Afrikaans
According to Engineeringnews, US-based agricultural equipment manufacturer and supplier Agco is directing a large portion of its future growth potential into Africa, especially South Africa, as a key market going forward.
They are considering the building of an assembly plant near the coast – the location of which is yet to be determined – to leverage expanding market potential in Africa.
The headquarters in Kempton Park will service the entire Africa region. Agco corporation Asia-Pacific and Africa senior VP Gary Collar says:
“Our aim is to service Africa from Africa,”
Imports of Agco machinery into Africa during 2016 totalled €1.6-billion, of which the South African share accounted for €382-million. Collar says there are “really good opportunities in Africa” to increase market share.
In line with Africa’s growing population, he says “food security is at the top of the list for almost every African country”.
With the requirement for more farms to produce food for an expanding population comes the potential to capitalise on the requirement for greater farming mechanisation.
Agco is also pouring additional resources into the assistance of small-scale and subsistence farmers in Africa through the establishment of its Future Farm initiative. One such Future Farm has been set up on 149 ha of arable land in Zambia.
Collar points out that 77% of farming in Africa is currently undertaken on a subsistence basis. “About 23% of farming in Africa is undertaken using mechanisation,” he says, adding, however, that the bulk of that is in South Africa, as the country has grown much faster and more successfully, with bigger farms and more skilled workers.
Click here to read more about Agco’s expansion into Africa.
