The agricultural
machinery industry has, during the past two years, experienced an
unprecedented change in its business environment. Economic
factors such as the dramatic decline and strengthening of the rand,
the raise and fall of maize and wheat prices and the decline in
lending rates all have had a direct influence on our business.
These factors certainly tested our abilities to steer safely through
these stormy waters.
The last two years have
seen a positive trend in tractor and combine sales with the exception
of balers. With the 2000 year at 2668 tractors, 124 combines and
229 balers the 2002 year (2001 in brackets) ended with 4428 (2847),
174 (103) and 204 units (184) respectively. The good unit
figures for 2002 can mainly be contributed to the exceptionally high
prices of maize, wheat and sunflower that offered the farmer the
opportunity to replace old machines. With the strengthening of
the rand, drop in producer prices and relatively high crop estimates,
prospects for machinery sales during early 2003 were expected to be
considerably lower than the previous year. However, it now
appears as if tractor and combines sales may equal last year's figures
or, at worst, be slightly lower. Looking forward to 2004, the
situation may not be as rosy, taking into the account the intention of
farmers to plant less, the large carry over of stocks, prices of
produce and a lower than expected wheat crop. On the positive
side, if the rand remains stable at current levels, lower input costs
may encourage farmers to invest. In my opinion a sales figure of
3300 - 3750, 140 - 160 and 175 - 190 would be realistic for tractors,
combines and balers respectively.
SAAMA once again wishes
to raise our concern about the high number of manufacturers and/or
distributors in the South African market. This, coupled to the
large number of models offered by each to a relatively small market,
naturally brings the question up whether it makes good business sense
and secondly what assurances does this offer to the SA consumer for
long term support.
During the past two
years SAAMA addressed the need to collate statistics on sales of
implements. I am pleased to report that this has been
implemented during 2003 and collection of data is now in progress.
These reports will be generated and controlled by Agfacts with
distribution annually to members participating. Our special
thanks and appreciation to Dr Jim Rankin, G Johnson and Nick Sanders
who put a lot of effort into this project in order to bring it to
fruition.
For some time now SAAMA
has addressed the importation of used equipment, specifically tractors
and combines, with the Department of Trade and Industry. So far
no success was achieved with combines but, through our negotiations
and pressure from local manufacturers, the Department agreed not to
allocate import permits for tractors over 100Kw. Although not
legislated and not easy for us to ensure that this in fact is
happening, progress has been made. Importation of used equipment
directly impacts negatively on the volume of sales of new equipment in
our small market and may also put undue pressure on members.
SAAMA should therefore continue to pursue this and endeavour to find
suitable solutions, preferably in co-operation with government.
SAAMA has worked in
close co-operation with the SABS to finalise the compulsory
specifications for agricultural tractors. To our understanding,
these specifications have now been forwarded to government for
approval. In addition to agricultural tractors, drafting of
specifications for haulage tractors is in progress. The
implications thereof will be closely monitored to determine how it may
affect the agriculture industry.
Mead and McGrouther
approached SAAMA to share all retail statistics with them, which is
currently housed with Response Group Trendline. A meeting was
held with them on the 22nd May 2003 to hear their motivation for the
request. Subsequent to that, the executive committee met on the
19th June 2003 to review and discuss the matter. No final
decision has been made, subject to discussions that need to take place
between them and Agfacts. Currently the status quo is maintained
in that the detailed information will only be released to
participating members and national figures to the public at large as
originally agreed.
The postponement of
NAMPO till the middle of May of each year has worked well for the
industry over the past two years. Members in general expressed
their satisfaction with attendance and services rendered.
However, three aspects still remain a concern i.e. safety during
demonstrations, demonstration formats and the method used to determine
the sequence to be followed by manufacturers. A very informative
and successful meeting was also held with NAMPO's input committee on
the 31st July 2003, the first in two years.
The quality standard of
diesel in SA has become a concern in the industry. This concern
is aggravated since the introduction of new technology engines into
our markets. Through the help of our Secretary, members were
able to attend two information meetings arranged by Camesa earlier
this year, which provided excellent insight and understanding of this
subject. This remains a contentious issue and SAAMA may have to
work closer with other industries, suppliers etc. to seek solutions.
During 2002 Response
Group Trendline was approached to revise their reporting method of
industry retail figures to members and comply with the original
guidelines/limitations as provided by SAAMA. This was attended
to immediately and I am happy to report that a new online programme
was introduced during the later half of 2002, which fully comply with
member's requirements. Our sincere thanks to Response Group
Trendline for their willing attitude and the vital task they perform
for the industry, as well as their continuous support and
participation in SAAMA events.
The fifth and sixth
SAAMA Golf days were held on 20th Aug '02 and 13th Aug '03 at Monument
Park and Benoni Country Lake with great success and with the highest
number of entrants ever at the last event. With both days we
realized excellent profits for our Association and I must thank the
organisers for the professional way in which they have handled the
events. My special thanks to Mike Terblanche, Piet le Grange and
Nick Sanders who ensured the total success of these days. To our
members who supported these days - thank you for your commitment.
It is a pity that you see the same member faces every year and I
certainly would like to see more members supporting this event,
thereby making it even more successful.
A special work of
thanks to Frank Smith for all the support and contributions made to
SAAMA over many years. Frank was the key person in establishing
the Golf days and even today he is always willing to assist with
arrangements and counting. We said good-bye to him at Monument
Park wishing him and his family a most enjoyable and healthy
retirement.
Over the past two years
Agfacts has continued to play an important and vital role for SAAMA
and the industry through the services they provide, without which we
cannot operate. Our sincere thanks for your continued support
and willingness to always make time and effort to serve the industry
and provide additional services, such the recent implement sales
reporting. Your commitment is highly appreciated.
Membership over the two
years has remained constant at 22, regardless of all the changes in
the industry. We welcome all new members and trust that you will
give your full support and input as well as assist in making our
association stronger in our efforts to resolve obstacles and build a
better future for our industry. The drive for more members must
therefore continue and current members should actively participate in
SAAMA events and discussions, something that is presently lacking.
The financial position
of your association is in good standing reflecting income of (previous
year in brackets) R 92,509.76 (R 93,365.00), expenditure of R
81,498.43 (R 78,038.78), a net income of R 8,011.33 (R 15,326.22) and
a 32-day investment of R 39,780.40 (R 36,028.37) as at 30th June 2003.
As outgoing chairman I
wish to thank the Executive for their support and commitment over the
past two years. To our secretary, thank you for your support and
willingness to go the extra mile as well as your dedication to SAAMA,
which is highly appreciated.
Best wishes for the
incoming committee.
Bert Pepler
Chairman
