When Mr Jacob Zuma was asked to retire and Mr Cyril Ramaphosa was inaugurated as president of South Africa, a lot of hope was created, which the history books described as Ramaphoria. Authorities warned, however, that a huge rebuilding process would have to commence.
I doubt if anyone was ready for the storm which followed.
The skeletons in the cupboard started falling out one by one and as soon as one problem was solved, the next story broke. Jacques Pauw's book (and Pieter-Louis Myburgh's recent one) told horrific stories of corruption. The possibility of a downgrading, VBS Bank, SAA and Eskom, Steinhoff ... and then loadshedding ... to mention but a few challenges.
So, in view of this negative background, JDI did very well to get through 2019 unscathed. A huge reason for the positive outcome was the introduction of a new product by JDI in 2019. The orchard cab tractor was specifically designed for citrus farmers using smaller tractors which can easily be manoeuvred in the orchards. The market responded well to this product and we started to regain market share in particularly the Addo area.
One effect of the negative economic conditions was a material decline in large mechanisation unit sales (combines, self-propelled sprayers and 8R tractors). Due to the uncertainty about land and pressure on the financial situation of farmers, many producers decided to buy tractors from competitors or to buy lower specification tractors.
For this reason, JDI put more emphasis on the expansion of its JCB products and services. The company also obtained an import permit this year which enables us to do our own imports.
Competition is fierce - we have seen that all the bigger players in the tractor market are fighting for a larger share in the market. In many instances JDI had to compete with prices which are not sustainable - however, we still believe that John Deere is an exceptional product and that it can render the service which our farmers deserve. Quality service and particularly after-sales service remain of the utmost importance.
Expectations for the coming year are that most JDI-areas will receive normal rainfall levels. While this is positive, it must be mentioned that the upcoming election may have an impact on 2020 and there is a lot of uncertainty regarding policies in the market, particularly relating to land. It could have a significant impact on capital expenditure levels.
However, at JDI it is business as usual. We are proudly South African and we still believe that this is a wonderful country.
The challenges are opportunities which need to be explored. Like Esther, we need to hear that we have been called for times such as these. When things become difficult, we have to remind ourselves that we have to look up and remember where our help is from.