Tractor sales have been hurt this year due to uncertainty about crop yields and exchange rates, whether the weather has transitioned from a dry El Niño global cycle to a wet La Niña cycle, land restitution issues and farm worker shares in farms.
"Although market sentiment is positive, many farmers are biding their time on making buying decisions, as they harvest their summer crops. At present, farmers are cautious and can 'wait and see' before buying tractors ahead of the forthcoming summer planting season.
"It is likely that the market will continue to be a little depressed in the next month or two. Once farmers are sure of what their crops have yielded and they need to start land preparation for their summer crop plantings, there should be a better indication of the trend in future tractor sales," the industry body said.
Sales are down 10.8% y/y in the first six months of 2016. Current industry forecasts for the 2016 calendar year are that tractor sales will be between 15% and 20% down on last year.
Source: AFP
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