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Technology changing farming landscape, trend sees Afgri partner with GeoAgro

30th October 2015

By: Tracy Hancock

Creamer Media Contributing Editor

  

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Farming in South Africa is moving toward the establishment of a megafarming system, a trend visible in the US, effectively through technology, agricultural technology company GeoAgro MD Jurie Groenewald tells Engineering News.

Technology is massively important to Afgri’s clients, with Afgri CEO Chris Venter stating that, in the last 20 years, the yield on average of the area serviced by the agricultural services and processing company has increased by 2t/ha to about 4.5t/ha, as a result of agricultural technology and better farming practices and seed technology.

Farming is under pressure in South Africa, owing to greater inputs and lower yields, as the country’s soils are depleted of important microelements, and, therefore, needs to be as cost-effective as possible, Groenewald says, emphasising that, by using the GeoAgro infor-mation management tool for precision farming, farmers can expect a conservative increase in yields of about 20%, while cutting input costs.

“A lot of the agricultural companies are looking at ways to increase yields for farmers,” adds Venter, noting that precision farming is not new.

GeoAgro was started 11 years ago and originates from Argentina, where, according to the Food and Agriculture Organisation of the United Nations, agricultural activity accounts for 30% of the country’s gross domestic product.

The company developed a system that inter- prets various forms of imagery, but predominantly satellite imagery, to determine the input needs of farmland on a variable as well as a fixed rate application. This enables ground to be fertilised according to its optimal yield potential, producing greater yields with lower input costs.

The GeoAgro system came to South Africa four years ago, when fertiliser company Avison started to use the GeoAgro system so that it could make recommendations to farmers, as “a fertiliser company needs agronomical services”, notes Groenewald.

He advises, however, that GeoAgro Africa is now independent of Avison, enabling farmers to procure the fertiliser needed to meet the recom-mendations provided by GeoAgro Africa wherever they wish.

The system has been tailored to the South African farming environment, but the product is constantly evolving along with the industry, offering a static desktop version or an online platform – Farm360. Groenewald notes that, within a month or two, any additions could be incorporated into the system by GeoAgro International’s staff in Argentina.

As farming is an ongoing developing environ-ment, GeoAgro Africa has to keep up with new developments, he says, highlighting that the technology is able to interface with John Deere farming equipment, for which Afgri Equipment is the single largest distributor in Africa.

GeoAgro Africa also integrates with all the major agricultural equipment suppliers in the farming market, but, owing to Afgri’s link to John Deere, GeoAgro is looking to give the agricultural equipment manufacturer an edge in the market.

As such, GeoAgro Africa has launched a project through which its program will be supplied free on a certain number of hectares to buyers of John Deere machinery.

Afgri, which Venter says is constantly looking at how to remain relevant to farmers, concluded talks with GeoAgro Africa in April, following which Afgri secured a 50% stake in the new company, GeoAgro Africa, for an undisclosed amount.

Venter points out that growing the hectares managed under the system by Afgri is more important than the company’s initial capital outlay to buy into GeoAgro Africa, revealing that Afgri would have tried to develop its own system had it not joined forces with GeoAgro Africa and GeoAgro International. “But we would never be able to replicate [the GeoAgro system]. It is international, tested and has run for many years.”

Through this joint venture (JV), Afgri’s client base is introduced to GeoAgro Africa, whose main focus is to introduce farmers to precision farming, giving farmers precisely what they need.

Groenewald says uptake of the product has been stable, but expects interest to pick up rapidly as the South African agriculture industry moves into the summer months. “Uptake is seasonal, but the product isn’t,” he comments, as GeoAgro Africa sells year-long contracts, with imagery taken every 16 days at a cost of between R50/ha and R300/ha, depending on the package chosen.

As a management tool, GeoAgro Africa can be tailored to a small-scale or commercial farmer’s needs and is adaptable to high-tech and low-tech farmers, with three free online training modules provided.

Groenewald admits that small-scale farming projects do not have many success stories in South Africa; thus, he is looking to change this through Harvest Time, a project focused on small-scale farmers.

“By introducing them to our technology, we can really make a difference in how they farm and make them profitable,” he adds.


Under its JV agreement with GeoAgro Africa, Afgri has obtained the right to Africa, which is in line with the company’s strategy to expand its footprint on the continent – home to 60% of the world’s arable land.

However, it is reported that only 7% of Africa’s arable land is irrigated, with 3.7% in sub-Saharan Africa. Meanwhile, a 70% increase in agriculture production is needed to feed the world’s population, which is expected to total more than nine-billion in 2025, of which 25% are estimated to reside in Africa.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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