a decline in sales, the trend is not surprising as some farmers made notable purchases of equipment in the past few months, and also the fact that the 2018/19 summer crop production season has not been favourable due to dryness in the western parts of the country. In the near term, we don’t expect any recovery in sales as production prospects remain bleak for major summer grains and oilseeds.
While we didn’t anticipate the magnitude of a decline in sales, the trend is not surprising as some farmers made notable purchases of equipment in the past few months, and also the fact that the 2018/19 summer crop production season has not been favourable due to dryness in the western parts of the country. In the near term, we don’t expect any recovery in sales as production prospects remain bleak for major summer grains and oilseeds.