SA tractor sales up 40%
March 7, 2006
Johannesburg - South Africa's tractor sales surged 39.9 percent to 624 units in February 2006 versus 446 units sold during the previous comparable period, data released by the South African Agricultural Machinery Association (Saama) show.
Tractor sales for the first two months of this year are the highest since 1986, the association noted, adding that combine harvester and baler sales for the month were marginally up on February sales last year.
A total of 1 045 units have been sold so far this year, 33.6 percent higher than 782 units sold during the first two months of 2005.
"Several factors are contributing to the good initial tractor sales this year. Firstly, the late general rains have brought on a mood swing of optimism within the industry. Secondly, smaller tractors, some of which are being bought for emerging farmer projects, have been selling well," Saama said.
Furthermore, better crop prices in tandem with the strength in the rand coupled with low interest rates and buying prospects augur well for tractor sales going forward.
"In addition, those farmers who made profits last year from their crops or from trading 'paper' maize have taken the opportunity of offsetting some of their tax liabilities by buying new tractors," the association added.
According to the body, good sales as the year begins, have prompted some industry commentators to revise their forecasts upwards despite expectations that sales in the second half may not be as robust.
Forecasters anticipate 2006 sales to match those of last year. - I-Net Bridge
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