Agricultural machinery sales declined slightly in June; this was according to the South African Agricultural Machinery Association.
Image: File Yogashen Pillay
Agricultural machinery sales declined slightly in June; this was according to the South African Agricultural Machinery Association.
Willie Human, Chairman of the South African Agricultural Machinery Association, said that June tractor sales of 623 units were 2% less than the 636 units sold in June last year. “On a year-to-date basis, tractor sales are now approximately 1% down on last year. Eleven combine harvesters were sold in June, two less than the 13 units sold in June last year.”
Human added that on a year-to-date basis, combine harvester sales are now almost 4% lower than last year. “There is still a lot of uncertainty in the agricultural machinery market. Harvesting of maize is still not complete and may even continue into September. With the lateness of the season, some farmers are waiting to see what the yield and quality of their maize harvests will be.”
Human said high input costs and the threat of an impending El Niño phenomenon are also causes for farmers’ concern. “However, with oil prices coming down and the high soil moisture levels currently prevailing, conditions for the beginning of the summer cropping season now look favourable.”
Human added that current predictions of tractor sales for the 2026 calendar year are still that these will be similar, or marginally lower, than those in 2025.
Wandile Sihlobo, Chief Economist at the Agricultural Business Chamber of South Africa (Agbiz), said that South Africa’s tractors and combine harvester sales fell in June due to a combination of factors, including the delayed summer crop harvest in the 2025-26 season.
“Uncertainty about the weather outlook heading into the 2026-27 season and relatively higher input costs driven by the war in the Middle East. Indeed, Iran and the US are currently negotiating a peace deal, and we are seeing the benefits of a likely peace in the easing of input costs from recent levels.”
Sihlobo added that still, costs remain higher than a year ago, and uncertainty lingers. “The data released by the South African Agricultural Machinery Association shows that tractor sales fell by 2% year-on-year in June 2026, with 623 units sold, and combine harvester sales declined by 15%, with 11 units sold.”
Sihlobo said that this decline is unsurprising and marks the change in sales direction for the coming months.
“South Africa has had a good run, with strong tractor sales for much of 2025 and into the early months of 2026. There was always going to be some normalisation. The robust sales in recent months were driven by the ample harvest in the 2024-25 production season, particularly of grains and oilseeds, which supported farmers' incomes.”
Sihlobo said the horticulture industry also performed well, supporting farmers' incomes. “The fact that the interest rates were also relatively low was another important boost to sales. In the current 2025-26 production season, South Africa still has an ample harvest, with an expected record summer grain and oilseed harvest of 21,49 million tons, up 5% year-on-year.”
Sihlobo concluded that this production figure comprises maize, sunflower seed, soybean, groundnuts, sorghum, and dry beans.
“But this ample summer grain harvest is unlikely to support future sales. The forecast for an El Niño in the season ahead will likely place additional strain on the farming sector, as farmers face lower commodity prices for harvested crops, particularly grains, oilseeds, and sugarcane, at a time when input costs are somewhat higher than in recent past seasons.”
Visit:www.businessreport.co.za