South Africa - International Franchise Association
South Africa - International Franchise Association
South Africa - International Franchise Association
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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.
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