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Optimum Machinery Management: A South African Perspective

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  • Klug, J.R.
  • Darroch, M.A.G.

Abstract

Optimum machinery management involves deciding how to operate, maintain, schedule and replace machinery in order to maximise after-tax profit. This paper focuses on machinery replacement as this has probably been the most complex aspect for South African farmers to manage over the last decade, due mainly to significant changes in the macroeconomy. Trends show that the tractor fleet on commercial South African farms has aged and shrunk since the 1980's. Current replacement cycles are now ten to twelve years, almost double the average cycle of the early 1980's. Economic factors affecting these trends include rising real tractor prices (partly due to the Atlantis Diesel Engine project), a falling Rand exchange rate, variable annual crop incomes, changing tax legislation and fluctuating, but generally higher, interest rates. Technological advances in tractor manufacture and more efficient machinery planning, operating and scheduling have also extended optimum replacement time.

Suggested Citation

  • Klug, J.R. & Darroch, M.A.G., 1993. "Optimum Machinery Management: A South African Perspective," 9th Congress, Budapest, Hungary, 1993 346254, International Farm Management Association.
    • Handle: RePEc:ags:ifma93:346254
    DOI: 10.22004/ag.econ.346254
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    References listed on IDEAS

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    1. van Zyl, J. & Langley, D. S. & Stapelberg, J. S., 1990. "Die Optimale Vervanging Van Trekkers In Die Rsa-Landbou Vanuit 'N Minimumkoste-Oogpunt," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 29(2), June.
    2. Viljoen, P. & Groenewald, J. A., 1977. "An Approach To Farming Efficiency Analysis As Applied In Ruens," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 16(4), October.
    3. Jacobs, A. S., 1984. "Possible Developments In South African Agriculture," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 23(2), October.
    4. W. L. Nieuwoudt & N. Vink, 1989. "The Effects of Increased Earnings from Traditional Agriculture in Southern Africa," South African Journal of Economics, Economic Society of South Africa, vol. 57(3), pages 168-177, September.
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    Keywords

    Farm Management;

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