If you reflect on prominent events over the years, you involuntarily think of the end of the second world war, the end of apartheid, the end of isolation, the end of Saddam Hussein's oppression, Robert Mugabe and Jacob Zuma…
The last ten years will likely be remembered as the darkest period of our short democracy!
This year started on a more positive note... but the feeling everywhere is that the party is over - we will really have to start working very hard from now on.
Unfortunately the economy still bears the scars of the Zuma-term. Business confidence (until right before the election of Ramaphosa) was at a record low. This was not only due to the actions of the government, but also due to the possibility of further downgradings, the Steinhoff scandal and the drought in the Western Cape, which contributed to the negative market sentiment.
The drought which affects the agri-sector is particularly concerning. Cape Town was in the news very often but the drought in the Eastern Cape was in many ways as bad as the drought in the Western Cape. The Couga dam was at a level of 7,7% at the end of January 2018. The Eastern Cape, known for its deciduous fruit production, is dependent upon the water of the Couga dam and should the reserves dry up, it would result in a weaker than average crop in certain areas and a total crop failure in others.
It is evident that the farming community has been under tremendous pressure over the past 12 months. The large crop which realised in 2017 resulted in lower grain prices. While the northern parts of South Africa boasted with record crops, the late rain in the Overberg area meant that most farmers had to be satisfied with an average crop. A world-wide surplus of wheat is reported and America recently announced that they will be increasing wheat production in 2018. This, together with the stronger rand, placed further pressure on commodity prices. Milk producers also suffered in recent times. The higher cost of living dramatically limited spendable income and input costs increased significantly.
The tractor industry also felt the impact of the economy. It remains a challenge to get a quality product to the producer at a competitive price. JDI is excited about the marketing of the new John Deere orchard tractor. The first consignment has been ordered and should arrive in the country in May 2018. This is an attempt by John Deere to access a sector in which we have not been competitive previously. The orchard model is specifically designed for the fruit industry and the cabin-option provides an opportunity for exporters to still meet export standards.
John Deere recently introduced its new 700-series harvester. While the 600-series was a breakthrough for John Deere, the 700-series promises to move the boundaries even further. The technology used combines the best of the 600-series with the latest breakthrough in precision farming. The harvester was made for better functionality without the farmer working harder. Sitting at the steering wheel of the 700-series, one quickly realises that this is not an implement for playing games. It is for farmers who are serious about their business. Any information that you could possibly think of, can be found in the arsenal of the 700-series.
JDI also concluded a contract with Orthman recently to become a distributor of its products. This agreement helps JDI to improve the variety of options available to the farmer and enables him to choose the right implement for his farming operations.
In conclusion, JDI would like to be part of rebuilding our beautiful country. The current controversial American president said: “Let’s make America great again”. This can also be a great country. JDI believes that there are many challenges, but that these can be overcome if we work together and trust our Lord. It will not be easy. It will not always be pleasant. But it is what we need to do if we want to see the rainbow nation come to its full right.