How machinery is driving agriculture forwards in Africa

OVER THE PAST FEW YEARS, MACHINERY SALES HAVE SEEN A BOOM. DO YOU EXPECT THIS TREND TO STAGNATE IN THE NEAR TERM IN AFRICA?

The short answer is no. However, this depends on where in Africa you’re looking. In South Africa, for example, the past year saw the sale of 9 000 tractors, the highest in 40 years. Thus, from a South African perspective, it is likely that we have hit a ceiling, and will see a downward trajectory from now on.

However, in the rest of Africa, the upward trend is expected to continue. In Ethiopia, for example, the average sales of tractors over the past 10 years have been around 300 units. In 2022, Ethiopia saw the sale of 1 200 tractors.

Many governments in Africa are pushing the drive towards agriculture. This means that the sale of machinery and equipment here is likely to increase rather than decrease. Geopolitical tension, such as the Russia-Ukraine war in Eastern Europe, has also resulted in governments moving towards more protectionist policies to safeguard food security. Another reason for the increase in sales is due to initiatives supported by the private sector. For example, John Deere has been collaborating with provincial governments in some countries in Africa to support agricultural development through the use of the contracting model over the past few years.

PLEASE EXPLAIN THE CONTRACTING MODEL, AND HOW FARMERS BENEFIT FROM IT.

In a nutshell, the contracting model allows farmers or others to lend out their services in terms of land preparation (ploughing and planting) to their neighbours for a fee charged per hectare. The contractor owns the necessary machinery to provide these services. Through this model, farmers in Africa can benefit from mechanisation without having to actually own the machinery. The contractor model also creates jobs, such as in marketing, debt collecting and driving, and doesn’t require that the contractor own land. Contractors can also use their equipment to add value to their operations by pumping water from a well for other farmers for irrigation purposes, for example.

HOW DOES JOHN DEERE SUPPORT THIS INITIATIVE?

John Deere finds a local farmer, who is expected to make a small down-payment on the machinery needed. This is to ensure that the farmer is fully invested in the business; since requiring a small down-payment, our repossession rate has dropped to below 5%. For the model to work, we need to partner with local finance suppliers. We also need to enlist the help of a local John Deere dealer to provide after-sales support. This initiative is currently operating in five countries in Africa, and we hope to increase the scale of this operation across the continent.

GOING GREEN HAS BEEN A BIG CONSIDERATION IN MACHINERY DEVELOPMENT OVER THE PAST FEW YEARS, BUT CONSIDERING THE FINANCIAL PRESSURES

FARMERS ARE UNDER, WILL THERE BE LESS EMPHASIS ON THIS GOING FORWARD?

From a global perspective, the trend is likely to continue. However, lowering your carbon footprint does not necessarily mean using ‘green’ machinery. In Africa, there is a greater focus on basic technology that hasn’t fully been utilised. For example, subsistence farmers use a disc plough to till their lands. However, if not done properly, this can create compaction and soil erosion, and can lead to the leaching of important nutrients. However, if these farmers use a ripper instead, they would see a massive difference in crop yields. The ripper will allow water to go through the ripper line, saving the soil from erosion, preventing compaction and allowing the roots of the crop to reach the water and absorb the nutrients. In a project in Ghana run by John Deere, by using a ripper and focusing on planting depth and spacing, farmers improved their crop yields from 1,7t/ha to 7t/ha. This helps improves farmers’ income, but also saves the environment through protecting the soil and efficiently utilising water.

ARE AFRICAN FARMERS MOVING TOWARDS SMALLER MACHINERY?

Not necessarily. We advise farmers to use machinery that matches the scale of their operation. If you have a small operation, spending millions on a large combine harvester would be pointless. However, small does not mean ‘bad’. John Deere’s smaller tractors (up to 75kW) are fitted with the same technology engines as its larger machinery, which means that smaller farmers can get the same benefits of technology as their bigger counterparts. Moreover, farmers are generally more concerned with precision than size.

• Visit deere.africa/en to find a local dealer. FW