STATEMENT BY PRESIDENT CYRIL RAMAPHOSA ON ESCALATION OF MEASURES TO COMBAT COVID-19 EPIDEMIC
View or download the statement here.
View or download the statement here.
Dear customer
AFGRI Grain Management’s grain services and grain trading will continue during the COVID-19 lockdown.
We are aligned with the statement of President Ramaphosa on March 23, 2020, and as part of the agro food value chain, will continue to operate as outlined under the “Essential Services” definition, specifically “Food & essential products – related manufacturing and processing, and distribution”.
Please remember that access to accounts, grain contracts and supplies is available through our e-Accounts platform.
Further, given these trying times, we must strive to minimise exposure between our employees and our customers, so where possible, please communicate your needs by phone, email, WhatsApp or SMS to your Silo Manager and/or Grain Marketer.
For any queries, please contact your Silo Manager or Grain Marketer.
Stay healthy!
Dear valued client
South Africa will go into a national lockdown on Friday, 27 March 2020 (immediately after midnight on Thursday) to slow the spread of the novel coronavirus. The shutdown will last for 21 days (“the lockdown period”).
During that time, all businesses and services must shut down other than a list of exempted businesses that are considered critical to supporting the health and safety of South Africans (“exempted businesses and services”).
The exempted business and services include:
• Agricultural and food supply related operations, farming, veterinary and phytosanitary provider services, pest control services, and chemical and fertilizer providers.
• Food, beverages and essential products manufacturing and processing facilities.
• Warehousing, transport and logistics for food and essential products, and health-related goods.
• Ports, and road and rail networks will remain open in order to facilitate the import and export of essential products.
• Food outlets – retail, wholesale, spaza shops and malls for food and essential products.
• Critical banking and financial services.
Although we await the detailed regulations to be published in terms of the Disaster Management Act, it is clear that the entire agro-food value chain is considered an essential industry, and forms part of the Exempted Business and Services.
AFGRI Group Holdings, including its subsidiaries, forms part of the agro-food value chain.
Accordingly, the following businesses and services in the Group will continue operating during the lockdown period:
1. All grain silos and bunkers
2. All AFGRI Equipment branches and services
3. All UNIGRO financial services, including e-accounts;
4. All food processing and manufacturing facilities, including AFGRI Animal Feeds and AFGRI Milling
5. Hinterland (AFGRI Town and Country) retail branches
Our employees will be allowed to travel to provide these services to you.
We will continue to act lawfully and responsibly in accordance with the Disaster Management Act and its regulations and if anything changes we will contact you. Employees who are not deemed essential to be in the office or their normal place of work, will work from home. However, whether they work from home or from their normal workplace, they will continue to be contactable and provide you with the same services and products you are accustomed to.
Our clients’ and employees’ health and safety are paramount. It is also, however, important to appreciate the fact that the AFGRI Group of companies, our employees and our clients form part of the agro-food sector, which has rightfully been recognised as essential to the country fighting the Covid-19 pandemic. This is a privilege, but also a huge responsibility.
Lastly, we wish to ensure you that the Group has the operational plans and human resources necessary to support you, our valued client, in these trying times.
We will continue to keep you updated with regards to any developments, including on our social media channels and our website.
Tinus Prinsloo
Acting Group CEO
Speaking notes by Ms. Thoko Didiza, MP Minister of Agriculture, Land Reform and Rural Development
A Message to the Agriculture and Food Sector of South Africa
24 March 2020
As you may be aware, that last night the President announced measures to deal with the COVID-19 pandemic, which include a 21-day lockdown.
Several businesses will be affected, but the agriculture and food supply sector is one of essential systems for livelihood and therefore will remain operational. Our food supply system will remain functional during this period. Agricultural production in all its forms will remain uncompromised. This includes all services including provision of veterinary and advisory services. Live auctions of livestock and sale of other agricultural commodities will continue but under the strict conditions a prescribed by the President. Exports and imports of critical agriculture commodities and the logistical measures will continue during this lock down period to ensure global and national food security.
This is not only limited to retailers but the entire food value chain, from farm-related operations, agro-processing and food manufacturing, logistics and related services, wholesale and retail services, and all support functions that ensure efficient delivery of the agro-food system.
As a nation, we boast for being self-sufficient in food production, and a part of this year’s supply is yet to be harvested – which promises to be a bumper field crop and citrus harvest – and these processes will continue as normal as a foundation of South Africa’s food system. I will be making regular updates on crop estimates to inform the country of our critical commodity supply. To ensure that we do not have inflated prices in the sector. Food price monitoring will be conducted on critical food basket commodities and reports will be given to the nation on regular bases.
The Department has set aside a package of R1.2 billion to address effects of the corona virus and ensure sustainable food production post the pandemic. The Department soon will make the details of this package together with the application channels available. The Department has also availed R100 million to the Land Bank to assist farmers under distress.
Together with the industry we are working on a sector operational procedures that would ensure adherence to the measures announced by the President this includes the provision of sanitation to employees within the sector especially farm workers.
We urge the food value chain role players to strictly comply and adhere to strict health regulations to contain and arrest COVID-19 as we strive to supply food to the nation.
I appeal to the public not to embark on panic buying, as the President has indicated. The country has sufficient food supplies. Panic buying will only cause disruptions and inconvenience in the food system. I urge you, fellow-citizens, to also be considerate and purchase that which is sufficient for your needs.
To wholesalers and retailers, we urge you not to engage in price gouging, at such a crucial time for the country. You have an important role to play in the supply of food, and the fight against COVID-19. We ask that you continue to serve the nation and help ensure food security at this critical juncture.
Ends
Monday, 10 February 2020 –AFGRI Agri Services, Kagiso Trust (through the Tyala Impact Fund) and Potatoes South Africa (“PSA”) today signed a ground-breaking agreement aimed at addressing the major challenges faced by South Africa’s new era farmers – access to technical support, access to finance and access to markets. The agreement will give rise to a sustainable solution that will involve the co-operation of three reputable players in their field of expertise to provide a holistic approach to these challenges.
Whilst initially focused on potato farming in South Africa, with the aim of establishing commercial new era potato farmers, the solution will not be limited to potatoes in the longer term, with the intention being to establish commercial new era farmers in other export crops, including avocados, grapes and apples.
“South Africa’s land reform process is likely to not yield the desired success if support for new era farmers does not improve considerably. Without structured support and appropriate funding, new era farmers who venture into commercial farming are bound to fail, given that commercial farming is a capital-intensive business requiring specific knowledge and support. The battle to secure support has already forced many struggling new era farmers to rent out their land to established farmers,” says Mankodi Moitse, the CEO of Kagiso Trust, one of South Africa’s leading development agencies. “If this is left unchanged, South Africa is likely to see more new era farmers being forced out of the commercial agricultural space, which will render the land reform process futile.”
According to Mrs Moitse, the timing of the solution was therefore opportune. “Given the potential role of agriculture in economic transformation and food security, Kagiso Trust also wants to extend its contribution beyond education and other development interventions to agriculture. As such, Kagiso Trust set up the Tyala Impact Fund, so this agreement ticked all the boxes.”
One of the key elements of the solution is training. According to Jacob de Villiers, the CEO of AFGRI Agri Services, new era farmers often lack good, technical ‘hands on’ training. “Through Lemang Agricultural Services, we deliver support to new era farmers aimed at improving productivity through advice, information and other critical support services. However, what has made our training and development programmes stand out in terms of the successes achieved is the support given to new era farmers by experienced mentors, who are literally in the fields training the farmers, and with them virtually every step of their development journey.”
Under the co-operation agreement, Lemang Agricultural Services will provide joint technical assistance and training with PSA on potatoes as well as rotational crops. Lemang’s assistance will further include co-funding – through AFGRI Agri Services’ financial services arm, UNIGRO – as well as training and mentorship in order to develop new era farmers to become full participants in the commercial agriculture value chain and to be part of the agricultural mainstream.
UNIGRO MD Ross Simmonds says that there is still relatively little appropriate financial support available to new era farmers. “Financiers struggle to provide funding to these farmers, given their lack of financial history and access to equity, amongst others. However, given the mentorship provided through Lemang Agricultural Services and PSA, the financial support of the Tyala Impact Fund, and UNIGRO’s deep agricultural finance knowledge, we are able to assist. Solutions can only be found through partnerships between companies committed to the sustainability of the South African agricultural sector.”
Access to markets is another significant requirement, and here is where both PSA and AFGRI Agri Services will be key. PSA CEO, Andre Jooste, says that required off-take agreements, i.e. the assurance from a business that it will buy the new era farmer’s produce, is vital. “Both PSA and AFGRI Agri Services have access to networks that include suppliers and technical partners in the co-op space to facilitate the required off-take agreements.”
Jooste explains that the PSA and commercial potato producers are no stranger to the development of new era farmers, and already contribute to ensuring that these farmers gain commercial producer status through PSA’s Enterprise Development programme. “The number of hectares supported by the programme increased from 37 hectares to 320 hectares over a period of eight years. During this time, two farmers, one in Limpopo and one in the Eastern Cape, graduated to commercial status, each planting more than 30 hectares of potatoes.”
He adds that it is imperative to establish successful partnerships with key role players in the potato value chain and beyond to support new era farmers.
Finally, and perhaps most critically, is access to funding, especially affordable funding. UNIGRO will be the commercial debt financier but will require the equity gap to be plugged. “This is where the Tyala Impact Fund comes in, providing funding at development returns. In addition, the extremely low average funding rate between UNIGRO’S senior debt interest rate and Tyala’s development interest rate provides an affordable repayment debt profile for new era farmers – leaving them with a sustainable farming operation yet access to cash to fund their lifestyle,” explains Teresa le Roux of Ukunika Investments, which developed and proposed the solution, and is working on other, similar initiatives in the agricultural space.
“We are all very excited at this unique opportunity to work together to improve the lot of new era farmers in our country and are looking forward to making a tangible and sustainable difference to the South African agricultural sector,” concludes de Villiers.
Centurion, 2 October 2019 – AFGRI Technology Services (ATS), the strategic innovation and growth division of AFGRI Agri Services, has partnered with Aerobotics, the Cape Town based start-up that processes data from drone and satellite imagery through its proprietary artificial intelligence software to bring the latest technology to a broader section of South Africa’s farmers.
The partnership aims to provide critical tools to support the growing market of tree crop farmers to ensure they are optimising how they make decisions, manage risk and operate their farming business.
“Our customers stand to benefit from Aerobotics’ tools, which are used for general farm management and to discover and analyse problems affecting individual trees, to proactively manage pests and disease outbreaks as well as monitoring tree crop health and optimising their yields,” says AFGRI Agri Services CEO, Jacob de Villiers.
According to Niki Neumann, GM for Strategy & Innovation at AFGRI Agri Services, Aerobotics has seen good traction and growth in the tree crop market in South Africa and abroad. “Their focus on a superior product experience and customer service has put them strides ahead of their competitors. We look forward to working with dynamic, disruptive companies like Aerobotics to bring only the best-of-breed solutions to our farmers.”
Neumann adds that the Aerobotics tool was introduced to AFGRI Agri Services employees during August, and that some farmers have already been introduced to the company and its capabilities through ATS’ Future Farmers Forum, an initiative aimed exclusively at forward-thinking early adopters in the agricultural sector with the sole goal of connecting South Africa’s farming community with the latest in agricultural technology.
“By working with start-ups like Aerobotics, we can encourage a truly tech-enabled sector in South Africa that promotes sustainable, responsible and efficient food production, with a focus on increased productivity and data-driven decision making.”
Aerobotics Head of Sales for Africa, Vic van den Berg, is excited about the partnership as an opportunity to bring their farm management software to a larger market. “Our team is consistently working on product updates and features with the key objective being to save our farmers all over the world time and money through our early-stage pest and disease detection software – which gets smarter by the day. This partnership means that we will be able to add value to more farmers with our data-driven software, which ensures that farmers can make smart, data-driven decisions when it comes to their crops’ health and yields.”
About AFGRI Agri Services
AFGRI Agri Services is a leading agricultural services company with core competencies to enhance, support and guide the growth of agricultural enterprises. It provides services across the entire grain production and storage cycle, offering financial support and solutions as well as inputs and hi-tech equipment through the John Deere brand supported by a large retail footprint. Lemang Agricultural Services was established to train, develop and mentor new era farmers with a focused service in the further development of commercial black farmers in South Africa. AFGRI Agri Services is part of the AFGRI Group, the investment holding company with interests in a number of food, agriculture and financial services related companies providing products and services to ensure sustainable agriculture and food security.
About AFGRI Technology Services (ATS)
ATS is the strategic growth and innovation division of AFGRI Agri Services. Catalysing growth through superior strategy, insights, technology and innovation across the agricultural value chain, with the vision to introduce solutions that solve agriculture’s biggest challenges and enable food security. Visit www.afgritechnologyservices.com for more information.
About Aerobotics
Based in Cape Town, Aerobotics was co-founded by James Paterson (CEO) and Benji Meltzer (CTO) and combines aerial imagery obtained from satellites and drones with its machine learning algorithms to provide early problem detection services to farmers, helping them to monitor their crops, receive early warning of potential risks, and optimise yields. Aerobotics provides farmers with accurate statistics on their trees and vines and allows them to use its management zones to plan planting. It now operates across hundreds of farms in 11 countries throughout the world, has commanded 40% and 20% of South Africa’s macadamia nut and citrus markets respectively, has won numerous awards including Best Technology Company of 2019 at Africa Tech Week, and has raised two funding rounds totalling US$2.6million.
Visit www.aerobotics.com for more information.
Centurion, 27 August 2019 – Chris Venter, the CEO of AGH, the investment holding company with interests in a number of food, agriculture and financial services related companies providing products and services to ensure sustainable agriculture and food security, has announced the appointment of Jacob de Villiers as the new CEO of its AFGRI Agri Services business, following former CEO Tinus Prinsloo’s retirement at the end of July 2019. De Villiers is no stranger to the business nor any of its stakeholders, most recently filling the position of CFO of AFGRI Agri Services.
De Villiers, a Chartered Accountant by training, has held various roles within the organisation since first joining in 2002. Most recently, he acted in a dual capacity as managing director of AFGRI Grain Management and CFO of AFGRI Agri Services.
He believes there will be no major changes in the business, a leading agricultural services company with core competencies to enhance, support and guide the growth of agricultural enterprises, under his leadership in the next 12 to 18 months. His focus will be on strategy implementation and exemplary customer service.
“We are privileged that Tinus is leaving behind such an excellent legacy. AFGRI Agri Services has gone through extensive restructuring during the past two years as part of the overall AGH reorganisation, which has successfully positioned us to take this business forward. We’ve also during this time dealt with legacy issues and have built a solid management team – now it’s really a matter of fine tuning,” said de Villiers.
“What we want to do is to implement our strategy, ensuring our processes are optimised and working for us, doing more with less, and executing swiftly with an even greater focus on our customers, ensuring they are always front of mind.”
De Villiers says that given a number of external forces affecting the agricultural sector, including drought, political intervention, and foreign exchange fluctuations, amongst others, that are simply beyond the business’ control, it’s critical to remain heedful of those things that can be managed to ensure that AFGRI Agri Services continues to flourish.
“We are responsible corporate citizen, contributing wholeheartedly to building South Africa’s economy, employing more people – all this to ensure our business thrives.”
With the newly-created AFGRI Silo Company now in place, de Villiers says leveraging this platform will be a major focus in the next 12 to 18 months, with the intention being to have more grain storage participants come on board, with the goal of building storage capacity from 4,7 million tonnes to six million tonnes, as well as branching out into the storage of other agricultural commodities beyond grain.
On the financial services side, de Villiers believes that apart from having a more robust financial services offering from UNIGRO following AGH’s acquisition of the South African Bank of Athens (now Grobank) last year, securing long-term funding is critical to ensuring that the farmer book continues to strengthen, all the while ensuring the relationship of origination for the Land Bank remains steadfast.
“We are working with like-minded funding partners that have the best interests of the sector at heart to support South Africa’s farmers across all nine provinces, with AFGRI Agri Services now having a solid presence across the country.”
From AFGRI Equipment perspective, de Villiers says that the next 12 to 18 months will be a period of consolidation for this division, which has gone through several mergers and acquisitions over the past three to four years. “Here the focus for the next year or so will be on further process improvement, bedding these down, and ensuring the business operates optimally.”
Lemang Agricultural Services, created last year to focus on assisting black commercial farmers, is now in the final stages of being accredited as a level 1 B-BBEE financial intermediary and will be supported by UNIGRO and other funders. “This is a very exciting initiative – it’s almost like starting a new business from scratch, and here certainly the long-term goal is to grow Lemang to the same size as AFGRI Agri Services.”
AFGRI Technology Services (ATS) will also play a key role in supporting the other divisions adapt to innovation and technology, as well as bringing AgTech to customers as part of AFGRI Agri Services’ overall suite of offerings. Furthermore, ATS has several joint partnerships and in terms of data extraction and mining with the aim of ensuring that AFGRI Agri Services has the right information at hand to ensure its sustainability going forward. “We’re very excited to see various other developments coming to fruition soon.”
Another clear focus will be on people – for de Villiers having an engaged workforce is imperative to achieving a truly customer-centric organisation that is set apart from others in the sector.
According to Venter, AFGRI Agri Services will remain in good hands. “I am confident Jacob has what it takes to further cement this business’ position as a leader in providing agricultural services and products and I look forward to working with him.”
Venter added that whilst Prinsloo may be retiring as CEO of AFGRI Agri Services, he will continue to serve as a non-executive director on the boards of a number of invested companies falling under the AGH umbrella, and further assist in the positioning of the AFGRI Silo Company.
“In this way his skills and expertise will remain available to AGH, which will ensure that his knowledge and deep experience of the agricultural sector are passed on to another generation of leaders within the Group.”
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.”
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.”
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.