Volume 7. Issue 6 November/ December 2019
Drought in Sub-Saharan Africa What’s the economic implication? Inside... 10,500 heads of cattle in Zimbabwe P09 How Co-Operative Aid Development in Africa Economics P24 Family farmers - Founders and custodians of civilisation P31
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With You
Volume 7. Issue 6 November/ December 2019
CONTENTS
Volume 7. Issue 6. November/December 2019
Editor’s Note
News Drought in Sub-Saharan Africa What’s the economic implication? Inside... 10,500 heads of cattle in Zimbabwe P09 How Co-Operative Aid Development in Africa Economics P24 Family businesses - an underestimated economic driving force P31
FARMERS
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Wefarm secures funding to scale its Smallholder
2019 last lap
Agricultural Ecosystem.......................................................................03
s we draw 2019 to a close, we are obliged to reflect on some of the issues that have impacted agriculture in the region, whether positively or otherwise. Climate change has been proven thus far to have the biggest impact in agriculture across the African region.This is even with there being other underlying factors like governance and technology.
Greenpeace Africa on floods across the Africa..................04 Please visit the website
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Executive Editor Nita Karume editor@farmersreviewafrica.com Writers Silimina Derick, Bertha M. Contributing Writers Nqobile Bhebhe Zimbabwe Oscar Nkala Botswana Bertha M South Africa Nita Karume Kenya East Africa Advertising Executives Ken Tobby, Paul Amimo, M. Cherono Project Manager Victor Ndlovu sales@farmersreviewafrica.com Graphic Design & Layout Faith Omudho Art Director Augustine Ombwa austin@arobia.co.ke Correspondents - Isabel Banda zambia@farmersreviewafrica.com Sales & Marketing Gladmore. N gladmoren@farmersreviewafrica.com Mandla M. mandlam@farmersreviewafrica.com Kholwani. D kholwanid@farmersreviewafrica.com Polite Mkhize politem@farmersreviewafrica.com leslien@farmersreviewafrica.com East African Liaison Arobia Creative Consultancy Tel: +254 772 187334, 790 153505 arobia@farmersreviewafrica.com eastafrica@farmersreviewafrica.com Published by : Mailing Times Media +27 11 044 8986 sales@farmersreviewafrica.com
ICIPE, Mastercard launch MOYESH project funding........04 Gov’t of Zimbabwe bans imports of livestock and pigs from South Africa........................................................................05 CNH Industrial agricultural brands win
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This last issue of Farmers Review Africa has focused on drought in Sub-Saharan Africa and the implications of the same.This comes at a time when countries like Zimbabwe are facing a devastating drought that is affecting their livestock.
‘Machine of the Year’ titles at Agritechnica 2019...............07
Cover Story Economic implications of the ongoing drought in SubSaharan Africa.........................................................................................08
Personality Career with a difference: Innocent Sefolo the chainsaw guru celebrates 42 years..................................................................14
However, it is not all bad since according to the latest market report, revenue generated from the whole grain & high fiber foods market was estimated to be valued at over US$ 43,714.3 Mn in 2018 and is projected to increase at a CAGR of 5.4% during the forecast period 2018-2028. Among the features in this issue is one insightful piece on how Co-operatives are aiding African economies. Get to understand how these entities are playing a critical role by providing opportunities to create wealth through trade and the development of agriculture.
Product & Technology Trimble Launches Next-Generation WeedSeeker® 2 Spot Spray System...............................................................................16 Incledon launches latest Tekflo nylon ball and check valves............................................................................................................17 New Holland Agriculture hosts East Africa Training Camp 2019 in Kenya..........................................................................18 The technologies and trends shaping the supermarket of the future.............................................................................................20
Finally, be updated on the current news and new products in the agriculture sector as the digitization of agricultural equipment continues to take root. From the Farmers Review Africa team, happy holidays!
Nita Karume
editor@farmersreviewafrica.com
Feature How Co-operative Aid Dev’t in Africa Economics...........24 How to Choose a Magnetic Separator....................................27 BI is distributor for CRAFT bearings of Europe................28 Saai to present resolution to UN...............................................30 Family farmers: Founders and custodians of civilisation..................................................................................................31
Mailing Times Media (Pty) Ltd makes every effort to ensure the accuracy of the contents of its publications, but no warranty is made as to such accuracy and no responsibility will be borne by the publisher for the consequences of actions based on information so published. Further, opinions expr essed are not necessarily shared by Mailing Times Media (Pty) Ltd
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NEWS
AGRO-ECOLOGY: THE WEALTH OF THE SOIL BIOLOGICAL ACTIVITY AN UNESTIMABLE TREASURE ! In the future, agricultural production should be intensified sustainably and with respect for the environment.
Who are FCA Fertilisants and Fertilux ?
Proven by the results of official experiments, the performances of FCA Fertilisants and Fertilux solutions provide an answer in the African context.
SUMMARY : Eco-friendly fertilisation has several advantages :
A
ll the continents, and especially Africa, should take on a challenge for the future :
To feed more and more populations under increasingly difficult soil and climatic conditions. The diversity of soil microorganisms allows them to occupy all environments, even extreme. Micro-organisms are present in the most acidic soils, basic soils, desert environments, saline soils, demonstrating activities involved in ecological processes essential for human activities. The massive use of synthetic products is likely to profoundly modify the interactions between soil fauna and plant / microorganism symbiosis. Declining populations of mycorhizal fungi imply poorer plant nutrition and therefore require higher fertilization with significant ecological and economic costs. Consequently, adopting practices favorable to the development of soil micro-organisms (fungi, telluric bacteria, earthworms, etc.) is the essential condition for maintaining the profitability of agricultural activity, for the necessary increase in production and respect for ecological balances.
> An increase in yield Located in the middle of Europe, the geographic position of their production sites gives FCA Fertilisants and Fertilux direct access to natural raw materials for the agro-industry and microbiology. Through their patented know-how in soil life biostimulation technologies, FCA Fertilisants and Fertilux enable farmers to take the initiative towards a naturally fertile agriculture by following four principles : Enriching soil fertility Significantly reducing the carbon effect in comparison to standard fertilisers Increasing the effectiveness of inputs Decreasing the environmental impact
What are the solutions ? The solutions for eco-friendly fertilisation provided by FCA Fertilisants and Fertilux stabilise the soil by including nutrients and nourishing the microorganisms that are naturally present. Through a symbiotic relationship with plants, these microorganisms shape plant health in two ways : By helping to fight off diseases or pests By reinforcing the resistance to biotic and abiotic stress
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> Sustainable strengthening of soil and plant health > Perpetuation of the biological, physical and chemical fertility of the soil FCA Fertilisants and Fertilux are dedicated to the preservation of relations with farmers and devotedly carry out tests each year directly on "pilot" farms in order to continuously evaluate the pertinence of their solutions and optimise their recommendations and fertilisation programmes. We invite you to follow the results of these tests and partnerships in the next issues of Farmers Review of Africa...
To contact us : Mr. SĂŠbastien DAVID sebastien.david@group-shfc.com +33.6.51.17.54.62 Mr. Christophe MONNOT christophe.monnot@fertilux.lu +33.6.74.23.68.27
NEWS
Wefarm secures $13 Million in funding to scale its Smallholder Agricultural Ecosystem
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efarm the digital network for global small-scale agriculture, today announced it has raised $13 million in a Series A financing round led by Silicon Valley venture capital firm True Ventures . This financing round will help Wefarm further scale its network of 1.9 million farmers, and its newly created Marketplace, to connect farmers in Africa, even those without internet access, to the information, products and services they need to be more successful. Investing alongside True Ventures are AgFunder and June Fund, among others. The company received significant follow-on investment from LocalGlobe, ADV and Norrsken Foundation. Founded in 2015, Wefarm is on a mission to create a global eco-system for small-scale agriculture. With more than 1 billion people directly involved in small-scale farming, it is the biggest industry in the world. Wefarm is building the network of trust for those farmers. Wefarm Marketplace allows farmers to easily access quality products and services, such as seeds, fertilizers and a range of other nonagricultural items from trusted retailers and brands. In line with Wefarm’s bottom-up model,
all products, services and retailers on the platform have been recommended by Wefarm users and can even be purchased through SMS.
Wefarm CEO and Founder Kenny Ewan believes the platform’s Marketplace will grow into an expansive ecosystem for smallholder farmers.
Disproportionally, smallholder farmers lose too much time and money due to fake or faulty agricultural products. Farm yields in many parts of Africa are just one-fifth of farm yield in the United States or Europe. Poor-quality seeds and fertilisers also limit growth in plants and animals. Given that smallholder farmers grow roughly 70 percent of the world’s food, Wefarm intends to use its technology to help close this yield gap.
“If we can inspire 100 million farmers to work together on one platform, we can fundamentally shift global agriculture and trade in their favour, and this round of funding will take us even closer to bringing this vision for improved farm yields into fruition,” said Ewan. “It’s about harnessing AI to champion human intelligence. Our network of trust empowers farmers to find solutions to problems by knowledge sharing. In tandem, the marketplace will give them access to first-rate products that help to deliver better produce. The combination of the two has limitless potential to influence and fight the major agricultural crisis we face.”
The company’s funding announcement coincides with another notable growth milestone of reaching $1 million in total sales from the Wefarm Marketplace in just eight months since launch; that’s faster growth than both Amazon and eBay in their early stages. With Marketplace sales growing at more than 40 percent month on month, the business is on a rapid growth trajectory. Over the next 12 months it aims to diversify into supporting farmers with both financing and delivery, as well as enabling them to trade the commodities and crops they grow, with the goal of becoming a key part of the global supply chain on behalf of the farmer.
“We are enormously inspired by how Kenny and the Wefarm team have empowered the world’s farmers, and we see great potential for their future,” said Jon Callaghan, co-founder of True Ventures. “The company is not only impact-driven, but the impressive growth of the Wefarm Marketplace demonstrates exciting commercial opportunities that will connect those farmers to more of what they need to the benefit of all, across the food supply chain. This is a big, global business.”
November - December 2019 | 3
NEWS
Greenpeace Africa on floods across the continent: “Without Climate Action we’ll be queuing for Noah’s Ark”
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ains have increasingly been torrential in the past months, striking large parts of East Africa and elsewhere, in unprecedented intensity in decades, causing at least dozens of deaths, displacement of more than one million people. Greenpeace Africa calls on Africa’s leaders to provide immediate aid to those affected, but also take action to tackle the climate crisis.
“From floods to drought, extreme weather is a direct consequence of bad energy policies, the senseless burning of fossil fuels and reckless destruction of our forests,” said Amos Wemanya, Greenpeace Africa’s Campaigner. “This continent must not wait for a miracle to avoid the next flood. Without breaking away from coal, protecting our rainforests and oceans, transforming our farming and agriculture, and without bringing the US back
to the Paris Agreement, we will all end up queuing for Noah’s Ark,” concluded Wemanya. With more extreme weather upon us, Greenpeace Africa will continue to stand with youth striking for the climate. Ahead of the 29th of November School Friday for the Climate (Fridays for Future), Youth climate leaders across Kenya, Uganda, Nigeria and other affected countries will use Greenpeace Africa’s channels to continue to demand urgent action from their leaders
ICIPE, Mastercard launch US $55m initiative in Ethiopia for MOYESH project
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he International Center of Insect Physiology and Ecology (icipe), in partnership with the Mastercard Foundation and Ethiopia Jobs Creation Commission (JCC), have launched a US $55m initiative for the More Young Entrepreneurs in Silk and Honey (MOYESH) project. The initiative has a target of securing job opportunities for 100,000 young men and women in Ethiopia along honey and silk value chains. The MOYESH project is aligned to ongoing efforts to alleviate youth unemployment or underemployment in Ethiopia. It will be implemented primarily in partnership with Ethiopia Jobs Creation Commission (JCC) and the Mastercard Foundation’s Young Africa Works in Ethiopia initiative over a duration of five years. MOYESH is also in line with icipe’s vision of science-led strategies towards holistic and
4 | November - December 2019
inclusive socio-economic transformation across Africa. The project will capitalize on icipe’s extensive experience over the past 50 years in collaboration with national and international partners. Reeta Roy, the President and CEO of Mastercard Foundation said that the creation of opportunities in beekeeping and silkworm farming will set many Ethiopian youth on the path of becoming entrepreneurs. This, in turn, will contribute to the economic growth of the country. Similarly, the icipe Director General, Segenet Kelemu further lauded the initiative, adding that icipe is delighted to be part of the project aimed at elevating the young men and women in Ethiopia. MOYESH will be implemented across the country in Amhara, Oromia, Tigray, and Southern Nations, Nationalities, and Peoples regions.
This is with the goal of scaling up technologies and good practices to other areas. According to media reports, the project will have the following key thrusts that will: i. integrate beekeeping and sericulture enterprises around protected forest, and community-based watersheds; ii enable young people to access financial, markets and information services; iii build and strengthen the technical, entrepreneurship, soft, and financial literacy skills of the youth, partners and local institutions; iv establish strong private-public partnerships; v involve youth in value addition activities of honey and silk products; and vi generate evidence-based knowledge to support further scaling and adoption.
NEWS
Government of Zimbabwe bans imports of livestock and pigs from South Africa
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he Government of Zimbabwe has suspended with immediate effect the importation of livestock and related products from South Africa. The suspension follows notification by the South African Veterinary Authorities of an outbreak of foot and mouth disease (FMD) on a farm in Molemole District of Limpopo Province earlier on this month. In a statement, The Ministry of Lands, Agriculture, Water, Climate and Rural Resettlement, Department of Veterinary Services advised the public and stakeholders of the ban of the importation of live cattle, goats, sheep and pigs from South Africa. DVS director, Dr Josphat Nyika said South Africa is currently in the process of identifying the virus strain, extent of the outbreak and conducting backward and forward tracing to determine possible origin of the virus as well as locations to which the disease might have spread.
The statement stipulates that the ban is in operation until a full report on the outbreak has been availed by the South African Veterinary Authorities. Moreover, it serves as a precautionary measure designed to prevent spread of infection into Zimbabwe through the importation of live
animals and animal products. Dr. Nyika added that the Department will continues monitoring the situation with a view to normalizing trade with the Republic of South Africa as soon as the outbreak is controlled.
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NEWS
Dangote Group, Togo partner to transform Phosphate into Fertiliser
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angote Industries Limited and the Government of Togo (GoT) have concluded an agreement to develop and transform Togolese phosphate into phosphate fertilizers for the West African subregion; in a bid to improve consumption of the product in Africa. With over two billion tonnes of phosphate reserves, Togo is one of the leading phosphate producers in Africa. By partnering the Dangote Group, the country intends to benefit from the expertise and investment capacity of Africa’s largest industrial group, according to a joint release issued by the Dangote Group and the Communications Department of the Presidency of the Republic of Togo. With the completion and commissioning of the Dangote Petroleum Refinery and Fertilizer complex in Ibeju-Lekki, Lagos, Dangote Group will be the largest ammonia producer on the African continent, the release noted. Ammonia is an essential ingredient in the transformation of phosphate into fertilizer derived from phosphates.
6 | November - December 2019
Under the agreement, Togo will provide access to phosphate resources and the Dangote Group will provide access to ammonia and to the Nigerian market. The project, in line with second pillar of the Togo National Development Plan, should enable the production of more than 1 million tonnes of fertilizers derived from phosphates once completed. The cost of the investment is estimated at about $2 billion and is expected to create several thousand direct jobs. Mining development work will start before the end of 2019, it added. On this occasion, Dangote Group also announced the establishment of a cement manufacturing plant with an annual capacity of 1.5 million tonnes in Lomé. This plant will use clinker from Togo and Nigeria and will meet both local and neighbouring countries’ demand, the release noted. It further added that construction of the Lome plant is billed to start in first quarter of 2020 and its commissioning scheduled to take place before the end of 2020. The investment is estimated at $60 million and is expected to create 500 direct jobs.
Togolese President, Faure Gnassingbé said, “The structural transformation of our economy is the main objective we have set ourselves in the context of the 2018-2022 NDP. By processing our phosphate we will not only create jobs but we will also be able to provide our farmers with good quality fertilizers at an affordable cost. Having an industrial investor like Alhaji Dangoté shows that our efforts to improve the business climate are paying off. We intend to continue in this dynamic for the well-being of Togolese men and women.” President/CE Dangote Group, Aliko Dangote said, ‘’This partnership is in line with our transformation agenda in creating prosperity and enhancing economic development not only in Togo but also in Affrica. In addition, the Dangote Group is determined in supporting the Government of Togo in its industrialisation strategy aimed at creating jobs for its citizens and making Togo an attractive investment destination.’’ The two investment agreements reinforce Togo’s industrialisation strategy adopted under the 2018-2022 National Development Plan.
NEWS
CNH Industrial agricultural brands win ‘Machine of the Year’ titles at Agritechnica 2019
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productivity while eliminating twin off cuts, ensuring zero forage contamination. This type of loop knot increases knot strength by up to 30%, for greater baling efficiency and productivity.
gearbox technology with two-speed start-up to deliver smoother baler engagement, thereby protecting the tractor driveline.
Case IH won the coveted title in the Hay and Forage category with its LB436 HD baler, which was recognized for its new design enabling farmers and contractors to create denser bales, thereby reducing handling requirements and transport costs. Its innovative twine knotter system, TwinePro, is designed to boost
‘Machine of the Year’ was also awarded to New Holland’s BigBaler 1290 High Density, which was recognised for its technical innovation and the benefits it brings to customers, with selection criteria focusing on innovative features, performance, productivity, cost of operation, ease of use and operator comfort. The baler produces up to 22% denser bales when compared to a conventional large square baler, significantly increasing transport and bale handling efficiency. The model features award winning SmartShift™
In the electronics category, DataConnect won ‘Machine of the Year’ for the agreement recently entered into between Case IH, STEYR, New Holland, CLAAS, John Deere and 365FarmNet, which aims to enable global mixed-fleet customers to view their machine data in the platform of their choice. The participating brands have all agreed to enable cloudto-cloud exchange of machine information (machine location, speed, fuel level, working status) in their respective telematics platforms.
NH Industrial global agricultural brands Case IH, New Holland, and premium European tractor brand STEYR, were awarded ‘Machine of the Year 2020’ titles for innovative machinery and technology by a jury of agricultural journalists at this year’s edition of Agritechnica, the world’s largest agricultural trade show currently underway in Hannover, Germany.
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COVER STORY
Economic implications of the ongoing drought in Sub-Saharan Africa Drought is Africa’s principal type of natural disaster.
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rought, in many countries in Sub-Saharan Africa are increasingly becoming more frequent and severe as a result of the extreme rainfall variability as well as the poor capacity of most African soils to retain moisture. As such, many sub-Saharan African (SSA) economies are susceptible to the effects of drought as a result of the importance of rainfed agricultural and livestock production in GDP, the limited infrastructure, and the low
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levels of per capita income. Moreover, parts of the Sahelian belt have recently been coping with an increasingly dry regime, with rainfall significantly below the norms of the period prior to the 1960s. Despite there being studies on the physical aspects of drought, agricultural impacts, government and donor responses as well as household, coping and survival strategies in the event of drought, there is little to no research on
non-agricultural or macro-economic impacts in Sub-Saharan Africa. According to the findings of a new framework which was developed for the sole purpose of understanding the wider economic impacts of drought and explain why some economies are more susceptible to drought than others: drought shocks have large, but highly differentiated economy-wide impacts.
Moreover, and counter-intuitively, relatively more developed economies in Africa may be more vulnerable to drought shocks than least developed or arid countries in terms of macroeconomic aggregates and rates of economic recovery. Presently, different regions of Africa are experiencing different longer-term climatic fends. This implies that sub-regional strategies are required for mitigation and relief of droughts. On the other hand, drought should be viewed and treated less as an exogenous shock, as is currently done, and more as a structural problem in the least developed countries. Lastly, although the existence of structural adjustment programs can worsen adverse economic and humanitarian impacts of drought shocks. Such programs also provide a framework within which the broader economy-wide impacts may be more effectively contained.
10,500 heads of cattle in Zimbabwe succumb due to lack of pasture and drinking water
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0 500 heads of cattle have died as a result of lack of pasture and drinking water in three southern provinces of Zimbabwe. This comes at a time when what is reportedly the worst drought in recent years ravishes the country.
According to Midlands provincial livestock specialist, Medlinah Magwenzi, farmers are likely to face problems ploughing their lands this year due to the poor conditions of the cattle.
Matabeleland South, widely regarded as Zimbabwe’s driest province, has been the worst affected, with about 4 500 cattle having died by 15 October. According to local government officials, well over 4 000 cattle have died in the Masvingo Province, while 2 040 have died in the Midlands.
Medlinah further added that chances of rain making the situation better are null, resulting in failure to plough this year since the farmers are not able to afford alternatives. However, she added that in the long term it would be best that the farmers are well prepared for sch an eventuality by stocking up on hay so that when conditions get as dry as they are now, they can feed their animals.
Hatitye Muchemwa, an official in the Department of Livestock and Veterinary Services in Matabeleland South said that the prolonged dry spell has decimated pastures and water sources right across the province. Most affected, Hatitye explains, are the communal farmers who are too poorly resourced supplement feed. Zimbabwe’s national cattle herd included around 5.2m head of cattle, with 89% of these animals owned by communal farmers.
According to media reports, in Masvingo, two of the southern-most districts near the border with South Africa had seen the highest number of cattle deaths in the province. The provincial officer, Ernest Dzimwasha said that up to 4 000 have died in the province- at least of the reported cases. This then suggests that the death toll might be far higher because some farmers may not report all their losses to the department.
November - December 2019 | 9
NEWS
African Development Bank, Credit Suisse, Industrial and Commercial Bank of China and Ghana Cocoa Board Ink $600 Million Loan Agreement to Boost Cocoa Production
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greement is a turning point for scaling up the cocoa value chain – President Nana Addo Dankwa Akufo-Addo of Ghana; Ghana is bankable, cocoa is bankable and of course Africa is bankable - Dr. Akinwumi A. Adesina, President, African Development Bank . The African Development Bank, Credit Suisse AG, the Industrial and Commercial Bank of China Limited and Ghana Cocoa Board (COCOBOD) signed a $600 million syndicated receivablesbacked term loan on Tuesday, to boost cocoa productivity in Ghana - the world’s second-largest cocoa producer.
development agenda, which kicked off in Sandton City Johannesburg on Monday. The COCOBOD transaction was launched at the Africa Investment Forum in 2018, and a year later, the signing is a demonstration of the Forum’s ability to raise much needed financing, including from international commercial financiers, for projects in Africa. Prior to the agreement, COCOBOD did not have access to long-term debt capital.
Ghanaian President Nana Addo Dankwa AkufoAddo, the President of the African Development Bank Dr. Akinwumi A. Adesina, senior officials from Credit Suisse and ICBC, oversaw the signing of the facility, at a ceremony held on the second day of the 2019 Africa Investment Forum.
At a press conference following the signing, President Akufo-Addo said the agreement would help to ensure higher incomes for Ghana’s cocoa farmers.“It was critical that we find a mechanism for scaling up the value chain for our farmers and that is where the Bank came in,” Akufo Addo said. “We see this agreement as a turning point and… to what is possible on this continent.”
The multi-million dollar agreement is a milestone for the Bank-convened Africa Investment Forum, a transactional platform dedicated to transforming the continent’s investment and
The Bank, as Original DFI Lender and Initial Mandated Lead Arranger, is partnering with Credit Suisse as Original Commercial Lender, Global Commercial Coordinator, Co-Mandated
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Lead Arranger. Credit Suisse is also acting as Joint Commercial Underwriter and Bookrunner to structure and fund a dual-tranche facility comprising a $250 million, 7-year DFI tranche with the Bank, as well as a $350 million, 5-year commercial tranche. The Industrial and Commercial Bank of China Limited London Branch joined as an Original Commercial Lender, Co-Mandated Lead Arranger and Joint Commercial Underwriter and Bookrunner ahead of syndication. Syndication of the facility is underway. Making sure that Africa gets to the top of the value chain is one of the African Development’s Bank’s top priorities, President Adesina said, adding that Africa could become a global hub for cocoa and cocoa-based products. “All cocoa producing countries will get similar support (from the Bank). Ghana is bankable, cocoa is bankable and of course Africa is bankable,” Adesina said.
COCOBOD will use the facility to raise cocoa yields per hectare and increase Ghana’s overall production. These include financial interventions to sustainably increase cocoa plant fertility, improving irrigation systems, rehabilitating aged and disease-infected farms. The funds will also help increase warehouse capacity and provide support to local cocoa-processing companies.
long-term investment in the Ghanaian cocoa sector. “This is a positive contribution to a key sector of Ghana’s economy. “It is a moment of tremendous pride…This is what the Africa Investment Forum is all about,” Patki said. He also commended the Bank’s signature expertise in financial instruments, that enabled them to leverage financing for the deal.
Signing for Credit Suisse, Madthav Patki said the “landmark” transaction would facilitate future
The Africa Investment Forum, an initiative of the African Development Bank is an innovative, multi-
Africa Investment Forum:
Family businesses - an underestimated economic driving force
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amily businesses are rarely viewed as a sector which could influence economic growth, but the Africa Investment Forum is recognising them as important players on the continent. For the first time at a conference of this nature, families running business empires have been given a platform to share their views on how Africa’s unexplored wealth can benefit all who live here. The Elnefeidi Group, a family-owned business with more than 80 years of experience in various industries, is run by second and third generation members. It is one of the businesses that believes start-ups can help turn around the continent’s economies if they are supported and nurtured. “We need to take care of the youth, having money is not enough. Start-ups should be helped with business plans, helped to structure their business model and to position their businesses where there are opportunities,” said Hana Elnefeidi, the company’s representative at the Africa
Investment Forum. Elnefeidi, with businesses including agriculture, automotive, mining and real estate, located in several countries across the continent, believes families should not just share their money with start-up companies, but also their networks, knowledge and expertise. “We need to take care of the youth, having money is not enough. Start-ups should be helped with business plans, helped to structure their business model and to position their businesses where there are opportunities,” said Hana Elnefeidim, the company’s representative at the Africa Investment Forum. Foreign Direct Investment flows to Africa rose by 11% to $46 billion in the past year, and several factors, including the realization of the African Continental Free Trade Area Agreement (AfCFTA) could boost this further. The past decade has seen African family-owned companies grow quickly.
stakeholder transactional marketplace, dedicated to raising capital, advancing projects to bankable stage, and accelerating financial closure of deals. Ghana’s cocoa sector employs some 800,000 rural families and produces crops worth about $2 billion in foreign exchange annually. COCOBOD is a fully state-owned company solely responsible for Ghana’s cocoa industry, controlling the purchase, marketing and export of all cocoa beans produced in the country.
Different management strategies have been highly successful in Latin America and the Middle East, where family businesses comprise about 70% of the top 100. Family businesses in Africa represent only 20% of the top 100. The family business session focused on how to build alliances and partnerships in Africa and the Middle East, which could play an important role in stimulating investment in the continent. Family businesses by nature often build lasting relationships, valuable in any investment climate. Essa Abdulla Al Ghurair is Chairman of Essa Al Ghurair Investment, a family-owned business involved in manufacturing, commodities and trading on international markets. He says that global collaboration in infrastructure development could help grow small- and medium-sized businesses, which will in turn reduce Africa’s high levels of youth unemployment. Al Ghurair, whose family is a major supplier of agricultural commodities in Dubai, says the United Arab Emirates is small, but has become a hub for international business, “Dubai has a very small population compared to South Africa. There is prosperity for people living there, there are work opportunities which benefit people from all over the world, including South Africa. This is mainly because of visionary collaboration across many business spectrums and countries.”
November - December 2019 | 11
REPORT
Global Whole Grain & High Fiber Foods Market Revenue Expected to Grow at a Significant CAGR, Owing to Growth Witnessed by the Health and Wellness Segment
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ccording to the latest market report, revenue generated from the whole grain & high fiber foods market was estimated to be valued at over US$ 43,714.3 Mn in 2018 and is projected to increase at a CAGR of 5.4% during the forecast period (2018-2028). Consumers’ rising awareness about the close association between food and health has been turning out to be one of the most important social developments in the recent past. Various factors such as busy lifestyles adopted by consumers, rise in the obese population, and consumption of unhealthy food have been driving the consumers to shift to healthy diets. Consumers take into account the type of food that they consumer on a day-to-day basis. As a result, products such as whole grain & high fiber foods have been gaining traction over the past couple of years among their target customers. Whole grain & high fiber foods are those products that have been processed into finished products sourced from whole grains or high fiber sources such as seeds & nuts. These whole grain and high fiber foods contain minimum 51% of whole grains or 10-15% of dietary fiber. These include products such as bakery, breakfast cereals, pastas, and savory snacks. Whole Grain & high fiber foods can also be sourced from multiple whole grain sources. Only finished and packaged products have been considered in the market for whole grain & high fiber foods, and the volume is based on the weight of the entire finished product. The importance of whole grain & high fiber foods in the bakery segment has been enduring, owing to the rise in the number of diet conscious consumers. Whole grain & high fiber foods have a wide range of applications in the production of various bakery products such as breads, cakes & pastries, baking ingredients & mixes, and other bakery frozen products.
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On the basis of source, the whole grain & high fiber foods market is segmented into maize, wheat, brown rice, oats, rye, barley, quinoa, and multi-grain. In 2017, the wheat source segment accounted for the highest revenue share of 27.0%, and is expected to do so throughout the forecast period. By flavour, the fruit segment estimated to account for a 39.7% value share of the global whole grain & high fiber foods market in 2018. The food and beverages segment is expected to register a growth rate of 5.1% over the forecast period 2018 to 2028. On the basis of product type, the bakery products segment is estimated to account for a more significant growth rate in the global whole grain & high fiber foods market over the forecast period. On the basis of region, the North American region has been estimated to dominate the whole grain & high fiber foods market, accounting for a significant revenue share of 24.3% in 2018, followed by Latin America in the global whole grain & high fiber foods market. Macro-economic Market Factors Impacting the Whole Grain & High Fiber Foods Market A majority of the manufacturers have been positioning themselves as health promoting companies in line with global changes in dietary guidelines. The changing regulatory scenario has drastically affected the consumption of whole grain and high fiber foods, especially in North America. Over the past year, the sales of whole grain and high fiber foods have skyrocketed, and manufacturers are increasingly positioning themselves as healthy companies. With the changes in guidelines, a major impact has been
seen on product labelling and the marketing of products as a part of the health & wellness sector. According to the 2015-2020 Dietary Guidelines for Americans released by the U.S. Department of Agriculture, 50% grains consumed by consumers should be whole grains to ensure proper nutritional supply to the body. Following these changes, health conscious consumers have very religiously started following this recommended consumption of whole grains and high fiber foods, which has resulted in an exponential surge in whole grain cookies and crisp product types. New technological processes are being adopted by manufacturers New technologies are being developed that are aimed at utilizing the by-products of the milling industry to isolate active compounds for specific food applications, or altogether transform these components into forms that can be easily incorporated in food products without disturbing their texture and other characteristics. Other technologies developed are separating the right particle size whole grain flours for baking applications. Key Producers of Whole Grain & High Fiber Foods Some of the major companies operating in the whole grain & high fiber foods market space are Kellog Company, NestlĂŠ S.A., Mondelez International, General Mills Inc., The Quaker Oats Company, Kind LLC, EDNA International, La Brea Bakery Inc., George Weston Limited, Barilla G.e. R. Fratelli S.p.A., The Hain Celestial Group Inc., Riviana Foods Inc., Mckee Foods, Pinnacle Foods Inc., Warburtons Limited, and others.
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las ackaging Products is a medium size manufacturing concern with many years of combined experience in the packaging manufacturing industry. The company has been in existence since 1994. e is to nurture and build mutually ts. beneficial rela ackaging Products further referred to as Plas “PPP” is based in Wadeville the industrial heart of Ekurhuleni. “PPP” has a vast range of extrusion equipment to manufacture a wide range of plas We manufacture low density polyethylene and blown polypropylene plas With the above equipment, we are geared to manufacture most of your packaging requirements at e prices. compe xtrusion company who is able to We are a plas , tubing, and bags, produce pr either plain or printed for all types of industries. We have been receiving new business from the farming community, manufacturing packaging plas printed; coloured tubing; shee orm fill and seal shee “PPP”, has reconstructed opera der to improve efficiencies and streamline services to our customers around South Africa and Africa. vel 2 B-BEE ra ves w modern bag makers from a local machine building supplier. The process involved ge toppages” “Keeping capital in our country and growing the South African economy. Buying locally helps with machine parts and pr armers might need. says Paul Dreyer. “PPP” has a highly skilled sales team that can help with any type of plas . Founde We also supply black mulching to farmers for growing tunnels. “PPP” has a large client base of farmers supplying di 94 n 19 , plas t wrap; banana blue uv plas and plas ” employs them with plas just over 45 personnel and operates 24/7 producing over 5 300 different bag types. Coloured; printed; plain; or dried goods. “PPP”, supplies plas oughout South Africa and exports and form fill and seal shee apacity into African countries. The company has had rapid growth over the past 7-plus year equired in order to keep up with to meet market demand. “Further c growth” said Paul.Our manufacturing team approaches each job in our factory with respect and care. We have got a well-oiled quality control system in place. In our company the customer is King. ackaging Products we are looking forward to servicing all farming c At Plas d
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PERSONALITY
Career with a difference
Innocent Sefolo the chainsaw guru celebrates 42 years
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ention the word chainsaw, and Innocent Sefolo’s heart probably beats just a smidgen faster. That’s because this particular granddad has been employed by Husqvarna in Pietermaritzburg for a mindboggling 42 years – most of which have involved working with the world-renowned brand’s chainsaws.
chainsaw ropes, so to speak, to Roger Jackson, long-serving Husqvarna Business Developer: Forestry. Said Jackson: “Back in 1980, the company I worked for bought four Husqvarna 480SE chainsaws and Innocent was sent to me to teach me how to maintain and service them. He has an amazing and humble approach in how he communicates with people, and it is impossible not to appreciate what he tries to convey.”
To say he is passionate about his job is an understatement. “I love what I do,” he says with heartfelt enthusiasm. Sefolo said the past four decades with Husqvarna have been wonderful. Highlights, said the Imbali father-of three (and granddad of five), include a trip to Husqvarna’s global headquarters in Stockholm, and attending a conference in Munich, Germany. “But I also love travelling up north, and seeing other parts of Africa, like Zimbabwe and Zambia, and I’ve also been to Swaziland.” More recently he was in Stellenbosch, which he also enjoyed. Sefolo is the company’s chainsaw guru, and a whiz at training people on how to use Husqvarna’s range of super-efficient machines: think foresters (privateers as well as major forestry companies), and students (Cedara Agricultural College, Stellenbosch University wood science/forestry students), among others. He also sells equipment. “I started my career repairing chainsaws for a Sandvik franchise, a small family-owned company in Pietermaritzburg, with just the manager, his wife and I, when I was 25. They used to import the equipment from Sweden and I learned to
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repair and sell the machines. Back then, in 1977, the business was run from a small 50sqm shop.” The company was bought out by Husqvarna, and Sefolo continued with the new group, becoming more involved in the training and sales of equipment. “But the chainsaws have always been my favourites,” he confessed. He conceded, however, that the chainsaws with which he started his career are now on display in the museum at Husqvarna’s Pietermaritzburg headquarters. “They are very different from what is available today and what I train people on!” Sefolo is particularly proud to have shown the
Sefolo’s major assets are his passion for the brand and the product, added Jackson, as well as his unassuming approach to everyone and his incredible ability to converse in several different languages. “The people who use or maintain our products come from diverse backgrounds, and Innocent has absolutely no problem adapting to whatever situation he finds himself, and excelling.” He said Sefolo’s loyalty to the brand and dedication to excellent customer support “have helped us retain and build our customer base throughout South Africa and, in some cases, beyond, like in Mozambique and Zimbabwe”. Although he was due to retire this month, Sefolo is so valuable to the company that they’ve asked him to extend his services. “I’m happy to do that,” he said. “I love my job, and dealing with and meeting different people. I really enjoy the sales and the training, and if I had to retire, I think I would very quickly ‘go upstairs’,” he said with a broad grin, gesturing heavenwards.
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14 | November - December 2019
PRODUCT & TECHNOLOGY
Trimble Launches Next-Generation WeedSeeker® 2 Spot Spray System detection system allows you to use it not only on fallow fields, but also after planting, which extends the usage window of the equipment and improves field recovery.” As a Trimble solution, the new system is fully compatible with Trimble displays, positioning services and Autopilot™ vehicle guidance. The GFX-750™ display system can quickly transition between the run screens for guidance and spot spraying while simultaneously controlling both, allowing a cleaner tractor cab and eliminating the need for multiple displays for guidance and sprayer control.
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rimble has announced that its nextgeneration WeedSeeker ® 2 spot spray system. Building on more than 25 years of experience in agriculture, Trimble’s new sensor solution and system provides growers up to 90 percent savings in input costs when targeting and treating herbicide-resistant weeds. Spot spray systems bring a variety of improvements over traditional agricultural spraying. By sensing individual weeds in the field and targeting them with a localized dose of herbicide, farmers can greatly reduce their usage of herbicide. Spot spraying is especially useful for fighting herbicide-resistant weeds. There are a variety of weed-killing chemicals to choose from, with more expensive chemicals typically used on herbicideresistant weeds. By targeting resistant weeds individually, spot spray systems allow cost-effective elimination of troublesome weeds by significantly reducing the amount of higher-cost herbicides used. With reduced chemicals applied, there is also a major benefit for the environment, further promoting sustainability and stewardship on the farm. WeedSeeker ® 2 brings next-generation improvements to the spot spraying market. New intelligent sensors save time in the field by eliminating the need for system resets. After a quick calibration upon powering on, WeedSeeker ® 2 automatically adjusts on the run to changing temperatures, ambient light, and
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shifting backgrounds like soil or stubble, assuring sensor accuracy in all conditions. These smart sensors also know the speed and their position on the sprayer boom. That means they won’t spray sections of the field that have already been covered, and will automatically adjust spray timing when making a turn to ensure a weed is covered.
While WeedSeeker ® 2 is ideal for use with Trimble displays and auto-guidance, these are not required. Any ISOBUS compatible display with universal terminal capability can be used to monitor and control the new spot spray system. With an intuitive interface, the system is simple and easy to use, providing growers optimal flexibility in their farming operation. The new universal mount allows easy installation on more sprayer boom configurations than ever before, requiring no need for custom mounting brackets. With the easy installation, farmers can get back to work in the field sooner.
Knowing where weeds concentrate in fields gives farmers the power to better attack them year over year. The WeedSeeker ® 2 system now logs every weed sprayed, so users can see in real time where there are problem areas and review detailed maps from records before the next spray.
The WeedSeeker ® 2 features a redesigned housing that is easier to clean and maintain. Channels built into the sensor housing allow liquid to drain no matter the boom position. This greatly reduces the need to clean the system due to unexpected rain or other environmental impacts.
WeedSeeker ® 2 is lighter and more agile on the largest sprayer booms and the sensors now provide expanded coverage areas. The new spot spray system sensors improve efficiency by eliminating the need for nozzle reconfigurations while simultaneously reducing the number of sensors needed.
In addition, the WeedSeeker ® 2’s upgraded processing power allows sprayer operating speeds of up to 40 kilometers (25 miles) per hour. Faster operating speeds allow farmers to cover more acres in a day while achieving optimal accuracy, making this a more cost-effective system.
“Selective spraying is a great tool for weed control, especially against those that show tolerance or resistance to the most common herbicides,” said Daniel Rodriguez, WeedSeeker product manager for Trimble Agriculture. “By applying herbicide only on targeted weeds, you can save up to 90 percent on chemical costs. This makes it possible to use products with different modes of attack that would otherwise be cost prohibitive. The WeedSeeker ® 2
“The new WeedSeeker ® 2 spot spray system marks an important enhancement to our trusted precision ag portfolio,” said Abe Hughes, general manager for Trimble Agriculture. “It is a vital piece in our Trimble Connected Farm suite of precision solutions. By reducing input costs, herbicide use, run time and maintenance requirements, this system also enables producers and farmers to operate more sustainably with fewer inputs applied to the field, allowing for significant savings in costly weed resistant chemical applications. Our latest technology is a winning solution for farmers.”
PRODUCT & TECHNOLOGY
Incledon launches latest Tekflo nylon ball and check valves
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ylon ball and check valves designed and developed for irrigation and agricultural applications have been introduced by Incledon, a leading provider of quality fluid conveyance products and solutions. Featuring a nylon body with a steel ball and stem, Tekflo nylon ball valves are particularly suited for such arduous applications in that they are resistant to hydrocarbons and various harsh chemicals. The valves have a nominal pressure of 1.6 MPa, with a working temperature of –20°C to 120°C, and are available in sizes from 15 mm to 50 mm. Additional features include a low thermal conductivity, a higher corrosion resistance than traditional metal, a light weight for easy installation, high resistance to freezing and
–20°C to 120°C. Suitable for use where water is a medium, the valves are designed to handle a nominal pressure of 1.6 MPa.
Tekflo nylon check valves have a nylon body a SS304 spring and a BSP thread high temperatures, a high UV resistance, a low material cost compared to brass, and a BSP thread. With similar features and applications, Tekflo nylon check valves boast a nylon body, a polycarbonate disc, a SS304 spring, a BSP thread, and a working temperature range of
Incledon distributes products utilised in the conveyance of water, gases and liquids. It has the largest and widest consolidated quality product offering in order to service the diverse industries it operates in and is well-positioned to take advantage of the government’s infrastructure development programmes. Today Incledon has branches in every major South African city, with a formidable national footprint, including Bloemfontein, Upington, Cape Town, Durban, East London, George, Johannesburg, Mbombela, Polokwane, Port Elizabeth, Secunda and Rustenburg in order to ensure that customer service remains the top priority.
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PRODUCT & TECHNOLOGY
New Holland Agriculture hosts East Africa Training Camp 2019 in Kenya
tough conditions; the TD5.110 tractor, featuring unrivalled premium operator comfort; the TS6 tractor, designed to put big power into rows of tall vegetables and specialty crops; the T6080 tractor, that is the ideal choice for general farm applications, being light, powerful and productive; the T7040 tractor, matching versatility with classleading ability; and the T8.410 which is among the most powerful conventional tractors. During the training, Özkan Eren, Head of Business for New Holland Agriculture in the Middle East & Africa, commented: “Every day, we are pushing boundaries moving to a better future. There are huge opportunities ahead of us, and this type of training program is extremely important, as it enables us to be close to our customers with a strong and professional network, to help them get their job done efficiently and profitably. Today, we are in Kenya, and we are proud of what we have achieved thanks to CMC Motors Group”.
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ew Holland Agriculture, together with its local distributor in Kenya, CMC Motors Group Limited ran a Commercial Training Camp from 4th to 7th November at Karen Country Club in Nairobi for East and Southern Africa markets. The training camp was split into two sessions, with two days dedicated to the salespeople and staff from CMC Motors Group Limited, and oneday seminar dedicated to key accounts. More than 50 participants across Kenya, Tanzania, Uganda, Ethiopia, Sudan, Angola, Mauritius, Zambia and Zimbabwe attended the events. During the first session of the training camp, the attendees took classroom-based lectures continuing with a walkaround session and test
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drive experience of key products in the field. The training exercises focused on six different segments: combines, balers, Precision Land Management (PLM) solutions, utility tractors, medium horsepower tractors and high horsepower tractors. The training camp aimed to increase the product knowledge of the participants and to underline New Holland Agriculture’s operational capabilities and competitive advantages. The machines used at the training camp were the TC5.30 combine harvester, designed to deliver impressive performance in a variety of crops and conditions with the ideal combination of the lowest cost of ownership and the highest productivity in its segment; the T55 and TT75 tractors, featuring outstanding power, speed, lift capacity and pulling strength; the TT4 tractor, designed for
The second session of the training camp was dedicated to New Holland’s 3rd Large-scale Farming Seminar for key accounts across the East Africa region. The New Holland Field Squad presented the brand’s farming solutions that cover the complete agricultural cycle from land and crop preparation, planting, seeding to harvesting. For this edition of the seminar, the T8.410 tractor model was unveiled to customers in Kenya, Tanzania and Uganda. The attendees had all a chance to test drive the new tractor. Alex Makaa, CMC Motors Group Limited New Holland Divisional Manager, said: “New Holland is a market leader in the East Africa region, growing 71 years of productive business collaboration with CMC Motors Group. We are privileged to stand shoulder to shoulder with New Holland Agriculture, supporting the regional dealer network, and providing our customers with training as well as a broad range of farming solutions. We are living in a fast-changing agricultural environment, and we are happy to be part of this kind of training in Kenya, ready to go the extra mile together“.
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PRODUCT & TECHNOLOGY
The technologies and trends shaping the supermarket of the future Food businesses will have to change to stay competitive – online, in-store, and at sorting and processing plants too. Bjorn Thumas, TOMRA Food´s VP Business Development, Product Management Food Sorting & Marcom Food
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isruptive change is coming to supermarkets and this will have a ripple-effect throughout the food industry supply chain. Technical innovations online and in-store and shifting consumer demands will re-shape the supermarket of the future. And that future is approaching fast. Proof that we are on the brink of a supermarket revolution came last year when e-commerce giant Amazon invested $13.7 (€11.7) billion in acquiring supermarket chain Whole Foods Market. This promises to be a game-changer in food retailing. And it is not only in funky-looking offices in Seattle where the supermarket is being reimagined: other specialized enterprises already fulfill online grocery orders by delivering directly to customers’ front doors, and more businesses will jump on the bandwagon. Traditional bricksand-mortar supermarket chains, seeing that they are at risk of losing power and profits in this revolution, are strengthening their own e-commerce capabilities. The value attached to Whole Foods Market by Amazon will have come as a wake-up call: established food retail chains must use CRM data to increase sales. It is true that Whole Foods Market has stores only in the USA and the UK, and that today’s online innovators such as Instacart are mostly US-based - but the shift to selling more food online will quickly sweep through developed nations. During the next decade the global grocery e-commerce market is forecast to expand at a compound annual growth rate of 13.5%, from an annual value of €43 billion today to €135 billion by 2025. Business analysts note that although e-commerce players are making efforts to establish a foothold in the USA and Europe, they face serious challenges here because the existing grocery market is saturated and margins are low. This means global growth in food e-commerce will be driven by Asia, where there is highest consumer
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willingness to purchase groceries online, combined with rapid urbanization, low labor costs, and a relatively undeveloped retail market. To give just one example of growth potential, in China, the world’s most populous nation, the e-commerce share of the grocery market is currently only 4.2%. To put this into perspective, in nearby Japan the share is 7.2% and in South Korea it is already 16.6%. This is a sure indicator that businesses such as the Chinese multinational
conglomerate Alibaba Group, owner of Alibaba. com, will be at the vanguard of big changes. Consumers’ expectations will rise Widespread food shopping online and fast deliveries to customers’ front doors will be just the beginning of this brave new world. Computer codes and algorithms will also enable supermarkets to personalize their offering to customers, using data gathered about
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PRODUCT & TECHNOLOGY
provider of optical food sorting and peeling equipment, will play an increasing role in meeting customers’ expectations and protecting suppliers’ reputations. Grading and inspection equipment - at point-oforigin, prior to shipment to the supermarket, or from the on-line dispatching warehouse - can ensure the produce has the desired size and ripeness without bruising or mold. In addition, sorting equipment at different stages in the supply chain will be able to provide essential information on sizing, quality and other quality markers.
shoppers’ individual habits and preferences. The “Recommended for you” web-page so familiar to buyers of products such as books and electrical goods can also direct shoppers towards the foods they like. In turn, food shoppers will develop higher expectations and a more critical eye when buying fresh fruit or vegetables. More will want to know how fresh the produce is and whether or when it is ready to eat. The growing number of people around the world with middle-class incomes and lifestyles will become more aware of food safety and more curious about how their foods are being sourced and screened. Discerning ‘foodies’ will even be able to check information about the origins and nutritional value of produce, and to see suggestions for recipes and food pairings. This will attract and addict greater numbers of customers while cleverly
making each one feel as if they are being treated individually. The ad-hoc demand created through these online ‘nudges’ will challenge the traditional food supply change. Processing lines will need to know in precise detail what is coming-in from the field and what is in storage in order to meet demand. And quality and safety standards will have to be higher than ever. In the past consumers might have ignored a defect or made a complaint only seen by the grocery chain or food manufacturer, but social media will change that. A photo of something like a frog in a bag of lettuce can quickly go viral and global, reaching enough people to cause brand damage. Technology to ensure quality and safety These opportunities and threats mean that machines produced by TOMRA, the leading
In readiness for these needs, the sorting machines made by TOMRA Group are being enabled to share data to ensure the highest standards of quality and safety. These machines are also being fine-tuned in data-gathering and application to help processors pick the correct incoming material, to get to the final product in the most efficient way. Traditional supermarkets fight back against the online disruptors – and information about shoppers’ preferences and habits will be an important weapon. Consumer-facing technologies, such as shopping-cart-mounted devices or smartphone apps, will steer shoppers towards the aisles and shelves where they are more likely to make purchases. Sensors in the store’s shelves will keep track of the items customers put in their carts and bill their mobile payment system as they exit the store. This live data will enable supermarkets to rely to a greater extent on ‘just-in-time’ stock deliveries, minimizing the cost and space of keeping stock on site. Live data will also help suppliers make the packaging and transportation of foods more time-efficient. Supermarkets and specialized grocery stores will have the option of reducing on-site running costs by becoming smaller, while dedicating a larger proportion of their shelves to displaying fresh produce. Another likelihood is that supermarkets will remain the same size but change in concept, becoming destinations for click and mortar shopping. Because retailers need to offer consumers a consistent omnichannel experience, stores will connect the physical and digital worlds. Here, consumers can see and feel products they might order online. Here, too, the online product offering could also be accessible via interactive screens. These changes align with the forecast growth in consumer demand for healthier, high-quality produce, more choice, and greater convenience – a demand which will increase massively as household incomes rise in developing nations, bringing 70 million more people globally into the middle-class every year.
22 | November - December 2019
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FEATURE
How Co-operatives Aid Development in African Economies Total E&P Co-op as a case study By Edward Israel-Ayide
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to small-scale farmers because they can reduce transaction costs and lower the risk of default. This is possible because successful co-operative societies provide incentives for members, encouraging a loyalty which also delivers the added benefit of maintaining a competitive position.
he rapid advancement of mechanization from the mid-1700s to the early 1800s which is now considered as the Industrial Revolution, resulted in job losses for many skilled workers across Europe. The knock-on effect of this development was a significant rise in poverty. With a reduction of earnings and often disappearance of spending power, it became difficult for the broader population to contend with middle-men and traders who sought to profit from the situation by institutionalizing unreasonable prices and labor practices. In 1844 a group of 28 weavers and skilled workers got together in Rochdale, England with the aim of establishing a society to counter the injustice of price fixing and low wage setting, and by launching their own shop they made it possible for the local community to buy staple goods which had become out of reach. They derived valuable lessons from previous botched attempts to form co-operatives and ostensibly designed the now-famous Rochdale Principles which have become the standard for Co-operative societies globally and which were officially adopted by the International Cooperative Alliance (ICA) in 1937 as the model for Co-operative societies. This pioneering group, inspired by a genuine concern for the economic wellbeing of their members and community, are now known as the Rochdale Pioneers and are the founders of the modern Co-operative Society which today, reportedly comprises of around 2.6 Million cooperatives with over 1 Billion members and clients.
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In providing services to their members, cooperatives generate income through a variety of commercial ventures. Sustainable, or in other words successful Co-operative societies are those which can balance the concerns of the society with the benefit of aiding the economic growth of the area which it serves.
Henry Hector-Amiwero, Head Legal, Compliance & Communications at Total E&P Nigeria Staff Multipurpose Cooperative Society Limited Since the time of the Rochdale Pioneers, Cooperative societies have progressively become a meaningful part of economic development; not only for society members but also for the wider communities within which they operate. Across Africa, Co-operative societies have performed a critical role in the fight against poverty by providing opportunities to create wealth through trade and the development of agriculture. According to a World Bank report, co-operatives possess the potential to provide affordable credit
The perfect illustration of this is the Total E&P Nigeria Staff Multipurpose Co-operative Society Limited (Total E&P Co-op); a Co-operative Society comprising the staff of Total E&P Nigeria Ltd, (a local subsidiary of Total S.A. the French multinational integrated oil and gas company). Founded in 1984, in the humble surroundings of the mailroom at the Nigerian Oil Company, the staff at Total E&P seized the opportunity that economic downturn presented, to establish a communal economic system, where active members could unite to make bulk purchases of essential commodities at reasonable prices, for distribution amongst its members. The Total E&P Co-op was born and soon blossomed to incorporate a more sizeable number of staff coming together to establish the forebear of Total E&P Co-op; Total E & P (Nigeria) Thrift and Credit Society Limited which was a savings and loans society.
By 1994, the Co-operative Society had shifted focus to matters of basic human requirement and pooled member funds together towards the purchase of real estate through the collaboration with commercial banks. Today, Total E&P Cooperative’s asset base has grown over a thousand fold from inception. Thanks to an increasing and constantly motivated workforce contributing their quota to its core areas of interaction between members, together they boast assets in Real Estate, Treasury & Financial Services, and Business Development. The success and growth of the Co-operative Society has been due to several contributing factors but three factors stand out in providing valuable lessons for other co-operatives (or even governments) across Africa who intend to adopt the Co-operative model to reduce poverty, increase financial inclusion and create wealth. Combating Poverty and Creating Wealth Through Corporate Social Responsibility The founders of the global co-operative movement-the Rochdale Pioneers-were striking weavers who opened a grocery co-op to extricate themselves and others from poverty. Their aim was to provide answers to questions about whether the economy should serve the people or vice versa; this belief in economic fairness led to the development of co-operatives as we identify them today. Since then, co-operatives have carried out a fundamental role in combating poverty and creating wealth, especially at the grassroots level. As stated by Joseph Ventura, an expert on the impact of co-operatives; “In transforming poverty-ridden communities into vibrant economies, co-operatives also contribute to skill-development and education as they bolster gender equality and improve the health and living standards of an entire community. Co-operatives
have been instrumental in meeting the Millenium Development Goals, as nations are more likely to stay peaceful by escaping the poverty trap.” For the Total E&P Co-op, these efforts have been at the core of plans for sustainability and the growth of the collective’s commonwealth. It has led to the creation of products and services tailored to the needs of members/cooperators in the real estate, insurance and financial services sectors. Equally investment in Corporate Social Responsibility (especially through STEM education and in providing quality education to the disadvantaged members of society), help equip young Nigerians with the skills necessary to become more productive members of society. In a country like Nigeria where over 50% of the population faces extreme poverty, these empowering initiatives help bridge the poverty gap where governments have failed and provide opportunities for the young through job creation. In his paper “The Role Of Cooperatives In Poverty Alleviation” Christopher Imoisili, Senior Specialist Entrepreneurship & Management Development of the International Labour Organization (ILO) drew attention to how cooperatives help both members and employees to escape from poverty, by offering an umbrella of shelter to those who may be facing the risk of poverty. He added that “By promoting student and youth programmes and cooperative entrepreneurship... cooperatives can play a major role in bridging the [poverty] gap. They can also influence political processes and legislation in favour of the socially deprived.” Corporate Governance While co-operatives are typically run democratically, relying heavily on member engagement; it is important that they balance this with the strategic management of their business in a way that ensures the continued survival of the Co-operative and its viability as a business concern.
It has been reported that most co-operatives in Africa and other emerging economies collapse because of weaknesses in their corporate governance or the total absence thereof. According to a 2014 paper written by Marilyn Scholl, a consultant with CDS Consulting Co-op and Art Sherwood, an Indiana State University Associate Professor of Management; there are four critical pillars upon which corporate governance should be built in any Co-operative organization and strict adherence to this has sustained Total E&P Co-op as a viable business concern. These four pillars; Teaming, Accountable Empowerment, Strategic Leadership, and Democracy have been at the heart of the various changes that Total E&P Nigeria Staff Multipurpose Co-operative Society has made in its team structure over the years. For example, it has applied these principles when filling critical leadership roles within the organization with those who not only have the qualifications, but are also experienced in their field of practice and can therefore be held accountable for strategic decisions taken on behalf of the Co-operative. The co-operative also remains the first and only Co-operative Society in Nigeria to appoint an External Auditor (PricewaterhouseCoopers) to review financial records and determine its compliance with internal and regulatory policies guiding the affairs of the organization. This system of checks and balances, peer-review and external regulation is a major turning point for public and private institutions looking to remain viable in the face of global economic trends such as price fluctuations in global oil and other commodities. Strategic Planning For institutions looking to achieve viability and sustainable growth, planning for the future is a critical requirement. For many societies across Africa, failure to plan for the future and align with
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trends has been at the heart of the majority of socioeconomic failures. This undoubtedly has had an impact on broader African economies. As Total E&P Co-op grew its membership and revenue, they created an organizational structure which would allow it to develop a sustainable strategic plan and guide operations for the years to come. Beginning in 1997, the linear business model of the Co-operative had outlived its usefulness and the growing membership base of the cooperative society now had increasingly diverse needs. To meet these needs, Total E&P Co-op changed their model to one of a multipurpose Co-operative business and made massive investments in human capital, placing a priority to the recruitment of a full-time technical team which ensures they maximise the investments of their strategic business units and profit centers. The strategic business units identified were those that would enable the business to create long-term profitability and position it as the Co-operative of the future. In line with this, the Banking and Investment desk of the Co-operative was set up as the ‘Treasury and Investment Hub’ whilst it migrate the financial services into
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a Co-operative Bank to support future ventures. The real estate development, management, and marketing operations were restructured so that the Co-operative could partner with established property developers and build, operate and transfer investments in the real estate business. This futuristic strategic planning has enabled Total E&P Co-op to become the fastest growing Co-operative Society in Nigeria as reflected by its growth in relation to Nigeria’s GDP. Total Living, is the culmination of plans to improve the success and sustainability of its cooperative model. They have embarked on the first real estate development project to be certified under EDGE sustainability in West Africa (a Green building standard and rating system for over 150 countries introduced by the IFC/World Bank). La Definition, as the project is called, is a smart, innovative mixed-use development that sits on 22,000sqm of land located between the Kuramo Lagoon and Lagos beachfront. The project is set to steeply increase revenue for members of the cooperative whilst improving the amenities available to the diverse population of Victoria Island, Lagos’ center of business and commerce.
La Definition will feature some unique solutions to tackle the limited availability of grid infrastructure in Lagos including a water recycling system that will reduce demand for borehole water by up to 80% through the use of rainwater and greywater. An energy center is also planned based on the gasification of sustainable waste streams to produce very clean synthesis gas that will generate electricity and heat for the development with zero CO2 emissions. For emerging African economies keen on implementing policies and projects geared at economic growth, job creation etc., there are important learning points to be gleaned from cooperatives The successes of Total Co-op provides an insight into how the larger Nigerian society, and indeed Africa, can progress where there is commitment to strategic planning, governance and investment in human capital. The co-operative model may just hold the key to reversing the poverty rate on the continent with the benefit of strengthening communities and fostering sustainable development. Edward Israel-Ayide (@wildeyeq) lives in Lagos, Nigeria and comments on socio-political events across Africa.
FEATURE
How to Choose a Magnetic Separator
M
any bulk solids manufacturing operations use magnetic separators to remove ferrous metal contaminants from material during processing to ensure product quality, protect consumers and prevent damage to downstream equipment. Ferrous metal contains iron, making it magnetic, and may enter the material stream in a number of ways at any stage during the manufacturing process. A magnetic separator uses magnets to remove ferrous contaminants from the flowing material stream during processing. The magnets attract and hold contaminants passing over or near the separator. The captured contaminants then accumulate on the separator until they are cleaned off either manually or automatically. Many factors influence magnetic separator selection. These include the size of the contaminants you are trying to capture; your material’s characteristics such as bulk density and abrasiveness; and the specifics of your process such as the material flow rate and temperature. These factors can add up quickly and make choosing a magnetic separator confusing and overwhelming. This information explains the basics of magnetic separators to help you sort through these factors and select the best separator for your application. To ensure the best results; however, you should always work closely with a magnetic separator supplier with experience and expertise in a wide range of bulk solids handling applications.
Magnetic separators can be configured in a number of ways. Common configurations include tube, grate or drawer separators; plate separators; pulley separators; and drum separators. A tube, grate or drawer separator uses one or more magnetic tubes placed directly in the material stream. Because material comes into direct contact with this type of separator, the magnetic field’s strength is concentrated at the magnet surface to hold contaminants once they have been captured.
Clean material is thrown forward off the belt to the downstream process while tramp metal is drawn around the pulley and discharged beneath the conveyor.
A plate separator is a magnetic plate that is typically mounted inside a chute with the magnetic field’s strength concentrated away from the magnet surface. As material slides down the chute, the magnetic field “reaches out” into the flowing material, attracts ferrous contaminants to the magnet and collects them on the plate.
The best separator configuration for your application depends on your material’s characteristics and your process. Free-flowing materials will typically flow well through a grate or drawer style magnetic separator, but cohesive materials may bridge across the openings between the magnets stopping flow and causing production delays.
A pulley separator is a magnetic roll that is used as the head pulley for a belt conveyor. The pulley attracts ferrous contaminants and separates them from the material during belt discharge.
A drum separator is a rotating magnetic drum that is placed directly in the path of a falling material stream. As the material passes over the rotating drum, any ferrous contaminants are captured on the drum surface, rotated out of the flow stream and discharged into a collection container.
With materials that have a high bulk density or processes that have a high flow rate, flowing material can wash off contaminants that have already been captured by the magnets and reintroduce the contaminants to the material stream, so magnetic strength is critical. Abrasive materials can wear through the magnets’ protective steel cover if the steel is too thin, so abrasive applications require a thicker steel layer to avoid having to frequently replace the magnets. Learn more about magnetic separator solutions at www. mpimagnet.com.
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BI is exclusive distributor for CRAFT bearings of Europe A leading European supplier of high-quality, low-cost bearings for a range of industrial, agricultural, and automotive aftermarket applications is the latest international brand to be added to the product stable of leading supplier Bearings International (BI), part of the Hudaco Group. With the local market increasingly pricesensitive as it strives to cut costs due to the prevailing economic conditions, BI decided to assist its customers by offering another brand at the lower end of the price spectrum. “It is often the case that premium brands do not have to be used in all applications. CRAFT bearings give end users the assurance of quality, tested bearings that are also highly affordable,” BI Business Unit Head Ross Trevelyan comments.
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BI Offer Marketing Manager Victor Strobel reveals that the new range will be introduced in a phased approach. Ball bearing units, the largest-volume sellers, will be introduced initially, and tapered roller bearings, cylinder roller bearings, and deep groove roller bearings at a later stage. The first consignment of stock is due from the European manufacturer in January 2020.
CRAFT bearings is the only manufacturer at the lower end of the price market that boasts a stateof-the-art laboratory where product batches are tested in accordance with an acceptable quality limit. “Our rigorous testing protocol encompasses visual and dimensional testing, as well as measuring longevity for particularly arduous
applications,” Sales Director Virgilijus Lapènas explains. In addition, CRAFT bearings has an extensive global supply chain, with a warehouse in South America, and four additional warehouses in Europe. Here its high stockholding – another unique factor setting it apart from its competitors – ensures a quick turnaround time for customers anywhere in the world, including bulk orders. Established in 1991, CRAFT bearings embarked on an internationalisation drive that has seen it export to about 80 countries to date. “Negotiations for the local distributorship were initiated two years ago, and were successful due to the companies sharing a complementary vision and growth strategy in Africa,” Lapènas highlights.
BI has been granted exclusive rights for South Africa, Swaziland, Lesotho, Namibia, Botswana, Mozambique, Zimbabwe, Zambia, and Malawi. “We anticipate significant sales volume growth from the South African market in particular,” Martynas Ruibys, Head of Business Development for Africa & Middle East at CRAFT bearings asserts. “This is mainly because our brand will be ably supported by BI’s extensive distribution network and value-add it is able to offer customers in the form of customer service and technical back-up. Our initial focus will be followed up by a concerted push into Africa, which is a region that we have not really focused on to date, and which represents major synergies for both CRAFT bearings and BI as we pursue growth opportunities here,” Ruibys concludes.
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FEATURE
Saai to present resolution for protection of family farmers to UN
T
he Southern African Agri Initiative (SAAI) announced that the agricultural interests network will draw up a family farmer resolution that will be presented to the United Nations (UN) in 2020. This forms part of a larger campaign to continuously place crimes against family farmers on the international agenda.
“The interests and safety of our family farmers have to be protected, because these people are the backbone of our society. For this reason Saai has decided, with the assistance of academic and legal professionals, to write a resolution for the protection of family farmers,” says Francois Rossouw, Chief Executive of Saai.
In May this year Saai attended the launch of the UN’s Decade of Family Farming (2019 – 2028) in Rome. During the event, which serves as a framework to mobilise the international community to implement pro family farming policies, Saai specifically raised the issue of farm murders and the safety of family farmers.
The resolution aims at securing the commitment of state institutions worldwide to regard the safety of family farmers as a priority. In the next 11 months Saai will therefore visit several governments and agricultural organisations around the world to get support for the resolution. If the resolution garners enough support, it will be
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presented at the UN’s General Assembly in September 2020. “The UN and its agencies realise that family farmers are in the best possible position to take on the challenges of famine, unemployment and migration. However, the world can’t expect family farmers to carry this huge responsibility when their own governments aren’t even willing to prioritise their safety,” concludes Rossouw. Saai’s family farmers resolution is available at www. boereresolusie.co.za.
Family farmers:
Founders and custodians of civilisation By: Francois Rossouw CEO of Saai
“
Let us not forget that the cultivation of the earth is the most important labor of man. When tillage begins, other arts will follow. The farmers, therefore, are the founders of civilization.” – Daniel Webster (American statesman: 1782 – 1852). After almost two centuries, this adage still rings true. Civilisation simply cannot exist without food, which is why the world will always need farmers. In fact, it is estimated that the world’s population will reach nearly 10 billion people by the year 2050. This means that we will have to produce almost twice the amount of food that we currently do while navigating the challenges of nutrition, poverty and unsustainable levels of mass migration that could potentially overburden urban centres and communities. Family farmers occupy an estimated 70-80% of occupied farmland and produce more than 80% of the world’s food in value terms. Furthermore, family farmers are the foundation of small towns and anchor rural economies and communities. While producing nutritious food to those who live in cities, family farmers also provide muchneeded employment to local communities and curb unsustainable levels of migration. In light of these projections, the United Nations and its subsidiaries have realised that family farmers are in the best position to address these issues. However, they require the necessary support from governments, civil society and relevant legislative bodies to craft pro-family farming policies that are
more sensitive to the realities that family farmers face daily. As a result, the United Nations Decade of Family Farming 2019-2028 (UNDFF) was launched on 29 May 2019 in Rome, Italy, and serves as the framework to promote the interests of family farmers. The task ahead is enormous – we cannot expect family farmers to rise to the challenge of addressing some of the greatest global challenges if they are not able to practise their vocation in an environment that is safe and conducive to growth and continued production. That is why the Southern Africa Agri Initiative (Saai) has launched the Protection of Family Farmers Resolution (the resolution). This draft resolution condemns any form of violence, or incitement thereof, against family farmers and calls on all state parties to proactively monitor, inhibit and prevent crimes against family farmers. Earlier this year, Dr Theo de Jager, board chairman of Saai, pointed out that violence against South African family farmers is unique in a number of ways. He said murders of family farmers are far more brutal than other murders committed in the country. The motives for these murders are mostly unknown, apart from their vocation that makes farmers more vulnerable in rural areas.
farming, and violence against family farmers also risks deterring future generations from rising to the challenge. Saai will meet with representatives of foreign governments and farmers organisations from all over the world in the coming year with the goal of tabling the resolution at the UN General Assembly in September 2020. We need to encourage a new generation of family farmers to rise to the challenge of feeding an ever-growing population, but we cannot expect this of them at the expense of their lives or those of their families. That is why we call on all family farmers, friends of family farmers and consumers to add their voice to the resolution at www. farmersresolution.org. Let us never forget our dependence on the cultivators of the earth, and the founders of our civilisation, and let us come together to help give family farmers the support and credit they deserve.
The social and even political environment is ambivalent to these acts and in some instances the attacks are even encouraged and celebrated on social media. The youth are the future of family
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AP AGRI - NTN-SNR © 04/2018 - Photos: NTN-SNR / PEDRO STUDIO PHOTO / SHUTTERSTOCK
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