Moroccan Tractor Sales Plummet 32% Amid Coronavirus and Drought

The Moroccan Association of Agricultural Equipment Importers (AMIMA) reveals that the total sales for the year 2020 at the end of April stand at 305 units, a 32% drop compared to the same period last year. La Vie Éco reports that for new tractor importers, several factors justify this underperformance. They mention the rainfall deficit of the agricultural season, which negatively impacts the sales of agricultural equipment and covid-19. AMIMA also explains the drop in sales, at the sectoral level, by the difficulty for farmers to access financing for agricultural equipment, despite the agreements and partnerships between the Agricultural Credit of Morocco (CAM) and AMIMA.

On another note, the delays recorded since the end of 2017 in the release of subsidies for tractors and accompanying agricultural equipment were mentioned as causes of the drop in sales. Added to this are the low amounts allocated to the agricultural machinery sector; which, according to the profession, "severely penalizes the cash flow of importers and their sales networks". The limitation of travel between cities and rural areas due to the coronavirus has also distanced dealers from their customers and partners.

For AMIMA, the closure of one-stop shops until further notice and the cancellation of trade shows and fairs have contributed greatly to the drop in sales. Because with the International Agricultural Fair of Meknes (SIAM), it’s 30% of orders each year. Sector players fear the worst. If the crisis is to last, the entities will no longer be able to honor their financial commitments and their obligation to supply and supply farmers with agricultural equipment.