South Africa - International Franchise Association

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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
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South Africa - International Franchise Association

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