1. Modern agriculture set to boost African prosperity
Agriculture holds the key to
transforming the prosperity
of many African countries,
where the farming sector
already dominates their
economies. In some cases,
agriculture currently accounts
for up to half of the entire Gross
Domestic Product (GDP) and
is responsible for up to 80% of
trade, in value, as well as being
the largest employer.
B
ut African agri-
culture is badly
under-performing
and failing to take
full advantage of available
natural resources of land
and water as well as labour.
There is also a serious lack
of investment in modern
seed and fertiliser, while few
farms employ the latest agro-
nomic advice or mechanisa-
tion. Together this is causing
productivity to lag far behind
advances being made in
other developing countries
such as India and China;
while Brazil is now exporting
its produce.
Yields of staples such as
maize and rice in Africa
typically remain at about
one third to one half of those
achieved in other developing
countries. Moreover, lack of
infrastructure, storage and
transport results in losses of
between 30% to 40% of all
produce through wastage
and damage. Few crops have
any further processing and
this loses the potential to add
value.
Currently the majority of
power for farming in Africa
is provided by animals,
or human hands wielding
manual tools and hoes. This
not only severely limits pro-
ductivity, the hard work for
so little return also makes
agriculture an unattractive
occupation, escalating the
migration of manual workers
from rural areas to towns.
But investment in mecha-
nisation accompanied,
importantly, by education
will provide the catalyst for
rural development. Farm
machinery boosts efficiency
and helps increase yields. It
also relieves workers from
the drudgery of hard manual
work, while bringing more
land into production and
sustainability - helping them
to produce more from less.
AGCO’s commitment to
Africa
As a world-leading farm ma-
chinery manufacturer, AGCO
has unparalleled expertise
and local knowledge of Afri-
can Agriculture, which it has
amassed over many genera-
tions.
For more than half a cen-
tury African farmers have
come to rely on the quality,
reliability and back-up pro-
vided by Massey Ferguson,
AGCO’s global brand, which
started the power farming
revolution, mechanising and
increasing farming efficiency
across the continent.
Today Massey Ferguson re-
mains the market leader and
is complemented by AGCO’s
other leading brands - Chal-
lenger tracked tractors,
sprayers and application
equipment, Valtra tractors
for specialist applications as
well as GSI post-harvest tech-
nology for grain handling
and storage.
Together these offer a com-
prehensive and diverse range
of equipment developed and
built specifically for African
conditions. AGCO brands
offer the widest range of
machines suitable for every
farming business - from
smallholders through the
emerging sector, as well as
co-operatives and the largest
agribusinesses.
AGCO is also taking the
initiative by promoting
debate and action through
its annual Africa Summit.
This aims to raise aware-
ness about the needs of the
continent and to discuss the
challenges facing African ag-
riculture, address the world
food supply problem, declin-
ing arable land base and
population growth.
“Large areas across Africa
have suitable soil and climate
for successful agriculture,
but many areas are not yet
cultivated or are not produc-
tive enough,” explains Martin
Richenhagen, Chairman,
President and CEO, AGCO.
“With 11% of the world’s
arable land, of which 86%
remains uncultivated, Africa
will benefit from modern,
mechanised farming tech-
niques.”
AGCO is helping to develop
a systematic approach to
forming strategic partner-
ships to deliver crops to feed
increasing populations in an
economically, environmen-
tally and socially responsible
way. While the challenge is
enormous, the opportuni-
ties are both substantial and
achievable.
But the lack of infrastruc-
ture, mechanisation and
technology across the conti-
nent, calls for market-based
co-operation between farm-
ers, private industry, govern-
ment and society to establish
a new blueprint.
It pays to pick a strong part-
ner, and with net sales of
$10 billion in 2012, AGCO
is the largest specialist, full-
line agricultural equipment
manufacturer, which sells
machinery in 140 countries.
A truly global corporation,
AGCO has the power, prod-
ucts and support structure to
make an immediate impact.
AGCO’s African invest-
ment in action
AGCO is addressing this ur-
gent need by investing more
than $100 million to boost
African agriculture. It is
currently developing a wide
range of new facilities across
the continent to provide the
highest quality farm mecha-
nisation and training as well
as technical and spare parts
support.
In Zambia AGCO has re-
cently created a new 150ha
(330 acre) model farm and
learning centre near Lusaka.
“The AGCO Global Learning
Centre will empower farm-
ers in Africa to improve food
production levels,” says Nura-
din Osman, AGCO’s Director
Africa & Middle East. “Small
to medium scale farm-
ers with limited access to
modern farming techniques
will benefit from training
courses ranging from basic
agronomy through to general
mechanisation.”
Here AGCO is putting its de-
velopment commitment and
ideas into action. The key
aim is to provide education
and training to African farm-
ers, at all levels, to help them
understand more about soils,
agronomy and crop protec-
tion to boost productivity. At
the same time it will provide
access to information about
how to employ the latest,
most appropriate mechanisa-
tion techniques to increase
crop production in a sustain-
able way.
Mechanisation is the key to
unlocking African agricul-
tural productivity, adds Mr
Osman. “The only way to
ensure Africa can expand its
agricultural output is to use
machinery – appropriate to
the needs of the user. Also
operators require thorough,
professional training to make
the best use of equipment.
“Mechanisation can help
relieve the burden of manual
labour currently employed
to cultivate the land and
AGCO’s
Challenger
tracked
tractors are
capable of
providing
ultimate
outputs in
demanding
conditions
and are al-
ready being
employed to
help bring
land into
produc-
tion across
Africa.
The EastAfrican
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APRIL 20-26, 2013
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1
sow and tend crops by hand.
Employing the most appro-
priate machines will improve
farming efficiency and help
produce more much-needed
food, while making better
use of existing resources –
land, water and labour.”
AGCO’s Zambian Model
Farm and Learning Centre
also aims to educate large-
scale commercial farming
businesses by providing
training on the latest high
specification tractors and
harvesting equipment, in-
cluding precision farming
techniques.
Through its wholly-owned
company GSI, AGCO is also
able to offer crop storage
buildings and equipment to
build a better agricultural
infrastructure in the region.
Improving storage and the
ability to condition crops
not only prevents losses, but
also allows farmers to hold
produce and improve returns
by responding to market de-
mands.
AGCO invests across
Africa
AGCO’s eventual aim is to
transfer the knowledge and
infrastructure being devel-
oped at the Zambian Model
farm and Learning Centre
across Africa.
Exporting the core knowl-
edge and expertise from
Zambia will help establish
the ‘Future Farm’ concept to
provide further education
and agricultural develop-
ment across the continent.
At the same time the project
aims to ‘pull in’ other part-
ners with AGCO to help
develop the much-needed
infrastructure and supply
industry.
Meanwhile AGCO continues
to invest in developing its
own business and facilities in
the region and has recently
built and opened a new Parts
Distribution Centre in Jo-
hannesburg, South Africa as
well as a new regional office
in Cape Town.
Local assembly of Massey
Ferguson tractors for the
African market has now also
started with a joint venture
operation in Algeria. At the
same time the company is
also working on a variety of
projects to improve its distri-
bution network in West and
East Africa.
With these initiatives AGCO,
a world leading farm ma-
chinery manufacturer, is not
only strengthening its posi-
tion in the region, but also
delivering on its mission: ‘To
provide high-tech solutions
to farmers feeding the world.’
AGCO has invested in a model farm and global learning centre near Lusaka,
Zambia, providing education and training on soil management, cropping and
mechanisation.