Pan-African Conference

11 & 12 August 2014

Overview

Our operations

Our involvement in Africa

Agenda

Overview

What is Food Security?

“When all people, at all times, have

Physical, Social and Economic access

to sufficient, safe and nutritious food

that meets their dietary needs and food

preferences for an active and healthy

life ”

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AFGRI’s Purpose

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“Driving food security across Africa”

AFGRI

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AFGRI is a leading diversified agricultural solutions

and industrial food processing company

It is involved in the entire grain production and storage cycle, (Grain

Value Chain) offering financial support and solutions as well as

inputs and hi-tech equipment through the John Deere brand

supported by a large retail footprint.

The company is further involved in the processing of poultry

products, the manufacture of animal feeds, the processing of yellow

maize and wheat and the extraction of oil and other raw materials

into edible oils, fats and proteins for human consumption (food

processing and fast food industries).

the grain value chain

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ProductionGrain

Management

Industrial

Processing

www.afgri.co.za

Our operations

Agri Services

Grain Management 4.6m ton storage capacity | 69 silo’s | 15 bunkers

Operate >200 sites on behalf of 3rd parties in 12

Countries

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CMI

AFGRI is involved in the entire grain production and storage cycle, offering

financial support and solutions as well as inputs and hi-tech equipment

through the John Deere brand supported by a large retail footprint.

Agri Services

Retail

Equipment

50% shareholder in 66 stores

AFGRI Equipment is an international supplier of

mechanised equipment tailored to the needs of the

commercial farmer. It is the largest single John Deere

franchise in Africa.

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3 John Deere outlets in Western AustraliaAustralia

Financial Services

GroCapital Focus on corporate market and AFGRI | Land Bank

SAFEX broking unit | structured & corporate finance

trade finance | balance sheet management

Commodity JV with Macsteel Group

- Financial products for

corporate customers

GroCat

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Financial Services

Unigro

- Farmer Lending

- Insurance

Originate farmer finance | products tailored to agriculture

Products tailored to agriculture | short-term insurance |

commercial, industrial, agri insurance | personal lines |

crop insurance | credit life insurance

Focus on farmers through a strong relationship with the

Land Bank

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AFGRI is a leader in the provision of agricultural credit, through its

association with the Land Bank. This service is competitive, easy to

understand and transparently administered.

Foods

Production capacity of approximately 1,2m tons at 8 mills

country wide

One of the top five poultry producers in South Africa,

processing a total of 1.25 million birds per week

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Poultry

Animal Feeds

AFGRI’s Food division supplies and partners with large branded food producers

such as Kellogg's, Simba (Pepsico), Willards (Snackworks), Webcor, Nestle, KFC,

Morgan Beef, Karan Beef, Beefcor, Spar, and Nando's and supplies key ingredients

to breweries and spice manufacturers

Parent stock (Ross) | eggs | day-old chicks | broilers |

contract growers

Foods

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Yellow maize by-products | 3 mills at Ermelo, Kinross and

Bethal | wheat mill at Harrismith

Oil extraction and protein plant in Mokopane (Limpopo) |

sunflower, soya and cotton crushing capabilityNedan

Milling

Africa must expand farming

where we operate in africa

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1. Zambia (operational since 2000) John Deere dealership (100% AFGRI ownership)

AFGRI Leasing Services including production and asset finance

as well as term loans to farmers

Operating one bunker with effective Grain Management

Operation (200 000 tons storage capacity)

2. Zimbabwe (operational since 2011)One John Deere dealership (49% AFGRI ownership)

3. Ghana One John Deere dealership (70% AFGRI ownership)

4. Congo Brazaville (operational since

2012) Effective Grain Management and financial services operations at

Malolo

5. Nigeria (operational since 2012) 51% ownership in BNOT Harel, company specialising in

agricultural pharmaceuticals, animal feed pre-mixes and day old

chick hatchery supplies

6. Uganda (operational since 2013) Effective Grain Management operation via warehouse storage

facilities

7. Mauritian Holding structure

(operational since 2013)

congo brazaville farmers

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congo brazaville

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smallholder tractor financing initiative in Zambia

• Majority of smallholder farmers in Zambia still use handheld tools and ox

drawn implements to cultivate their fields

• Lack of access to input and asset finance. Many are unable to come up with

the required security to access such facilities

• November 2010, a pilot project was launched were four small holder

farmers from Mumbwa in the Western Province of Zambia received the

5000 series tractors with supporting implements (joint initiative between

AFGRI, Zambia Farmers National Union, John Deere and the IFC

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smallholder tractor financing initiative in Zambia

• From success of the pilot project, AFGRI expanded to other parts of the

country in regions such as Southern, Lusaka, Central and Eastern

• 56 farmers/ business people who have benefited from the mechanization

project

• AFGRI Leasing Service offered to the Smallholder Farmers

The standard package offered to the farmers consisted of the following:

Option of 5403 (65hp) or a 5503 (75hp) John Deere tractor

2 Tyne ripper (in support of conservation farming)

3000hrs or three years service pack (which ever happens first)

GPS tracker on the tractors (for service providers)

Insurance cover for duration of lease

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smallholder tractor financing initiative in Zambia

• These smallholders are then encouraged to use the equipment so obtained

to service the local farming community, each unit can service between 15

and 18 farmers

• Benefits included increase in the ha planted and output per ha (better from

2 tons per ha of maize to above 5 tons per hectare)

• Extra income made contracting out their tractors to their farming

communities (on average able to do more than 100 hectares of contract

work per season)

• Benefits the communities where the mechanized farmers live through the

contracting work offered to them

• Introduce “maize-for-tractor” transactions in 2013

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Challenges

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Challenges

• Insufficient Storage / Warehouses

• Subsistence Farming rather than Small Scale Farming

• Lack of Grains

• Quality of Grains

• Post Harvest Handling

• Infrastructure – Roads / Rail / Electrification / Ports

Conclusion

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AFGRI remains mindful that the farmer of the future is the

small scale farmer and for the fundamentals of food

security to be met, the challenge is to assist these small

scale farmers to become the commercial farmers of the

future

AFGRI will contribute to this transformation through the

provision of inputs, storage, equipment, finance and many

other benefits to the farmer, who in turn can produce more

efficiently, earn more money, and therefore be a better

provider to his or her family and contributor to the larger

community and region

Thank you