South Africa - International Franchise Association
South Africa - International Franchise Association South Africa - International Franchise Association
self sufficient in most major food products. The commercial agricultural sector under the previous apartheid government was almost exclusively white owned; however, the broad-based agriculture empowerment charter (Agri BEE) aims to boost land reforms and black ownership of farmland to 30% by 2014. Agricultural Equipment Market Segmentation: Equipment Percentage Share Tractors 58.9 Hay and silage equipment 11.6 Harvesting equipment 9.1 Planting, fertilizing, pest control equipment 7.8 Tillage equipment 4.5 Other 8.2 Source: South African Agricultural Machinery Association (SAAMA) A relatively strong Rand, combined with low domestic interest rates, continues to enable South African farmers to replace aging equipment. The agriculture machinery market saw a steady decrease in sales in the third and fourth quarter of 2009 and this trend continued through 2010. This can in part be attributed to the 2009 economic downturn. However, 2011 saw a significant increase in sales. There has been a strong move to introduce newer technology and equipment to this market. We anticipate this trend will continue in 2012 and beyond. South Africa has good sunlight nationwide throughout the year, which allows for more controlled farming, particularly green house farming. This is creating a growing market for greenhouse farming solutions and other related products. Sub-Sector Best Prospects Return to top The best prospects for U.S. suppliers, in South Africa and the region, are: • Tractors • Combines • Bailers • Planters • Precision Agriculture Equipment and Technologies • Sprayers • Irrigation • Storage • Soil testing equipment • Spare parts and service facilities Opportunities Return to top Despite the current economic down-turn, farmers appear to be upbeat about current agriculture conditions. Sporadic rains and prevalent dry weather conditions are still a concerning issue and presents excellent opportunities for no till planting equipment. Companies/farmers have also indicated a strong interest in soil sampling equipment.
Most of the precision agriculture equipment like planters, self propelled sprayers and combine harvesters are primarily imported from the South America, Europe and the U.S. and smaller implements are purchased locally. Known U.S. brands like Agco, John Deere, New Holland and CaseiH are well entrenched in this market and are all well known for their quality. The latest local buzz word is “regional expansion” with excellent opportunities in countries in the region such as Zambia, Angola, Mozambique, presenting further opportunities for U.S. business. Second hand tractors and equipment are well received in these regional markets. Resources Return to top Exhibitions and Conferences The following agricultural shows and farmers’ days represent the industry. (Please note that dates for these events may change every year and need to be confirmed): Show: NAMPO Harvest Day Week Focus: Agriculture machinery and equipment for the maize and general farming industry: Dates: 15 – 18 May, 2012 Venue: Bothaville, Freestate, South Africa Show: The Royal Show Focus: Agriculture machinery and equipment, agricultural live stock, crafts and home Industry Dates: 25 May – 3 June, 2012 Venue: Pietermaritzburg, Kwazulu Natal, South Africa Show: Gardenex Focus: Garden & Flower show, horticulture, agriculture and gardening Industries Dates: 22 – 27 August Venue: Coca Cola Dome, Johannesburg, South Africa Web Resources Return to top South African Agricultural Machinery Association (SAAMA) Website: http://www.saama.co.za/ Agricultural Business Chamber (ABC) Website: www.agbiz.co.za South African Department of Agriculture, Forestry and Fisheries Website: http://www.daff.gov.za/ Agri SA Website: http://www.agrisa.co.za/ For More Information
- Page 1 and 2: Doing Business in South Africa- 201
- Page 3 and 4: South Africa is well integrated int
- Page 5 and 6: • Telecommunications Equipment; a
- Page 7 and 8: Return to table of contents Chapter
- Page 9 and 10: DRC Congo Gabon Gambia Guinea Lesot
- Page 11 and 12: Close Corporations: Close corporati
- Page 13 and 14: local, provincial, and national —
- Page 15 and 16: BEE Codes of Good Practice and othe
- Page 17 and 18: distributors who sell to wholesaler
- Page 19 and 20: Trade Promotion and Advertising Ret
- Page 21 and 22: U.S. trademark and patent registrat
- Page 23 and 24: • For more information about regi
- Page 25 and 26: Return to table of contents Chapter
- Page 27 and 28: electricity producers in the world.
- Page 29 and 30: Meanwhile, a significant pipeline o
- Page 31 and 32: The U.S. Commercial Service in Joha
- Page 33 and 34: The Department of Communications So
- Page 35 and 36: Opportunities Return to top • mar
- Page 37 and 38: power generation constraints in Sou
- Page 39 and 40: Other matters that are enjoying clo
- Page 41 and 42: visit our website: http://www.buyus
- Page 43 and 44: For More Information The U.S. Comme
- Page 45 and 46: Web Resources Return to top Green B
- Page 47 and 48: Date: October, 2013 Venue: NASREC,
- Page 49: http://www.transnetnationalportsaut
- Page 53 and 54: Foreign Agricultural Service U.S. E
- Page 55 and 56: In the 2010-marketing year, South A
- Page 57 and 58: In volume, “mechanically deboned
- Page 59 and 60: transaction value approximates the
- Page 61 and 62: Zero-value invoices are not accepte
- Page 63 and 64: • Goods are to be returned to ori
- Page 65 and 66: Please also read the Labeling and M
- Page 67 and 68: All SABS standards have been rename
- Page 69 and 70: Accreditation Return to top The fol
- Page 71 and 72: Web Resources Return to top ATA Car
- Page 73 and 74: Return to table of contents Chapter
- Page 75 and 76: dimension is weighted, with ownersh
- Page 77 and 78: Racially discriminatory property la
- Page 79 and 80: Development Program (APDP). It will
- Page 81 and 82: A proposal to amend the four pieces
- Page 83 and 84: long-awaited spectrum auction, ensu
- Page 85 and 86: OAS Convention: In 1996, the Member
- Page 87 and 88: corruption related events and devel
- Page 89 and 90: workers. The Act created the Commis
- Page 91 and 92: in South Africa 2004 2005 2006 2007
- Page 93 and 94: For most payment processes, two rel
- Page 95 and 96: Foreign exchange may also be provid
- Page 97 and 98: Industrial Development Corporation
- Page 99 and 100: Private Bag X17, Bellville, 7535 Te
self sufficient in most major food products. The commercial agricultural sector under the<br />
previous apartheid government was almost exclusively white owned; however, the<br />
broad-based agriculture empowerment charter (Agri BEE) aims to boost land reforms<br />
and black ownership of farmland to 30% by 2014.<br />
Agricultural Equipment Market Segmentation:<br />
Equipment Percentage Share<br />
Tractors 58.9<br />
Hay and silage equipment 11.6<br />
Harvesting equipment 9.1<br />
Planting, fertilizing, pest control equipment 7.8<br />
Tillage equipment 4.5<br />
Other 8.2<br />
Source: <strong>South</strong> <strong>Africa</strong>n Agricultural Machinery <strong>Association</strong> (SAAMA)<br />
A relatively strong Rand, combined with low domestic interest rates, continues to enable<br />
<strong>South</strong> <strong>Africa</strong>n farmers to replace aging equipment. The agriculture machinery market<br />
saw a steady decrease in sales in the third and fourth quarter of 2009 and this trend<br />
continued through 2010. This can in part be attributed to the 2009 economic downturn.<br />
However, 2011 saw a significant increase in sales. There has been a strong move to<br />
introduce newer technology and equipment to this market. We anticipate this trend will<br />
continue in 2012 and beyond.<br />
<strong>South</strong> <strong>Africa</strong> has good sunlight nationwide throughout the year, which allows for more<br />
controlled farming, particularly green house farming. This is creating a growing market<br />
for greenhouse farming solutions and other related products.<br />
Sub-Sector Best Prospects Return to top<br />
The best prospects for U.S. suppliers, in <strong>South</strong> <strong>Africa</strong> and the region, are:<br />
• Tractors<br />
• Combines<br />
• Bailers<br />
• Planters<br />
• Precision Agriculture Equipment and Technologies<br />
• Sprayers<br />
• Irrigation<br />
• Storage<br />
• Soil testing equipment<br />
• Spare parts and service facilities<br />
Opportunities Return to top<br />
Despite the current economic down-turn, farmers appear to be upbeat about current<br />
agriculture conditions. Sporadic rains and prevalent dry weather conditions are still a<br />
concerning issue and presents excellent opportunities for no till planting equipment.<br />
Companies/farmers have also indicated a strong interest in soil sampling equipment.