Ivor Price at NAMPO 2018

Visit AFGRI at NAMPO Stand H2. From 15 – 18 May 2018

 

Heart of Zambia’s agriculture

FOR a moment, forget about the Zambia Agricultural and Commercial Show, a five-day event organised by the Agricultural and Commercial Show Society of Zambia (ACSZ) in Lusaka leading to Farmers Day, a public holiday.
Think about the Agritech Expo.
But what is it about?
“In the heart of Zambia’s agri-hub, Agritech Expo Zambia is the ultimate business-to-business buying platform for agricultural professionals, from small-scale farmers to commercial enterprises, to engage and conduct business with some of the world’s leading suppliers to the agricultural industry,” the Agritech website reads.
“Establishing a marketplace for regional and international industry professionals, young agripreneurs and farmers of all scales come together in one location to conduct exclusive agribusiness transactions while being educated on the latest global industry trends to advance into the next generation of food production.
“From live crop trials and machinery demonstrations to technical and practical workshops and business lounges for commercial players, Agritech Expo presents the gateway to industry innovations with the leading outdoor exhibition in the region for the agri community. Agritech Expo is simply the only professional business-led event servicing the needs of the entire agri-value chain in Zambia and its neighbouring countries.”
That is what it simply is about.
The Agritech Expo, which started five years ago, has developed into an influential agricultural trade show exposing both small-scale farmers and commercial enterprises to up to date with industry practices.
The concept of the expo was taken from South Africa’s Nampo Agricultural Trade Show, an annual event held in Bothaville since 1974. The show, which is also known as Nampo Harvest Day or Nampo Oesdag, is organised by Grain South Africa and features a large variety of agricultural machinery and livestock.
This year’s Agritech Expo Zambia, which started yesterday under the theme ‘Resilience part of Zambian nature: Applauding every step forward towards the modernisation of Zambian agriculture’, will be officially opened by President Edgar Lungu today at the Golden Valley Agricultural Research Trust (GART) in Chisamba.
Some of the invited guests include Minister of Agriculture Michael Katambo, Minister of Fisheries and Livestock Kampamba Mulenga, the Farmers Expo Board chairman, Ashok Oza, and Zambia National Farmers’ Union (ZNFU) president Jervis Zimba.
The expo will provide agricultural producers and the public an opportunity to experience what modern agriculture looks like and to witness what is new on the market.
Agritech Expo is owned by ZNFU and enjoys support from Government as well as other stakeholders.
This year’s event has attracted about 20,000 farming professionals and visitors, over 270 local and international exhibitors with 3,500 high-profile delegates, large-scale farmers and about 150 members of the press.
Therefore, the emphasis by Government to make agriculture a major contributor to the country’s gross domestic product (GDP) of the country has further enabled GART Research Centre to increase the number of land to be occupied at this year’s expo from 20,000 in the last five years to 70,000.
The expo is a landmark event for Zambia’s agriculture sector, providing a business-to-business platform for agricultural professionals, from small-scale farmers to commercial enterprises by enabling them to engage and conduct business with some of the world’s leading suppliers to the agricultural industry.
The show, which started as a small-scale venture has grown to be one of the most sought after agriculture expos in the region coming in second after South Africa’s Nampo Harvest Day.
There is no doubt that this year’s Agritech Expo is poised to transform the agriculture sector through the provision of innovative services by various exhibitors.
Government has continued to support the event through the provision of better policies and initiatives that are aimed at boosting agriculture in the country.
President Lungu has been championing the economic diversification agenda and the need for Zambia to embrace agriculture and tourism, among other sectors, to help lift the country out of poverty.
That is why the Agritech Expo is welcome.
Despite an outbreak of the Foot and Mouth disease (FMD) in Chibombo and Chisamba districts, the expo is on. Or as they say, all roads lead to Chisamba.
However, the exhibition of cattle and other livestock species will not be allowed at this year’s Agritech Expo.
Consequently, the initiative by Government and ZNFU to subject all participants, including their vehicles, to screening before entering the main arena will help contain the outbreak.
The Agritech Expo is expected to bring with it many financial benefits that will trickle down to other economic sectors such as the National Road Fund Agency (NRFA) through the collection of tolls due to increased traffic during the expo period.
And as Zambia focuses more on diversifying its economy, there is need to invest more in the agriculture sector as it plays a strategic role in the development of the country.
Therefore, there is no secret that technology improvement or innovative development should be adapted and applied to the scientific requirements of farmers and agricultural industries to attain better outputs.
Since farming is a scientific business, the Agritech Expo is the way to go if Zambian farmers are to increase their productivity and profitability to promote sustainable food security for the country.
This year’s platinum sponsors are Afgri and John Deere, Saro and Ursus are gold supporters, with the Zambia Daily Mail being the premier media partner.

Article source

AFGRI Ghana establishes 10 model farms to boost mechanisation

Ghanaian mechanised agricultural equipment supplier AFGRI Ghana Limited says it has established 10 model farms to teach local farmers the correct ways of using mechanised equipment to maximise on crop yields per hectare.

The company, which is a leading supplier of John Deere farm equipment in Ghana, also plans to export its wide range of products to other countries in West Africa and beyond.

Addressing a recent fishing and farming awards ceremony in the capital Accra, AFGRI Ghana Country Manager Gerrie Jordaan said they will provide capacity building to enable farmers to plan their mechanisation needs, as well as how to find, operate and service essential farm equipment such as tractors.

“The lifetime for most tractors here in Ghana is about 5 years, but the lifespan of a tractor elsewhere could range from anything between 15 and 20 years. We need to educate farmers to take good care of their equipment, so that it can last longer,” Jordan said.

He said the 10 model farms in 5 provinces are expected to help improve yields through better soil preparation and the adoption of modern crop management techniques. The company has since created a credit facility called John Deere Financial to provide low-income farmers with loans to acquire the John Deere brand of mechanised equipment.

“We created the model farms to teach and demonstrate to the farmers that with correct mechanisation, they can use the same input costs to get better crops. Farmers normally yield 1.5 tons to 2 tons per hectare when using traditional ploughing means, but in our model farms, we have been able to get up to 8 tons of crops per hectare,” he said.

KCM plc announces partnership to implement scalable agribusiness alongside its copper mining operations in Zambia

Konkola Copper Mines plc (“KCM”), a subsidiary of Vedanta Resources plc, has joined forces with AFGRI Agri Services, part of AFGRI Group Holdings, and ImpactAgri (Holdings) Ltd to develop agribusiness in Chililabombwe, Zambia.

Speaking at the launch of the initiative, KCM CEO Steven Din said: ‘KCM is one of Zambia’s leading mining companies, but our vision for opportunities on the Copperbelt extends beyond mining. We want to see the creation of new enterprises and new industries that will provide better local sourcing options for our business and greater economic opportunities for Copperbelt residents. That is why we are forming a partnership to develop agribusiness in the region.’’

The aim of the collaboration is to develop agricultural and agro-processing, and in so doing to create employment and protect the ecosystem adjacent to KCM’s mines. The initiative is a core pillar of Vedanta’s vision to help transform the Copperbelt into a strong and resilient regional economic hub that can sustain livelihoods even when copper prices are low.

1,500 hectares of land are initially being set aside for development in Chililabombwe, using AFGRI’s and ImpactAgri’s signature approach to agribusiness, which combines both inclusive farming methods and environmental best practice. A mixture of both high-value and commodity crops will be grown to cater for the local market and to penetrate higher value export markets. The implementing partners aim to create a truly sustainable, commercial, large-scale agribusiness that can deliver strong and positive economic and social impact.

Jon White, CEO of ImpactAgri, said: ‘’Often one of the biggest obstacles to developing agricultural projects in Africa is access to clean water in sufficient quantity. Thanks to the surplus of clean water coming from KCM’s Konkola mine, we have a perfect opportunity to develop local farmers into serious agri-preneurs as part of an organised large-scale, farming system.’’

Vaughan McTaggart, Managing Director of AFGRI Agricultural Development Services (ABBA) said: “We are excited to be joining forces with KCM and ImpactAgri to further our passion for catalysing agricultural production across Africa. We are confident we can make a meaningful contribution to local economic development and food security in Zambia.’’

Agritech Expo Zambia turns 5 this year

Agritech Expo Zambia will take place from 12 to 14 April 2018 at the GART Research Centre in Chisamba. The expo returns to Zambia for the fifth time and promises new features, more country pavilions, and more free training opportunities.The event is expected to attract more than 22 000 visitors, with more than 270 local and international exhibitors, 3 500 large-scale farmers and 150 members of the media. The expo remains free to visitors that pre-register.

 

Country pavilions from France, Germany, Zimbabwe, Czech Republic and Finland have been confirmed.
“Thanks to the support of the farming community in Zambia, but also in the region, Agritech Expo Zambia has been established as a marketplace for regional and international industry professionals, young agripreneurs and farmers of all scales, to come together in 1 location to conduct exclusive agribusiness transactions while being educated on the latest global industry trends to advance into the next generation of food production,” says Emmanuelle Nicholls, Event Director.

 

The Zambia National Farmers’ Union (ZNFU) is the owner of the event and President Jervis Zimba says “it is our belief that Agritech Expo, which has become the biggest agricultural showpiece in Zambia, will continue unveiling new ideologies and technologies relevant to the growth of our farmers not only in Zambia, but also beyond, that will help lift the poor majority out of poverty; the push behind the creation of the expo. With this in mind, we are expecting an even bigger Agritech Expo in 2018.”

 

NEW FEATURES

Mowing and baling demonstrations
For the first time, Agritech Expo will be showcasing live mowing demonstrations. This new demo area is focusing on quality mechanisation for mowing purposes and will give farming professionals the opportunity to view this equipment in action.

Aquaculture showcase
Aquaculture is a growing market in Sub-Saharan Africa and the expo will be showcasing the regions’ most prominent players in this field.

Live planting demonstrations
These demonstrations will provide the opportunity for companies to practically demonstrate how products work.

Greenhouse showcase
A first-hand opportunity to see the effects and benefits of using a variety of seeds with fertilisers and pesticides to maximise yields.

Value added zone
Boosting commercial opportunities for farming operations by featuring the latest industry trends and solutions on ways to improve quality and enhance yields.

PLENTY TO LEARN, SEE AND DO

Machinery demonstrations
An exciting attraction and a great display of versatility and capability by leading machinery suppliers.

Construction park
Offers visitors a selection of quality construction equipment to suit their agricultural needs.

4×4 test track
Gives visitors the opportunity to test their skills or simply be driven around the track and experience the capability and manoeuvrability of high-end utility vehicles.

Crop trials
Visitors are able to view the yields of seeds from a variety of seed producers and respective agro-chemicals companies.

Energy park
Introduced in 2016 and offers innovative ways to get off the grid amidst the power crisis unfolding in the region.

International pavilions
Agritech has become an internationally acclaimed event, boasting over 39 countries being represented onsite year on year. In 2018, the expo expects to feature over 10 international country pavilions featuring products and solutions from global industry leaders.

Indoor expo
Showcases a variety of local and international agricultural suppliers looking to expand their footprint in Sub-Saharan Africa.

Irrigation zone
Displays a variety of irrigation systems and farming solutions, including centre pivot displays for commercial and small-scale farmers from leading industry suppliers.

Livestock zone
Incorporates various breeders who display their livestock services, species of livestock including goats, cows and sheep, as well as animal feeds and veterinary services.

Centre pivot display
Agritech Expo Zambia is the first agriculturally focused event in Africa to showcase a live centre pivot as part of the show.

AgriTeach workshops
This year the AgriTeach interactive training workshops are launched, presented by industry experts and focused on modernising small-scale farmers. AgriTeach provides access to market information, practical demonstrations and innovations from the latest financial loan models to new agricultural solutions.

Large-scale farmers seminars
Focusing on innovative solutions and initiatives to increase productivity under challenging market conditions.

SME zone
A cost-effective designed area for local based companies to participate in the event and to engage with farming professionals, without having to create a large display area.

VIP Business Lounge
Specifically geared for VIP farmers, government officials, policy makers and media officials to network and conduct meetings, directly with suppliers to the market and vendor companies.

INDUSTRY SUPPORT
Afgri and John Deere are returning as platinum sponsors with Gourock, SARO and Ursus confirmed as gold sponsors.

The expo is organised by Spintelligent, a Cape Town-based trade exhibition and conference organiser, and the African office of Clarion Events Ltd, based in the UK.

AFGRI’s eAccounts platform now allows farmers to record and track rain fall measurements

e-Accounts, AFGRI’s electronic account management system, has been enhanced to include yet another innovative feature that benefits South African farmers. The feature – the first of its kind in the agricultural industry – enables farmers to record rain fall on their lands, allowing them to keep track of seasonal rain fall measurements, and assisting in having statistics readily available for comparative purposes.

Users will also be able to upload historical data to provide handy comparisons. Moreover, the new feature is simple to use. Clients simply log into e-Accounts, select “My Farm” and then “My Rainfall”. On the menu, navigate to “Grain” and “Capture Rainfall”. Here clients can capture or upload their first measurement. This unique functionality also allows users to capture measurements for multiple farms and for multiple rain meters.

Once the information has been captured, the system generates detailed graphs showing the rain fall per farm. Users will also be able to submit feedback by clicking on “Suggestions”, allowing AFGRI to keep enhancing functionality.

e-Accounts was originally launched in 2014 by UNIGRO, the financial services arm of AFGRI Agri Services. It has since evolved into a powerful, dynamic digital channel. Not only does e-Accounts allow farmers to manage their entire business, finance and planning on one secure user-friendly platform, but has been expanded to include further agri-related functions that enable farmers to administer and manage their entire farming operations.

The rain fall measurement feature is just one such feature that has been added to the platform to make life simpler for farmers. Another is the popular grain management tool. Using e-Accounts, farmers can view the amount of grain they have in stock at the silo, as well as the amount they still need to deliver on their contracts.

AFGRI e-Accounts now has approximately 1,200 active users, with more than 30,000 logins since the launch in 2014. The largest single payment so far was more than R60 million.

AFGRI Agri Services is owned by AFGRI Group Holdings, an investment holding company with interests in agricultural and food products and services.

 

Climate-smart Agriculture: A new approach for a new reality

As the world’s population continues to surge, there are mounting concerns about how agricultural production will cope with feeding everyone. The Food and Agriculture Organisation of the United Nations (FAO) estimates that food production must increase by at least 60% to respond to the demands of the nine billion people that are expected to inhabit the planet by 2050. This has become a food security issue globally.

With many of the resources needed for food security already stretched, the challenges are huge – and are being intensified by the fact that the world’s climate is changing fast. For agriculture, change will be significant, as temperatures rise, rainfall patterns change, and pests and diseases find new areas to inhabit or spread to, all of which pose significant new risks to food and farming.

There is also a growing recognition of agriculture’s contribution to climate change, and of the means by which farming systems can adapt to cope with the changes, as well as the potential of agriculture to mitigate climate impact. This recognition has led to the concept of ‘climate-smart agriculture’ (CSA).

 Just what is CSA?

CSA is defined by the FAO as “agriculture that sustainably increases productivity, enhances resilience, reduces/removes greenhouse gas emissions where possible, and enhances achievement of national food security and development goals”.

Therefore, CSA is an integrated approach that aims to deliver food security in the face of climate change by:

  • Sustainably increasing agricultural productivity
  • Building the resilience of food systems
  • Reducing greenhouse gas emissions from agriculture

While there are several other sustainable agricultural models in place already, what is new about CSA is that it includes climate change and risks, which are happening more rapidly and with greater intensity than in the past.

CSA is more comprehensive as it strives to adopt a perspective including various other systems at play, such as landscapes, ecosystems and value chains. It also goes beyond new technologies and practices like drought-resistant varieties or precision farming. Identified CSA practices include the following, along with some examples of actions that contribute to CSA:[1]

    • Soil management: Nitrogen and other nutrients are essential to increased yields – this can be done through composting manure, precise matching of nutrients with plant needs, or using legumes for natural fixation.
    • Crop production: Crop productivity can be increased through breeding higher-yielding crop varieties, though crop and crop nutrient management, and through choosing crop species that have higher yield potentials under given environmental conditions.
    • Water management: For rain-fed agriculture, improved water management can be done through water harvesting, soil management practices that result in the capture and retention of rainfall, as well as through soil fertility and crop management innovations that enhance crop growth and yield, thus using water more effectively.
    • Livestock management: Sustainable interventions that target improved feed resources directly increase productivity. For cattle, examples include improved grazing management, using improved pasture and agroforestry species, as well as nutritious diet supplements. Similarly, interventions aimed at improving animal health, such as vaccination programmes, will also improve animal productivity.
    • Forestry & Agroforestry: Examples here include planting trees to act as windbreaks to protect adjacent field crops, reduce wind erosion, and store carbon, or as shelter for grazing livestock.
    • Fisheries & Aquaculture: For aquaculture, the emphasis is on intensifying production, improving stocks, making feeding more efficient and reducing losses from disease. More broadly across the sector, efforts should be made in reducing losses and wastes, increasing yields and productivity in fish and aquatic food processing and other areas where value can be added, and enhancing efficiencies in product distribution.
  • Energy management: Agricultural production can be increased by improving energy efficiency, and implementing the use of renewable energy sources.

 

 What are the benefits for farmers?

For farmers, weather variability brings both lucky breaks and difficult challenges that must be managed. This is especially true for resource-poor small-scale farmers in developing countries, like many in Africa. CSA gives farmers a framework for achieving increases in agricultural production despite the increasing climate variability being caused by climate change. This helps to secure both individual livelihoods and global food security.

CSA is gaining ground in South Africa – it was the topic of a workshop at the PMA Fresh Connections Conference hosted in Cape Town recently, which investigated the needs of South African agriculture. The needs identified for farmers, particularly small-scale farmers, were: [2]

  • more resilient seed varieties;
  • the importance of business planning and inclusion of youth in agriculture;
  • market access and logistics; and
  • scaling up or growing a farming enterprise, within an enabling policy environment.

The Government is currently working on a national strategic framework on climate smart agriculture for 2018.

For more information on innovation in agriculture, contact AFGRI Technology Services on ats@34.255.249.49.

 

[1] Climate Smart Agriculture – Introduction https://csa.guide/csa/practices

[2] Climate Smart Agriculture workshop at PMA Conference, Cape Town http://www.freshplaza.com/article/180702/Climate-smart-agriculture-workshop-at-PMA-conference%2C-Cape-Town

Fintech defines new trends in financial services offerings for farmers

By 2020, consumers may not turn to banks to get the financial services they need. We are already seeing other companies invading the space traditionally reserved for financial institutions. The reason? “Fintech” – financial technology – which is innovative new technology and software aiming to compete with traditional methods in the delivery of financial services to the consumer.

For those who might not know what Fintech is, it’s simply the use of software solutions for financial transactions – global examples include Google Wallet, Apple Pay, Wonga and a myriad of other solutions that are offered online or via mobile phones. Some examples include M-Pesa, SnapScan and Nomanini, to name but a few. To indicate the scale of Fintech, back in 2014 already, investment in the US had tripled to $9,89 billion, with Europe investing $1,5 billion.

The disruption caused by Fintech has changed the banking world as we know it. The Financial services industry has been in existence since the 14th century and has always stood the test of time. However, recently it has had to adapt to keep up with the technology evolution. This Goliath has no doubt been shaken up by modern technology’s David – the Fintech revolution.

For traditional financial institutions, the risk of disruption is real, as Fintech companies use the internet, mobile phones, cloud computing and open-source software to make banking and investing more efficient. These Fintech start-ups offer existing financial services at lower costs and offer new tech-driven solutions, not previously available and driven by traditional banks. Financial institutions – both legacy and start-ups – are also driving technology-focused solutions such as peer-to-peer payments, crowdfunding, mobile payments and transfers, and on-demand insurance. Examples here include Avant, Lending Club, Qufenqi, Affirm and SocietyOne.

What does Fintech mean for agriculture?

For agriculture, the rise of Fintech means easier access to funds, new competitors in financial services and a global reach. Selling cattle or produce? Fintech and digital markets can now connect farmers directly to buyers on a mobile platform, doing away with the middleman. Important to note is that Fintech not only minimises the dependency on traditional banks as the middlemen, but increases the use of peer-to-peer lending, growing and strengthening the sharing economy model. Good examples are M-Pesa and FarmDrive in Kenya, where FarmDrive connects smallholder farmers to loans and financial management tools through their mobile phones.

In Mozambique, the Institute of Cereals of Mozambique (ICM), which is responsible for regulating and promoting agricultural production and commercialisation under the remit of the Ministry of Industry and Trade, recently joined forces with FinComEco to link agriculture to the latest financial technology.

The collaboration will develop a range of projects and high impact initiatives in the agricultural commodity markets sector. ICM, with its Mozambique domain knowledge, countrywide network of warehouses facilitating smallholder farmers, traders and buyers, will deliver commercialisation and operational capabilities. FinComEco will provide the commodity trading platform and electronic warehouse receipts capabilities, as part of the wider FinComEco model. This includes distribution of third party agri-finance and electronic banking facilitation enabled by scalable technology supported by its partner GMEX Group

In South Africa, PICSA is a ground-breaking organisation whose primary aim is to responsibly protect and assist the lower-income active population through the provision of credit solutions. At the core of their offering is the savings platform, offering members real returns by saving as little as R25 a month. Their comprehensive products scale to cater to every stage of the saving journey, thereby contributing to the financial well-being of employees in the agricultural sector.

With the pace of technology developing so quickly, it is difficult to say what the next 10 years will look like. For agricultural financial services and its customers, it may mean the possibility of loans backed by cryptocurrency – currencies such as Bitcoin, a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer – by 2025. What is important though is that AFGRI as a company, the agricultural sector as an industry, and South Africa as country do not get left behind.

 

For more information on innovation in agriculture, contact AFGRI Technology Services on ats@34.255.249.49.

 

Sources:

https://www.forbes.com/sites/bernardmarr/2017/02/10/a-complete-beginners-guide-to-fintech-in-2017/#367c7d873340

http://www.huffingtonpost.com/entry/what-is-fintech_us_58a20d80e4b0cd37efcfebaa

http://www.business2community.com/finance/5-fintech-firms-reshaping-lending-financing-01701485#bUsBMMz8YWzzADyH.97

Digitisation set to transform the agricultural value chain in Africa

Along with many business processes in organisations, value chains are undergoing a digital transformation. In Africa, the digitisation of agricultural value chains is expected to make the greatest impact in the area of financial services, making these more accessible to farmers, especially small-scale and rural farmers. It will also help to connect buyers and sellers more efficiently.

To give you some background, generally agriculture value chains consist of the following players, although these can vary depending on the type of crops being produced, as well as the location:

  • Input providers supplying raw materials such as seeds, fertilizer and pesticides
  • Farmers who manage the production of the agricultural product
  • Associations and cooperatives who organise many individual small-scale farmers into groups to negotiate better prices with buyers and provide extension services
  • Buyers who purchase the agriculture product and sometimes undertake the processing, packaging and marketing of the final products
  • Customers who ultimately consume the products

In reality, agricultural value chains are often quite multifaceted, and perhaps more so in Africa where role-players often perform more than one role. For example, buyers can also be input providers when the farmers they work with don’t have a reliable supply of inputs. In many cases, buyers also supply loans for these inputs. Middlemen can also confuse the issues by buying directly from individual small-scale farmers and then selling in bulk to more established companies.

However, the focus of this article is on how digitisation will assist small-scale and rural farmers who currently find it difficult to get access to financial services. There are several successful examples of this throughout Africa: for example, Colombia Coffee Growers Federation in Ghana issued ATM cards to 82% of its outgrowers (farmers who are contracted to produce for a specific buyer), helping it reduce disbursement costs by up to 79% compared to cash, a saving of $15.5 million.

In Tanzania, Multiflower, a seed and cuttings exporter, embarked on pilot programme in 2013 where they issued loans totaling $6,000 to 200 farmers and paid $67,000 to 300 farmers via M-Pesa. Apart from affording each farmer an additional and simple method for accessing credit, the switch from cash to digital payment resulted in an average saving of $10.75 in transport costs and 8 hours per payment per farmer. Over the duration of the pilot, participating farmers saved a total of approximately 6,000 hours because they didn’t have to travel to collect their payments.

Another group who stand to benefit from digitised value chains are buyers of agricultural products. This will considerably lower the costs of withdrawing, transporting, and distributing payments – either to farmers directly or via associations or cooperatives. This is particularly true in Africa, where agriculture value chains are often characterised by a small number of buyers paying many farmers spread out over a vast geographic are working through a complex network of middlemen and traders.

Here an example is MasterCard which worked with its partners to develop and implement a range of financial tools to digitise the agricultural value chain in East Africa: 2KUZE in Kenya, and eKilimo in Tanzania. 2KUZE, which means ‘let’s grow together’ in Swahili, is effectively a digital agricultural marketplace targeting Africa’s small-scale farmers, agents, large-scale buyers and financial service providers; eKilimo means ‘eAgriculture’ in Swahili and serves the same function in Tanzania.

Streamlining the value chain in the agricultural sector will undoubtedly impact not just the industry, but the entire economy meaningfully – ultimately enabling small-scale farmers to access formal financial services that they previously may have been excluded from. This will go a long way towards driving financial inclusion and food security.

A value chain is the range of steps and related actors necessary for an agriculture product to move from the farm to the final customers. Value-chain finance includes any or all the financial services that flow to and/or through the chain to address the needs and constraints of its participants in accessing finance or procuring products.

For more information on innovation in agriculture, contact AFGRI Technology Services on ats@34.255.249.49.

Agtech to bring about the second “Green Revolution”

As the issue of food security takes grip around the world, agricultural technology (Agtech) is set to become one of the most impactful uses of modern technology, in that it is changing how we grow food. Fundamentally, it has introduced the second “Green Revolution”, putting to use real-time data and innovative technology to ensure effective farming practices and improved yields.

The post-war transformation of agriculture, known as the first “Green Revolution”, was led by American agronomist Norman Borlaug, who developed high-yielding varieties of cereal grains and the distribution of hybridised seeds, synthetic fertilisers, and pesticides to farmers. Borlaug’s contributions, as well as the widespread buildout of irrigation infrastructure and the adoption of modern management techniques, greatly increased yields without requiring an expansion in agricultural land, saving more than a billion people from starvation. Now, a second revolution, built largely on technologies that comprise precision agriculture, promises to make the farm of the future more productive and efficient.

With precision agriculture, farmers and soils work better, not harder. Think about precision agriculture as being ‘site-specific’ and ‘information-specific’, as in the most precise way of informing farming decisions. That is, farmers can take large fields and manage them as if they are a group of small fields through gathering information from the fields in real-time by observation and measurement, then responding to inter and intra-field variability in crops. This reduces the misapplication of inputs and increases crop and farm efficiency.

 Why is this so important? In South Africa alone, we face a massive challenge to feed our population. In 2009, the population was 49 million and is expected to grow to 82 million in 26 years. Food production must intensify and more than double to feed the expanding population using the same or fewer natural resources. The result, there is shifting trend towards intensified agriculture, which can only be brought about using Agtech. This is a global phenomenon as each country looks at innovative ways to deal with the problem – not only in production, but across the value chain.

Agtech innovations include satellite mapping, drones, Internet of Things (IoT) and robotics. In 2014 alone, investment in agricultural technology surpassed investment in Fintech; $2.36 billion and $2.1 billion respectively. The growth potential is monumental particularly because Agtech will seek to find solutions to mitigate against climate change, increasing population growth and land scarcity. An example of this level of investment is with John Deere – the company has recently made an acquisition of an agtech startup, Blue River for $305 million. Reason being that Blue River’s has created technology that uses computer vision and machine learning to help growers reduce the use of herbicides; while conducting analysis on each plant to determine if it is a weed.

The eight main categories of Agtech include:

  • Farm management software;
  • Precision agriculture and predictive data analytics;
  • Sensors that help farmers to collect data and to monitor crop health, weather and soil quality;
  • Animal data – software and hardware specifically aimed at better understanding livestock, from breeding patterns to genomics;
  • Robotics and drones;
  • Smart irrigation;
  • Next gen farms, where technology is used to provide alternative farming methods to enable farming in locations and settings that previously couldn’t support traditional farming; and marketplaces (technological platforms that connect farmers directly to suppliers or consumers without any middlemen).

Some of the most significant technological advances that are already revolutionising the agricultural sector in Africa include:

  • Water-saving sensors comprising networks of wireless sensors and smart water management systems;
  • Precision drones used for crop spraying in unmanned helicopters, precise aerial photography, soil and water surveys and spraying and watering assistance;
  • Chemical-free pest control – including systems that can trap, count and monitor pests, systems that trigger the release of EPA-approved pheromones that disrupt pests’ mating cycles, and real-time field monitoring and targeted, automated responses; and
  • Farming automation and management systems including interconnected machinery, machines that can inject fertiliser at precise depths, automated seed-spacing based on soil fertility and machines that measure harvest data in real-time.

Technology that increases the efficiency of farms has come a long way since the days when tractors and ploughs were the most important agricultural machines. More importantly though, it’s about food security and feeding the world’s burgeoning population. It’s also about sustaining profitable production – producers need to use the latest technology available, from seed to chemicals and mechanisation to training, including precision agriculture. It’s a case of maintaining a competitive advantage in a competitive global agricultural market; it’s not just a ‘nice-to-have’. And finally, it’s about reducing our impact on the environment too.

For more information on innovation in agriculture, contact AFGRI Technology Services on ats@34.255.249.49.

Sources:

https://en.wikipedia.org/wiki/Precision_agriculture

http://www.engineeringnews.co.za/article/iot-could-help-increase-agri-productivity-by-70-says-deloitte-report-2016-05-03

http://www.precisionag.com

https://www.afgri.co.za/geoagro/ 

http://www.planet.com

https://techcrunch-com.cdn.ampproject.org/c/s/techcrunch.com/2017/09/06/after-scraping-monsanto-deal-deere-agrees-to-buy-precision-farming-startup-blue-river-for-305m/amp/