The state of the grain industry

NAMPO, 17 May 2019 – With grain, including maize, wheat and several other crops, set to remain the staple diet of South Africans for many years to come, it’s essential that the industry is supported in order to thrive.

This is the view of AFGRI, one of South Africa’s leading agricultural companies, home to AFGRI Grain Management, which handles and stores not only maize, but also wheat, sunflower, soya beans, barley and sorghum at more than 100 operational points throughout South and Southern Africa, including Congo-Brazzaville, Uganda, Tanzania, Zimbabwe, Mozambique and Zambia.

The current storage capacity of around 4,7 million tons in South Africa is due to get a boost from the recent announcement by parent holding company, AFGRI Group Holdings (AGH) and its BEE partner, Izitsalo Employee Investments, of the creation of a strategic grain storage platform vehicle in collaboration with STANLIB Infrastructure Investments, Wiphold, and the Land Bank.  The consortium will initially own storage facilities with a total value of R3,6 billion, while AFGRI will manage these storage facilities in terms of a management agreement.

“The AFGRI Grain Silo Company has the clear objective of expanding the current storage capacity to six million tons or more in the near future, allowing us not only to cater for grain storage, but to expand into the storage of other types of commodities,” said Chris Venter, the CEO of AGH, when the deal was announced.

 

According to Jacob de Villiers, MD of AFGRI Grain Management and CFO of AFGRI, this bodes well for the grain industry, the future of which already looks very positive, with maize farmers in particular increasingly embracing the rotation of their maize crop with oil seeds, boosting the output of both as a result.

 

In the case of soya beans, increasing local demand has also led to improved production, says de Villiers, which is further good news for the industry as a whole. However, the recent rain during what would have been the traditional harvest time for soya has led to the first challenging harvest period in the county for a number of years, which is challenging for farmers. “This, factored in with the increasing price and yield differential between maize and soya beans, is making the decision fairly difficult for farmers, who might be more inclined to plant maize next year. However, we are optimistic that soya bean production will rebound.”

 

Given the reality of the growing global population, the role of the grain industry in feeding not only the nation, but also South Africa’s neighbouring states, particularly Zimbabwe, where demand is high, as well as being able to export to international markets, with the hope that government-run rail and port infrastructure will continue to improve, is likely to stimulate the industry even further, says de Villiers.

 

AFGRI is of course set to play a bigger role in South Africa’s ports going forward, with the announcement in November last year that Transnet had indicated its intent to enter into a 15-year concession agreement with AFGRI for the operation and maintenance of two strategic agri-ports in the country, the Grain Elevator in the Port of East London and the Agri-Port at the Port of Durban. This initiative is aimed at breathing new life into the two terminals through refurbishment, funding, and marketing projects.

 

De Villiers stresses though that it is of utmost importance that maize production remains financially viable for South African farmers, and as such government should continue to allow free market principles to prevail.

Apart from food security, AFGRI also ensures that grains are handled and stored safely and responsibly, and with a growing worldwide demand for cleaner and safer food, will strive to stay abreast of the latest technologies to ensure it continues to adhere to world-class standards in this regard.

“As mentioned, the new storage platform will give us the ability to expand storage infrastructure in future, which includes putting up new facilities in areas where it is not currently economically feasible, but which will be important in the future,” says de Villiers.

“We need to ensure that as a responsible corporate citizen we support these areas to give them the best possible chance of success, and that farmers have a safe place to store their grain once its harvested. It goes without saying that job creation is just one of the positive spin-offs of such initiatives.”

In addition, other commodities will also be stored in future, enhancing AFGRI’s role in ensuring food security in South Africa and throughout the continent.

De Villiers concludes: “We recognise that it will take massive investment to drive food security, which remains our core vision, and this relates not only the availability of food, but also its affordability. For this reason, we are also cognisant of helping drive down the price of food to the consumer by consolidating our own costs and being open to opportunities to form consortiums with like-minded investors like we’d done on the storage platform to benefit from additional funding and other synergies.”

How tech is helping AFGRI remain on the forefront of the agricultural sector

NAMPO, May 16, 2019 – Launched four years ago, the AFGRI eAccounts platform continues to grow in leaps and bounds. There are now 2,000 registered users across South Africa, with an average of 8,300 logins a month – that’s about 380 per day! Since inception, payments amounting to a staggering R13 billion have been made through eAccounts.

 

For those of you who might not know, eAccounts is the ground-breaking electronic account management solution offered to AFGRI’s customers through UNIGRO Financial Services. It is a key differentiator for AFGRI, with around R430 million worth of transactions flowing through the platform each month.

 

Customers can, from a grain handling and storage perspective, view and receive invoices and statements, as well as draw detailed reports and information of their respective grain delivered for storage at any of AFGRI Grain Management’s 85 locations across the country. They can also calculate storage rates according to grade and grain type.

 

Farmers are further able to access and monitor their procurement contracts, which contain detailed information as well as movement reports, with remittance advice available in PDF format. The platform also includes an insurance and claims functionality, and a more recent feature enables farmers to record rainfall on their lands.

 

In keeping with rapidly-evolving technology, several new features have been added, including the ability for farmers to see regional rainfall patterns as a heatmap. They can also track the average monthly rainfall for more than three years.

 

Farmers can now also add more information about their farm, by adding new land, as well as assigning a commodity and colour to the new field. A summary is available by simply hovering the mouse over the field in the map view.  Beyond this, users can view AFGRI silos and bunker locations on the map, as well as get directions from their farm to the nearest silo or bunker, or a preferred location.

 

Finally, a new Hinterland “Promotional Display” functionality has been added, with users able to receive voucher codes online and redeem them at any Hinterland branch across the country.

 

“We are exceptionally pleased with the performance of the platform since its launch in 2015 and are delighted we’ve been able to put access to financial transactions specifically aimed at the farmer, as well as vital information for those involved directly in agriculture, literally in the hands of our users.  We recognise that like all technology-based offerings, eAccounts needs to evolve. We have a number of exciting initiatives in the pipeline that we will be sharing with customers in due course,” says Tinus Prinsloo, the CEO of AFGRI.

 

However, technology extends further than this for the group as a whole. Recognising the increasing interest in – and reliance on – the role of technology in day-to-day farming operations, the rise of agricultural technology or “AgTech” as it is better known, is not being ignored by AFGRI.

 

Most recently AFGRI’s parent holding company, AFGRI Group Holdings (“AGH”), teamed up with specialised financial technology company, Synthesis Software Technologies, to form a joint venture to accelerate the development of innovative solutions in the AgTech space. The relationship between the two companies began in 2014 when Synthesis helped to develop eAccounts.

 

“Through the JV we will be able to take a longer-term approach to further development of eAccounts, and customers can expect to see more features, more innovation, and more value from the platform through strategic updates,” says Prinsloo.

 

AFGRI Technology Services (“ATS”), part of the larger AFGRI business, is also directly engaging with AFGRI’s farmers through their Future Farmer Forum to keep them apprised of the latest innovations in the AgTech movement. ATS was set-up to identify and develop future focussed solutions and partnerships that encourage a competitive and sustainable agricultural sector.

 

ATS looks for opportunities to introduce emerging technologies such as artificial intelligence (AI), digital solutions, Internet of Things (IOT) and other emerging technologies to the sector and to its customers. “The South African sector is not immune to the technology disruption we are seeing rapidly impact all industries globally, we need to ensure we are looking around corners,” says Niki Neumann, GM of Innovation and Strategy for AFGRI.

 

“We are seeing a lot of this disruption coming from start-ups and entrepreneurs, and it’s for this reason we have partnered with the University of Pretoria’s TuksNovation Activate Challenge, which is focused on identifying and supporting entrepreneurs who have solutions in the AgTech, agricultural financial technology and agricultural insurance technology space.”

 

ATS and AFGRI executives have played an active role throughout the competition, helping to provide business planning, industry insights and mentoring to the finalists.

 

“The objective of the competition is to identify potentially profitable technologies and disruptive start-ups for incubation and acceleration, with the intention of building AFGRI’s innovation capacity and to foster support for and growth of South Africa’s entrepreneurs.”

Support Funds: Models that make a tangible difference to agricultural communities or just a drop in the bucket?

NAMPO, 15 May 2019 – With climatic changes worsening and the economy under strain, farmers across South Africa are having to do more with less, with many struggling to make ends meet. During the past two years alone, farmers have had to contend with drought, hail, foot and mouth disease, armyworm invasions and wildfires, to name but a few. While several funds have been established in support of local farmers, AFGRI’s Support Fund offers a significant beacon of hope to agricultural communities across South Africa.

The Fund, established in February this year, offers financial support to beneficiaries in the agricultural sector, focusing on those operating within the AFGRI ecosystem and geographic areas. However, recognising that funds such as these need to be sustainable to make a real difference, AFGRI, apart from committing an annual donation of a minimum of R3 million, will make use of a host of events, including golf and farmers days as well as ad hoc opportunities, to raise additional money for the Support Fund.

It also is accepting contributions from external individuals and organisations, and will, in addition, continue to have an account into which farmers are able to donate grain for sale, the proceeds of which will be transferred to the Fund account.

When asked what drove the establishment of the Fund, AFGRI’s CEO Tinus Prinsloo explains: “We know all too well the publicised issues and get asked by so many to assist. We want to ensure that support reaches those in need as much too often donations don’t reach those who truly need them.”

AFGRI’s CFO Jacob de Villiers, who was instrumental in setting up the Fund, says that so far AFGRI has been inundated with requests for assistance, showing just how much support South African farmers and those involved in agriculture-related industries need currently, and validating that the Fund is serving the purpose it was created for.

“Many of the requests have been from new era farmers asking for help in starting farming operations, or for access to finance, training, and equipment. These have been redirected either to Lemang Agricultural Services, which focuses on developing black farmers ready to take the next steps to full commercialisation, or to Harvest Time Investments, which focuses on small new era farmers, for further evaluation so that we can offer support through the correct channels. However, a large portion are coming from farmers who really need a helping hand.”

Ten requests from across the country meeting the Fund’s criteria have already been put before the executive management team, with a number of these being approved for funding in the amount of R400,000. “We have already started engaging with the beneficiaries, whose requests ranged from assistance in providing additional security measures on farms to money to repair hail damage. One project involves assisting farmers in the Middelburg area who are sending animal feed to farmers in need in the Northern Cape.”

De Villiers adds that a further R350,000 was raised at a recent AFGRI golf day. “We have just received confirmation that we will be hosting another golf event in the Western Cape towards on the end of 2nd of August, and are already receiving bookings for this, which is so encouraging. We will of course continue to leverage other events and initiatives to raise money for the Fund.”

More important though, says de Villiers, is the fact that AFGRI has started engaging the farming community to get involved and contribute, so that farmers support farmers. An example of this working well is when the proceeds from the sale of grain is made available by those farmers willing to assist. “This money can be contributed to the Fund, while grain itself can also be donated for sale.” He estimates this could raise another R500,000 during the upcoming harvest time. “Of course, we will also look to assist farmers who have set up their own help initiatives to grow critical mass, as is the case with the one project we will now be helping to fund.”

Knowing the power of the media, AFGRI is looking at bringing a local media partner on board to assist its efforts in creating awareness of the Support Fund, with de Villiers saying that AFGRI would soon be in a position to divulge this information. “We are, in all honesty, blown away by the response to the Fund – this truly shows that setting it up was the right thing to do at the right time and we are very proud and excited to be making a real difference to the lives of those in need through it.”

Another factor in ensuring sustainability is sound management and governance. De Villiers, along with AFGRI Group senior executives, Marion Shikwinya and Ross Simmonds, are the directors of the Fund and will be responsible for the evaluation and disbursements of requests received. Furthermore, AFGRI is committed to and follows strict corporate governance procedures. “Both the impact and the measurement of the difference we are making will be noted with the purpose of continual improvement to safeguard a growing and sustainable Fund,” says de Villiers.

“This will ensure that financial support is available to all involved in agriculture in the long-term. In this way AFGRI will continue to make a positive impact on the agricultural sector in our country, just as we have for the past nine decades and more.”

Moreover, AFGRI’s assistance to farmers is not a recent development but has been part of the company’s ethos since it was established over 95 years ago. More recently, in 2016 during one of the worst droughts ever recorded in South Africa, AFGRI donated R5 million in drought aid to farmers. It also offered a zero increase on storage fees for a period, knowing that these gestures would assist farmers caught in the grips of the drought.

Similarly, in 2017 AFGRI partnered with farmers in the Free State and the KwaZulu-Natal Midlands, as far afield as Bothaville, Koppies, Danielsrus and Tweeling, to facilitate a process through which large-scale hay donations could be sent to farms in the Thornhill district in the Eastern Cape. The donation amounted to more than a
1,000 round bales. AFGRI Grain Producers further donated maize for trading, using the proceeds to support the project.

Growing a thriving agricultural sector key to unlocking economic wellbeing AFGRI partners with public and private sector to boost agriculture

NAMPO, 14 May 2019 – AFGRI, one of South Africa’s leading agricultural services company, is firmly committed to developing a sustainable agricultural sector in South Africa, both through its own initiatives, as well as by partnering with the public and private sector to drive growth in the sector, which in turn will contribute to the country’s overall economic wellbeing.

In 2012, AFGRI set up Harvest Time Investments (HTI), a training and development programme focused on unlocking the potential of emerging black farmers through training, development and mentorship. Two years later, AFGRI further committed to assisting the development of emerging farmers, as well as towards other projects targeted at community and rural developments, through an agreement with the public sector, including the Department of Economic Development, the Department of Trade and Industry, the Department of Agriculture, Forestry and Fisheries, and the Department of Rural Development and Land Reform.

In terms of this agreement, AFGRI pledged R90 million, spending R60 million on emerging farmer development and R30 million on community support over a period of four years.

Today, the R90 million investment in farmer training and development and related corporate social investment (CSI) initiatives has resulted in a meaningful contribution to the economy. In the past four financial years[1] alone AGH and AFGRI, through CSI initiatives focused on food security, water security, poverty alleviation and education, have touched the lives of almost 60,000 beneficiaries through a total of 112 projects[2].

With respect to emerging farmers development, over 800 farmers have to date benefitted from the HTI programme, with over 18 400 hectares of crops planted, and an estimated 5 600 people supported by the income received. In addition, over 660 permanent jobs and almost 1 000 seasonal jobs were created.

“Not only did the investment in farmer training and development and CSI result in economic success stories for emerging farmers, but for the thousands of lives meaningfully improved in our communities,” says Tinus Prinsloo, CEO of AFGRI. “However, more than this, a vital goal of AFGRI’s is to promote sustainability, which is why we focus on training, mentorship and access to finance for emerging farmers, offering them ongoing support and working with them in partnership to cultivate success.”

Prinsloo adds that this approach has also encouraged entrepreneurship, with many of these farmers now having proper access to markets, purchasing additional equipment and growing their operations as a result.

With HTI now housed within AFGRI Group Holdings (AGH) – AFGRI’s parent holding company – where the focus will remain on supporting emerging farmers, AFGRI has launched Lemang Agricultural Services to specifically develop those black farmers who have reached the potential to become commercial farmers.

“This is essential for the future of the country, as well as food security, as the population grows and food demands increase. These farmers will also create much-needed jobs and provide a welcome boost to the economy,” states Prinsloo.

According to Marion Shikwinya, who heads up Lemang, it will support large black farmers ready to take the final steps towards becoming full-scale commercial farmers. This includes financial assistance and more. “We want to extend the experience and record we have already established to bolster yields, crop diversity and job creation in a sector which has traditionally contributed significantly to GDP in South Africa.”

Another AGH company, Abba Initiatives, has developed a unique farming programme that relies on father figures (the ‘Abba’) in communities to establish sustainable agrarian projects across Africa. Last year, Abba teamed up with the Youth Employment Service (YES) initiative and other corporate sponsors, including Nedbank and Toyota, to start the Tembisa Container Farming Project in support of urban agriculture.

Abba is providing training and skills development to 25 youths, with a focus initially on open field farming, aquaponics and hydroponics, with the ultimate goal being to develop a sustainable urban agricultural solution for South Africa. According to Tashmia Ismail, the CEO of YES, “A key focus for the YES hub model is the sustainability of the operations – we have to be thinking about long-term impact of our work and ensuring that the investment in infrastructure will have lasting economic benefits. If we are serious about changing the South African economy, we need to think differently about economic models and we are pleased to have identified industry partners who share a common vision.”

CEO of AGH, Chris Venter, wraps up the group’s strategy on this front, saying that AGH’s explicit goal is to enable food security across Africa. “Through dedicated investment and care, we now have a suite of services and products as well as the capability to assist developing black farmers – from the small-scale farmer right through to the farmer ready to join the ranks of commercial farming. We can guide and assist them every step of the way on this path, ensuring that our farmers have both the opportunity as well as access to everything in our arsenal in order to become thriving commercial farmers.”

 

[1] Including the 2017/2018 financial year.

[1] Note to editor – follow this link for more information on AFGRI’s CSI initiatives: https://www.afgri.co.za/csi-programme/

NAMPO / Nation in Conversation: Substantial NAMPO Attendance Shows Producers Still Have Hope

A new record attendance figure achieved during NAMPO 2018 and the feedback from the exhibitors that they mainly did good business testify to the optimism of the agricultural sector despite all the uncertainties facing South African producers.

This is the view of Jannie de Villiers, CEO of Grain SA, after the organisation’s 52nd NAMPO Harvest Day, which was presented successfully during the past week. According to ticket sales, 82 817 visitors streamed through the gates to visit the 746 exhibitors and to enjoy the family atmosphere and farm hospitality that are so unique to the Harvest Day. The private airstrip at NAMPO Park handled 361 aeroplanes and helicopters, ferrying a variety of visitors there, with ease.

‘The growing interest in the NAMPO Harvest Day is encouraging, and it proves that agriculture is still alive and well. To each exhibitor, visitor and staff member: thank you that you came to enjoy the event with us and helped to write the NAMPO story with us. A personal highlight of each NAMPO is meeting various people, talking and building relationships. Those relationships strengthen the hope on which agriculture is built.

‘It is also noteworthy that the number of non-agriculture visitors and numerous media representatives from outside the agricultural media have increased. From formal and informal discussions it is clear that they come to NAMPO because they like it there. The growing interest from black farmers in the show is also a definite plus to Grain SA,’ De Villiers said.

Foreign exhibitors’ interest in NAMPO as a platform for reaching the rest of Africa continues. Approximately 76 international exhibitors were housed in eight international pavilions – which each involved at least eight exhibitors from their country as part of their exhibitions. Representatives from Israel, Poland, England, America, India, France, Italy, Denmark, China, Turkey and Russia participated in the Harvest Day.

Grain SA continuously seeks to retain NAMPO’s sole focus on agriculture. The selection of exhibitors and the items on the programme are consistently arranged with this in mind. This year the Nation in Conversation forum made a strong contribution to the land debate. Fittingly, in the 30th year in which the Farmer Patent Competition was presented, Grain SA and Omnia welcomed the magazine Landbouweekblad as an additional partner.

The poor condition of various public roads in the area of NAMPO Park is of great concern. This places enormous pressure on certain routes and hampers the steady flow of traffic to and from the showgrounds.

The broad agricultural family of the Western Cape can look forward to NAMPO Cape, which will be presented in collaboration with Grain SA at Bredasdorp in the Western Cape from 12 to 14 September 2018. This trade and stock expo is aimed at creating a base as agricultural information provider, market place, network opportunity and gathering place for everyone with an interest in agriculture in the region. Information on NAMPO Cape is available via the www.nampo.co.za website.

Next year’s NAMPO Harvest Day has already been scheduled for 14 to 17 May.

 

Source: Grain SA

NAMPO / Nation in Conversation: How does the youth see agriculture in South Africa?

 

There can be no doubt that youth development and job creation are top of mind in South Africa currently, so this session at Nation in Conversation – taking place during NAMPO from the 14th to 18th May –  is sure to attract massive attention as a result.

 

For the country’s leading agribusiness, AFGRI, one of the first signatories of the Youth Employment Service (YES), commitment to developing South Africa’s youth is non-negotiable. Launched in April this year by President Cyril Ramaphosa, the initiative is aimed at empowering one million unemployed South African youth.

 

AFGRI was among the first companies to sign-up, along with other leading companies Absa, Discovery, Exxaro, FirstRand, Illovo, Imperial, Investec, MTN, Nedbank, Netcare, Pick n Pay, Sasol, Shoprite, Spar, Step, Uber, Unilever and Woolworths.

 

Chris Venter, CEO of AFGRI Group Holdings says that from his personal perspective there is a deep commitment to and understanding of the plight of youth in our country – and this view is entrenched at AFGRI. “Government needs the assistance of the private sector to manage the unemployment crises in the country and the least we can do is get involved in the offering of intern programmes and training, and through initiatives such as the YES project.”

 

Across the group, there are also several youth programmes in place, and AFGRI’s Corporate Social Investment (“CSI”) initiatives, focused on the key areas of food security, education support for schools, water security and poverty alleviation, are aimed at having a positive impact on the youth, emerging and commercial farmers, as well as the communities in which the group operates.

 

To date, AFGRI has supported 20 education projects, reaching over 7,000 learners; 23 food and water security projects, benefiting almost 9,000 community members and learners; six poverty alleviation projects, benefitting over 1,000 community members; and seven employee community initiatives.

 

The Emerging Farmer Development Initiative is housed in a standalone company called Harvest Time Investments. The programme aims to develop emerging farmers both in South Africa and on the continent and provide the essentials of farming through a diverse range of practical and theoretical training over a five-year period. The overarching rationale for Harvest Time Investments is to ensure sustainable agriculture.

 

“As a leader in the field of agriculture we are pleased with the tremendous success that our Emerging Farmer and Abba Training Programmes have achieved. What we have learnt from this is that practical experience and application is key, coupled with the support of mentors, access to finance and guidance from agronomists, for example. The result is a lasting formula which supports sustainable food security and most importantly enables the farmer to be economically successful.”

 

To encourage youth to attend NAMPO this year and give them a first-hand experience of the event, AFGRI has made free tickets available to 44 University of Pretoria students from the Faculty of Natural & Agricultural Sciences.

 

NAMPO / Nation in Conversation: Agriculture 2035

The Nation in Conversation topic “Agriculture 2035”, focusing on how new technology will change the face of agriculture as we know it today, is sure to spark debate around how to feed a burgeoning global population with natural resources that are already under pressure, as well as the sustainable development of the sector.

 

For AFGRI, South Africa’s leading agribusiness, innovation is one of the key aspects of remaining relevant to today’s farmers. “At AFGRI we strive to place innovation at the forefront of solutions to enhance productivity, creativity and ultimate value to customers. It is quite simply a way of doing business today,” says Chris Venter, CEO of AFGRI Group Holdings.

 

While innovation is encouraged across all of AFGRI’s products and services, including farming equipment and FinTech products such as the group’s eAccounts offering, AFGRI Technology Services (“ATS”) was set up some 18 months ago to focus on introducing innovation and technology across the agricultural value chain and bringing AgTech solutions to customers.

 

According to MD Niki Neumann, these are solutions ATS believes will help ensure both the future of agriculture and enable food security. “We are bringing together products and solutions that will solve some of agriculture’s biggest challenges. We aim to be the catalyst of innovation and technology-enabled solutions to drive sustainable agricultural growth across the African and global agricultural value chain.”

 

Neumann lists some of these challenges to be: the limited access to resources, finance, markets and information; increasing demand for farming efficiency – the constant demand to do more with less at a cheaper price; changing consumer demands, particularly towards increased food traceability and alternate protein sources; the demand to produce more to meet the exponential growth in the population; supply chain inefficiency and wasteful value chains; climate change, decreasing availability of land, water scarcity and changing weather patterns.

 

“Imagine a world where everyone had access to nutritional food. Imagine a world where 40% of the food produced is not wasted. Imagine a world where there is enough, equally dispersed for all. This is all possible through introducing innovative and inclusive business models, new technology and innovation in the sector. There’s both a positive societal impact, as well as a promising commercial opportunity that advanced, technology-driven agriculture can play, that is yet to be unlocked – agriculture can touch many lives positively.”

 

Neumann adds that a new frontier in agriculture has started and it’s moving faster than we imagined. “Last year alone there was a reported investment in AgTech start-ups of $10.1 billion. We are already on the back foot as a country in this space. It’s time for us to put technology and innovation forward as a key pillar of the future of the industry. It cannot be a ‘nice to have’, it needs to be adopted as a crucial enabler to the industry. We need to rethink the ordinary.”

 

With services uniquely centred on the concepts of “grow”, “create”, “build”, “leap” and “unite”, ATS provides a host of offerings, including:

 

  • Innovation and technology advisory services for farmers and businesses.
  • The design and co-design of new technology-driven business models, digital products and services for the sector.
  • The building of new technology through co-creation and outsourcing services for Ag-specific innovation and digital activities.

 

“We offer start-ups and entrepreneurs the ability to scale their enterprise and technology with us. Innovation and future-proofing your business is best done by working together. Join our innovation ecosystem to connect with like-minded innovators, entrepreneurs and gain first access to game-changing technology solutions, and to talk to us about partnerships and strategic alliances.”

 

In the FinTech space, AFGRI has for some time led the pack amongst agricultural businesses with its afore-mentioned eAccounts offering. “In this age of technology, where most financial transactions are done through the touch of a button rather than in the presence of a teller or the bank manager, it is essential for financial services companies to offer top-notch electronic platforms from which clients can transact. eAccounts does just this – it’s a ground-breaking electronic account management solution offered to customers through UNIGRO,” explains Tinus Prinsloo, CEO of AFGRI.

 

Customers can, from a handling and storage perspective, view and receive invoices and statements, as well as draw detailed reports and information of their respective grain delivered for storage at any of AFGRI Grain Management’s 85 locations across the country. An ability exists to calculate storage rates according to grade and grain type. Customers are also able to access and monitor their procurement contracts, which contain detailed information, as well as movement reports.  Another feature enables farmers to record rainfall on their lands. Future developments on this platform include an insurance and claims functionality.

 

Of course, when it comes to agricultural equipment, staying at the forefront of innovation is a must. AFGRI Equipment has ensured that farmers in Africa have had access to the finest agricultural equipment through the largest single John Deere franchise on the continent since 1962. What’s more is that AFGRI Equipment can support farmers with mobile servicing and maintenance workshops, ensuring effortless management of an agricultural fleet. Workshops are manned by highly qualified personnel, accredited by John Deere.

 

What’s more is that to ensure farmers have ground-breaking technology to hand in order to best manage their equipment, the AFGRI Equipment and John Deere partnership are currently implementing JD Link, a near real-time telematics system connecting all makes and models of agricultural machinery in the field with the farmer’s office and mobile devices.

 

“The JD Link system, which AFGRI Equipment has already started rolling out to farmers, helps collate telematics and a wide range of data from all machines. Vital information to prevent downtime as an example, is available at any time to the farmer, and this, in our opinion, will improve efficiencies even further,” says Prinsloo, adding that AFGRI Equipment would be making more information available on this system in the next few weeks.

 

The spectacular John Deere machines, along with specialist potato equipment, will be on display at the AFGRI Equipment John Deere stand as well as the new AFGRI stand, H2 at NAMPO – we urge you to come and take look at our latest range.

NAMPO / Nation in Conversation: The importance of economy of scale: Big vs small

One of the debate topics at this year’s Nation in Conversation is around the importance of economies of scale, and the benefits of having an economy of scale in business, and specifically in South African agriculture.

 

From a business perspective, there is none closer to this subject than AFGRI itself. Now a leading agricultural services company, the group had a humble beginning. Back in 1923, 150 people attended a meeting called to establish the Oos-Transvaalse Landboukoöperasie, with 29 people signing the list of original members.

 

By 1930, 5,400 tons of maize was being handled by AFGRI – then considered a record, this in fact was hardly enough to fill the tube of one modern silo today. And 42 years later, in 1972 the total business silo capacity was 587,700 metric tons. Today AFGRI’s handling and storage capacity is more than five million tons!

 

Over the 95 years it has been in business, AFGRI has grown its offerings to encompass a wide variety of services and products, geared to support farmers no matter what their size.

 

“Constant innovation and in-depth knowledge of the agricultural sector means that we have also kept pace with the changing needs of our customers. We now offer grain management services, financial services, including insurance solutions and a financial transacting platform, agricultural equipment, animal feeds, retail outlets, commodity and currency trading, and commodity hedging amongst others,” says CEO of AFGRI, Tinus Prinsloo.

 

“This all-encompassing approach that means that farmers need look no further than AFGRI for all their requirements. For us, economy of scale means the ability to offer total support for our customers.”

 

Inherent to this approach are the lessons learnt from supporting generations of farmers – many of whom also started off small. “As their needs have grown and changed, we’ve been able to map our own growth. Because of our size, we’re also able to invest in the latest farming innovations through our division, AFGRI Technology Services, which is focused on mobilising AgTech to the benefit of South African farmers.”

 

In partnership with John Deere, AFGRI is the largest John Deere dealer outside of North America, and nothing says “efficiency” better than the equipment, technology and support that is provided through this long-standing partnership. “Here’s a fun fact – in 1963, the year following AFGRI entering into an agreement with John Deere, we sold only 28 tractors, compared to 1972 when we sold 519 John Deere tractors. Now our equipment technology leads the market with innovative solutions and products.”

 

According to Prinsloo, South African farmers are also world leaders in adopting technology to enhance and economise farming.

 

To ensure farmers have ground-breaking technology to hand to best manage their equipment, the AFGRI Equipment and John Deere partnership are currently implementing JD Link, a near real-time telematics system connecting most makes and models of agricultural machinery in the field with the farmer’s office and mobile devices.

 

“The JD Link system, which AFGRI Equipment has already started rolling out to farmers, helps collate telematics and a wide range of data from all machines. Vital information to prevent downtime as an example, is available at any time to the farmer, and this, in our opinion, will improve efficiencies even further,” says Prinsloo, adding that AFGRI Equipment would be making more information available on this system in the next few weeks.

 

He adds that another logical progression of economy of scale, and the experience gained over more than nine decades of working side by side with South Africa’s farming community, is AFGRI’s involvement in assisting emerging farmers, where the goal is to support their growth path of becoming the commercial farmers of the future.

 

“By passing on this information and knowledge and offering insight that comes from many years of experience, combined with mentorship where our teams work directly with emerging farmers throughout the process, are able to assist the individual to enhance his/her yields. This puts the farmer in a good position to increase yields and grow more crops, ultimately helping him or her to become the successful commercial farmer of tomorrow.”

 

Prinsloo concludes that at AFGRI it is not one divisional approach that supports the success of the farmer, no matter whether large or small, but the total offering of AFGRI, which has been moulded over nine decades and which continues to be enhanced upon as requirements and economic challenges change.

 

NAMPO / Nation in Conversation: Inspirational women in business

With the lead up to this year’s Nation in Conversation debates taking place at NAMPO – from the 15th to the 18th of May – one of the sessions will focus on the role of women in the agricultural sector. While it’s a well-known fact that the number of women participating in the South African agricultural labour market amounts to some 278,000 individuals, roughly a third of the sector’s total labour force, with the World Bank putting women’s share of labour in crop production at an average 40% across the rest of Africa, a perhaps more important issue is how female leadership in the sector is shaping up.

 

Some progress has been made in the past few years in increasing the number of women in management positions within the sector, with several national agricultural associations and organisations having prominent women at the helm.

 

For AFGRI, South Africa’s leading agribusiness, now in its 95th year of doing business, the issue of female participation, particularly at a leadership level, has been a firm priority for several years. Testament to this is the fact that Marion Shikwinya has for several years been the Managing Director of the group’s Harvest Time Investments, an initiative focused on the development of the country’s small-scale farmers, many of whom are themselves women.

 

With the recent appointment of Rivasha Maharaj as CFO, and Thabi Nkosi as Head of Business Development, the agricultural group has taken another stride forward in ensuring more female participation at a senior level.

 

According to Chris Venter, the CEO of AFGRI Group Holdings, this is an important development for the group: “We need diversity in all key positions of the agricultural sector, particularly because the sector is viewed as one of the mainstays of growth and development in this country. As such, it is important that diversity is prioritised without compromising on the qualifications, skills and experience needed to take the sector – and AFGRI – forward.”

 

As the new CFO of AFGRI Group Holdings, Maharaj sees her role as an exciting challenge, allowing her the opportunity to drive change and strategy within the business, and in so doing, impact both the financial and social aspects of the group positively.

 

For Nkosi, an agricultural economist by training and background, the issue of gender parity remains critical. “My inspiration comes from all the women who have beaten the odds to achieve success in various areas. I would like to empower others through my example.”

 

She views the two most important challenges for the country in terms of agriculture in the next five years as being setting clear policy on the land question, and how South Africa will adapt to the increasing occurrence of extreme weather events brought on by climate change.

 

According to Harvest Time Investment’s Shikwinya, the issue is a complex one: “The future of agriculture will be impacted by many things, including climate change, consumer demands, availability of arable land, water scarcity, etcetera, and so I believe it’s difficult to determine exactly what the greatest of these challenges will be. And I would say that unless we are as a country able to embrace innovative solutions to ensure sustainable agriculture, we will continue to see challenges. The ability of the sector to thrive in South Africa, particularly in food production, will depend on the ability of producers to adapt to and implement solutions that will be brought about by what could be termed the ‘agri-technovation’ era.”

 

On the question of the role of women in agriculture, Shikwinya believes women have always been involved in the sector, in one way or another. “Historically, women helped to grow food for their families. They certainly have a proven ability in primary production, although we need to focus more and more on leading female primary producers in our country. The important thing to recognise though, is that primary production is not the only area in which women can contribute to the sector. Women can play a leadership role in terms of driving innovation, influencing decisions in large agricultural services companies, and in policy making in government, as examples. It is, therefore, important that the sector focuses on creating an environment in which women can thrive, no matter the area they chose to be involved in.”

NAMPO / Nation in Conversation: UN decade of family farming

This year AFGRI, one of South Africa’s leading agricultural services company, is proud to again be participating at NAMPO, and in the Nation in Conversation debates taking place between the 14th and 18th of May, at Bothaville in the Free State.  Chris Venter, the CEO of AFGRI Group Holdings, will be one of the panellists in the session focusing on family farming, taking place on Wednesday, 16 May at 11am.

 

With the emphasis on farming as a family business gaining new momentum with the United Nations’ adoption of a decade of family farming, this discussion will focus on how governments, business and labour can get involved to promote sustainable development to alleviate global hunger. This is particularly apt in South Africa, where most of the farms are owned and managed by families.

 

For AFGRI, now celebrating its 95th year in business, this topic is close to its heart. The group has after all been supporting farming over the generations, and aims to continue doing so for decades to come.

 

“With 95 years of experience in the agricultural sector, AFGRI understands what it takes to be a successful farmer. We strive towards constant progression, growth, innovation and forging our vision for food security in South Africa and the rest of the continent. AFGRI will always, as it has done for over 95 years, be with the farmers, for the farmers. We are proud to have been a part of their heritage for generations, and remain passionate about their success and the future farmers to come. From the past, to the present and the future – we support our farmers and recognise their passion,” says CEO of AFGRI, Tinus Prinsloo.

 

Another major thrust for AFGRI is to support the sector to ensure food security, inextricably linked to its role in the future of farming and sustainable development within the agricultural sector. According to The Food and Agriculture Organisation, the number of people experiencing food insecurity in Africa rose from 220-million people to 224-million people in 2017, attributed to changing weather patterns that led to poor harvests, a loss of livestock, conflict and recurrent droughts on the continent. South Africa’s food security ranking currently stands at 44th out of 113 countries, according to the Global Food Security Index, developed by the Economist Intelligence Unit.

 

“For this reason, our focus is on all farmers, whether they are family farmers, large commercial farmers or small-scale farmers. Each has a role to play in ensuring enough food is produced to prevent South Africans, as well as the people of Africa, from going hungry. Equally important is our support of agriculture that ensure the farmer is commercially successful to ensure sustainability.”

 

The group’s sustainable development initiatives include Harvest Time Investments, which was launched in 2012 to unlock the potential of emerging farmers and their farms through training, development, and mentorship.

 

“All-in-all this support, imparting of knowledge and care is to safeguard agriculture for future generations,” concludes Prinsloo.

 

How does the US compare in terms of family farms?

As in South Africa, family farms play a dominant role in US agriculture. According to the US Department of Agriculture’s National Agricultural Statistics Service (NASS) in 2016, these farms accounted for some 97% of farms and 89% of production.

 

  • Food equals family – 97% of the 2.1 million farms in the United States are family-owned operations.
  • Small business matters – 88% of all US farms are small family farms.
  • Local connections come in small packages – 58% of all direct farm sales to consumers come from small family farms.
  • Big business matters too – 64% of all vegetable sales and 66% of all dairy sales come from the 3% of farms that are large or very large family farms.
  • Farming provides new beginnings – 18% of principal operators on family farms in the US started within the last 10 years.

 

For South African family farm success stories, catch the @Landbouweekliks series on ViaTV, DStv-channel 147, which is proudly sponsored by AFGRI. One of the family farms featured recently was the Genade Farm in Douglas in the Northern Cape, which belongs to the Bruwer family. Here world-class farm management is carried out by Vickie Bruwer and his three sons.