African Agri Magazine

African Agri Magazine www.afriagrimagazine.com | April - June 2020

Pg.12 Tomra Food Helps Rago To Sort The Best Salad Pg. 6 Viable X: Pioneering the Next Generation Agribusiness in Nigeria

Pg.16 Afgri Technology Services aims to revolutionise agriculture with online rental platform

Pg.24 Uganda steps up measures to curb impending Locust infesta�on

Contects

C O N T E N T S 4

Agribusiness Pg. 6 Viable X: Pioneering the Next Generation Agribusiness in Nigeria Pg. 8 RMB named as financial adviser for SA’s Land Bank Pg. 9 Why Covid-19 is likely to wreak havoc on African agriculture Pg.12 Tomra Food Helps Rago To Sort The Best Salad

Technology Pg.14 How Uganda’s tech-savvy ‘Generation Z’ is transforming its agriculture Pg.16 Afgri Technology Services aims to revolutionise agriculture with online rental platform Pg.17 This Futuristic Vehicle Design Facilitates Irrigation, Agriculture And Education Pg.18 Farmers Edge Announces New Automated Hail Detection and Reporting Technology for Growers and Insurance Professionals

Crops Pg.20 The Importance Of Grain Temperature Detection Pg.22 Research Institute to embark on Cashew Apples studies Pg.24 Uganda steps up measures to curb impending Locust infestation Pg.25 Agri Cooperative To Open Coffee Factories

Livestock Pg.26 Migori County Government donates dairy cows to farmers Pg.28 Technology boosts Kenyan pastoralists Pg.30 Nguni bull sells for record R310 000 on WhatsApp auction

Poultry Pg.32 Is South African poultry back on track?

Pg.35 Uganda discriminating against Kenyan poultry exports Pg.36 Why African farmers are waking up to the huge potential of guinea fowl

Aquaculture Pg.38 Rwanda issues a stern warning amid Lake Virus attack Pg.40 Over-exploitation of Africa’s fisheries: Not enough fish in the sea

www.afriagrimagazine.com | April - June Issue 2020

Editor’s Note

From the Editor

April - June 2020 Editor Raymond Rusere editor@afriagrimagazine.com Editorial Assistant David Brunn David.brunn@afriagrimagazine.com Sales sales@afriagrimagazine.com Accounts & Admin admin@afriagrimagazine.com Design and layout Black Heart Worx info@blackheartworx.co.za

Today’s farms are evolving faster than we are able to quantify. It isn’t just a matter of acres or equipment; there’s also the harder-to-measure matter of business growth and sophistication.

The speed of this evolution also varies between farms, a few things that lead to farm productivity are listed below, these things are the ones that make a farmer excel and without them, a black farmer may fail unless he is trained to possess such a skill.

1. To commit to continual learning.

2.

To make decisions based on accurate financial data.

3. To select and use excellent advisers.

4. To know their business plan.

5. To aggressively manage costs.

6. To understand and manage risk.

7. To set clear budget objectives.

Wouldn’t it be an interesting exercise to train our future farmers before they are given land?

Then you could give land to the capable farmers and not to people as to buy their votes.

We’re all fond of quantifying how our field productivity is steadily climbing. Could you compete with your neighbours for land if your yields were still where they were a decade ago?

And can you expect to compete if your business productivity doesn’t progress even faster?

Welcome to another edition of African Agri Magazine as we go through one of the most trying times,the COVID-19 pandemic has seen a decline in almost every sphere of economic activity. This period has seen oil prices hit an all time low and it has already had adverse effects on the African economies.

The uncertainty over the future of the global economic activity has had an effect on business and it is this light that we bring hope for the continent as Africa gets into its winter crop season.

Editor

On the cover:TOMRA FOOD

Kevin Rusere

Disclaimer: All Material is strictly copyright. The magazine or any part thereof may not be reproduced or adapted without written permission from the Publisher. African Agri Magazine welcomes material submitted for publication but retains the right to edit copy. The views expressed in the publication are not considered those of the Publisher, which accepts no liability of any nature arising out of or in connection with the contents of this magazine. While every effort has been taken in compiling this publication, the publisher does not give warranty as to the completeness or accuracy of its content. The publisher and the editor cannot accept responsibility for any loss inconvenience & damage that may occur there from.

www.afriagrimagazine.com | April - June Issue 2020

5

Agribusiness

Viable X: Pioneering the Next Generation Agribusiness in Nigeria

G

lobally, a record number of employees have been thrown out of job, and every sector grounded, except agriculture.

At the launch of the new online portal, the firm’s chief executive officer, Adama J. Adama, avowed that Viable X has capabilities to boost job creation and economic empowerment through innovative approaches to

Bank of Nigeria Entrepreneurship Development Centre, North Central Zone, Makurdi.

Farm4Me, which he founded As the world staggers to its feet in March 2019 after two years after the devastation of the of extensive research, global pioneered economy by contract farming “Farmers can invest in commodity the novel in Nigeria. Within export orders from international coronavirus a short time, the disease, reputation of the buyers and earn 50% profit in countries and start-up soared as short a time as three months. companies and it was must begin to They can also request for a loan ranked on explore as the and receive it instantly in their bank account. Google innovative No 1 agritech They can buy commodities and store online until company that ways of maximizing in farm when the price is high and then sell at a profit,” majored the paradigm, equipment practice and benefits of agricultural businesses. rental services in Nigeria. agriculture. To this end, the In his words, “the platform was model of farming as we know created to change the face of Now, Viable X initiative is has to change. agribusiness in Nigeria.” coming on the heels of success recorded by Farm4Me Enter Viable X, an online Going by his credential, venture which, within one year, commodity trading platform, Benue-born Adama can be enjoyed high patronage and floated by Farm4Me, a trusted by his word. The young farmed hundreds of hectares Nigerian premium agribusiness agricultural entrepreneur has of land that further firm that has positioned itself as solid credential. In 2017, he entrenched it as the pioneer of a game-changer in anchored an IFAD Value Chain contract farming. agriculture.

Seminar on agribusiness and eCommerce at the Central

6

www.afriagrimagazine.com | April - June Issue 2020

Agribusiness

Speaking on why www.viablex.com was floated, Adama highlighted its major benefits, namely provision of loans for farmers and providing a virtual marketplace where farmers can sell their produce without stress.

“Farmers can invest in commodity export orders from international buyers and earn 50% profit in as short a time as three months. They can also request for a loan and receive it instantly in their bank account. They can buy commodities and store online until when the price is high and then sell at a profit,” he said.

Adama enumerated further: “They can trade their commodities any time and receive credit alert instantly and their farm produce sold directly to Off Takers (buyers).

Also, there is a list of contract farming companies on Viable X, thereby giving them the visibility that enables food processors and commodity exporters to contract their services.”

Neither Viable X nor other innovative concepts being implemented by Farm4Me are

by any means similar to crowd farming that is currently the rage in agribusiness.

“We are different from all the agriculture investment platforms out there. We are not into crowd farming,” Adama stressed The Viable X Agribusiness Limited, incorporated with Corporate Affairs Commission (CAC) and licensed by National Export Promotion Council (NEPC) started working since November 2019 when it was launched as an online marketplace for farmers to sell their produce. However, other components were later added including instant loan, export financing, produce trading and contract farming.

“Viable X was a response to the needs of Nigerians who kept calling and sending Farm4Me emails requesting for microloans for their farms, market place to sell their produce at befitting prices and an opportunity to invest a smaller amount of money for short term investment duration,” Adama disclosed.

Presently, the platform’s clientele is composed of

www.afriagrimagazine.com | April - June Issue 2020

Nigerians, both at home and in the diaspora who, according to the CEO, entrust us with their hard-earned money to farm, harvest and sell crops for them and after six months, receive both capital and profit.”

For potential investors and stakeholders, he gave an assurance: “Your investment is secured. It is backed by physical commodities with good liquidity and backed by insurance. No matter what happens, your investment capital is refundable.”

Viable X’s bottom line is making agribusiness simpler, easier and faster for Nigerians and therefore assist farmers to profit greatly from the sweat of their labour. This is the broad assertion from Adama.

However, in concrete terms, “We aim to raise one million commodity trading millionaires in Nigeria,” he stated.

In general, by the way, the ultimate goal is to help to reduce hunger and poverty through agriculture.

“Our vision is to become a multi-billion dollar company with visible social impact,” he enthused.

7

Agribusiness

RMB named as financial adviser for SA’s Land Bank The biggest lender to South African farmers appointed Rand Merchant Bank as financial adviser after it missed a loan repayment that triggered a cross default on a R50-billion bond program, according to people familiar with the matter.

The Johannesburg-based investment bank has been tasked with coming up with cash-flow projections for the Land and Agricultural Development Bank, the people said, asking not to be identified as an announcement hasn’t been made.

RMB – a unit of FirstRand Ltd., Africa’s largest lender by market value – must also deliver a strategic plan for the state-owned company and assess its viability, they said.

The 108-year-old bank, which supplies about 30% of loans in the agricultural industry, last month failed to make repayments on a revolving credit facility, triggering the default event on its bonds. It has since said it’s seeking a one-year deferral of interest and capital payments.

Negotiations are ongoing and an appointment may only be finalised by Friday, a

8

representative for the Pretoriabased lender said by phone, without naming any companies. RMB declined to comment, citing its policy not to disclose advisory appointments until their clients announce them.

The default highlights the parlous state of South African state-owned companies after years of mismanagement, and, in some cases, corruption. South African Airways is bankrupt, arms maker Denel couldn’t make pension or tax payments for its employees this month and power utility Eskom isn’t generating enough profit to cover its costs, which include interest payments on R454 billion of debt.

Funders have organised themselves into groups, including one under the Association for Savings and Investment South Africa, an industry body for insurers and money managers.

Some investors have expressed a willingness to help Land Bank because of its important role in supporting farmers and ensuring food security. Liberty Holdings’s Stanlib Asset Management has joined Futuregrowth Asset Management and the stateowned Industrial Development Corp. in offering to be part of talks aimed at finding a solution.

www.afriagrimagazine.com | April - June Issue 2020

Agribusiness

Why Covid-19 is likely to wreak havoc on African agriculture

African countries have, so far, been mostly spared from large outbreaks of Covid-19, but many are bracing for potentially deadly impacts on their food supplies due to the global disruptions caused by the pandemic. They also face the prospect of seeing produce being left to rot as unemployment levels shoot up.

East Africa, already reeling from the ill effects of locusts and droughts, is in particular danger, according to data analysis by NS Media Group.

The Agribusiness Vulnerability Index analysed 92 of the top 100 countries for foreign direct investment according to the United Nations Conference on Trade and Development. Eight were excluded due to lack of sufficient data across the main sources used (the World Trade Organisation, the World Bank and the International Monetary Fund).

Among the 40 countries most exposed to a downturn in the agribusiness sector due to the pandemic, 15 were located in Africa, 11 in Asia and three in southern and eastern Europe. The six countries with a highest exposure to the sector were all

in eastern and south-eastern Africa.

“The thing about Covid-19 is that it is an unprecedented crisis because it’s not just one country or one region, like Ebola was in west Africa in 2014 to 2015. It’s global. It’s also not just a supply-side problem, as is the case with the droughts or locusts we have in this region, or a demand-side issue, [such as] the recession [it will bring],” explains Peter Smerdon, senior regional spokesperson for the United Nations’ World Food Programme in eastern Africa, who is based in Kenya.

“It is all at the same time and on a global scale, so that helps describe its complexity, and especially in east Africa,”

product exports making up 75.5 per cent of the country’s merchandise exports. The agricultural sector represents almost one third of the GDP of the country, though this percentage has decreased over the past ten years; in 2010 it stood at 41.5 per cent.

Neighbouring Kenya came in second in the index. However, unlike Ethiopia, the value added for the sector as a percentage of the country’s GDP has been rising in the past ten years.

Uganda’s agribusiness sector makes up 24.2 per cent of its GDP and agricultural exports comprised 59.2 per cent of the country’s total merchandise exports in 2018, meaning it placed third in the index.

Food insecurity The tourism threat The World Food Programme estimates that about 20 million people in east Africa are food insecure, with Covid-19 threatening to increase this figure to between 34 million and 43 million in the next three months.

Ethiopia, Kenya and Uganda are facing a double economic threat, with Covid19 damaging another of their revenue streams: tourism. This will also have a knock-on effect on agricultural exports, as they rely on passenger aircraft to ship produce.

Ethiopia was at the top of the Agribusiness Vulnerability Index, with agricultural

www.afriagrimagazine.com | April - June Issue 2020

9

Agribusiness

Smerdon says that while these countries are losing out on tourism revenues, “they’ve also lost their export markets for products such as flowers and vegetables that used to go by air to Europe from Kenya”.

“So there’s a lot that they could do to make the flow better. They are saying they will [improve the flow, so] it’s just a matter of seeing what is actually implemented.”

global GDP growth is a very optimistic scenario, as it still assumes that countries in Africa and in Asia will be growing.

Torero explains that this outlook seems unlikely, as the full impact of Covid-19 is still unclear and the crisis is only now unfolding in Africa. The problem does not have to do with the availability of food, but with food access, he adds.

A matter of access He adds that another complication has emerged in the past few weeks as Kenya, Uganda, Rwanda and South Sudan have imposed restrictions on trucks crossing their borders because they fear drivers may be infected with Covid-19.

“This has impacted a very important supply chain of humanitarian assistance and commercial cargo coming through Mombasa [on the coast of Kenya] and that is then sent across the region.

However, the leaders of Kenya, Uganda and Rwanda promised to work together [in early May] ago to minimise the delay at borders, because at one stage there were 35 kilometre-long queues of trucks waiting on the Kenyan side of the border where drivers were required to have a Covid-19 test, and then they’d get to the Ugandan side where they would be required to have another one,” says Smerdon.

Agribusiness Vulnerability Index

10

A report by the Food and Agriculture Organisation (FAO) of the United Nations comparing the Covid-19 crisis to the 2009 recession states that the world is in a better position to avoid an “all out” food crisis, given the availability of food and the diversification of the trade within the agribusiness sector on a global scale.

Employment worries At the end of March this year, ILOstat was predicting a yearon-year rise in employment within the agribusiness sector in Ethiopia of 2.6 percentage points in 2020, while in Kenya the increase was expected to be of a similar 2.4 percentage points.

However, the report highlights that in countries where the agriculture sector and the associated supply chains are not sufficiently mechanised – such as the case of east Africa – the effect of lockdown measures is taking a hit in the sector.

Covid-19 looks set to wipe out this growth predictions, as people are losing what were already precarious jobs, which in turn affects purchasing power and thus pushes food prices down in places such as Kenya, as people have less money to pay for food.

How the impact of Covid-19related struggles in Africa will be felt on a global scale is still unknown. Maximo Torero, the chief economist of the FAO, believes that the International Monetary Fund’s prediction of a 3 per cent reduction in

Rank Country

Rank Country

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40

Ethiopia Kenya Uganda Tanzania Mozambique Sudan Myanmar Pakistan Nigeria Laos Ghana Honduras Guatemala Egypt India Bangladesh Cambodia Congo Ecuador Zambia

Peru Vietnam Gabon Morocco Colombia Indonesia Bahrain Algeria Albania Philippines Iran Jordan Malaysia Oman Dominican Republic Panama Turkey Tunisia Azerbaijan China

www.afriagrimagazine.com | April - June Issue 2020

Technology

Tomra Food Helps Rago To Sort The Best Salad

RAGO Group is one of the leading Italian producers of washed, packaged and ready-to-eat (fourth range) salad, and the second biggest exporter of rocket in Europe.

On the market since 1892 and now run by the founding family’s fifth generation, RAGO’s strengths lay in its sustainability and innovation.

Every single process in the company is monitored and meets stringent quality parameters – from the production on its 500 acres through to packaging and shipment of the product.

At RAGO’s, innovation goes hand in hand with continuous investment in research and development, which takes up 4% of the company’s turnover.

This belief in innovation and technology was at the root of the company’s decision to purchase five TOMRA Food sorting machines, which were delivered in December 2019.

12

Mariano Rago, CEO of the company, said: "We knew TOMRA and its cutting-edge technology, so we decided to adopt its sorting equipment.”

Gianluca Coloretti, Area Sales Manager Italy, TOMRA Food, said: "In Italy, the salad sector has already reached a good level of automation, but a focus on food safety from increasingly demanding customers continues to grow.

As a consequence, producers and packagers are looking for more and more sophisticated technologies to avoid complaints or damage to their image, which they can’t afford. Our sorting machines with combined laser/camera technology have set a new standard in food safety in this type of product. That’s why we perfectly meet RAGO’s needs."

The five new TOMRA sorting machines have been positioned on the line

dedicated to salad preparation, washing and drying. RAGO takes the greatest precautions to ensure the visual and sensory qualities of its ready-to-eat products, and eliminate all foreign bodies such as insects, or plastic and wood fragments that may have come from the fields. RAGO’s battle against foreign bodies begins in the fields, where it takes a host of precautions and processes to mitigate the issue. From the field, the products go to the processing and packaging house where the TOMRA machines take over and remove any remaining foreign bodies.

Mariano Rago explained: "When a large mass of leaves is processed, the danger can lay hidden among them. This is where the sorter plays an important role, ensuring continuous visual control using the most sophisticated technology."

www.afriagrimagazine.com | April - June Issue 2020

Technology

The TOMRA sorting machines have been in operation for several months, closely monitored by Gaetano Rago, who is in charge of technological innovation at RAGO, and the company is satisfied with the results: "From the controls, we carry out daily, we have been able to appreciate TOMRA’s contribution to our achieving the highest quality of the finished product, with no residues or foreign bodies – all to the benefit of our brand and our customers." The TOMRA sorter guarantees a full inspection of every single baby leaf or rocket, taking quality and food safety to unprecedented levels.

"Quality control is RAGO’s signature benefit. We cannot afford any exceptions. For this reason, all our products are controlled by a specialized team of agronomists and food technologists to ensure only guaranteed and certified food goes to the shelves and tables.

TOMRA’s sorting technology completes a control chain that leads to excellent results," said Gaetano Rago.

Coloretti explained: "Through continuous investments in R&D (8% of the global turnover), TOMRA always offers the customer the best technology available and applicable to

the specific product. Another strong point of TOMRA machines is the reliability and quality of the components used, as well as a consulting service supported by our European Test Centers – now also available remotely – and excellent after-sales service."

Optical sorting technology reduces waste and delivers higher yields In addition to the quality of the finished product, another central element in RAGO’s philosophy is the great attention to eco-sustainability.

The company’s environmental impact is already minimal and is further reduced by a green park covering about 15,000 m² to return oxygen to the atmosphere and balance the CO2 produced by the company.

The company has set itself the challenge of making the full production process ecosustainable through constant and numerous investments – in place and planned for the future – with the ultimate goal of the intelligent exploitation of resources: water, land and solar energy.

Under this point of view, the issue of false rejects is particularly relevant: now, thanks to the optical and laser selection accuracy of TOMRA’s technology, false rejects are reduced to a minimum, thus optimizing product yields and reducing waste. With a view to the increasing global food requirements (it is estimated that to feed the population, which is expected to reach 10 billion by 2050, we will have to produce 70% more food), decreasing what FAO defines as 'food loss' (the loss of food that occurs in the early stages of production, processing and transport) becomes fundamental.

Coloretti concluded: "It is worrying to think that the processing industry loses between 35% and 50% of all the food it processes. Clearly, this is unsustainable. With the same raw material, by using TOMRA’s technologies, we will be able to better exploit the resources available on our planet."

The decision to use TOMRA sorting machines is part of RAGO’s initiatives aimed at ensuring a “green” approach.

www.afriagrimagazine.com | April - June Issue 2020

13

Technology

How Uganda’s tech-savvy ‘Generation Z’ is transforming its agriculture

As the world’s most youthful country, Uganda is replete with the energy, innovation and ambition that comes with each new generation.

And yet with one of the highest levels of youth unemployment in Africa, and a population expected to double by 2040, the country is in urgent need of ways in which to channel and benefit from this enormous asset – the youth dividend.

Farming continues to be a major source of income in Uganda, employing around 65% of the working population and accounting for a quarter of the gross domestic product, yet only half of 18 to 30-year-olds find quality work in agriculture.

However, the sector has been severely hurt by the COVID-19 pandemic. The disruption to global supply chains has limited access to inputs, and farmers markets due to travel and transport restrictions.

Government estimates shows poverty could increase to between 1.8 to 7.3 percentage points, up from

14

25.3 %. This would add between 0.5 to 2.07 million poor to rural population (which stood at 7.2 million in 2016/17). In addition to the locust swarms, this could result in a further decline of crop production, depressing farmer incomes.

The World Bank has committed more than $150 million in project financing to this project, but this event showcased some of the cutting edge solutions emerging in the field that will yield results for this generation and those that follow.

Uganda’s tech-savvy youth population could help address some of the challenges facing the sector. Born into an entirely digital world, Uganda’s Generation Z is at the forefront of a new era of disruptive, digital technologies. This small but emerging start-up scene is responding to major challenges across Uganda, including agriculture.

From m-Omulimisa’s IT platform that equips village extension agents, to mobile banking technologies

by Akello Banker, digital financial services from MCash and the analytics company, Data Care, the range of innovative applications inspired hope not only for Uganda’s young entrepreneurs but for its smallholders as well. These four enterprises that were selected from hundreds of competitors not only demonstrate the entrepreneurship of young Ugandans but also their potential to solve key development challenges to achieve transformation.

With this in mind, the World Bank in partnership with the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) organized a Disruptive Agricultural Technology (DAT) Challenge in Kampala last year, bringing together young entrepreneurs in agricultural technology who could work with the Agriculture Cluster Development Project (ACDP), a flagship project working to increase farm productivity.

And these developments are long overdue. In almost direct parallel to the rest of the country, the average age of a Ugandan farmer is 54; the sector is aging and urgently needs both the labour and the innovation of young Ugandans.

www.afriagrimagazine.com | April - June Issue 2020

Technology

sustainable and profitable career option for more people.

The DAT Challenge may have selected just four winning entrepreneurs to create solutions for the ACDP project, but the opportunities for young people in agriculture are many and varied, and especially in a post COVID-19 environment It is such innovations, creativity and enthusiasm that will propel Uganda forward and set an example for generations to come.

But what can the agriculture sector offer young people?

With the increasing penetration of mobile phones and internet connectivity in many report parts of Uganda agriculture is an untapped market and offers young people exciting new ways of working on or for farms, away from the traditional backbreaking manual labour of ploughing, seeding and harvesting.

Second, the professionalization of agriculture, thanks to rising levels of digitalisation, means more young people can find work – from software design to value chain development – in rural areas, and not have to migrate to towns and cities to compete for jobs.

And lastly, with the help of new technologies, agriculture can also become more productive and therefore, lucrative, offering a

www.afriagrimagazine.com | April - June Issue 2020

15

Technology

Afgri Technology Services aims to revolutionise agriculture with online rental platform

As the coronavirus pandemic forces the world towards digitalisation, agriculture industry leader Afgri Technology Services on Wednesday unveiled a new digital platform set to make the acquiring of farm equipment easier.

The platform, Axl, is designed to facilitate the rental of agricultural equipment through a secure online portal while easing cash flow challenges for service providers.

Head of the strategic innovation division Niki Neumann said the company decided to launch the online platform sooner than planned.

She attributes this to the “need for an alternative solution”.

Neumann says that when developing the concept for Axl, the company wanted to

16

adapt by building a community of quality-rated equipment service providers to support farmers as uncertainty is one of the challenges of the industry.

The coronavirus pandemic has slowed down productivity as government restrictions pose a challenge to industry operations. The platform will assist farmers, equipment owners, retailers and contractors on the platform and to lease out their equipment. However, Afgri Equipment branches will be the first to offer the rental service to their customers.

“Access to the right machinery at the right time is a critical success factor for farmers, especially now that the global pandemic has left global supply chains under immense pressure. Uncertainty remains in the minds of our customers and currency volatility has

resulted in the increase in equipment costs,” said Neumann.

The Axl platform allows clients of Afgri Technology Services subsidiary, Unigro, to use their revolving credit or production facilities to pay for rentals.

Unigro MD Ross Simmonds says the company is “excited to integrate its financial services offering in support of the platform. If a quality product offering like Axl, enabled with convenient access to finance, delights our customers then we have been successful.”

Afgri Equipment MD Patrick Roux said that by launching Axl during the lockdown, Afgri Agri Services can support farmers through uncertain times in a new way.

“The company is positively transforming the equipment market for the better, starting now,” he said.

www.afriagrimagazine.com | April - June Issue 2020

Technology

This Futuristic Vehicle Design Facilitates Irrigation, Agriculture And Education Well, 2020 is getting really annoying by the day so I am going to look towards the future. Since I am always told to focus the bright side and be hopeful about the future when the present isn’t great, let’s do it through the design lens. Project Outreach is a modular transport vehicle that was designed to support and develop rural infrastructure in 2045 (of course, this is a concept design so don’t send me an email after 25 years).

The conceptual vehicle has a very Tesla-esque aesthetic, it is futuristic without being aggressive like the Cybertruck.

Developing nations need a tech boost to uplift themselves. If the land is mostly flat, the infrastructure is not that hard to create but there are many nations like Africa that have a variety of massive landscapes that will need powerful machines like

Project Outreach to do it efficiently. The vehicle’s main aim is reaching out as the name suggests. The goal is to reach the communities in need and provide supplies to facilitate rural development by being a one-stop-shop through its multifunctional modules – Water Mod, Plant Mod, Work Mod are just a few examples. This is meant for micro-communities and the staff will deliver the module to them and change it out when needed.

The Water Mod is equipped with irrigation and sanitation technology to help areas where there is a draught or generally improve water crisis.

The Plant Mod comes with agricultural tools to help seed crops in a controlled environment and provide relief for food shortage. The Work Mod is more for research, study, educational

www.afriagrimagazine.com | April - June Issue 2020

needs, and providing a small living quarter. The concept design is something that will be a blessing to refugee communities. Imagine how one vehicle can be a school for a small group of children who have nothing else to hold on to, provide food and water in a crisis with capabilities to expand into a medical space if needed.

Project Outreach makes me hopeful about a future where can empower those who communities who were hard to reach out to. It may be a design but it radiates values and morals that are rooted deeply in kindness and making a positive change – after all, isn’t that what humanity is all about? We don’t have a wand but we have imagination, design thinking and equipment to make it happen so I’ll say that is close enough.

17

Technology

Farmers Edge Announces New Automated Hail Detection and Reporting Technology for Growers and Insurance Professionals

Farmers Edge ™, a global leader in digital agriculture, today announced a new severe weather detection, notification, and reporting tool.

Available through FarmCommand®, a comprehensive digital platform, the tool delivers indepth reports with critical information required by insurance professionals to make assessments and take action, expediting what is usually a time-consuming process.

Farmers Edge launches Hail Detection and Reporting Tool (Photo: Business Wire) This first-of-its-kind technology merges field-centric weather data, machine learning, Daily Satellite Imagery, and crop health change detection into one easy-to-use management

18

tool, a welcome breakthrough for the crop insurance industry.

Insurance professionals can view active hailstorms, follow storm paths, and monitor when storms touch down on fields where their growers have existing policies. Following the hail event, instead of piecing together details from various sources, automatic notifications are generated to alert growers, agents, and adjusters to critical information, including fields affected, location, crop stage, and extent of the damage. A Crop Health Change Map provides an additional layer of field-level analytics to support assessment and claims management activities.

“The concept of automating claims processing is not new, but the automation of prediction, detection, and reporting powered by field-

specific data for insurance is game-changing,” said Wade Barnes, CEO and co-founder of Farmers Edge. “One of the challenges to developing accurate models and reports is not just the amount of data required, but the quality as well; this is where we saw an opportunity to help and tackle this gap in the industry. By layering what we’ve built—the highest quality data sets available—with powerful digital tools, insurance professionals can refine their claim reporting process and deliver premium services to their customers. At the end of the day, it’s about providing growers with the best possible experience through deeper digital connections. This new tool does just that, transforming an outdated process to one that’s more efficient and profitable for growers and insurance professionals alike.”

www.afriagrimagazine.com | April - June Issue 2020

Technology

How the Hail Detection and Reporting Tool works: Detection: Powered by a sophisticated severe weather monitoring system and Farmers Edge Advanced Weather Network of on-farm stations, insurance professionals and growers can access real-time, historical, and 10-day weather forecasts to identify and track risks.

features in FarmCommand which detail the hail event rated by severity, time, location, size of affected areas, and the stage of the crop impacted. Crop adjusters can assess the damage by viewing imagery from before and after the event to make an assessment and determine action.

Availability

Notification: The morning after a hail event occurs, growers and insurance professionals are alerted to the weather event with an email notification.

Additionally, high-resolution imagery of the field is automatically analyzed from before and after the event to detect and pinpoint any potential damage or changes in crop health.

The new Hail Detection and Reporting Tool is just one of the many innovative features Farmers Edge has launched this year. To learn more or request a demo, email insurance@farmersedge. ca. Insurance professionals can also register here for an informational webinar showcasing the new tool on Thursday, June 4 th, 2020 at 9:00 a.m. CDT.

Reporting: The notification links to advanced reporting

About Farmers Edge

www.afriagrimagazine.com | April - June Issue 2020

Farmers Edge is a global leader in digital agriculture that delivers cutting-edge solutions powered by a unique combination of field-centric data, artificial intelligence, and complete integration. Since 2005, Farmers Edge has transformed the industry with disruptive technologies and strategic partnerships designed to enhance connectivity across the entire agricultural ecosystem. With the most comprehensive data management platform on the market–FarmCommandŽ– Farmers Edge is revolutionizing the way farmers, agricultural professionals, and agribusinesses interact with data and their trusted partners.

Moving at the speed of digital with an elite team focused on innovation, machine learning, and IoT, Farmers Edge is creating new opportunities for all stakeholders, shaping the future of agriculture worldwide.

19

Crops

The Importance Of Grain Temperature Detection

Temperature is the key to safe grain storage. When grain goes out of condition, regardless of the cause, there is always an unusual increase in temperature. Temperature is the only truly accurate indicator of grain quality for those who manage grain.

Knowledge of the causes of deterioration and spoilage in grain is essential to the grain manager. Although more is yet to be learned, grain workers and scientific researchers have jointly given much sound information with which to work.

Grain is a living organism. Like other living things, it breathes (respires) and it may become sick. Excessive moisture, high temperature, and poor grain condition (damaged kernels) are generally considered the most important factors that lead to trouble in stored grain.

20

The use of moisture tests in receiving grain is an indication of the great importance given moisture as a criterion for storage ability. Some tend to over-emphasize moisture content to the exclusion of all other factors, but low moisture content is not enough to ensure trouble-free storage.

In fact, deterioration from excessive moisture can occur in grain which is placed in storage at a uniform moisture content below that considered safe for long term storage. Temperature and atmospheric changes can cause certain areas within a mass of stored grain to rise in moisture above the critical safe moisture level.

Grain condition refers to the soundness of grain. It has been demonstrated that unsound grain (grain with a high percentage of damaged kernels, greater number of

microorganisms, and with deteriorative chemical changes) is much more likely to heat in storage than sound grain of the same moisture content.

Both grain respiration and the growth of microorganisms are thought to be affected when grain is unsound.

The three specific causes of heating are respiration of the grain itself (metabolism of viable grain), microflora (microorganisms such as fungi and bacteria), and insect infestation.

All three contribute to total respiration and heat production below 135° F. One type of heating alone can cause trouble, but one type of heating can also serve to trigger another problem which will contribute to total heat production.

www.afriagrimagazine.com | April - June Issue 2020

Crops

bin in an attempt to detect heating. Obviously, this method has its drawbacks.

The increased temperatures are likely to excite the other two causes of heating. When grain respiration alone is the cause of heating, visual inspection of the trouble area, while turning, will show little evidence of cause. If moisture translocation has brought about the increased rate of respiration of the grain, aeration can be employed to correct the situation.

The important thing to note about microorganisms is the fact that they respire and tend to increase the rate of respiration of the grain. Thus a rise in temperature can mean microorganism growth. If the temperatures of the grain mass are low, such growth can be slow and temperature rises relatively small.

Slowly rising temperatures warrant investigation of the causes. When indications appear, look closely for growth of microorganisms as you inspect your grain.

During the last 70 years, many factors have made accurate temperature knowledge even more important than before. For example: 1. Grain is stored longer and in larger bins, making the risk in holding it greater.

2. Damage from insect infestation is great.

3. Grain is harvested and often stored when it has high moisture content.

4. There is a greater demand for top quality grain.

5. The cost of handling and moving grain has increased. It costs from 2-1/2 to 5 cents per bushel to move grain. Accurate temperature

information allows an operator to turn his grain only when it must be turned.

6. Buyers today want assurance that grain purchased is of uniform quality throughout. Unless a grain manager has temperature records, one cannot be certain of the condition of purchased grain.

7. With the use of aeration systems, temperature knowledge is essential. The grain manager must know if and when hot spots are forming before the aeration system can do a thorough and economical job.

These are the reasons why temperature information is important to a modern costconscious grain manager. No matter what type of grain is stored, the same basic principle holds true: You must know the temperature of your grain to know the condition of your grain. It is imperative that the grain manager has accurate, complete, and up-to-date temperature information for good grain management.

Monitoring the temperature of grain on a regular basis gives the manager the best chance to make a correction when a temperature change is occurring. Knowing the temperature of the grain makes it possible for the fans to be run only when they are needed, saving money in utilities.

2) The “Thermometer Method” is another way to read temperatures. With this method, pipes are inserted into the grain mass and a thermometer lowered into them. After a time, the thermometer is raised and the temperature read for that point. This method also has several serious drawbacks and is very time consuming.

(A thermometer is not designed to furnish quick readings).

3) A third concept is the temperature cable method.

One type of temperature cable utilizes thermocouples to read temperatures. A thermocouple is nothing more than two dissimilar metals soldered together to make a heat sensing point. TSGC, Inc cables have thermocouples made of copper and constantan (an alloy of copper and nickel), the most sensitive combination made for grain bin temperature scanning systems.

Thermocouples are the most widely used temperature sensor for several reasons.

They are rugged, low-cost, dependable, and accurate.

The measurement is a point measurement with fairly quick response to temperature change. Watching the trend of the temperatures provides a clear indication of unusual temperature activity.

Now, there are several ways to obtain this temperature. 1) You could use the “Feel and Smell” method. All that is required here is for the grain manager to feel the side of his bin and smell inside the

www.afriagrimagazine.com | April - June Issue 2020

21

Crops

Research Institute to embark on Cashew Apples studies

Naliendele Agricultural Research Institute (Nari) has revealed that it will embark on various studies and researches to help communities turn waste cashew apples into wealth.

These studies have been prompted by the understating that a majority of cashew farmers in Tanzania grow the crop with a target to sell the crop in its raw form. To them, cashew apples ripping with the nuts are a waste.

These farmers have not an idea that there were losing between Sh22.8 and 31.8 trillion every year for failing to turn the ‘wastes’ into an opportunity for generating wealth.

A senior researcher from Nari Regina Msoka says in every one kilo of raw cashew nut, a farmer leaves in his farm about nine kilograms of cashew apples that could have been used to produce nine litres of juice.

She says at an average price of Sh11,300 per bottle of cashew wine, a farmer could earn about Sh100, 000 for the nine kilograms of wasted cashew apples.

“Many farmers target to sell raw cashew that earns them

22

not more than 4,000kg per kilo.

“A simple calculation shows that in every ten kilograms of cashew nuts, there are about 90 kgs of cashew apples. This means he who chooses to sell the ten kilograms of raw cashew will earn Sh40,000 while the one using the apples to produce juice will get Sh1 million,” she says.

Year in, year out, cashew nut growers have ended up selling their unprocessed cashew to buyers in auctions set by the government through local authorities.

Their knowledge of what potential the cashew trees provide is so limited. Many are not aware that highly nutritious juice, wine, milk and butter, to mention but a few, can be extracted from thousands of tonnes of cashew apples left to rot in their farms every year.

Apart from the food products, cashew processing industries can extract other products such as oil varnish used in the plastic, and auto brake lining, paints and enamels, decorative coatings, medicines and animal feeds.

cashew nut is a whole tale of the magnitude of losing if the right plans and investments were there to process the products.

This means cashew growers can earn more from selling cashew apples which are available in two season a year than from selling raw cashew nuts.

Ms Msoka says researches have shown various simple technologies can be used by a farmer or individuals to produce cashew juice A kilo of cashew butter made from broken kernels fetches Sh20, 000 but a farmer can only get instead of Sh10,000 if he sells them in a broken form.

“If I deduct production costs still I get profit. One kilogram can also be extracted to produce an average of three litres of milk which can be sold at Sh25,000,” she says.

A farmer from Nanyumbu District, Mtwara Region, Elisha Milanzi, says because cashew fruits are not easily preserved, some farmers opt to dry and use them to brew local beer known as ‘Ulaka’.

The fact that one cashew apple accounts for 90 per cent of the total weight of the

www.afriagrimagazine.com | April - June Issue 2020

Crops

“We are told for cashew fruits to be used for making juice they are supposed to be preserved in a cool place but because of our village environment some of us dry them in the sun and use them to brew local beer,” he says.

Wine and juice Ms Msoka from Nari says it takes three months to extract high-quality wine from cashew apples. Every kilogram of the fruit can produce one litre of wine.

Ms Msoka says by using one kilogram of the broken kernel (WW450), one can produce one kilogram of butter that can earn 20,000 from Sh10,000 if sold without value addition.

Regarding cashew nut grades, deputy Nira director Dr Fortunatus Kapinga says already they have developed about 54 cashew seed varieties that can produce high-quality nuts with high demand in the international market.

“Tanzania cashews meet international standards because the seed varieties that we developed meet the requirements of the international market and that is why we encourage our farmers to use seeds from Naliendele so that we can successfully compete in the global market,” says Dr Kapinga.

He says they also researched and developed a technology to extract milk from cashew nut since some people like small children and the elderly are unable to chew cashew nut or are allergic to cows or goat milk.

“We do researches that respond to challenges facing farmers and needs of stakeholders like processors, transporters and cut across the whole value chain,” he says.

Tanzania produced 265,000 tonnes of cashew nut during the 2016/2017 season.

“If cashew fruits separated from the cashew were to be used for the production of wine they would produce wine worth Sh26.9 trillion,” he says.

About 313,000 tonnes of cashew nuts were produced during the 2017/2018 season.

According to Dr Kapinga, cashew fruits from that quantity would have produced Sh31.83 trillion worth of wine.

Cashew growers produced 224, 000 tonnes during the 2018/2019 season. Cashew apples from this amount could produce wine worth Sh22.78 trillion.

“We have been losing between Sh22.8 trillion and 31.8 trillion a year by not extracting juice from cashew nut fruits,” says Dr Kapinga.

Costech appeal to investors A representative of the Tanzania Commission for Science and Technology (Costech) Dr Bakari Msangi says Nari has already conducted research over a simple technology that could be used by Tanzanian farmers and urged them to grab the opportunity.

He says well-established businessmen must grab the opportunity and establish processing plants in cashew nut producing regions “They are required to realise that already at the research level we have approved the technology and we have already produced a product that has entered the market, so we invite local and foreign investors to see the importance of setting up factories in these regions,” he appealed.

What farmers say Mr Millanzi says he collects between two to three tonnes of cashew apples every season but only use few to make juice and throw away the rest and set them on fire once they get dried.

“All the people in official positions should strive to propagate this technology and encourage people to invest in areas that grow cashew nut.

Strategies to support farmers

He says some farmers use them to brew local spirit.

“If the government brings us a factory or technology of making products out of the fruits that will help change our lives because we throw away a huge quantity of the resources, he says.

Employment lost Dr Kapinga says apart from boosting income of farmers, if used well, cashew fruits can create hundreds of employment.

Tandahimba MP Katani Katani says some farmers use cashew apples to brew local spirit known as gongo whose consumption is prohibited by law and leave thousands of tons of fruits to rot in their farms.

“By good lucky agriculture minister know cashew apples can be used to produce wine, so we are trying to see the best way of incorporating this issue in our policies and see cashew nut growing offers more opportunities to farmers,” he says.

Jobs will come from processors of cashew kernel that are used for making butter, makers of packaging materials, producers of animal feed and transporters.

www.afriagrimagazine.com | April - June Issue 2020

23

Crops

Uganda steps up measures to curb impending Locust infestation

Authorities in Uganda have stepped up measures to combat a locust invasion following sightings of the dreaded pests in the Northeast of the country by purchasing aircraft for aerial spray Uganda is one of the East African countries likely to be affected by what the Food and Agriculture Organisation describes as the worst outbreak to hit the region in over three decades.

The locust swarms have already caused panic in Somalia, Ethiopia and Kenya, while Uganda, South Sudan and Tanzania have been on high alert President Yoweri Museveni said that the government is ready to decisively deal with locusts in case they cross to Uganda.

He also said that several strategies have been put in place to fight the locusts while

24

also advising that aircraft has already been sourced and is on alert for aerial sprays in case of an attack.

He added that the government will buy its aircraft to stop dependence on other countries in the future. “On the issue of locusts, on we had a meeting and we are going to move decisively both on the ground and in the air in case they cross to Uganda.

We are going to buy our aircraft for future use,� Mr Museveni said.

At least 2,000 UPDF soldiers have been trained to carry out small scale spraying.

Recently, Mr Stephen Byantwale, the commissioner for crop protection at Ministry of Agriculture was quoted by media saying that Uganda had no aircraft and the ministry was working with the Desert Locust Control Organisation of East Africa

(DLCO-EA), based in Nairobi, Kenya to provide aircraft in case locusts cross to Uganda.

But Evarist Magara, the Uganda representative to DLCO-EA also told media the limited financial commitment from the government of Uganda would complicate the possibility of assistance from the locust control body.

He said that they would bring in spray aircraft if Uganda pays up the debts of Shs18 billion.

Districts in Karamoja have already deployed teams at the Uganda-Kenya border to monitor the movement of the deadly desert locusts.

The Director of Extension Services, Beatrice Byarugaba told the media in Kampala recently that the ministry had requested for Shs11 billion for the contingency plan. She, however, said only Shs5 billion was available.

www.afriagrimagazine.com | April - June Issue 2020

Crops

Agri Cooperative To Open Coffee Factories In Tandem with the President’s indutrilisation-drive call an agricultural cooperative is in the process of setting up three coffee processing factories in Tanzania’s regions.

Massawe attributes all the efforts to the country’s President who gave the impetus for farming community to revive cooperatives in the country.

Agricultural Marketing Cooperative Societies (Amcos) is set to open three coffee processing factories in Shinyanga, Simiyu and Geita regions to support President John Magufuli’s ambitious industrialisation call.

He noted that since ascending to power, the fifth phase government had so far demonstrated political will to revive cooperative societies in the country, saying the efforts had started producing good results.

The three factories will be Kahama Cooperative Union (KCU) in Shinyanga, Chato Cooperative Union (CKU) in Geita and Simiyu Cooperative Union (SCU) in Simiyu.

Massawe insisted that cooperative unions gave fresh stimulus to various sectors of the economy, especially the agricultural sector which was the engine of the national economy.

During an interview recently Tanzania Cooperative Development Commission (TCDC) Assistant Registrar of Cooperative Societies and Head of Marketing and Investment Section Edward

“Farmers in different parts of the country are busy forming cooperative societies after realising that the system benefits them more when they

www.afriagrimagazine.com | April - June Issue 2020

join groups than working as individuals,” he said.

He acknowledged that an organized arm of the agricultural sector dealt easily with numerous challenges facing farmers, especially when it came to the availability of capital, inputs, markets and better prices.

“For instance, through cooperative unions, members (farmers) buy inputs through bulk procurement and the system makes them stand a better stance to lobby for better prices for their produce,” he said.

Amid such milestones in the whole exercise of rejuvenating the performance of cooperative, Mwassawe has conceded that the private sector still faced challenges such as public awareness and lack of cooperative society officers.

25

Livestock

Migori County Government donates dairy cows to farmers

Speaking during the launch of phase 4 of the project dubbed, ‘one Dairy Cow per Sugarcane/Tobacco farmer’ Migori Governor Zachary Obado said the main objective of the project is to improve dairy herd in terms of numbers and quality.

Obado expressed confidence that this project will continue increasing milk production, while ensuring food and nutritional security which shall result in an increase of incomes of farmers.

A total of 90 in-calf dairy heifers and eight Sahiwal breeding bulls were given to the farmers at Lichota ASK Showground situated 10 km from Migori town.

So far, more than 470 in-calf dairy cows and 104 Sahiwal breeding bulls have been given out to identified farmers in the eight sub counties of the County.

26

Obado warned farmers who fail the test of proper management of the dairy cows that livestock officials will confiscate them and hand them over to able farmers.

Further, Obado warned that farmers who deliberately try to sell or relocate their dairy cows without the authority from county livestock officials will be charged.

“We have realized cases where farmers are selling and relocating these animals without the knowledge and authority of our staff. This should immediately stop,” Obado warned.

Governor Obado said food insecurity is a serious threat at this time of Covid-19 pandemic, a gap he maintained will be boosted by increased milk production in the county.

Uasin Gishu County has consistently worked closely with the Migori County Government through the livestock department since 2015 in terms of getting the dairy cows for Migori farmers.

Migori County has the best climate suitable for many agricultural practices which includes dairy farming according to county agriculture officials.

Obado has constantly reminded residents that Migori relies heavily on agriculture but is not fully exploited.

Since the beginning of his term in 2013, Obado has launched several agriculture projects which includes tissue banana farming, kuku ni pesa project and dairy farming.

www.afriagrimagazine.com | April - June Issue 2020

Livestock

Technology boosts Kenyan pastoralists

In a roadside bar in Nairobi, the smell of roasted meat wafts into the air as commuters make their way home from work. Served with cold beer and other accompaniments like the maize paste ugali, the dish is classic Kenyan fare known as nyama choma. At Njuguna’s Place, a chomajoint popular with office workers in the affluent neighbourhood of Westlands, the cooked meat is sold for around $12 a kilo.

Around 70% of all meat consumed in Kenya comes from 15 of its 47 counties, in the north and northeastern arid and semi-arid areas. Unlike the industrial meat sector in countries like South Africa, much of the livestock in Kenya is tended by pastoralists and sold at local markets.

While meat fetches a higher price in the capital, especially in value-added forms like nyama choma, it can sell as raw produce for as little as $4 a kilo in the provinces. The

28

level of poverty in areas where livestock is the primary source of income is around 30% higher than the rest of the country, and pastoralists often receive less for animals sold at local markets than they are worth.

“The people keeping animals are all poor, they are not getting value for their livestock,” says Abdikadir Mohamed, CEO of the Kenya Livestock Marketing Council (KLMC). “We need to improve livestock prices for the pastoralists. Once this is improved the poverty level will decrease.”

Digitisation of markets To negotiate a better price, the KLMC along with the Netherlands-based Technical Centre for Agricultural and Rural Cooperation (CTA) and its partners are piloting the digitisation of two livestock markets in Kenya.

Previously, animals in the Merille Livestock Market in Kenya’s Marsabit County were subject to a visual appraisal to determine the weight. The “eyeball estimation” would lead to a barter discussion between the traders and the pastoralists to agree on a price. The livestock is now being weighed on electronic scales and this data is recorded along with the provenance, ownership and post-sale destination.

“This is basically to give the pastoralists informed data to negotiate,” says Frankline Agolla, co-founder of Kenyan technology company Amfratech, which is supporting CTA to provide technological solutions to pastoralists. “We need to be able to capture the prices of animals and the weight to say they are getting value for money. It is going to change how this market operates.”

www.afriagrimagazine.com | April - June Issue 2020

Livestock

The data is useful for regularising the sale of livestock in a region which is prone to cattle rustling and conflict over grazing grounds as climate change forces pastoralists to move greater distances in search of pasture. It also opens up the possibility for financial and technological products in a chronically underserved sector.

Amfratech has developed a mobile phone app called myAnga which delivers advice on weather and forage conditions to herders whose livelihoods are threatened by the increasing occurrence of drought.In another data project, CTA is working with Nairobi-based Takaful Insurance of Africa to provide affordable weather-based insurance for livestock. The product, which insures around 20,000 pastoralists, compensates pastoralists before any climate-related disaster takes place whenever forage levels drop below a certain point.

Supply chain issues According to data seen

by African Business, around $1.2m passed through Merille Livestock Market last year in the lucrative yet undeveloped sector.

Abdullahi Ali is a trader who roams around Kenya’s northern counties as part of a collective which buys and sells up to 40 cows each week. Purchasing a cow in Merille Livestock Market for around $400, Ali can sell that cow for $430 in Isiolo just 160km away and for $460 at more than double that distance in Nairobi.

Yet his outgoings include hiring a truck to transport the cattle and paying hefty fees for a police escort in a region where roadside banditry is common.

Any indent on his margin at the point of purchase could damage the viability of his trade. To overcome these issues, the KLMC is in discussion with slaughterhouses and traders to agree on a standardised price that is fair for all when buying from pastoralists.

“The livestock business is currently a liberalised business.

It’s a buyer and seller agreement, but we need to bring in some norms,” says the CEO of KLMC. “We need to improve livestock prices for the pastoralists.”

By using weight to sell livestock within a determined price, pastoralists will be fairly compensated and also shielded from dramatic price fluctuations during the dry period between December and January, he adds. The KLMC is lobbying the government to legislate these changes.

Price controls are not without precedent in Kenya – in 2011, former president Mwai Kibaki signed into law a bill which gave the government the power to control the price of any essential commodity, after the practice had been abandoned in the 1990s in favour of economic liberalisation.

While the KLMC prefers to think of it as “fair trade” rather than price controls, its suggestions have been met with opposition from slaughterhouse associations and the Kenya Meat and Livestock Exporters Association, which remain

www.afriagrimagazine.com | April - June Issue 2020

strongly opposed to state intervention.

Export ready Kenya’s livestock sector also suffers from a lack of development and a dearth of sophisticated commercial enterprises, which prevent it from fulfilling its potential as a meat exporter.

With prime rearing conditions, and proximity to import-hungry Middle Eastern markets, Kenya should join neighbouring Sudan, Somalia, Djibouti and Ethiopia as a key exporter in the region.

Kenya meat exports were worth just $52,634 in 2017, which compares poorly with total exports of around $6bn, with tea, cut flowers, refined petroleum and coffee the most traded goods.

However, some progress is being made. The Export Processing Zone Authority is building an $18m livestock export quarantine centre in Tana River County which will subject animals to clinical and physical examinations before exporting them to the Arabian Peninsula and the Middle East.

The centre will be used to fatten and improve the quality of the animals which can then be sold at a better price. It is expected to earn Kenya $94m in foreign exchange earnings after three years and $469m after 10 years. Improving the livestock industry both at the point of origin and export would put Kenya in a good position to take full advantage of the lucrative sector.

29

Livestock

Nguni bull sells for record R310 000 on WhatsApp auction

The livestock auction industry in South Africa has suffered major setbacks during the past six months.

First, a ban on auctions was imposed due to the foot-andmouth disease outbreak in South Africa in November last year, and then live auctions were again suspended when the coronavirus disease (COVID-19) lockdown came into effect.

However, a recent Nguni auction which took place on the social media platform WhatsApp, has proven that the new trend to move livestock auctions online holds much opportunity for the industry.

During the recent KZN Elite Nguni auction, a record price of R310 000 was achieved for a Nguni bull bred by the Nandi Nguni stud near Cedarville, owned by the LBC Biggs Trust.

“This bull is special because his bloodline is a combination of two of the oldest Nguni herds

30

in the country,” the seller Clive Biggs said.

“His mother has bred 13 calves in a row for us by the age of 15. So, genetically this bull is exceptional. He is extremely hardy, very fertile, carries much meat, is well-built, and [has proven ability] to pass these traits onto his progeny,” he said.

The KwaZulu-Natal-based buyers, Nico Harris of Vriendschap Boerdery who owns the Matatana Ngunis stud and Barry Cole of Manyenyeza Nguni stud, beat the previous highest worldrecord price for a Nguni bull of R197 000, recorded 15 years ago.

“This is the second top bull we have bought together. This specific bull is exceptional, and our eyes have been on him for the past three years.

We went over our limit, but the bull is worth it,” said Cole.

auction, which is open to all cattle buyers across the country.

However, due to the COVID19-related lockdown restrictions on trade and movement of goods and people, this year’s auction was changed to a digital format.

The auction, presented by NetAuctions in Bloemfontein was hosted on WhatsApp. “The WhatsApp auction was a great success. There were 168 registered buyers on the group, with 124 females and 10 bulls on sale. We shared the catalogue of the cattle with their prices on the platform and started bidding from there,” explained Gert Coetsee of NetAuctions in Bloemfontein who hosted the auction. “[Following] the groundbreaking successful first Nguni WhatsApp auction we are looking forward to [hosting] other auctions on this platform,” he said.

The KZN Elite Nguni sellers group hosts an annual

www.afriagrimagazine.com | April - June Issue 2020

Poultry

Is South African poultry back on track?

Saying the past three years have been tough for the South African poultry industry would be a gross understatement.

Drought conditions in various parts of the country caused maize prices to hit record highs in 2016, resulting in broiler feeding costs to increase by 13.5 percent while producer prices increased by a mere 1.2 percent.

The higher feeding costs have rendered farmers less competitive against cheaply imported poultry products, causing widespread job losses and the end of many smallscale farming operations. RCL Foods alone had to close 15 farms and retrench 1,350 workers to keep its head above water.

Avian influenza With the drought breaking in maize-producing regions, things looked better for 2017.

Feed prices decreased by 10.5

32

percent, while producer prices increased by 15 percent. But the spike in producer prices, unfortunately, was caused by the first ever highly pathogenic avian influenza outbreak in the country.

(roughly ÂŁ17.8 million GBP) were culled during the outbreak, with the total loss in business estimated around R 1.87 billion (roughly ÂŁ105. 1 million).

Listeria

The industry did have a contingency plan in place, as industry leaders reasoned it would only be a matter of time before the virus would hit the country. But the programme’s practical implementation proved much easier said than done, especially when it came to the culling of large volumes of birds in one day.

Whereas farmers in other countries are often compensated for their losses, it remains uncertain whether farmers in South Africa will receive any redress from the government. According to the Bureau for Food and Agriculture (BFAP), about 4.7 million layers and 700,000 broilers worth R 317 million

The listeria outbreak at the start of 2018 did not really affect poultry consumption, but resulted in the recall of several processed meats. In response, producers reviewed and proactively improved their risk-mitigation measures with many attending a workshop to discuss recently issued guidelines on compliance with process hygiene control and microbiological food-safety performance objectives as required by the Meat Safety Act.

www.afriagrimagazine.com | April - June Issue 2020

Poultry

Dr Ziyanda Majokweni, general manager of the South African Poultry Association, says the industry is committed to assisting the National Department of Agriculture, Forestry and Fisheries with meaningful, measurable objectives in this regard: “Pathogen-reduction plans remain key tools both nationally and globally in ensuring the management of food-borne pathogens.”

“Our maize reserves are looking good, so an average harvest should be good enough this year,” he says.

“We, nevertheless, have not received enough rain to date and there is a 70 percent chance that we might be heading for another El Niño, which is associated with drought in the major maizeproducing regions of South Africa.”

Dr Majokweni is optimistic about 2019. The industry has managed to get through the 2018 winter with only two confirmed cases of highly pathogenic H5N8 outbreaks in commercial chicken and one in quail. The continued circulation of the virus in ostriches, nevertheless, remains disconcerting.

The value of the rand would have an impact on maize prices, since prices for South African maize are derived from maize prices on the Chicago Board of Trade. Stander says political uncertainty, corruption and talks about land expropriation have been taking their toll on investor confidence and have negatively impacted the currency.

“New outbreaks have been reported in the European Union and South Africa is watching developments closely and remains guarded,” says Majokweni.

While the industry should be better prepared for future outbreaks, avian influenza will remain a huge threat, with effective disease management largely dependent on the strain of the virus and buy-in of the industry as a whole in investing in efforts to contain it. The possibility of emergency vaccination has been investigated and a proposal on the use of such an intervention has been sent to industry stakeholders for comment.

Marthinus Stander, CEO of Country Bird Holdings, says good rains and maize prices have contributed a good 18 months for the broiler industry, in spite of the avian influenza outbreak. The improved conditions have led to some significant industry investments and allowed farmers to strengthen their financial positions. According to Stander, however, future prices will depend on climatic conditions and the value of the South African rand against other major currencies.

Better protection Both Stander and Dr Majokweni say they are excited by an announcement made by South Africa’s president, Cyril Ramaphosa, in September 2018 of an “economic stimulus and recovery plan”, which among other things, will be used to protect the industry. So far, an EU safeguard duty has been set at 35.3 percent, to be imposed from 28 September until 11 March 2019 – this will go down to 30 percent from 12 March until 11 March 2020, to reach 25 percent between 12 March 2020 and 11 March 2021, and the 5 percent from 12 March 2021 until 11 March 2022.

Stander says various studies have revealed that South African farmers are just as efficient and economically viable as their European and US counterparts, in spite of these countries benefitting from subsidies: “These and other countries are dumping pieces of meat that are unwanted by their consumers.

This is not only a problem in South Africa, but is preventing the development of poultry industries in other parts of Africa.”

According to reports from the South African Revenue

www.afriagrimagazine.com | April - June Issue 2020

Services, total imports for 2016 increased by 17.1 percent to 560,155 tonnes in comparison with the previous year and would have been 20 percent higher if it had not been for avian-influenza-related trade bans imposed on December’s imports. At 556,877 tonnes, imports in 2017 were 0.6 percent lower than in 2016, but 25 percent higher than the industry’s five-year average.

The value of these imports was 17.5 percent higher at R 6.44 billion (roughly £364 million).

Total imports for 2018 were 0.7 percent lower while the value of these imports was 2.5 percent less than in the first half of 2017. Total imports for the year amounted to 438,839 tonnes by September, with a value of R 5.01 billion (roughly £283 million). Of this 73 percent was bone-in leg portions.

Dr Majokweni points out that the South African poultry industry sheds 1,069 direct and indirect jobs for every 10,000 tonnes of broiler meat that is not produced locally.

South Africa’s Quantum Foods warns of 38-percent drop in first-half profit South African feed and poultry company Quantum Foods said on Thursday half-year earnings could fall as much as 38 percent, partly due to a margin squeeze in its egg business because of lower selling prices.

The group said headline earnings per share for the sixmonths ended March 31 were expected to fall between 28.1 cents and 34.9 cents, down between 23 and 38 percent compared with 45.4 cents for the same period in the previous year.

The owner of Nulaid eggs said the drop in egg selling prices was a result of an increase in supply in South Africa and higher feed production costs.

The company expects the egg business, which contributed about 25 percent of group revenues in 2019, to report a loss when it publishes results on May 21.

33

Poultry

BREEDING FOR 1ST QUALITY EGGS

Quantum said Covid-19 had, to date, not had any significant effect on its business. The company said the extent of the negative impact of Covid-19 on consumers and the economy was still uncertain but it would communicate any significant effect on its operations or financial performance.

Headline earnings, the main profit measure in South Africa, were also negatively impacted by a decline in earnings from operations elsewhere in Africa. In Zambia, a very poor 2019 maize harvest resulted in higher feed costs, and consequently lower margins from eggs and lower demand from livestock customers, the company said.

On the upside, Quantum had improved profitability from the feeds business, benefiting from increased volumes supplied to both external customers and the company’s layer farms that had higher numbers of layer hens in production.

Profit from the group’s farming business also improved, mostly due to higher volumes of live birds supplied by the Western Cape broiler farming operations, it said.

“Productivity on the layer farms continues to improve which further contributed to earnings.

However, weaker demand from the layer livestock market negatively impacted margins in this business,” Quantum added.

34

Institut de Sélection Animale B.V. Villa ‘de Körver’, Spoorstraat 69, 5831 CK Boxmeer, The Netherlands-EU. +31 485 319 111 layers@hendrix-genetics.com hendrix-genetics.com www.afriagrimagazine.com | April - June Issue 2020 isa-export.com

Poultry

Uganda discriminating against Kenyan poultry exports

The increased chicken meat imports from the neighbouring countries are causing more harm than good to Kenyan poultry farmers.

Poultry farmers have in the past two years complained about the lack of protection by the government.

For example, Uganda is exporting chicken meat to Kenya tax-free, while Kenyan farmers’ esports are taxed at 25 per cent — 18% VAT, 6% withholding tax and 1% railway development levy.

This means that the Uganda poultry products have free access to the Kenyan market while the Kenyan products are hindered from access to Uganda through Non-Tariff Barriers or the imposition of domestic taxes (VAT, withholding taxes or railway levies).

This is a clear indication of discrimination against goods coming from neighboring EAC countries. Ugandan actions violate the World Trade Organization principle on nondiscrimination of like goods from neighbouring countries.

It doesn’t mean that because Uganda is the largest trade partner to Kenya, our government should forget about its farmers. The Kenyan poultry industry is a major source of employment, with an estimated three million people

deriving their livelihood and income from poultry farming, processing and related activities.

It also employs veterinarians, researchers and extension officers. It is a major source of livelihood for people in rural areas, including thousands of youth and women who are engaged in rearing chicken and other domestic birds.

Thousands of Kenyan enterprises, large and small, are involved in poultry production and processing in rural and urban areas. The sector also provides a base for value addition activities.

In addition, many farmers are engaged in contract farming for large processors and supply schools, hospitals, hotels and other institutions. If the poultry value chain is not protected all the gains will be eroded, and the industry will be at it worse or on the verge of collapse.

Article 32 of the Common Market Protocol obliges the partner states to undertake progressive harmonisation of their tax policies and laws on domestic taxes with a view to removing tax distortions. This is to facilitate the free movement of goods, services, and capital and the promotion of investments within the EAC. The current tax regime favours importers and is a great

www.afriagrimagazine.com | April - June Issue 2020

disadvantage to the Kenyan farmers and producers.

Ugandan producers currently exports between 25-30 tonnes of chicken weekly into Kenya – this represents at least 10 per cent of the formal processed chicken market.

In Africa, lessons have been learned in Ghana, and South Africa, where local poultry industry collapsed due to similar circumstances.

Tanzania has also imposed stringent requirements for compliance from the Tanzania Bureau of Standards, which many players in the poultry sector have seen as deliberate efforts to bar them from accessing the market.

Worth noting is the fact that Tanzania banned the importation of poultry and poultry products into the country in 2016. We, therefore, cannot overemphasize the vulnerability of the Kenyan poultry industry from the regional attack.

To safeguard the industry gains, the poultry stakeholders are urging the government to close the borders of similar to other EAC countries. Both Uganda and Tanzania have closed their borders, why has Kenya kept borders open for processed chicken? If not, Uganda to drop taxes to Kenyan imports.

35

Poultry

Why African farmers are waking up to the huge potential of guinea fowl In Africa, the potential of guinea fowl largely remains untapped across the continent’s sprawling markets.

But poultry farmers in the southern and western regions are now beginning to see capacity expand, amid an effort to commercialise guinea fowl production.

Poultry farming is generally taking off across Africa but has for a long time been dominated by the production of broiler chickens, with freerange chicken farming also on the rise. Now, guinea fowl farming is shaping up into a commercial venture in southern African countries such as Zambia, Malawi and Zimbabwe while in West Africa, Ghana is a front runner, owing to massive support being given to farmers from the World Bank.

According to Dr Chisoni Mumba, senior lecturer in livestock and animal-health economics at the University of Zambia’s School of Veterinary Medicine, guinea fowl production remains a largely “unexploited investment opportunity in Zambia” and other African countries in the region.

In Zambia, whose production trends also mirror practices in neighbouring Zimbabwe and Malawi, guinea fowl rearing “is practised in combination with free-range chickens among small-scale farmers,” while commercially viable production farms are also emerging. Among the advantages of guinea fowl that are beginning to be appreciated is that they are considered to be more resistant to common poultry afflictions, such as Newcastle disease, compared to chickens.

36

This is corroborated by experts such as Abdul-Rahman, II, who co-authored the paper “Guinea fowl value chain: preferences and constraints of consumers”, published in 2019 in the African Journal of Food, Agriculture, Nutrition and Development, which says: “Guinea fowls are easier to manage by resource-poor farmers with hardly any access to formal veterinary services because they are resistant to most poultry diseases. Housing is rudimentary and healthmanagement practices depend largely on ethnoveterinary medicine.” The paper’s authors also note, however, that in Africa, the birds are still predominantly “raised as free-range scavenging birds” while the subsector has also “seen little genetic improvement” across major markets.

The World Bank has been supporting guinea fowl farmers in Ghana under the West Africa Agricultural Productivity Program (WAAPP) capacitation framework.

Under this programme, guinea fowl population in Ghana now accounts for about 7 per cent of the national poultry population and farmers in northern Ghana obtained more income from the guinea fowl than from chicken, which highlights opportunities for further growth and effective commercialisation.

Franklyn Yeboah, deputy director for Ghana’s Ministry of Food and Agriculture, who was one of the team leaders of WAAPP, told The Poultry Site that despite the numerous advantages and opportunities for commercial guinea fowl production in Ghana and across Africa, production of the birds “has not received enough attention and the needed support” to enhance production.

Guinea fowl production, particularly in West Africa, is saddled with some constraints that include poor hatchability and the high mortality of keets at farmer level; a lack of prophylactic treatments such as vaccination and deworming; and poor early sexing techniques that would help maintain adequate breeding stocks. Other challenges for African guinea fowl farmers include a weak scientific and technological information base on local breeds and feed formulations, inadequate funds to expand enterprises and weak development up the value chain.

Value-chain support is one area that is worrying experts on guinea fowl production in Africa. The University of Zambia’s Dr Mumba is convinced that “the guinea fowl value chain is 99 per cent informal” and highlights that these occasions challenges for further value-chain development. For example, guinea fowl farmers across African markets such as Malawi, Tanzania, Kenya and others still use informal means of marketing their products as there are no formal markets or platforms to promote valuechain development.

“To develop the value chain, we need to put support mechanisms along the entire value chain,” says Mumba.

“Thus we must balance production and consumption.

Some of the support mechanisms at a production and consumption level include effectively strengthening and commercialising egg handling, incubation and chick management.”

One of the major barriers to growing the industry, says Mumba, is the “unavailability of incubation services in most rural and peri-urban areas where these farming activities

www.afriagrimagazine.com | April - June Issue 2020

Poultry

occur”. In the few areas that do have access to such services, meanwhile, the cost is usually too high for the farmers to afford.

A high hatch rate would improve the number of guinea fowls produced by each guinea fowl farmer, but environmental factors such as adverse weather conditions can hurt brooding. This is “due to a lack of knowledge of brooding, as most guinea fowl farmers are used to natural brooding done by chickens… which are exposed to excess rain, heat and cold due to poorly constructed” poultry houses.

northern Ghana were endowed with high-capacity incubators, generators, feed, eggs, drugs and vaccine as starter-packs, with the WAAPP programme rapidly expanding to cover more than 8,000 farmers in the country.

taking care of their young and if you do have keets, you are better off taking care of them yourself… For us to maximise the number of eggs collected, it will be prudent to have a large coop for the fowls with an outer enclosure for them to roam but not wander off from your farm.”

“Furthermore, many farmers are aware of the commercial potential of guinea fowl production,” says Yeboah.

“Good husbandry practices to ensure increased productivity; the use of incubators to hatch more eggs; the use of homegrown vaccine (NDI-2) to combat Newcastle disease; and the establishment of a

Apart from regional exports, “smoked guinea fowl meat is a delicacy and is often exported to family relations in Europe and America,” strategically boosting the farmers’ earnings through foreign-currency receipts. Dr Mumba also believes that guinea fowl consumption can be boosted “Furthermore, many farmers through “incentivising consumption by improving Feeding is also something that access to high-value markets” are aware of the commercial in the region and abroad. requires adjustment. “Most guinea fowl farmers in Zambia and Africa practise freerange rearing systems with As Zimbabwean poultry potential of guinea fowl little or no supplementary producer Thompson Manatse feeding. They do not know – whose projects include how much to feed guinea guinea fowl and free-range production,” fowl chicks and what chickens – says, enhanced nutritional content [is required]. guinea fowl training centre in knowledge and capacitation What medicine, vaccines or the north are some of the are key to unlocking the full vitamins do these chicks need benefits derived through the potential of the industry. and at what age and implementation of projects Research and genetic frequency? These animalsuch as WAAPP 2A to achieve diversification to come up with management practices would some success in guinea fowl the best breeds is also key, be vital if we were to production in Ghana.” which highlights the slow base commercialise the guinea fowl that the African guinea fowl value chains in Africa,” farming industry is springing explains Mumba.

This is feeding into other key from. advantages around guinea fowl production in Africa.

In Ghana, the past few years According to poultry “There is demand – sometimes have seen an increase in producers from the Chalus we can’t even match support for guinea fowl Farm in Zambia, the birds are demand. If we can secure production through good egg layers. They also funding to expand, we can developmental projects such advise that the laying of eggs, further develop into a largeas Smallholder Agricultural which needs to be controlled, scale producer with potential Development Project (SADEP), is mainly concentrated for exports. We need more Smallholder Rehabilitation between August and April. research, more knowledge Development Programme and best practices that help us (SRDP) and part two of the conserve resources,” says the WAAPP project. Together these “They lay their eggs in large Zimbabwean farmer, based initiatives have resulted in a clutches away from the coop, just outside the capital, Harare. growth in capacity and preferring bushy or dark areas. financing. One outcome has Guinea fowls are poor at been the “introduction of 1,000 capacity incubators and technical support” to farmers, which, according to Augustine Danquah, the monitoring and evaluation specialist for WAAPP, resulted in “farm expansion through higher bird population, and increased incomes and livelihoods” for Ghanaian guinea fowl producers.

As many as 80 beneficiary farmers in the three regions in

www.afriagrimagazine.com | April - June Issue 2020

37

Aquaculture

Rwanda issues a stern warning amid Lake Virus attack

The Rwandan government has issued a statement warning any persons bringing live fish illegally into the country after tilapia lake virus (TiLV) was identified in various countries.

Following the discovery, the Ministry of Agriculture and Animal Resources (MINAGRI) banned the importation of tilapia fingerlings (young tilapia fish).

The virus affects both wild and farmed tilapia fish, and it can cause a decline in tilapia catch quantities.

A statement which was issued last week says that in a bid to prevent the spread of the virus, the ministry has banned the entry of tilapia fingerlings into Rwanda.

It also said that any person who will be caught bringing live fish to Rwanda yet they do not have the required licence will be punished as provided for by the law determining the organisation and management of aquaculture

38

and fishing in Rwanda, as well as the law determining the prevention and fight against contagious diseases for domestic animals in Rwanda.

Agriculture minister GĂŠrardine Mukeshimana requested all fish farmers to put in place strategies to prevent such a disease by avoiding breeding young fish of which they do not know its origin, avoiding sharing fish farming and fishing equipment, and keeping hygiene in the fishing site.

She said that tilapia is a very important fish as it is the most farmed species and most consumed species by Rwandans and it is exported to DR Congo, mostly through Rubavu and Rusizi districts.

Mukeshimana also said that any person who wants to bring fingerlings of other fish species into the country will have to request a license from the ministry.

Dr Solange Uwituze, Deputy Director-General of Animal Research and Technology Transfer at Rwanda Agricultural Board, told The New Times that the disease is not zoonotic, meaning that it does not affect humans.

Uwituze said that confirmed countries with TiLV include Colombia, Ecuador, Egypt, Israel, Indonesia, Thailand, Mexico (in six Mexican States), Philippines, Malaysia, Peru, India and Tanzania.

Countries at high risk of TiLV, Uwituze said, are Algeria, Bahrain, Bangladesh, Belgium, Burundi, Canada, China, Congo, El-Salvador, Germany, Guatemala, Japan, Jordan, Laos, Mozambique, Myanmar, Nepal, Nigeria, Pakistan, Romania and Rwanda. Others include Saudi Arabia, Singapore, South Africa, Sri Lanka, Switzerland, Tanzania, Togo, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, United Arab Emirate, United Kingdom, United States, Vietnam and Zambia.

www.afriagrimagazine.com | April - June Issue 2020

Aquaculture

Uwituze said that live fish that were being imported was a small amount (around 5000) of fingerlings to serve for broodstock [for breeding purposes] for satellite (or secondary) hatcheries.

The ministry said that farmers should pay attention to signs such as, extreme death of fish in the lake, fish cages, ponds among others, and skin redness, the bulging of the eye out of the orbit, and skin loss on fish whose death is undetermined.

In case one of those signs manifests, the ministry cautioned, fish farmers should report it to nearby organs responsible for livestock, or call

an officer in charge of fishing and fish farming based at MINAGRI on telephone number 0788854562, or 073885462.

Uwituze said that Rwanda has three big hatcheries and eight satellites hatcheries are operating very well with a production capacity of around 40 million fingerlings per year.

She was replying to the question of how Rwanda was going to fill the gap that will be left by the ban on tilapia fish imports.

but the demand increases visà-vis the aquaculture sector growth, thus increase in production,” Uwituze said.

“RAB will take the lead in producing needed broodstock for existing satellite hatcheries,” she observed.

Fish production in Rwanda was at 31,465 tonnes last year, while demand is estimated to reach 112,000 tonnes by 2024.

The latter is the same amount of fish that Rwanda targets to produce per year under the fourth strategic plan for agriculture transformation which runs from 2018 to 2024.

“Around 20 million fingerlings are being produced annually

www.afriagrimagazine.com | April - June Issue 2020

39

Aquaculture

Over-exploitation of Africa’s fisheries: Not enough fish in the sea

China’s role in illegal, unreported and unregulated fishing has a disproportionate impact on Africa.

There has recently been some controversy surrounding the mining of bauxite (a precursor to aluminium) in Ghana, with the role of Chinese investment taking centre stage. Bauxite promises to inject big money into the lower-middle-income country, but there are also serious environmental concerns with the project.

Along with bringing more than US$2-billion worth of infrastructure, it has the potential to taint the primary water source for roughly five million people. More broadly though, the issue brings to the fore the role of Chinese investment in African growth models.

Largely due to China’s domination of trade in material goods, the scale of its overall investment in Africa is often exaggerated. According

40

to the World Economic Forum (WEF), China has less than half the stock of foreign direct investment (FDI) of either the United Kingdom, France or the United States. Forbes agrees, noting in an analysis of investment trends in Africa that “Europe continues to stand out as the largest investor”.

However, the Forbes and WEF analyses also point out that the growth of Chinese investment in Africa far outpaces any other nation.

Between 2010 and 2014, Chinese FDI increased at a rate more than double that of any of the above-mentioned countries. China is also, by far, the largest investor in infrastructure projects in Africa, pledging another US$60-billion at last year’s Forum on ChinaAfrica Cooperation.

As China becomes an increasingly important partner for many African countries, China’s own domestic and national policies will have more and more significance for countries doing business

with it. One prominent example is China’s “exportation” of coal-fired power plants, while it aggressively subsidises renewable projects within its own borders.

In June 2019, Kenyan nongovernmental organisations were able to defeat an effort led by a Chinese consortium to build a 1,050MW coal plant near a United Nations Educational, Scientific and Cultural Organization heritage site in Lamu, Kenya. The plan was only narrowly defeated in the courts, and appeals are ongoing.

A key point to consider is that Kenya has strong institutions and levels of civic participation compared to other African countries. There are good reasons to believe that other states may not be able to advocate as effectively for environmental protections in the face of large financial gains for corporations and elites.

www.afriagrimagazine.com | April - June Issue 2020

Aquaculture

While coal has received a fair amount of attention, other economic activities with environmental impacts are far less frequently reported on.

One issue that flies under the radar in terms of its potential human impact is illegal, unreported and unregulated (IUU) fishing.

In November 2019 the Stimson Centre released a report on global IUU fishing. Among other things, the report looked at the countries where distant water fishing fleets most often cross into territorial waters and found that 10 of the 20 most frequently violated countries were in Africa.

However, when weighted for population, African countries account for more than 90% of the people living in those 20 countries. This total includes Papua New Guinea, which accounts for the bulk of the remaining 10%. The full extent of the damage to fish stocks and the ecological sustainability of these areas are hard to determine, but as distant water fishing is estimated to employ up to 56 million people, the impact is likely to be significant.

The report also found that three of the five ports most frequently used by IUU fleets are African. Stimson suggests this is no coincidence as deep water fleets actively take advantage of weak institutions and a lack of economic opportunities in some African countries. Several survey participants from Mozambique said they believed “political decisions drive the access agreements, with little to no concern for the environment or conservation of fisheries”.

stocks has already led to violent conflict in Africa.

This belief was in large part validated when an associate of a Chinese fishing company was caught publicly threatening a high-ranking official at Mozambique’s Ministry of Sea, Inland Waters and Fisheries. Perhaps unsurprisingly at this point, the report indicated that roughly 65% of deep water fleets conducting IUU fishing were operating out of either China or Taiwan.

The Stimson report lays out several policy recommendations. These include introducing more traceability into food supply chains, expanding regional and international cooperation, improving the accountability of flag states and ensuring that corporate records from distant water fleet host nations become publicly available.

The over-exploitation of African fisheries will not only have long-term ecological consequences, but is also already negatively impacting economies. Catch sizes for local fishers are dwindling, and competition for limited fish

www.afriagrimagazine.com | April - June Issue 2020

Dealing with Africa’s food security challenges and managing the continent’s relationship with China are both key for the continent going forward. This is a rare instance where those interests almost directly overlap, and present an opportunity to establish a framework for sustainable cooperation, both economic and environmental.

Improving transparency in the fishing industry represents an important step towards better food security and economic livelihoods for millions of Africans. It will also protect some of the most plentiful and endangered fish stocks on Earth.

41

Advertiser’s Index

Pg. 2 AgroPlasma Pg.11 Smart Fertilizer Management Pg.27 Norbrook Pg.31 Deleval Pg.34 Hendrix Genetics Pg.43 Case IH Pg.44 ATG Tire

Published By : Revival Media 1852 Dodoma Cres Roodepoort 2188

42

www.afriagrimagazine.com | April - June Issue 2020