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manufacture wholesale agricultural forestry machinery south africa

Manufacture and Wholesale of Agricultural and Forestry Machinery in South Africa 2023

Alex Conradie | South Africa | 23 June 2023

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Report Coverage

This report on the manufacture and wholesale of agricultural and forestry machinery in South Africa includes information on the state and size of the sector, agricultural and other industry-related economic data, notable players, corporate actions, and factors influencing the sector such as competition from importers and distributors of international brands, input costs and power disruption. The report includes profiles of 23 companies such as Bell Equipment, Senwes, John Deere, BHBW and Iveco.

Manufacture and Wholesale of Agricultural and Forestry Machinery in South Africa

After increasing for several years, sales of agricultural machinery reached multi-decade highs in 2022, largely due to good harvests and high agricultural commodity prices that boosted farmers’ incomes. Retail sales data shows that new tractor sales in 2022 were the highest in 40 years. Combine harvester and all new agricultural machinery sales increased significantly. Farmers’ incomes were boosted by higher agricultural commodity prices, good harvests and banks being more willing to offer financing.

Headwinds

Manufacturers and wholesalers are facing challenges such as poor economic growth, high input costs and inconsistent supply of electricity. Between 2020 and the middle of 2022, there was a severe global shortage of new agricultural machinery due to the suspension of machinery production, supply chain problems and a shortage of microchips and other spare parts. Local distributors struggled to import enough machinery to satisfy demand. Other challenges are exchange rate volatility, growing structural challenges around water and sanitation, and road infrastructure and port inefficiencies.

Key Trends

There is increased use of machinery developed for precision farming, and autonomous machinery that performs tasks like planting and harvesting. Technology is increasingly available in cheaper models, making it more accessible. Machinery is becoming more environmentally-friendly in terms of fuel efficiency, lower emissions and the development of battery electric machinery. Forestry machinery is becoming more efficient and sophisticated to increase productivity.

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Manufacture and Wholesale of Agricultural and Forestry Machinery in South Africa 2023

Full Report

R 20 000.00(ZAR) estimated $1062.84 (USD)*

Industry Overview

R 14 000.00(ZAR) estimated $ 743.99 (USD)*

Table of Contents

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PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
2.3. Size of the Industry 5
3. LOCAL 5
3.1. State of the Industry 5
3.2. Key Trends 7
3.3. Key Issues 8
3.4. Notable Players 8
3.5. Trade 12
3.6. Corporate Actions 14
3.7. Regulations 15
3.8. Enterprise Development and Social Economic Development 16
4. AFRICA 17
5. INTERNATIONAL 18
6. INFLUENCING FACTORS 20
6.1. Performance of the Agricultural and Forestry Industries 20
6.2. Economic Environment 22
6.3. Input Costs 23
6.4. Inconsistent Electricity Supply 24
6.5. Technology, R&D and Innovation 25
6.6. Unforeseen Events 25
6.7. Labour 26
6.8. Environmental Issues 27
6.9. Government Support 28
7. COMPETITIVE ENVIRONMENT 28
7.1. Competition 28
7.2. Ownership Structure of the Industry 29
7.3. Barriers to Entry 29
8. SWOT ANALYSIS 30
9. OUTLOOK 30
10. INDUSTRY ASSOCIATIONS 31
11. REFERENCES 31
11.1. Publications 31
11.2. Websites 31
APPENDIX 1 33
Summary of Notable Players 33
COMPANY PROFILES 35
African Traction and Associated Technologies (Pty) Ltd 35
AGCO South Africa (Pty) Ltd 37
Agrico (Pty) Ltd 39
ARGO Industrial (Pty) Ltd 42
Bell Equipment Company S A (Pty) Ltd 44
Bell Equipment Sales South Africa Ltd 46
BHBW South Africa (Pty) Ltd 49
Desmond Equipment S A (Pty) Ltd 51
Engitek (Pty) Ltd 53
Forestry Plant and Equipment Sales CC 54
G C Tillage CC 56
Iveco SA (Pty) Ltd 57
John Deere (Pty) Ltd 60
LEMKEN South Africa (Pty) Ltd 62
Nukor Woodtech (Pty) Ltd 64
Orbach Agri (Pty) Ltd 66
Packo RSA (Pty) Ltd 67
Piket Implemente (Pty) Ltd 69
Radium Engineering (Pty) Ltd 71
Rovic and Leers (Pty) Ltd 72
Senwes Ltd 74
Talbert Pivots (Pty) Ltd 90
Vincemus Investments (Pty) Ltd 92