AGRICULTURAL NEWS - Tractor sales fell 11.1% year on year (y/y) in April to 400 units following a 28% y/y plunge in March to 434 units and a 1.5% y/y rise in February to 731 units.
For the whole of 2015, sales were down 12.2% to 5,673 units, according to the South African Agricultural Machinery Association (Saama).
The industry body had said that the surprise February rise was due to farmers buying up old inventory before the weaker rand resulted in sharp price rises, but now that most of the cheaper tractors had disappeared off dealers' floors, there would be a lull in sales.
The hiatus was in part also 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.
"It is likely that agricultural machinery sales will be sluggish for the next few months," the industry body said.
Sales are down 10.4% y/y in the first four months of 2016. Current industry forecasts for the 2016 calendar year are that tractor sales will be between 15% and 20% down on last year.
The industry body had said that the surprise February rise was due to farmers buying up old inventory before the weaker rand resulted in sharp price rises, but now that most of the cheaper tractors had disappeared off dealers' floors, there would be a lull in sales.
The hiatus was in part also 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.
"It is likely that agricultural machinery sales will be sluggish for the next few months," the industry body said.
Sales are down 10.4% y/y in the first four months of 2016. Current industry forecasts for the 2016 calendar year are that tractor sales will be between 15% and 20% down on last year.
