Manufacturers of agricultural machines see ‘very strong’ market potential in Africa

10 February 2016. Washington. Africa holds great market potential for agricultural machines, according to a recent survey among 171 manufactures of farm equipment conducted by the Agrievolution Alliance – a global network representing manufacturers of agricultural machinery – upon suggestion by the European manufacturers’ association CEMA and the World Bank.

  • According to the survey, 43% of manufacturers believe that – already today – Africa is ‘very important’ or ‘absolutely essential’ for their company’s business.
  • Looking at the sales perspectives for agricultural machines over the next 5 to 15 years, 3 out of every 4 respondents (73.6%) believe the African market to hold ‘great’ or even ‘very strong’ market potential.
  • However, notwithstanding this positive outlook, agricultural machinery manufacturers continue to face a number of major structural challenges when doing business in Africa.

When asked about the most important factors that would need to improve in order to unleash future investments to promote successful mechanization efforts and develop effective local distribution and after-sales networks for agricultural machinery in African countries, manufacturers underlined the need for:

  • a more reliable political and regulatory framework;
  • a functioning banking system to improve access to finance; and
  • a greater number of technology centres and demonstration farms to promote training and skills development for farmers handling machinery.

More than half of the respondents therefore believe that public-private partnerships (PPPs) hold the key to address these challenges, viewing them as a ‘very important’ or ‘absolutely essential’ tool in the quest to develop sustainable mechanization in Africa.

‘In light of a rapidly growing demand for food in Africa fueled by population growth, we believe a new approach is needed to promote sustainable mechanization and enhance agricultural productivity. Such an approach should combine reinforced institutional support with greater cooperation with the private sector with the help of PPPs. We are pleased to see that manufacturers share this view, as we are about to explore the development of a new and dedicated PPP mechanism for mechanization in Africa’, said Simeon Ehui from the Agricultural Global Practice from the World Bank.

‘If we want agricultural mechanization to succeed in Africa, all concerned – be they farmers, supporters, planners or policymakers – need to work together. The Alliance looks forward to collaboration among manufacturers, the World Bank and interested stakeholders to explore the development of new PPP approaches that promote tailored, inclusive and integrated mechanization in Africa.’, said Selami Ileri, Chair of the Agrievolution Alliance.

The survey was completed by 171 companies from 16 countries representing the main suppliers of tractors and other agricultural machinery in the world. The 16 countries include: Austria, Brazil, Canada, China, France, Germany, Hungary, India, Italy, Japan, Korea, South Africa, Turkey, Ukraine, United Kingdom and United States.

Related:

21 January 2016. Istanbul, Turkey. AGRI EVOLUTION 2016:FIFTH WORLD SUMMIT ON AGRICULTURE MACHINERYFarm Machinery to Feed the World: Bridging agricultural sustainability with innovation and technology (In conjunction with Agro Eurasia International Agriculture and Agriculture Machinery Fair).

Agrievolution Summits are held in conjunction with global agriculture industry events at rotating world locations approximately every 18 months in order to share information, bring focus to global industry initiatives and collaborate with world agriculture leaders on relevant issues. Summit participants include Alliance partners, invited associations, government officials, academia, top level farmers and other agricultural stakeholders.


About the Agrievolution Alliance:Representing more than 6000 agriculture equipment manufacturers around the world, the Agrievolution Alliance was established in April of 2012 to facilitate collaboration within the agriculture equipment manufacturing industry among important agricultural regions of the world. It was launched on the shared belief that in today’s global agricultural economy, it is crucial that current issues and future challenges be viewed from a global perspective and be addressed on a global basis (www.agrievolution.com)

About CEMA – European Agricultural MachineryCEMA is the European association representing the agricultural machinery industry. The industry represented by CEMA includes 4,500 manufacturers of agricultural equipment employing directly 135,000 persons and indirectly in the distribution and service network another 125,000 persons. The companies are mainly small and medium-sized manufacturers according to the EU definition and in 2014 had a total turnover of 26billion euro (www.cema-agri.org)

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Future of Food Summit 2015 – Aflatoxin

Published on 9 Jun 2015. This panel considers and debates one of the greatest obstacles to food security in many parts of the world: mycotoxin.

Aflatoxin is a particularly dangerous mycotoxin produced predominantly by two Aspergillus fungi. It colonizes a variety of important food and feed crops both pre- and post-harvest, including groundnuts, tree nuts, maize, rice, figs and other dried foods, spices, crude vegetable oils and cocoa.

Contaminated crops have significant health risks for both humans and animals, having been linked to retarded growth and development (stunting), immunosuppression and liver cancer. The aflatoxin issue has other, complex implications for food security and, by limiting farmers’ access to international markets, can lead to food waste and economic instability.

Panelists:

  • John Lamb, Principal Associate, Abt Associates
  • Dr. Kitty Cardwell, National Program Leader, USDA-NIFA
  • Barbara Stinson, Senior Partner, Meridian Institute; Project Director, Partnership for Aflatoxin Control in Africa
  • Moderator: Dr. Howard-Yana Shapiro, Chief Agricultural Officer, Mars, Incorporated
@36:15 Discussion on the funding needs 
@44:33 “The [multi national] agribusinesses that are working in Africa are the ones that want to create clean products. They make it worthwhile for growers to change their practices. Nestle, Mars, Unilever etc can kick start the demand – which is what we need for farmers to do what they need to do [to reduce aflatoxin levels]” Dr. Kitty Cardwell
@1:00:48: “Plant science could be a profound way of solving some of those problems” Dr. Howard-Yana Shapiro

Related PAEPARD video interviews
PAEPARD video interview with Howard Shapiro of Mars, Inc USA.

He answers the following questions:

  • Why is the issue of mycotoxin contamination so important? 
  • How critical is mycotoxin contamination for Mars Inc.? 
  • Why do you expect from research and development funders? 
  • Why did the development community not take it up? 
  • Do we need a pre-harvest or post-harvest intervention? Are attitudes changing?
   

PAEPARD video interview with John Lamb; Abt. Associates. 

He answers the following questions:

  • Why the private sector should be concerned about aflatoxin? 
  • The mortality rate among chicken is strong evidence? 
  • How should the chicken feed business be approached?

   

Related: 
CREATED: July, 2015
AUTHOR(S): Mundia Silumesii, Seed Certification and Control Institute SCCI (MAL), Lusaka, Zambia.
EDITED BY: Plantwise, CABI

 

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The State of Agricultural Commodity Markets

The State of Agricultural Commodity Markets 2015–16Trade and food security: achieving a better balance between national priorities and the collective good

This edition of The State of Agricultural Commodity Markets aims to reduce the current polarization of views on the impacts of agricultural trade on food security and on the manner in which agricultural trade should be governed to ensure that increased trade openness is beneficial to all countries. By providing evidence and clarity on a range of topics, the report seeks to contribute to a more informed debate on policy choices and to identify required improvements in the policy processes within which these choices are made.

Key messages

  1. Global trade in food products continues to expand rapidly, but the structure and pattern of trade differs significantly by commodity and by region. Key drivers of production and demand, including trade and related policies, shape these patterns in different ways, with potentially important implications for food security.
  2. Greater participation in global trade is an inevitable part of most countries’ national trade strategies. However, the process of opening to trade, and its consequences, will need to be appropriately managed if trade is to work in favour of improved food security outcomes.
  3. Trade affects each of the four dimensions of food security: food availability, access, utilization and stability. The interaction of trade with these dimensions is complex and depends on a variety of underlying factors, producing great differences in country experiences and making it difficult to ascertain a generalizable relationship.
  4. The relationship between the level of engagement in trade and food security is influenced by the way food markets work, by the ability and willingness of producers to respond to the changing incentives that trade can bring, and by the geography of food insecurity, each of which needs to be accounted for in the formulation of trade policy interventions.
  5. Trade and related policy objectives address different dimensions of food security, will differ across countries, and will change over time. The appropriateness of alternative trade policy options is largely determined by longer-term processes of economic transformation and the role of the agriculture sector within these.
  6. Episodes of food price spikes are important for their potential negative impacts on food security. Geopolitical and weather uncertainties, as well as government responses, are likely to exacerbate these episodes in the future, with increasing potential for disruptions to trade flows. The likelihood of price spikes, even if episodic, needs to be factored into longer-term decisions related to the management of trade in food and agricultural products.
  7. Trade and food security concerns can be better articulated in the multilateral trading system through improvements to the World Trade Organization’s Agreement on Agriculture. However, the right balance needs to be struck between the benefits of collective action brought through disciplines on the use of trade policy, and the policy space required by developing countries, the identification of which needs to be informed by specific country-level needs.
  8. Shifting attention from the pros and cons of specific policies towards addressing weaknesses in the governance processes of agriculture and trade policy-making will improve identification of required policy space and its appropriate use. Strengthening these processes requires building synergies to increase policy coherence for food security, to enable governments to balance priorities in the design of trade policies, and to improve their compliance with regional and global trade frameworks.

Read the executive summary
Download the PDF
Read the e-book IPAD | KINDLE
See the press release
Q&A

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Building extension and advisory partnerships in Africa

14-15 January 2016. AFAAS, an organisation for strengthening Africa-wide agricultural extension
and advisory services, has recently reviewed its 2015-2017 strategy, and has identified knowledge management (KM) as a key focal area. CTA’s expertise in KM will help support AFAAS in its new strategic direction.

As well as Dr Nahdy, the AFAAS delegation included Dr Dan Kisauzi, AFAAS technical adviser on knowledge management and communication and Max Olupot Olalatau, partnership officer and technical assistant to the executive director. The team had close discussions with CTA’s technical staff, facilitated by Krishan Bheenick, senior programme coordinator for KM and Dr Benjamin Kwasi Addom, ICT4D programme coordinator. Dr Ibrahim Khadar, CTA’s head of the learning monitoring and evaluation unit, presented practical areas where CTA could support AFAAS including on agricultural policies, markets and value chains, and ICTs for agriculture, learning and KM.

As a process with huge potential for impacting farmers in its new strategy, AFAAS made a
presentation on Country Fora (CF), which are ‘communities of practice’ that bring together a wide range of actors and stakeholders involved in – or benefitting from – rural advisory services in a country. Each stakeholder has an interest in extension but are not necessarily extension workers themselves.

“The CF process can make good use of CTA’s wealth of information for innovations and how to reach farmers. Whether it is information on climate-smart agriculture, value chains or the use of certain ICT tools,” said Dr Nahdy. “Working collaboratively with CTA and our networks for short, medium and long-term sustainability in African countries’ extension and advisory services is key for both CTA and AFAAS,” he added.

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