May tractor sales of 432 units were significantly (19%) more than the 364 units sold in May last year. On a year-to-date basis, tractor sales are now 9% down on the same period last year.
May combine harvester sales of 31 units were four units more than the 27 units sold in May last year. On a year-to-date basis, combine harvester sales are now almost 10% up on the same period last year.
Factors that influenced May machinery sales
There are two main reasons for the better than expected May agricultural machinery sales. Firstly, farmers are buying up existing stock at current price levels, ahead of the inevitable price increases which will prevail as a result of the weaker rand. Secondly, good crops are currently being harvested.
Overall sentiment in the market continues to be positive. It is likely that sales will be good in the near future as lower-priced stock is bought up. However, current industry sentiment is still that 2020 tractor sales will probably be up to 10% down on last year. – Press release, South African Agricultural Machinery Association