Pan-African Conference. 11 & 12 August 2014

Transcription

1 Pan-African Conference 11 & 12 August 2014

2 Agenda Overview Our operations Our involvement in Africa

3 Overview

4 What is Food Security? When all people, at all times, have Physical, Social and Economic access to sufficient, safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life 6

5 AFGRI s Purpose Driving food security across Africa 5

6 AFGRI AFGRI is a leading diversified agricultural solutions and industrial food processing company It is involved in the entire grain production and storage cycle, (Grain Value Chain) offering financial support and solutions as well as inputs and hi-tech equipment through the John Deere brand supported by a large retail footprint. The company is further involved in the processing of poultry products, the manufacture of animal feeds, the processing of yellow maize and wheat and the extraction of oil and other raw materials into edible oils, fats and proteins for human consumption (food processing and fast food industries). 4

7 the grain value chain Production Grain Management Industrial Processing 7

8 Our operations

9 Agri Services AFGRI is involved in 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. Grain Management 4.6m ton storage capacity 69 silo s 15 bunkers CMI Operate >200 sites on behalf of 3rd parties in 12 Countries 8

10 Agri Services Retail 50% shareholder in 66 stores Equipment AFGRI Equipment is an international supplier of mechanised equipment tailored to the needs of the commercial farmer. It is the largest single John Deere franchise in Africa. Australia 3 John Deere outlets in Western Australia 10

11 Financial Services GroCapital - Financial products for corporate customers Focus on corporate market and AFGRI Land Bank SAFEX broking unit structured & corporate finance trade finance balance sheet management GroCat Commodity JV with Macsteel Group 11

12 Financial Services AFGRI is a leader in the provision of agricultural credit, through its association with the Land Bank. This service is competitive, easy to understand and transparently administered. Unigro - Farmer Lending - Insurance Focus on farmers through a strong relationship with the Land Bank Originate farmer finance products tailored to agriculture Products tailored to agriculture short-term insurance commercial, industrial, agri insurance personal lines crop insurance credit life insurance 12

13 Foods AFGRI s Food division supplies and partners with large branded food producers such as Kellogg's, Simba (Pepsico), Willards (Snackworks), Webcor, Nestle, KFC, Morgan Beef, Karan Beef, Beefcor, Spar, and Nando's and supplies key ingredients to breweries and spice manufacturers Poultry One of the top five poultry producers in South Africa, processing a total of 1.25 million birds per week Parent stock (Ross) eggs day-old chicks broilers contract growers Animal Feeds Production capacity of approximately 1,2m tons at 8 mills country wide 13

14 Foods Nedan Oil extraction and protein plant in Mokopane (Limpopo) sunflower, soya and cotton crushing capability Milling Yellow maize by-products 3 mills at Ermelo, Kinross and Bethal wheat mill at Harrismith 14

15 Africa must expand farming

16 where we operate in africa 1. Zambia (operational since 2000) John Deere dealership (100% AFGRI ownership) AFGRI Leasing Services including production and asset finance as well as term loans to farmers Operating one bunker with effective Grain Management Operation ( tons storage capacity) 2. Zimbabwe (operational since 2011) One John Deere dealership (49% AFGRI ownership) 3. Ghana One John Deere dealership (70% AFGRI ownership) 4. Congo Brazaville (operational since 2012) Effective Grain Management and financial services operations at Malolo 5. Nigeria (operational since 2012) 51% ownership in BNOT Harel, company specialising in agricultural pharmaceuticals, animal feed pre-mixes and day old chick hatchery supplies 6. Uganda (operational since 2013) Effective Grain Management operation via warehouse storage facilities 7. Mauritian Holding structure (operational since 2013) 16

17 17 congo brazaville farmers

18 18 congo brazaville

19 smallholder tractor financing initiative in Zambia Majority of smallholder farmers in Zambia still use handheld tools and ox drawn implements to cultivate their fields Lack of access to input and asset finance. Many are unable to come up with the required security to access such facilities November 2010, a pilot project was launched were four small holder farmers from Mumbwa in the Western Province of Zambia received the 5000 series tractors with supporting implements (joint initiative between AFGRI, Zambia Farmers National Union, John Deere and the IFC 19

20 smallholder tractor financing initiative in Zambia From success of the pilot project, AFGRI expanded to other parts of the country in regions such as Southern, Lusaka, Central and Eastern 56 farmers/ business people who have benefited from the mechanization project AFGRI Leasing Service offered to the Smallholder Farmers The standard package offered to the farmers consisted of the following: Option of 5403 (65hp) or a 5503 (75hp) John Deere tractor 2 Tyne ripper (in support of conservation farming) 3000hrs or three years service pack (which ever happens first) GPS tracker on the tractors (for service providers) Insurance cover for duration of lease 20

21 smallholder tractor financing initiative in Zambia These smallholders are then encouraged to use the equipment so obtained to service the local farming community, each unit can service between 15 and 18 farmers Benefits included increase in the ha planted and output per ha (better from 2 tons per ha of maize to above 5 tons per hectare) Extra income made contracting out their tractors to their farming communities (on average able to do more than 100 hectares of contract work per season) Benefits the communities where the mechanized farmers live through the contracting work offered to them Introduce maize-for-tractor transactions in

22 Challenges

23 Challenges Insufficient Storage / Warehouses Subsistence Farming rather than Small Scale Farming Lack of Grains Quality of Grains Post Harvest Handling Infrastructure Roads / Rail / Electrification / Ports 17

24 Conclusion AFGRI remains mindful that the farmer of the future is the small scale farmer and for the fundamentals of food security to be met, the challenge is to assist these small scale farmers to become the commercial farmers of the future AFGRI will contribute to this transformation through the provision of inputs, storage, equipment, finance and many other benefits to the farmer, who in turn can produce more efficiently, earn more money, and therefore be a better provider to his or her family and contributor to the larger community and region 18

25 Thank you