The Agricultural
Machinery business has probably faced one of its if not the most
difficult years in history.
The Industry was forced
into a large scale down especially on the Retail side of the
business. Resultant from retrenchments that took place the
Industry again lost a fair amount of expertise and skills.
As mentioned in my
previous report I regard uncertainty in the farming community as the
one single factor that led to a further decline in the Agricultural
Machinery Market. This uncertainty was mainly as a result of:
-
Poor Crop prices
-
Future of Crop
Plantings i.e. what and how much to plant
-
The situation in
Zimbabwe
-
Local Government
Land Policy
-
The security
situation in our Country
-
Devaluation of Land
values
Furthermore Banking
Institutions implemented more stringent qualification requirements on
applications for loans required for the purchase of Capital Equipment.
Following a very
disappointing Tractor Market of 2624 units in 1999 the 2000 Market
ended at virtually the same level namely 2668 units. The
forecast for 2001 should not differ by much and a Market of + - 2600
is again on the cards.
Baler sales reflect a
marked decline of approx 20.0% and should end around the 200 unit mark
in 2001.
As predicted in 2000
the Combine Market has set an all time low with only 53 units sold by
end August. Down by 36.0%. It appears that Combine sales
will not reach the 90 unit mark this year. The effects of the
importation of Used Combines is clearly evident in this years sales
figures.
Following the very
tragic events of September 11, 2001 in the USA makes the forecasting
of sales for 2002 very difficult at this point in time. The real
effect of these events will certainly only unraffle during the next
couple of weeks and months.
Following last years
A.G.M. it was decided to concentrate on priority matters on which I
report as follows.
-
Natis - SAAMA was
able to steer this matter into a more acceptable level for all
members. SAAMA's involvement has basically been completed as
the specification documents are ready for sign off by the
Minister. Once again thank you to the SAAMA Committee as
well as our Secretary for their input into this matter.
-
Used Equipment -
This matter was much debated throughout the year. The
negative effects can be clearly seen in the number of new Combines
sold. Furthermore there appears to be an increase in
activity with regards to the importation of used Combines over the
past few months. Continued attention needs to be given to
this matter.
-
Nampo Harvest Day
Demonstrations - Following a special meeting SAAMA members decided
that each Company will decide for himself as how to handle the
2001 Nampo Day Demonstrations.
I however still believe that SAAMA as the largest contributor to
the show should endeavor to have a greater say into the
organization and presentation of the demonstrations.
For the financial year
ending 30 June 2001 we reflected income of R69 310 and expenditure of
R69 370. Our 32 day notice savings account stands at R33 509 as
at 30 June compared to R31 208 as at 30 June 2000.
Our fifth SAAMA Golf
day was again held at the Benoni Country Club and a special thanks to
Konskilde and Rovic/Leers for entering so many teams. We should
realize a profit of + - R10 000.
Response Group Trendline
continued to provide us with outstanding service. Despite being
based in Port Elizabeth they again not only supported us in person but
also by means of sponsorship during the past Golf day as well as AGM.
The value of Agfacts to
the Industry remains well known and appreciated by all SAAMA
members. This service is totally under estimated in a Country
where sales volumes have declined so dramatically.
Whilst SAAMA did
attract new members during the past year the support of SAAMA meetings
and activities was once again not up to standard.
This year we have also
seen the retirement of Frank Smit one of the most honored and loyal
Members of SAAMA. May this very well respected friend of ours
thoroughly enjoy his retirement and we thank him for his invaluable
contribution to the organization.
I do not believe that I
am very wrong if I say that the Agricultural Machinery Business faces
its toughest challenge during the coming months and year.
Especially for those members who are reliant on the sale of imported
goods.
However as the farmer
who has to sow the seed with only his belief and trust of a good crop
we can only adopt the same attitude and put our trust in the Almighty.
I wish to extend my
thanks to all Members for their support during my term as Chairman and
a special thanks to our Secretary Dr Jim Rankin for all his hard work.
To the incoming
Chairman and Executive Committee my best wishes for the year that lies
ahead.
MIKE J TERBLANCHE
Chairman
