Tractor sales rise 5% y/y in April to 422 units: Saama
This is the second surprise y/y increase this year after a 1.5% y/y rise in February to 731 units. The industry 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.
"Given the current excellent crop prices, farmers in the east will be in a good position to buy equipment later in the year. Many summer crop farmers in the west are not as well off. The Nampo Harvest Day provided a good test of market sentiment. In general, the mood amongst farmers was positive and this augers well for the immediate future," the industry body said. The Nampo Harvest Day is an annual agricultural exhibition.
Sales are down 8.2% y/y in the first five 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.
Source: BDpro