SA’s agricultural machinery market continued its steady recovery in May, with robust sales of tractors and combine harvesters pointing to improving confidence in the sector, despite pockets of caution stemming from recent weather disruptions.
Tractor sales climbed 12% year on year to 635 units in May — the fifth consecutive month of growth — while combine harvester sales jumped 64% to 41 units, according to the latest data from the SA Agricultural Machinery Association (Saama).
The year-to-date figures underscore the momentum: tractor sales in January-May reached 2,926 units, nearly 20% higher than the same period last year.
Combine harvester sales rose by 43.7% to 148 units.
“Market sentiment continues to be positive and this is reflected in the good sales of tractors and combine harvesters for the year so far,” said Saama chair Willie Human.
“Farmers are still harvesting their crops and yields are generally looking good, though the quality has, in some cases, been adversely affected by the late rains. Commodity prices are holding up.”
He added that some farmers were delaying further equipment purchases until harvests are complete and they have more certainty about yields and quality.
Yet, Saama expects tractor sales for 2025 to end the year 5%-10% higher than in 2024. Combine harvester sales are also on track to exceed last year’s total.
The latest crop estimates committee forecast supports this cautious optimism, projecting 2024/25 summer grain and oilseed production at 17.98-million tonnes — 16% higher than the previous season. This rebound from last year’s drought-plagued cycle has buoyed confidence, though some variability in crop quality remains.
Favourable conditions
“The increase in sales primarily reflects the positive sentiment in the sector regarding the 2024/25 crop and horticulture harvest, driven by favourable weather conditions and base effects following weak sales in 2024,” said Wandile Sihlobo, chief economist at Agbiz.
“Indeed, the heavy rains in April have caused concerns about the crop quality, and we are seeing challenges in a few areas. Still, there remains optimism about the yields, which supports the robust sales.”
Sihlobo has flagged three factors behind 2024’s subdued agricultural machinery sales performance: a postboom market correction after several strong years in 2020/23, a midsummer drought in the 2023/24 season that weakened farm incomes and high interest rates for much of last year.
“This year, however, things are different, as evidenced by the sales for the first five months,” he said.
“Interest rates have eased somewhat from last year’s levels, though uncertainty remains about the path ahead, given the renewed risks to the global economy.”
The recent fuel price cuts are expected to support further gains in machinery investment and farmer profitability.
“With harvesting of summer crops in full swing, a fuel [price] cut will boost farmers’ profitability as it accounts for almost 13% of input costs in grain production,” Paul Makube, senior agricultural economist at FNB Commercial, said recently.
According to the mineral resources & energy department, both grades of petrol declined by 5c/l in early June, to R21.35 (93 ULP) and R20.52 (95 ULP and LRP). Diesel prices fell more steeply — down 36.90c/l to R18.53 (0.05% sulphur) and R18.57 (0.005%).
“The citrus export season is also in full swing and this will boost margins as the cost of transportation from farms to ports of exit is reduced,” Makube said.
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