Agri machinery sales

The Agbiz Agribusiness Research desk, headed by economist Wandile Sihlobo, offers role players access to relevant and up to date agricultural economic insights. Read latest and previous updates:

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06/10
2019

SA agricultural machinery sales remain subdued

This has not been a good year for South Africa’s agricultural machinery market. Tractor and combine harvester sales have been subdued since January. Nevertheless, this is unsurprising owing to a combination of factors.

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05/07
2019

A further decline in SA agricultural machinery sales

The South African agricultural machinery sales painted a slightly negative picture in April 2019. Tractor sales were down by 6% y/y and combine harvesters down by 21% y/y, both exceeded our expectations of a 3% respective decline.

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03/11
2019

Recovery in agricultural machinery sales speaks to increased plantings

South Africa’s agricultural machinery sales data confirms the Crop Estimates Committee’s view of increased summer grain and oilseed plantings between January and February 2019 in the western parts of the country.

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02/07
2019

South 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

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.

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01/15
2019

SA agricultural machinery sales increased in 2018, but 2019 might show a decline

South Africa’s tractor sales were up by 4% y/y in December 2018, with 434 units sold. This came as a surprise for two reasons. First, a large part of the summer grain and oilseed-growing areas experienced dryness in the months leading to December which led to a delay in planting in the western areas of South Africa. Second, December 2018 had the highest sales figure for this particular month in a dataset starting from 2014, despite the fact that there were already robust sales in the preceding months, totalling 6 246 units, 4% higher than the first 11 months of 2017

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12/11
2018
South Africa’s agricultural machinery sales slow in November 2018
The decline in South Africa’s tractor and combine harvesters sales to 428 and 9 units, respectively, in November 2018 comes as no surprise as most farmers bought some equipment in the past couple of months. This is evident from South Africa’s tractor sales for the first 11 months of this year, which amounted to 6 246 units, up by 4% higher than the corresponding period last year. Over the same period, the combine harvester sales amounted to 194 units, up by a percentage point from the first 11 months of 2017. While the annual uptick in agricultural machinery sales signals the potential for increased production in the sector, especially in the case of tractor sales for the year so far, the drier weather conditions in most parts of the country have stalled planting, and have raised concerns about the 2018/19 grains and oilseeds harvest.
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11/12
2018
SA tractor sales reach highest level since October 2014
October is traditionally a good month for South African tractor sales as summer grain and oilseed farmers are typically preparing for the planting process. This year did not disappoint, the sales reached 817 units, which is highest levels since October 2014. South Africa’s tractor sales for the first 10 months of this year amounted to 5 818 units, which is 9% higher than the corresponding period last year. The combine harvester sales also rebounded to 29 units in October 2018, which is double the previous month’s sales. This was mainly underpinned by the ongoing winter crop harvest process.
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10/11
2018
Solid recovery in South African tractor sales in September 2018
After experiencing a double-digit decline in August 2018 due to delayed harvest, amongst other factors, South Africa tractor sales recovered by 11% y/y in September 2018, with 612 units sold (Figure 1). This somewhat signals farmers’ readiness for the 2018/19 summer crop production season which commenced this month, although planting activity hasn’t progressed much thus far. Broadly speaking, this is an encouraging reading as we continue to monitor the investment path in the South African agricultural sector following a slowdown in the Agribusiness Confidence Index in the third quarter due to continued uncertainty underpinned by the current land policy reform proposal, amongst other issues..
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09/11
2018
South African tractor sales fell by 18% y/y in August 2018
Following a solid positive growth over the past five months, South African tractor sales fell by 18% y/y last month, with 487 units sold. This decline, which far exceeds our expectations of a 5% y/y drop, was partially underpinned by delayed summer grain harvesting activity which partially strained farmers’ cash flows.
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08/06
2018
South African tractor sales grew by 5% y/y in July 2018
The South African tractor sales continued to rise in July, albeit at a slower pace than the previous month, up by 5% y/y with 525 units sold. While lower than our expectations of 578 units, this is the highest tractor sales figure for the corresponding month since 2015. In the same period, the harvester sales declined by 8% y/y, with 12 units sold.
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03/14
2018
South African tractor sales for February 2018 fell by 12% y/y
Subsequent to a solid 10% y/y increase in January 2018, the South African tractor sales fell by 12% y/y last month, with 595 units sold. While February is typically one of the months with the highest tractor sales, just before the end of the financial year, this time around most purchases occurred in January, which explains the softening in last month’s activity.
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02/08
2018
South African tractor sales for January up 10% y/y
After the solid performance of 19% y/y increase in December 2017, the South African tractor sales were again up by 10% y/y in January 2018, with 527 units sold. This was somewhat surprising given that the area planted with summer crops declined in the 2017/18 production year.
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01/11
2018

South African tractor sales grew by 19% y/y in December 2017

South African tractor sales expanded by 19% y/y in December 2017, with 417 units sold. However, this was down by 26% when compared to the previous month, which mirrors a slowdown in field activity as summer crop planting was almost complete in most areas.

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ENQUIRIES:
Wandile Sihlobo
Agbiz Head: Agribusiness Research
Contact: Email wandile@agbiz.co.za or call +27 12 807 6686
Twitter: @WandileSihlobo

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