This is according to Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa (Agbiz). 

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Sihlobo says, “As we indicated last month, the improved farmers' finances have supported the sale.” He adds that the large harvest of 2019/20 prospects for another good agricultural season in the 2020/21 harvest. Moreover, the agricultural sector welcomes the relatively stronger exchange rate that acts as a positive buffer for imported agricultural machinery, adds Sihlobo.

He further says that “While South Africa is now in a busy period of the agricultural calendar – completing winter crops planting and harvesting of summer crops are in full swing - we remain cautious that the excellent momentum of agricultural machinery sales might slow in the second half of the year.” And that the largest harvest in the 2020/21 production season may see a slight decline in the sustained sales. 

Sihlobo explains how the South African Crop Estimates Committee (CEC) forecasts an increase in maize and soybeans, and a decrease in sunflower seed production. A decline in the sunflower seed harvest should be expected as a result of a reduction in area plantings as farmers were urged to switch some areas to maize. 

He says that “the expected large grain harvest is also mirrored on other subsectors of agriculture and underpinned by favourable weather conditions.”

Ultimately, South Africa is currently experiencing its busiest agricultural period as winter crops are reaching the end of their planting with harvesting for summer crops also in full swing, while remaining conscious that excellent momentum of agricultural machinery sled might slow in the second part of the year, concludes Sihlobo.

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