© RGT SMART Port Elizabeth, South Africa

South African Agricultural Machinery Association
Suid-Afrikaanse Landboumasjinerieassosiasie

PRESS RELEASE

May 2013: TRACTOR and COMBINE HARVESTER SALES

Retail sales of agricultural equipment during May 2013 were as follows:

May tractor sales of 550 units were 5% lower than the 580 units reported in May last year. On a year-to-date basis, tractor sales are almost 4% down on those of the first five months of last year. May combine harvester sales of 28 units were significantly down on the 56 units sold in May last year. Year-to-date combine harvester sales are still sharply up on sales for the same period last year.

Although the official maize production forecast has been cut by approximately 8% since the first estimate in February, many farmers have already harvested good crops. It is mainly in the western maize production areas that crops have been adversely affected by drought. Looming on the horizon are price increases which will need to be implemented as a result of the recent sharp drop in the value of the rand. This might encourage farmers to buy up current lower-priced stock in the short term. Thereafter, the higher prices will surely have an adverse effect on sales of new equipment.

Industry expectations are that tractor sales in the 2013 calendar year will be of the order of 6 700 to 7 100 units, between 10 and 15% down on 2012 sales. Tractor sales so far this year are beginning to reflect this trend.

Callie Human
Chairman: South African Agricultural Machinery Association
Contact: Mr. Callie Human (082) 807-7406 or Dr. Jim Rankin (011) 453-7249

Note: that all data represented herein is classified proprietary information (Copyright) and that it may
not be reproduced in any manner or form without explicit approval.