Africa Agriculture Insight

AFRICA AGRICULTURE INSIGHT Africa’s own Agricultural Journal March-April 2020 > Issue 2> Vol.#2

INSIDE: Energy for Agriculture Pg.8

Why Covid-19 is likely to wreak havoc on African agriculture Pg.10

Section

2

April-June 2020 | www.africaagricultureinsight.com

Contents

C O N T E N T S 4

Investing in financial markets

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

10 Drastic drop in grain production ‌ the inevitable recourse to imports!

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Mahindra South Africa partners with ETG to grow its tractor range and reach in Southern Africa

20 Nguni bull sells for record R310 000 on WhatsApp auction

23 Uganda: A key supplier of eggs and chicken in East Africa

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Editor’s Note

Editor’s Comments

Front cover Editor Goodwill Sibanda editor@africaagricultureinsight.com Writer Kennedy Chamu kennedy@africaagricultureinsight.com Sales Lenox Marufu lenox@africaagricultureinsight.com Muthulis Nkiwane muthulis@africaagricultureinsight.com Design & layout Peter Johnson peter@africaagricultureinsight.com Accounts Sharon Moyo accounts@africaagricultureinsight.com

Valued readers, welcome to this edi�on of Africa Agriculture Insight. With the whole world in combat with covid -19 which has devastated economic ac�vi�es world wide, the agricultural sector has remained viable. Thanks to governments who saw it fit to keep it oiled and running hence it has remained resolute. It is very pleasing to see this sector play such a major role in most economies.

Agriculture is the backbone of most economies in the sub region and most governments have given it priority in their developmental goals. Most industries within the region are anchored on agriculture and an disturbance in this sector has a spiral effect which affects all the firms working with agricultural produce directly or indirectly.

Millions of people are employed in this labour intensive sector through out the region. It is this strata of the economy which ensures food security within the region. As such it has to be developed for it to con�nue to produce even in �mes of droughts. This then calls for intensive Your comments and contribu�ons will be most appreciated.

Best regards

Editor G. Sibanda Goodwill Sibanda

Subscrip�on Thato Ndlovu subscrip�on@africaagricultureinsight.com landline +27110257031 info@africaagricultureinsight.com sales@africaagricultureinsight.com www.africaagricultureinsight.com

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

April-June 2020 | www.agricultureinsight.com

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Markets

Investing in financial markets To many potential investors, deciding when, where and in which financial products to invest is a complex and daunting task. It need not be the case.

Whether you are a seasoned investment specialist who analyses the markets daily, or a passive investor who glances through a quarterly investment report, the dynamics of the investment world stay the same. Investing should not be a gamble.

It is a long-term endeavour with set goals, and should start with an honest self-appraisal by the investor.

“The investor’s timeframe is very important,” says Jean Pierre Verster, founder of Protea Capital Management.

“The investor needs to know how long his or her investment horizon is.”

Put simply, this means determining for how long a certain amount of money needs to be invested. If it is less than five years, the investment should be parked in an asset that shows less price volatility; if more, the investor should appraise his or her appetite for volatility, or risk.

Also important is the reason for saving. “An investor’s investment objective determines the asset mix,” explains Craig Pheiffer, chief investment strategist at Absa Stockbrokers and Portfolio Management.

Three broad asset classes are available to an investor with excess cash: equities (or shares), fixed-income products, and cash.

Equities Shares, stocks or equities are synonyms; all refer to ownership in a company with the right to receive a dividend, if declared. Holders of shares also have the right to vote on company-related matters that are regulated by the Companies Act.

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Equities are traditionally the most volatile and risky form of investment asset.

They are, however, a crucial part of any long-term mix of investments, also referred to as an investment portfolio. Ageold wisdom holds that equities should return, through capital growth and dividend payments, more money than inflation is able to consume.

“An investor who is comfortable with volatility should include equities, also known as shares or stocks, in his or her portfolio. The proportion of equities in a portfolio is linked to the investor’s investment horizon,” says Verster.

In other words, the longer you intend to leave your invested money to grow, the higher the proportion of equities should be.

The next question to ask is: how do I invest my cash in equities?

Here, it’s necessary to distinguish between so-called active and passive investment strategies.

This, says Verster, means asking: “Is there a human being involved in managing a fund or not?”

In active fund management, a fund manager decides where capital should be employed; in passive funds, such as exchange traded funds (ETFs), investment decisions are made according to a set rule, such as the size of the company.

Fund managers are trained and experienced navigators of the investment world, using their knowledge and analytical skills to determine where to invest on behalf of fund members.

Unit trusts Traditionally, unit trusts, or to use their legally correct name, collective investment schemes, have been the main investment destination for retail investors. When an investor buys into a unit trust fund, he or she is issued with units.

The unit trust fund, guided by its fund manager, invests in assets, including equities, bonds and cash, for the benefit of the unit holders. This is the active approach.

ETFs, in contrast, are listed and traded directly on the stock exchange. According to Pheiffer, they are as secure as unit trusts, as the assets are held in trust.

Offshore assets Pheiffer advises investors to place some of their savings offshore. This can be achieved in several ways: by selecting local unit trust funds denominated in rands that invest offshore; by physically transferring money overseas and investing in products offered in other countries; or by buying so-called locally listed rand-hedge equities.

The South African government prescribes that a maximum of 30% of retirement savings, stored in a retirement annuity, pension or provident fund, can be shifted overseas. In addition, South Africans can remove R10 million in capital per year and R1 million in discretionary cash overseas.

South African fund managers offer a wide range of offshore unit trusts to local investors.

Potential investors are strongly advised to consult a registered financial adviser before deciding on an offshore investment.

Fixed income and cash Investors with a smaller appetite for risk, especially those whose investment horizon is short, should consider a fixed-income asset or cash.

“Fixed-income assets are less volatile investments,” says Verster.

“Cash, such as a bank deposit, is the safest type of investment, because your capital value doesn’t fluctuate at all.”

Unit trusts invested in bonds, which are issued by both government and companies, return a ‘yield’.

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Markets

Bonds are issued to investors with the promise to repay the capital at a specific future date, which can range from three months to thirty years in the future.

The issuer of the bond also promises to pay a ‘coupon’, or interest, at regular intervals, usually twice a year.

Bonds return a little more than cash, but, in the long term, they generally don’t do as well as equities. Over the past five years, however, bonds have returned more than even the bestpeforming equities in South Africa due to international and local headwinds faced by domestic companies.

South Africa’s hedge fund industry is strictly regulated in much the same way as traditional unit trusts. Hedge funds are not a homogenous group of funds; they vary significantly in their investment strategies, says Verster.

In time, and after the share price has dropped, the fund manager buys the shares back cheaper on the market and returns them to the lender. The difference in share price, less the cost to borrow and other transaction costs, is his or her profit.

Equity long-short funds

“If you don’t have time

to watch the markets all day,

rather invest in managed products,”

Cash, traditionally the safest form of investment, is usually parked in money market funds or similar investment products.

Their returns match, or are slightly better than, interest rates at commercial banks.

Hedge funds

he advises. traditionally constitute the most well-known type. Simply put, the managers of these funds buy company shares that they think will rise in price, and short-sell those stocks that they think will decline, he explains.

To ‘short’ a stock is to borrow shares from a holder of shares, at a marginal cost, and sell them on the market in the hope that the share price will decline.

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This may sound risky, but, as Verster points out, laws regulating South African hedge funds strictly govern the risks that hedge fund managers are allowed to take.

Leave investing to the specialists

Before deciding to wade into the realm of investments, a potential investor should discuss investment objectives with a registered financial advisor, advises Pheiffer.

“If you don’t have time to watch the markets all day, rather invest in managed products,” he advises.

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Markets

Energy for Agriculture

Firnas Shuman provides technical consulting, resource measurement, and environmental and social compliance to power generation and transmission projects. The firm employs a diverse, multinational group of experienced mechanical, electrical, civil and chemical engineers and environmental professionals, working to support the development of environmentally friendly energy sources in a cost effective way.

Firnas Shuman seeks to aid that transition by providing its services to those who plan, build, finance, own, or operate power generation and transmission infrastructure.

The company have worked with governments, national utilities, international financial institutions, development agencies, private banks, and private developers.

The three main areas of activities of Firnas Shuman are: Technical consulting: The team provides owners, lenders, and independent engineer services to wind, solar, gas and small hydropower plants. Engaged in the entire process, from early feasibility studies, through to financial closure,

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construction supervision, commissioning, performance testing and witnessing, and operations monitoring.

Resource measurement: Supplying, installing and operating meteorological stations in common as well as remote and harsh environments. We conduct fullservice measurement campaigns to deliver highquality data to our clients.

Environmental and social compliance: Providing services to utilities and lenders, helping financiers and developers implement their projects to global environmental and social standards.

How does this relate to agriculture?

Agriculture has always been a very important activity in human history. Without it, there would be no supply food, no livestock and essentially no human life. The shared goal of every country is to have a stable agricultural sector which ensures food security for its population. Food security prevents dietary deficiency, which is believed to be one of the major problems that a lot of African countries are facing.

Energy and agriculture are intimately connected; crops grow using water, and water is moved to land from nearby water bodies (or extracted from ground wells) using energy. Therefore, a country’s energy usage grows as more and more agricultural activity is pursued, and consequently agricultural development translates into an energy security issue.

In order to sustainably develop agriculture, countries need to emphasize on the utilization of renewable energy sources such as solar, wind and biogas.

This requires the assessment of a country’s available renewable resources, project development, technical design and financial feasibility study and the expert capabilities to do all of this.

Based in Egypt, worked in over 25 countries all over Africa and Middle East, including (among others): Egypt, Nigeria, Kenya, Tanzania, Uganda, Mauritius and South Africa. Firnas Shuman has the expertise to help clients, including the ones in the African agriculture sector, secure their energy needs in a sustainable way.

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Markets

EMERGING MARKETS-Shares extend gains on recovery hopes but caution prevails

Emerging market stocks rose for a third straight session and currencies firmed on Tuesday on hopes of an economic recovery, although simmering U.S.-China tensions kept risk appetite in check.

MSCI’s index of emerging market shares rose 0.7%, hitting a fresh 12-week high, with Chinese blue-chips up 0.3% on fresh stimulus, while most other Asian shares rose about 1%.

Risk assets had started the week on a strong note as more countries eased pandemic-induced restrictions and the U.S. action against a new security law for Hong Kong was less threatening than feared.

However, China’s move to restrict soybean and pork purchases from the United States showed tensions between the world’s two largest economies are far from easing.

“This could be a sign that China may be less willing to keep to the Phase 1 of U.S.China trade deal as the U.S. continues to threaten China’s sovereign hold over Hong Kong and Taiwan,” said a team of analysts at Maybank led by FX research head Saktiandi Supaat.

Although the EM stocks benchmark has risen about 27% from its lowest this year, it is still down 14% on the year and worsening Sino-U.S. ties could deepen these losses.

Meanwhile, investors also kept a close eye for any economic consequences from violent protests in many U.S. cities against police brutality. Wall Street stock futures swung between losses and gains.

Among currencies, India’s rupee traded flat after Moody’s downgraded the country’s credit rating to just a notch above junk, in line with

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Fitch and Standard and Poor’s, citing slow economic growth. Moody’s maintained its negative outlook.

“Leaving the outlook at ‘negative’, rather than ‘stable’, suggests nonnegligible risks of further downgrade in the near-term (in the next six months or so),” said Mizhuo analyst Hayaki Narita.

Russia’s rouble rose to a new three-month high. A report said Russia’s oil production fell in May, nearing its target output cut under an OPEC+ deal to stabilise oil markets.

The organisation is to meet this month to discuss extending the cuts. Crude prices were up about 1% on Tuesday.

Currencies of South Korea, Taiwan and South Africa underperformed against a steady dollar, while Indonesia’s rupiah surged 1.4% on rising demand for government bonds ahead of a bi-weekly auction.

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Markets

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

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

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

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

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

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in eastern and south-eastern Africa.

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

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

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

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

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

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

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

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

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Markwets

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

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

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

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

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

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

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

Agribusiness Vulnerability Index

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

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

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

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

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

Rank Country

Rank Country

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

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

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

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

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Irrigation

MALI: Innovation that helps reduce agricultural water consumption by 80%.

ESenè is an on-board system for capturing the moisture content of the soil in order to provide the water necessary for optimal growth of a given crop. By reducing water consumption in plantations by 80%, the invention of the young Malian computer scientist Bourehima Coulibaly is positioned as a means of adapting to the arid climate of the Sahel.

Malian farmers will no longer have to endure the long and implacable dry seasons that the Sahel region is experiencing. Cultivating fields all year round is now possible in Mali, thanks to Bourehima Coulibaly’s invention. The young computer scientist has created ESenè, an on-board system equipped with sensors that collect information on biomass to identify the elements existing in the soil.

This data is combined with meteorological information to choose the right time and the right dose to irrigate and fertilise crops.

“With ESenè, farmers can multiply their crops while

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protecting water resources,” says Bourehima Coulibaly. According to his estimates, a farmer consumes an average of 50 cubic metres of water per day to irrigate one hectare of vegetable crops. A conventional irrigation system could save 40 to 50 per cent of water. While a system that can detect soil moisture and provide precisely the right amount of water to the crops would save 70 to 80 per cent of water.

ESenè, a solution against the Sahelian climate

In Mali, as in the rest of the Sahel, the rainy season lasts only three to four months, forcing farmers to harvest only two crops a year. The consequences of the long period of drought are the scarcity of water resources and thus conflicts between communities; the increase in the rate of rural exodus of young people; the increase in the rate of immigration candidates.

ESenè is also an answer to the problem of water consumption in agriculture in the world. In the book entitled “The water we are; a vital element at risk”, published by Presses du Châtelet in 2018, journalist Juliette Duquesne and peasant philosopher Pierre Rabhi reveal that 90% of the fresh water consumed in the world is destined for agriculture. “Industrial agriculture is the largest consumer of water and is unfortunately not questioned in its water management. In France, for example, almost all the water tables are now polluted by nitrates and pesticides due to agricultural chemical treatments,” says Juliette Duquesne.

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Technology

Precision agriculture – connected machines feed the nation

John Deere and its independent dealer network in South Africa and Africa is, today, able to leverage technology to monitor and support machines remotely.

The cumula�ve effect of connected machines minimising down�me while leveraging a wide range of new data to maximise accuracy, predictability and operability, holds the poten�al to drama�cally increase the quan�ty, variety, availability, quality and value of food in Africa.

As much as John Deere values personal interac�ons with customers, today, the technology is here to support customer equipment remotely without needing to be physically present to do so. The �me, service and efficiency savings that this represents for clients is significant.

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As a global leader in agricultural technology and innova�on since 1837, John Deere Connected Support uses telema�cs to link machines to a suite of remote support tools that improve service efficiency and reduce machine down�me.

John Deere dealers throughout South Africa offer various proac�ve services and monitoring support packages that achieve more up�me though the provision of in-themoment services ensuring quality job performance. Increasingly John Deere equipment has the technology to sense poten�al issues, informing drivers in the cab – or owners, regardless of where they are – of likely issues before they happen.

The technology also allows local John Deere dealers to receive alerts and connect to client’s equipment remotely to run diagnos�cs.

Through an extensive dealership network in South Africa and more broadly in Africa John Deere enables a full suite of Connected Support, including: JDLink ™ Machine Alert Monitoring, deploying selected diagnos�c trouble codesallowing dealers and customers to monitor connected machines, assess machine health and prevent major failures.

Service ADVISOR™ Remote allowing dealers to view machine informa�on, review diagnos�c trouble code alerts and other machine data, enabling nearinstant decisions on whether a visit or addi�onal diagnos�cs are necessary. If a visit is required, the informa�on already supplied remotely allows the technician to bring the correct parts and tools to fix the problem on the first visit, significantly reducing down�me.

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Technology

Remote Programming, allowing a dealer to update so�ware on machines, enabling the resolu�on of defects and the provision of new features from afar. Performing these func�ons remotely reduces down�me and increases efficiency.

Remote Display Access, allowing a customer or dealer to view an operators’ screen remotely from a phone, tablet or computer. Remote machine op�misa�on recommenda�ons and remote diagnos�cs save �me as well as reduce the cost of sending a technician out to the field.

Expert Alerts, which proac�vely no�fy dealers of poten�al machine breakdowns while providing the necessary informa�on to resolve the issue. Expert Alerts prevent, minimise or manage customer down�me, reducing the incidence and cost of catastrophic failures.

Machine Dashboard, allowing dealers to monitor farmers en�re connected equipment fleet. An overall view of machine health helps farmers plan for maintenance during scheduled down�me. John Deere dealers knowing the health of farmers en�re connected fleets allows technicians to deal with the en�re fleets issues in the same visit, saving �me and money.

Remote Display Access To start taking advantage of the benefits offered by these technologies, farmers will need to order new equipment or upgrade exis�ng equipment with a receiver, a compa�ble display, a mobile telema�cs gateway module, and a JDLink™ ac�va�on. John Deere also offers hardware solu�ons for smaller equipment, providing basic guidance and management.

Universal auto steer kits can be fi�ed to both older John Deere equipment as well as equipment from other manufacturers. All farmers need to do is register a profile on the John Deere Opera�ons Centre allowing the local John Deere dealer to access the farmers equipment and start providing the data to enable the Connect Support.

The StarFire™ 6000 Receivers offer four differen�al correc�on signal

levels matching equipment performance with opera�onal needs. StarFire 1 is the basic signal subscrip�on with no repeatability and a pass-to-pass accuracy of ± 15 cm. The more advanced StarFire 3 offers in-season repeatability with a pass-to-pass accuracy of ± 3 cm.

Lastly, the most advanced signal op�on is Radio RTK and Mobile RTK, providing con�nuous repeatability from a fixed base sta�on and a pass-to-pass accuracy of ± 2.5 cm.

Pass-to-pass accuracy has a direct impact on yield when spacing during plan�ng, strip �lling, or applying fer�liser. Guess-row spacing is also cri�cal for opera�onal efficiency and reducing crop damage when mixing implements of various widths. Passto-pass accuracy also impacts yield and input costs by reducing skip or overlap during opera�ons like spraying, fer�liser spreading, or �llage. Selec�ng the correct differen�al is essen�al to op�mise opera�on and accuracy. For example, if accuracy for plan�ng is cri�cal to yield, StarFire 3 or RTK would be the logical choice.

Repeatability defines how accurately the receiver calculates posi�on over �me. In-season repeatability is cri�cal when using AutoTrac™ for mul�ple jobs throughout the growing season. Guidance lines created during plan�ng can, for example, be used again for side dressing fer�liser, post-emerge spraying, and harves�ng.

SF6000 Receiver To compliment the receiver and signal subscrip�on, John Deere also offers 4240 and 4640 Universal Display. The 4240 Universal Display is ideal for farmers with limited precision agriculture needs opera�ng open sta�on machines.

The 4240 is a good fit for all makes of tractors (AutoTrac™ Universal and AutoTrac™ Controller tractor models for AutoTrac™ requirements) and for operators that prefer to run precision agriculture apps on a universal display. The 4640 Universal Display is ideal for large volumes of customer, farm, and field data.

The 4640 works well with large or numerous boundaries created or imported to the display, intense

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so�ware updates and display reprogramming ac�vi�es. By using applica�ons such as File Manager and So�ware Manager as well as AutoTrac™, Documenta�on and Sec�on Control the 4640 minimises the �me required for the import or export of large data files.

The AutoTrac™Universal 300 (ATU300) steering kit is a mobile guidance solu�on that enhances produc�vity throughout the growing season. ATU300 is compa�ble with GreenStar™ 2 1800 and 2600 displays, GreenStar 3 2630, and Genera�on 4 4240 and 4640 Universal Displays. It is also compa�ble with StarFire™ 6000 and StarFire™ 3000 Receivers. ATU300 is approved on over 600 equipment pla�orms and is compa�ble with most agricultural vehicles with steering systems in good mechanical condi�on.

ATU300/ATC300 The advantages of the AutoTrac™ Universal 300 over the AutoTrac™ Universal 200 include improved ontrack line performance, weatherresistant design (open sta�on approved), faster line acquisi�on, improved diagnos�cs and easy-touse calibra�on for quicker setup The newly introduced AutoTrac™ Controller 300 (ATC300) is a customisable solu�on enabling the benefits of AutoTrac™ on machines not already equipped with a guidance system. This allows the operator to maintain the original cab experience and is available for tractors with open or closed centre hydraulic systems.

To help farmers acquire performance enhancing technology without compromising their free capital in uncertain �mes, John Deere has developed finance packages suppor�ng the purchase of any John Deere precision agriculture units that form part of any equipment purchase of R100 000 or more. With VAT-back deposits as low as 10% and terms of up to 36 months at reduced interest rates, purchasing John Deere precision agriculture equipment in combina�on with other machinery extends these financing terms to standard equipment as well.

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Technology

John Deere’s suite of affordably financed Connected Support services enables any farmer to benefit from precision agriculture.

South Africa’s farmers, big and small, are compe�ng in a globally compe��ve agricultural sector under pressure to remain relevant in a rapidly changing market defined by constantly shi�ing consumer pa�erns and the demand for ever-

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greater volumes. Managing produc�on costs, producing more of the right food at a price acceptable to consumers while also effec�vely managing the environmental impact and sustainability of opera�ons requires not only data, but also the ability use this data to op�mise outcomes.

In short, technology is increasingly the key enabler equipping farmers to

meet the challenge of feeding Africa – by producing more food off the land currently available today.

Connect Support technology allows John Deere to support farmers 24/7 to farm more efficiently, increase yield, feed an ever-growing popula�on, and drive export earnings.

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Machinery

Drastic drop in grain production … the inevitable recourse to imports!

All sectors have been hit this year by the coronavirus crisis… an unprecedented crisis that has swept almost everything.

Tourism, the industrial and cultural sectors have all been hard hit. This crisis has also exposed the weakness of Tunisian infrastructure and the inequalities suffered by certain groups of the Tunisian social class.

The spread of the coronavirus forced the government to decree a general lockdown and then a gradual and targeted deconfinement in order to contain the virus. This has made the agricultural season increasingly worse.

While the government was hopeful and focused on agriculture…that sector was not spared by this cursed virus.

In fact, grain collection estimates ranged from 7 to 8 million quintals compared to 12.9 million quintals last season.

Indeed, in a statement given to TAP, Minister of Agriculture, Water Resources and Fisheries, Osama Kheriji on Monday spoke about this issue with more details.

The grain harvest for the 2019/2020 season is expected to be around 15.7 million quintals (1.5 million tons), compared to a record harvest of 24 million quintals (2.4 million tons) last season, he said.

The Grain Board has been forced to purchase and contract quantities of grain to cover needs until the end of the current year.

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Harvest down…

Difficult and adverse weather conditions negatively impacted the season.

Insufficient rainfall in January, February and mid-March impacted on plant growth in most production zones, with the negative impact of the lack of rainfall in known production zones such as Kef, Siliana and Zaghouan.

On the other hand, the rains recorded during the second half of March and in April helped improve the general situation in the perimeters and saved most of the crops,” he explained.

Preparations under way… despite the crisis The Minister of Agriculture also reviewed the main preparations for this year’s harvest season.

The collection centres and the provision of the necessary means such as bags, wires and combine harvesters have been refurbished, according to him.

In addition, it is planned to mobilize about 3600 combine harvesters of which 3100 machines are available in the Northern governorates and 453 in the Central and Southern governorates.

Following the general lockdown decreed two months ago, preparations for the agricultural season have been suspended.

This necessitates making up for these losses during this period. ”In coordination with the Ministry of Health, the Ministry

of Agriculture is working to apply all preventive health measures, namely social distancing during the harvest operation which coincides with the targeted gradual deconfinement,” he pointed out.

Is Tunisia facing a risk of shortage?

Stocks are sufficient for two months, not counting this season’s harvest. For a possible import, the grain board has concluded purchases and contracts that will cover needs until the end of the year.

According to the Food and Agriculture Organization of the United Nations (FAO), Tunisia depends on grain imports, mainly common wheat, even in years when production is good.

For the marketing year 2020/21 (July/June), grain import requirements are expected to amount to around 3.8 million tons, about 20% higher than imports in the previous marketing year and 5% above the five-year average.

The area sown with grain reached 1.160 million hectares out of a total of 1.325 million hectares planned, i.e. an implementation rate of 87%.

The total area sown is divided between durum wheat (542.5 thousand hectares (ha)), common wheat (63 thousand ha), barley (542 thousand ha) and triticale (12.5 thousand ha).

April-June 2020 | www.africaagricultureinsight.com

Machinery

Togo’s national cotton farmers federation acquires 50 agricultural tractors to boost local output

In Togo, the National Federation of Cotton Farming Associations (FNGPC COOP-CA) acquired 50 tractors to boost farmers’ capacities and reach a cotton output of 200,000t by 2022.

The move is good news for the sector which has

recorded a 15% fall in output year-on-year (from the 2018-2019 campaign to last year’s).

In line with its intent to mechanize the industry, the FNGPC COOP-CA is hiring 25 agricultural tractor drivers. Selected applicants will be

April-June 2020 | www.africaagricultureinsight.com

deployed in all five economic regions of Togo; eight (8) in the Savanes, seven (7) in Kara, five (5) in the Central region, two (2) in the Plateaux, and three (3) in the Coastal region.

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Machinery

Mahindra South Africa partners with ETG to grow its tractor

Mahindra South Africa and ETG have joined hands to distribute and support a full range of agricultural equipment across Southern Africa.

The range is part of the portfolio of Mahindra South Africa, that also includes vehicles, industrial equipment and power generation equipment. Indeed, Mahindra South Africa was recognised in 2019 as the fastest growing vehicle brand in South Africa, with a network of 67 dealers and representation in other Southern African countries.

ETG is one of the largest agricultural conglomerates in the world, with a footprint across sub-Saharan Africa, North America, Europe, the Middle East and South-East Asia.

The partnership will include all Mahindra tractors and implements, Hisarlar implements, and soon, also Sampo Rosenlew combine harvesters. The local company will source the range from its factories and partners in India, Turkey and Japan.

Mahindra & Mahindra is the world’s largest manufacturer of tractors, as measured by volume, and it offers a comprehensive range of tough and efficient tractors. In South Africa this ranges from the most affordable 6060 model, with its water-cooled engine with direct injection

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and two-wheel drive, to its 7590 tractor with a powerful engine, heavy-duty synchromesh transmission and four-wheel drive. Mahindra South Africa will shortly add tractors with a higher output, cab tractors and its globally popular Orchards Range from its affiliate Erkunt.

Other agricultural equipment on offer in South Africa include tillers, with specialist tillers such as inter-row tillers, mulchers, harrows, shredders, gyrovators, ridgers, ploughs, loaders, transplanters, balers, silage balers, feed mixers and sprayers. This offering is made up of equipment from Mahindra’s Applitrac range and its affiliate, Hisarlar.

The partnership with ETG will enable Mahindra South Africa to expand its range and reach in the farming community even further. ETG is a wellknown one-stop shop for the farming community with products and services that include fertiliser (including Falcon, Kynoch and Zambian Fertilizer) and consumer products through its consumerbrands, Vamara and Rand Agri. It is also an established bulk trader of grain and other products throughout Sub Saharan Africa.

ETG will take full responsibility for the sale and support of the farming equipment and will also help farmers with retail finance, training, service and parts support.

Mahindra’s range of agricultural equipment is its fourth business line to be introduced in South Africa. It is already well-known as a leading manufacturer of SUVs and pick-ups, with models such as the award-winning XUV300 and the proudly South African built Mahindra Pik Up range.

Mahindra also offers a comprehensive range of Powerol power generation products in South Africa. Last year the company celebrated its best year yet and has since expanded its product offering to provide industry-specific power generation solutions for industries such as telecommunications.

Mahindra South Africa also offers a range of EarthMaster yellow-metal equipment through its Mahindra Construction Equipment division. This includes the EarthMaster 4×4 backhoe loader (TLB), which is known to be the most-fuel efficient vehicle in its class in India.

April-June 2020 | www.africaagricultureinsight.com

Livestock

Saving livestock by thinking like a predator

For predators like wolves, cougars and snow leopards, a cow or sheep out to pasture may make for an easy and tasty meal. But when wild animals eat livestock, farmers face the traumatic loss of food or income, frequently sparking lethal conflicts between humans and their carnivorous neighbors.

in the mind of predators — considering the ecology of how they hunt, how their prey behaves and how they interact with the landscape around them — will help farmers and wildlife managers target interventions to discourage wild carnivores from preying on valuable livestock.

Humans have struggled to reduce the loss of livestock to carnivores for thousands of years, and yet, solutions remain elusive. According to a new study led by researchers at the University of California, Berkeley, solving this ancient puzzle requires going back to Ecology 101.

“There is no ‘onesize-fits-all’

Effectively reducing encounters between domestic prey and wild predators, the researchers argue, requires knowing the principles governing the ecological interactions among these players and their surrounding landscape. Simply put, getting

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“There is no ‘one-size-fitsall’solution for livestock predation, because the variables at play change, depending on the stakeholders, the landscape and the carnivores and livestock involved — as well the scale and cost of management tools,” said Christine Wilkinson, a graduate student in environmental science, policy and management at UC Berkeley and lead author on the study, which appeared this week in

the journal Conservation Biology. “But at the core of the problem is an ecological act: predation.”

In addition to lethal means of warding off potential predators, like poisoning or hunting, a variety of nonlethal deterrents are available.

Guardian dogs, lights, electric fencing or bright-colored flags can all keep carnivores at bay while preserving the local ecology. Other strategies, like regularly moving livestock to different pastures or keeping them inside an enclosure at night, can make it harder for carnivores to locate and hunt them.

But the same techniques that prevent wolves from eating sheep in the rocky valleys of Idaho may not be as effective at preventing snow leopards from killing livestock in the high elevations of the Himalayas.

April-June 2020 | www.africaagricultureinsight.com

Livestock

Instead of focusing on the overall effectiveness of any one technique, the authors urge wildlife managers to approach the problem by considering a framework that includes the carnivore ecology, the livestock ecology and how the two species interact with the landscape around them. “By knowing the full ecological story, we can tinker with the tools in our management toolkit to keep both predators and livestock safe,� said

Defenders of Wildlife senior scientist and co-author Jennie Miller.

For instance, wolves are known to be afraid of strings of red flags called fladry, and using fladry around a pasture might be a cost-effective method for keeping the predators away from sheep. But considering other aspects of the ecology, such as where the pastures are located, or where the sheep are kept at night, could yield even better results, depending on context.

April-June 2020 | www.africaagricultureinsight.com

These strategic combinations of deterrents have successfully kept predators at bay in a variety of settings, the paper points out. The authors highlight three case studies from around the world, demonstrating the success that can occur when ecology is the foundation of targeted interventions, and the failure that can occur when it is ignored.

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Livestock

Nguni bull sells for record R310 000 on WhatsApp auction

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

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

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

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

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

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in the country,” the seller Clive Biggs said.

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

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

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

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

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

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

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

The KZN Elite Nguni sellers group hosts an annual

April-June 2020 | www.africaagricultureinsight.com

Poultry

Uganda: A key supplier of eggs and chicken in East Africa

Poultry production in Uganda has been steadily rising over the years. The country is now a key supplier of eggs and chicken in East Africa.

However, the COVID-19 pandemic has drastically changed the outlook for poultry farmers. They are struggling to recover after the nation went into one of the continent’s strictest lockdowns.

CGTN’s Leon Ssenyange met Anthony Serunjogi who lives and works on his one-acre farm on the outskirts of the capital Kampala.

From his 13,000 birds, he sells eggs and chicken. But it has been a tough two months since the COVID-19 crisis began in March Poultry farmer, Anthony Serunjogi: “We have been hit by inaccessible markets, lack of feeds or insufficient feed ingredients that doesn’t allow production to flourish.”

The coronavirus crisis has however put a crack in his earnings. He has lost more than twenty thousand dollars monthly.

Leon Ssenyange says, ” With the restrictions on transport, Serunjogi has not been able to offload thousands of birds.

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And that has greatly affected his production plans.”

With many hotels, restaurants and fast food establishments shut, the crisis pushed egg and chicken prices down as well. A tray of eggs now costs 2 dollars; half the price before the crisis.

“The buyers are in their homes.

We need to access them but we cannot because we are not allowed to drive around so we are stuck with stock that no one is willing to buy at the moment..so it goes down to the prices dipping actually nose diving,” Poultry farmer, Anthony Serunjogi submits.

That has been the concern for over 500,000 intensive poultry farmers. While the crisis has exposed major unknowns in

the sector, there is already a push to get back to business as usual.

Robert Serwanga, member, Association of Uganda Poultry Industry:”Poultry having a short payback period in terms of birds, we are going to recover very fast because..when people start coming to town to work, they must eat and one of the things they eat is chicken as fast as possible, when fast food restaurants start working, when they open universities and schools…”

The Uganda government has started easing its lockdown restrictions. And farmers like Serunjogi hope that will mean accessing feed and medicines more easily, putting them back into business.

April-June 2020 | www.africaagricultureinsight.com

Poultry

Reduce heat stress in poultry with vitamin C supplementation

When a chicken faces extreme condi�ons such as excessive heat, its body’s defence mechanisms kick in, resul�ng in stress. Other stressors include a very low ambient temperature, a high ammonia level in the poultry house, dehydra�on, infec�on, overcrowding and rough handling.

Reac�ons to heat stress High environmental temperature has been noted as the most common stressor of poultry in South Africa.

Heat stress has a severe impact on the health of the bird, affec�ng its produc�on and, as a result, the profit of the enterprise.

To cope with heat stress, the bird has evolved a number of adapta�ons that it uses in combina�on: these are behavioural, biochemical and physiological.

Behavioural adapta�on: The bird pants or hyperven�lates, spreads its wings or feathers, and

tries to keep its body as close as possible to a cool surface.

Biochemical adapta�on: The bird uses more oxygen, and the level of carbon dioxide in its blood decreases. In addi�on, a change in the level of potassium disrupts cellular func�on.

Physiological adapta�on: Heat stress s�mulates the bird’s adrenal cortex, causing an increase in cor�costeroid secre�on. This leads to suppression of the immune system.

Insufficient natural produc�on of Vitamin C Poultry experience heat stress when the birds are exposed to an ambient temperature higher than 30°C. While you may not be able to reduce the ambient temperature, especially in summer, you can alleviate the effects through supplements.

Vitamin C (ascorbic acid) is crucial in reducing the effects of heat stress in poultry. It is synthesised in the kidneys, but when the chicken is exposed to excessive heat, the amount produced by its body will be

April-June 2020 | www.africaagricultureinsight.com

insufficient, and the vitamin will then have to be given as a supplement.

Vitamin C is required for the absorp�on of vitamin D3 into its metabolic form. This, in turn, is required for calcium metabolism and egg and bone calcifica�on. It plays a vital role in other processes, including the func�oning of white blood cells, which help fight infec�on.

Vitamin C supplementa�on helps with the mobilisa�on of minerals from the bones and increases plasma calcium levels for improved eggshell forma�on.

Using a vitamin and electrolyte supplement can increase body weight, improve energy levels and help alleviate the effects of heat stress in poultry.

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Poultry

Uganda discriminating against Kenyan poultry exports

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

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

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

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

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

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

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

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

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

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

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

disadvantage to the Kenyan farmers and producers.

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

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

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

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

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

April-June 2020 | www.africaagricultureinsight.com

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