NEWS
AGRICULTURAL
MACHINERY SALES
THE HIGHEST SINCE 2014
In October 2021 , the tractor sales of 856 units , up by 4 % y / y , were the highest monthly volume since October 2014 . Meanwhile , the combine harvesters ' sales of 45 units , up by 73 % y / y , were the highest monthly sales since March 2014 .
Annette Willemse Communication Specialist
This placed the total tractor sales for the first ten months of this year at 6 238 units , up by 25 % y / y . The combine harvesters ' sales increased by 37 % y / y over the same period , with 242 units sold . The year 2020 was a good year in South Africa ' s agricultural machinery sales , so surpassing it means we are witnessing some very good momentum this year .
In 2020 , the tractor sales amounted to 5
738 units , up by 9 % from 2019 . The combined harvesters were up 29 % from 2019 , with 184 units sold in 2020 .
These robust sales were supported by the large summer grains and oilseeds harvest in 2019 / 20 . Yet , 2020 / 21 was another excellent agricultural season and coinci- ded with higher commodities prices boosting farmers ' finances and , subsequently , the machinery sales .
Importantly , this year ' s data also points to the farmers ' optimism about the 2021 / 22 summer crop production season , whose planting started in October . Moreover , the favourable weather outlook , prospects of a La Niña , and attractive grain prices are other catalyst for a potentially good season with the farmers ' intended planting area of 4,34 million hectares of summer grains and oilseeds . This is up by 5 % from the 2020 / 21 production season .
Looking ahead , we still think the agricultural machinery sales will cool off in the last two months of the year . We fear that the rising input costs , such as fertilizers , herbicides and fuel , could add pressure on farmers ' finances and thus lead to a change in machinery-buying decisions .
Also , the planting will be in full swing , and there will be little incentive to invest in new machinery . Still , the pace of sales in the first ten months of the year convinces us that , in aggregate , the annual sales for 2021 could be significantly larger than the previous year .
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SENWES SCENARIO | SOMER � SUMMER 2021