South African tractor sales at 480 units were down 42.9% in September 2009 from the 840 units sold in September 2008, sales data released by the South African Agricultural Machinery Association (SAAMA) showed on Wednesday.
On a year-to-date basis, sales at 4219 units were down 24.5% from last year's 5,589 units.
September combine harvester sales, at three units, were 88.0% down on sales of 25 units in September last year.
On a year-to-date basis, combine harvester sales, at 234 units, were 16.4% lower than last year's 280 units.
"The sharp downturn in the sales when compared to last year must be taken in the light of what were exceptional agricultural machinery sales last year, particularly in the last four months of the year," said SAAMA.
It said fundamentals affecting the market had not changed much in recent months.
"Low grain prices are still of some concern. Bank finance, although still quite tight, has eased up a little. Potential purchasers of agricultural equipment are still very cautious, despite it still being very much a buyers' market.
"Once the summer rains start in earnest, however, and farmers need equipment for soil preparation and planting, the cautious mood in the industry is likely to persist, said SAAMA.
Published courtesy of
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