africa an el dorado for south africa’s agribusiness...
Post on 03-Apr-2018
217 Views
Preview:
TRANSCRIPT
w w w . a c b i o . o r g . z a
Africa an El Dorado for South Africa’s Agribusiness Giants
Contents
Key findings 3Introduction 4From agriculture to agribusiness 4 Whatisanagribusiness? 5What is driving agribusiness incursion and expansion on the continent? 6 Increasingconsumermarketandspending 6 Increasingreturnsoncommoditycropsandland 6 Increasingneedtosecurefoodandenergysecurity 7Enter South African agribusiness 9 Push-pullfactorsforSouthAfrica’sentryintoAfrica 10 Fiercemarketconditionsandcompetition 10 Landissues 11 Labourissues 11 Risingrawmaterialandinputcosts 12 Highreturnsoninvestment 12 Sizeandtypeofinvestment 13 Retailing 13 Agro-processing 14 Farming 16 Inputs—withafocusonseeds 18Support for agribusiness expansation in Africa 19 Infrastructureandincentives 20 Humanresourceissues 22 Integratedregionalmarkets 23 Innovationandtechnology 24The potential impact on Africa’s agricultural value chain 26 Marketstructure 26 Foodproduction 27 ImplicationsforAfrica’sfoodsovereigntymovement 28 Localinnovation 29 Equityandrights 29Conclusion 30Appendix 1: South Africa’s leading expansionist agribusinesses 32Appendix 2: Africa’s top 20 agribusiness companies 35References 37
The African Centre for Biosafety (ACB) is a non-profit organisation, based in Johannesburg, South Africa. It was established to protect Africa’s biodiversity, traditional knowledge, food production systems, culture and diversity, from the threats posed by genetic engineering in food and agriculture. It, has in addition to its work in the field of genetic engineering, also opposed biopiracy, agrofuels and the Green Revolution push in Africa, as it strongly supports social justice, equity and ecological sustainability.
The ACB has a respected record of evidence-based work and can play a vital role in the agro-ecological movement by striving towards seed sovereignty, built upon the values of equal access to and use of resources.
©The African Centre for Biosafetywww.acbio.org.zaPO Box 29170, Melville 2109 South AfricaTel: +27 (0)11 486 1156
Design and layout: Adam Rumball, Sharkbouys Designs, Johannesburg
Cover image: http://www.alvettagroup.com/wp-content/themes/theme1690/images/bg-img.jpg
Africa an El Dorado for South Africa’s Agribusiness Giants 3
Key findings
• ThefarmtoforkagribusinessvaluechaininAfricaisworthbillionsofdollars,withSouthAfrica’sagribusinessdominatingthesector.TigerFoods,PioneerFoodsGroup,TongaatHulett,AstralFoods,AFGRI,IllovoSugar,AnglovaalIndustries(nowAVILtd),RainbowChicken(RCLFoods),CloverHoldingsandOceanoGroupareamongthetoptwentyAfricanbusinessesoperatingonthecontinent.SouthAfrican-ownedretailer,Shoprite,controlsastaggering34%ofthecontinent’ssupermarketretailmarket.
• Africaneconomiesaregrowingfasterthantheglobalaverage;itsmiddleclassesareexpectedtoexceedIndia’sinnumbersby2020,andby2030itstop18citieswillboastacombinedspendingpowerofUS$1.3trillion—US$400billionofwhichislikelytobespentonfoodeachyear.Thisisadynamicgrowthmarketforagribusinessandtoogoodanopportunitytomissforprofitmaking.
• SouthAfricainvestsinmoreAfricanprojectsthananyothercountry;theseprojectsincludemediaandtelecommunications,technology,retail,consumerproductsandfinancialservices,aswellaspropertydevelopment,buildinggrainmills,processingfacilitiesandregionaldistributioncentres,chickenandbeefoperationsandsugarplantations.StandardBank,Absa,FirstRandandNedbankarequicklyexpandingtheirservicestootherAfricancountries.
• SouthAfricanagribusinessisexpandingthroughself-fundedoperations,partnerships,mergersandacquisitions,particularlyinthefoodprocessingandretailingsectors.Ofthemergersandacquisitionsoccurringinthepastdecadeon
theAfricancontinent,21.7%ofthemhavebeeninstigatedbySouthAfricancompanies.CompaniesintheUnitedStateshavebeeninvolvedin28%ofmergersandacquisitions.
• PrivateequityinvestmenthasincreasedtoaroundUS$5billion,withmorethan25internationalinvestmentfundsfocusedontheagribusinesssector.ThesefundsincludetheSouthAfrica-UnitedKingdomEmergentAssetManagementfund,whichhasalreadysecuredlandin15Africancountriesandpromisesa30%returnoninvestmentfromcommodityfarmingandlandspeculation.AnotherisAgri-Vie,formedbySanlamPrivateEquityandStrategy.
• ThegrowingbiofuelmarketalsodrivestheacquisitionoflandinAfrica.SouthAfricansugargiants,IllovoandTongaatHulett,haveidentifiedethanolproductionasincreasinglyimportanttotheirfuturebusinessplans.
• Sevenofthetenleadingagribusinesses(TigerFoods,PioneerFoodGroup,AFGRI,IllovoSugar,AstralFoods,CloverGroupandTongaatHulett)arebackedbytheSouthAfricagovernment-ownedPublicInvestmentCorporation(PIC),whichisresponsibleformanagingtheSouthAfricanGovernmentEmployeesPensionFund(GEPF),theUnemploymentInsuranceFund(UIF)andtheCompensationCommissioner’sFund.
• Agribusinessesonthecontinentbenefitenormouslyfromaccesstoprivatecapital,experience,establisheddistributionchainsandbothdirectandindirectsubsidiesandincentivesofferedtothem.
• TheirentranceintoAfrica’srelativelyunsophisticatedagribusinessmarkethasthepotentialtoentrenchacultureofcorporateconsolidationonthecontinent,blocktheemergenceofsmalleroperators,depresslocalinnovationsystemsandnegativelyimpactonfoodsecurity.
In the 16th and 17th centuries Europeans believed that somewhere in the New World there was a lost city, a place of immense wealth, known as El Dorado. In his 1849 poem, writer Edgar Allan Poe
offers a suggestion as to the whereabouts of this lost city of gold.
Over the Mountains of the Moon Down the Valley of the Shadow
Ride, boldly ride If you seek for El Dorado.
4 A F R I C A N C E N T R E F O R B I O S A F E T Y
Introduction
SouthAfricanbusinessesinvolvedintheagriculturalvaluechain(millers,processorsandretailers)haveaggressivelyexpandedtheiroperationsintoAfricasincethe1990s.Thishasbeenachievedthroughown-fundedset-ups,acquisitions,mergersandpartnerships.TheirAfricandivisionsareincreasinglyprovidingahighreturnoninvestment,fuellingfurtherexpansionplansonthecontinent.
Bothpushandpullfactorsshapetheexpansiondrive.Theserangefromlocalmarketconditionstothepotentialprofittobemadefromarapidlyurbanisingpopulationwithincreasinglevelsofdisposableincome.Poorinfrastructure,weakgovernancestructuresandlowlevelsofhumanresourcesaresomeofthechallengesfacedbycorporateagribusinessonthecontinent;however,SouthAfrica’smajorplayersarewellplacedtoovercomethesetrialsthroughtheiraccesstocapital,technology,marketexperienceandincentivesofferedbyAfricancountries.ThisexpansiontakesplacewithinaninstitutionalandpolicyframeworkthatfacilitatestheaggressiveencroachmentofforeigncapitalintoAfrica’sagribusinesssector.
ThispapertracestheexpansionofleadingSouthAfricanagribusinessesintoAfricanmarkets;examinestheirrationaleforexpansion;highlightstheirchallengesandsuccesses;andprovidesananalysisoftheirpotentialimpactonthecontinent’sagriculturalvaluechain,intermsofentrenchingacultureofconsolidationandtheirinfluenceonfoodsecurityandlocalinnovation.
Althoughsomeoftheagribusinessesdiscussedinthispaperhaverecentlybeenacquiredbyinternationalcompanies(PioneerHi-bredacquiredPannarin2012)orhaverelocatedtoalternativebases(AFGRImoveditsAfricanbusinessoperationstoMauritius),alloriginatedinSouthAfrica,benefitedfromhistoricalsupportandpracticeaparticularbrandofexpansion.Anexplorationofforeigncapitalenteringthecontinent’sagribusinesssector,whileaworthwhilestudy,isoutsidethescopeofthispaper.
From agriculture to agribusiness
Tradeinfoodwasperhapsthefirsteconomicactbyhumankind,andourfirstformofwealth.Ashumanbeingsbegantoorganiseandadoptandcreatetechnologythroughwhichtoaccumulatemorefood,andthuswealth,thebeginningsofindustryweresetinplace.Sotheshiftfromlocalvillagemarketstobigger‘wholesale’marketswithsomeretailoptionswaspartofaprocessthatwouldleadtofurtherspecialisation.Thiswasspurredonbythepossibilitiesoflong-distancetradeandthentheestablishmentofspecialisedgrowingareasandfinallyrefrigerationtechnologyandmotorisedtransport.1Justasagricultureandtradeinfoodinfluencedindustry,industrythinkingbegantopervadefoodproductionindevelopedcountries,withfarmsrunlikefactoriesandaconcentrationonefficiency,volumeandprofit.2Andthentheretailsectorradicallyhonedtheentiresystembyintroducingself-servicestoresandthesupermarketwasborn.3
Today’scurrentfoodsystem,fromproductionandprocessingthroughtodistribution,isaglobalone.Globalisationhastransformedthelocalisedfoodsystemsoftheworldinto“anintegratedandlinearworldsystembasedontheprinciplesofcomparativeadvantage,standardization,geographicaldivisionoflabourandcontrolbyafewcorporationsandtradeagreements”—withfoodandfoodproductsnowsourcedgloballyandmainlyfromindustrialisedfarms.4Themodernfoodsystemofthedevelopedworldisdominatedbyoff-farmactorswithfarmershavinglittleinputintopricingorpolicy-making;anditisdrivenbyprocessors,tradersand,increasingly,retailers.5Controlofthesystemnowrelieson“controllingthemeansofco-ordinationratherthanthemeansofproduction”.6
Thisshiftfromagri-“culture”toagri-“business”inthedevelopedworldhasoccurredwithinadominantagriculturalnarrativethat,fromthe1900sonwards,hascentredonmodernisation,includingtheuseofhybridtechnologies,mechanisationandexternalinputs.7The
Africa an El Dorado for South Africa’s Agribusiness Giants 5
rationaleisthatmodernisationleadstoincreasedproduction,whichleadstoincreasedincomesandhigherstandardsoflivingforthoseinvolvedintheagriculturalvaluechain.8/9Thecurrentdrivetomoderniseagricultureanditsup-anddown-marketlinkagesinAfricaisframedwithinthisparticularnarrative,whichisperpetuatedatthehighestgloballevels10/11/12andrestsontheneedtoradicallyincreaseyieldstofeedagrowingAfricanpopulation,13/14/15estimatedtobeover2billionby2050.16
Themodernitynarrativeignoresthefactthatalthoughmodernfarmingmethodshaveresultedinyieldincreasesoverthepast50years,17thishasnotnecessarilytranslatedintoincreasedaccesstofood,increasedincomeorincreasednutritionalsecurity,18ecologicalsustainabilityorsocialjustice.Italsopresentsaone-dimensionalviewpoint19denotingasimplisticunderstandingofsocial,economicandecologicalsystemsofAfricaandhowtheyinteract.Thisnarrowunderstandingisnotadequatetodealwiththeinterconnectedcomplexitiesofthecontinent’scurrentchallenges,20/21suchasfoodinsecurity,biodiversitylossandclimatechange.
FramingthemodernisationofAfricanagribusinesswithinthisnarrow,one-dimensionalnarrativealsomasksthemoreprobableunderlyingmotivationsforcorporateagribusinessexpansion.Theseincludethedesiretoopenupnewconsumerandproductmarketsforhybridandgeneticallymodifiedseed,inorganicfertilisers,herbicides,pesticides,mechanisedfarmingequipmentandprocessedfoods.
What is an agribusiness?
Agribusinessesarethoseoperatingonthecontinuumbetweenfarmandfork.22Agribusinessencompassesthosefarmingtheland(individual,contractandcorporatefarmers),thosesupplyingtheinputs(seed,fertilisers,pesticides)andfarmingequipment,thoseaddingvaluethroughprocessing(millers,bakers,canners)tothosespecialisinginpackaging,distribution,marketingandretailing(supermarkets).23Banksandinsurancecompaniesincreasinglyparticipateinagribusinessventuresandleadinginternationalconsultingandauditingfirms,suchasDeloitte,havededicatedagribusinessteamsofferingadviceandexpertisetofarmers,manufacturers,marketersandagriculturaleconomists.24Figure1depictsatypicalagribusinesssupplychain.
Agribusinesscanbelocal,national,regionalorinternationalinscope.AgricultureplaysasignificantroleinAfricancountries.Asasectoritcontributesthemosttothegrossdomesticproduct,rangingfrom33.6%inRwandato76.9%inLiberia,andanaverageof44%(whencombinedwithagribusiness)acrossthecontinent.25SouthAfricaisanoutlierasitsagriculturalsectorcontributesonly3%togrossdomesticproductandemploys9%oftheworkforce,26incontrasttomostAfricancountriesinwhich65%ormoreoftheworkforceisemployedinagriculture,rangingashighas92%inBurkinaFaso.27Smallholdersstillproduce90%ofAfrica’sagriculturaloutput.28
Figure 1: A typical agribusines supply chain
Source:WorldBank2005
Inputindustry Producers Processors Retailers Consumers
Agriculturalproduction Foodindustry Consumption
POLICY LEVEL
6 A F R I C A N C E N T R E F O R B I O S A F E T Y
What is driving agribusiness incursion and expansion on the continent?
Agribusinessisviewedbybothpublicandprivatesectororganisationsasavehicletoalleviatepovertythroughincreasedeconomicgrowth,ledbyprivatesectorinvestmentincentivisedbythepotentiallyhighprofitstobemade.
TheWorldBankarguesthatthekeyforeconomictransformationanddevelopmentonthecontinentcouldliewithagricultureandagribusiness,29estimatingthatthetwosectorscombinedcouldcompriseaUS$1trillionindustryinsub-SaharanAfricaby2030.30Thetheoryisthatincreasedagriculturalproductivitywillleadtoincreasedfarmerincomes,higherlevelsoffoodsecurityandincreasedemploymentopportunities.31AccordingtotheWorldBank,Africawillnotachieveitsdevelopmentalgoalsifattentionisnotpaidtoagribusiness.32
IntheinstitutionalspaceinAfricaagribusinessisviewedasavehicletocreateon-andoff-farmjobs;developruralinfrastructure,includingschoolsandclinics;33enabletechnologytransfer;improvebusinessservices,includingsupplyofinputs,technicalassistanceandcredit;andlowerfoodcostsonaregionallevel.34Inshort,agribusinessisviewedbymanyasapointofinterventionatwhichinnovationcouldhavea“widespreadandprofoundeconomicandsocialimpact”.35However,itismoreprobablethatthepotentialforgeneratingprofitdrivesinvestmentandexpansioninthesector,withlittleregardforAfrica’seconomic,socialorenvironmentallong-termsustainability.
TheComprehensiveAfricaAgricultureDevelopmentProgramme(CAADP),whichprovidesaframeworkforagriculturaldevelopmentandgrowthonthecontinent,36supportspoliciesandsystemsthatwillattract
foreigndirectinvestmentinthecontinent’sagriculturesector.37TheestimatedinvestmentgapintheagriculturalsectorisestimatedtorequirearoundUS$90billionannually,38tobemetbyprivatecapitalinvestment.39
Increasing consumer market and spending
CurrentlyAfricaneconomiesaregrowingfasterthantheglobalaverageandtheircitizenshaveincreasinglevelsofdisposableincomeanddisplayhighlevelsofconsumerconfidence.40Thisisappealingtothoselookingforafastandhighreturnoninvestments.Africathuspresentsarelativelyuntappedmarketforthoseinagribusiness,basedonestimationsthat:
By2020,Africa’smiddleclassarguablywillexceedIndia’sinnumbers41andthenumberofAfricanhouseholdswithincomesexceedingUS$5,000willincreasefrom85millionto128million.42TheywillspendUS$174billiononfoodandbeverages.43SeeFigure2fortheprojectedvalueandurban/ruralsplitofsub-Saharan’sfoodmarketby2030;theurbanfoodmarketisprojectedtobeworthUS$400billionby2030.44/45
By2030,Africa’stop18citieswillhaveacombinedspendingpowerofUS$1.3trillion46anditsworkforcewillbe800millionstrong.47
By2040,Africawillbehometooneinfiveofthepanet’syoungpeople.48
Thispresentsadynamicgrowthmarket;however,itshouldbenotedthattheattractionofurbanisationisoftennotthepullofbetterpaidjobsinthecity,butratherthepushofruralpoverty.49ItshouldalsobenotedthatdefiningthosespendingbetweenUS$2toUS$20adayasmiddleclassisproblematicgiventhatthepovertylineforthedevelopingworldissetatUS$2apersonaday.50
Increasing returns on commodity crops and land
Investorslookingtocashinontheincreasingrateofreturnarisingfromagriculture,increasingcommoditypricesandspeculativeinvestmentbasedonlandvalues51aresecuringAfricanfarmland.
Theflowofprivateequityinvestmentinto
Africa an El Dorado for South Africa’s Agribusiness Giants 7
Africaisontherise—currentlymorethanUS$5billionhasbeenallocatedtoAfricanagribusiness52andthereareover25investmentfundsfocusedonthissector.53OneoftheseistheSouthAfrican/UnitedKingdomEmergentAssetManagementFund,whichhasraisedmorethanUS$450millionforinvestmentintofarmlandinsub-SaharanAfrica.54Bylate2010,landhadbeensecuredinAngola,Botswana,theDemocraticRepublicofCongo(DRC),Kenya,Lesotho,Madagascar,Malawi,Mauritius,Mozambique,Namibia,SouthAfrica,Swaziland,Tanzania,ZambiaandZimbabwe.55A30%returnispromisedtoinvestors.56AnotherexampleisAgri-Vie,theUS$100millionprivateequityfundformedbySanlamPrivateEquityandStrategy,forthesolepurposeofinvestinginbusinessesoperatingalongtheAfricanagribusinessvaluechain.57
Asanexample,inWestAfrica(themostpopularchoiceofdestinationforinvestment)investorscanacquireuncultivatedlandforlessthanUS$100perhectare;beginproducingpalmoilorrubberataninvestmentcostofUS$5,500perhectare;andrealiseavalueofUS$16,000perhectare.58Inthisregionahigherreturnoninvestmenttendstobebasedonhigheryield;forexample,asingledry-landhectareinCongo-Brazzavillecanyield10tonsofmaizeasopposedto3tonsinSouthAfrica.59
Acharacteristicoftheselanddealsisthattheyareexportorientedinnatureandoftenfocusoncashcropsandbiofuels;Africahaslimitedcapacitytoabsorbeither.60Volatile
commoditymarketsarealsonotthemostsecureorsustainablevehiclethroughwhichtotransformthefortunesofthecontinent—acontinuedlong-termdeclinewouldhavedisastrousimplications.61Itisworthnotingthatforeigndirectinvestmentinfarmlandcanreducefoodsecurityifittakeslandawayfromfoodproduction—forbiofuelorcommoditycrops,forexample—orifthefoodisdestinedforexportasopposedtolocalconsumption.62
Increasing need to secure food and energy security
Land,accesstoitandownershipthereof,isaboneofcontentionaroundtheworld,andincreasinglyitisbecomingascarceandcontestedresource.63TherehasbeenunprecedentedacquisitionofAfricanfarmlandinthepasttwodecades,byforeigncountriesdrivenbyadesiretoensuretheirownfuturefoodsecurity(forexample,China,SouthKoreaandIndia64)orbythosefacingincreasingconstraintsontheirnaturalresources,suchaswater(forexampletheGulfStates,SingaporeandMalaysia65),orontheirabilitytotrade(duetorestrictiveexportrestrictions).66
ThereasonsgivenbycountrieslookingtoacquirelandinAfricaisthatthecontinenthasmorethan300millionhectares67oftheworld’s1.5billionhectaresofarableland—currentlyvaluedatUS$5trillion.68Thatonly183millionhectaresofthislandiscurrentlybeingfarmed69impliesthatthecontinenthastheworld’sgreatestreservesofarableland,
Figure 2: Projected value of food markets in sub-Saharan Africa by 2030
8 A F R I C A N C E N T R E F O R B I O S A F E T Y
untappedwatersupplies(lessthan2%ofwaterreservesareused),proximitytoseveralinternationalmarkets,70aswellashistoricallylowerproductioncosts.71Thesefiguresmustbeinterrogated,asestimationsof‘unused’arablelanddonottakeintoaccountunofficialandundocumenteduseofthelandfortraditionaluses,suchasshiftingcultivation,dryseasongrazing,72wildplantgatheringandwateraccessoritsroleasasafetynet.73Inaddition,inAfricainparticular,traditionalownershiporuseoflandisoftennotofficiallyorlegallyrecognised.74/75Muchofthislandisforestedandprovidesvaluableecosystemservices;consequentlyitsconversionintofarmlandhasnegativeecologicalimplications.76Despite
claimsofmassiveuntappedwatersupplies,waterremainsascarceresourceontheAfricancontinent—millionsstruggletoaccesssafedrinkingwaterandwatermanagementmodelsareinsufficient.77AsmoreAfricansmovetocitiesincreasedpressurewillbeputonwatersystems.78Inaddition,projectedclimatechangeimpactsonalreadyvariablerainfallpatternsneedtobetakenintoaccount.79/80
TheFAO’sVoluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security and the African Union’s Declaration on Land Issues and Challenges in Africaoutlinestherisksandprincipleson
LANDGRABS
AccordingtotheLandMatrix,aglobalandindependentmonitoringinitiativethataimstopromotetransparencyandaccountabilityinlandinvestmentdecisions,over150foreignlanddealshavebeenconductedinAfrica—about30inCentralAfrica,116inWestAfricaand5inSouthernAfrica—withmanymoreinthepipeline.94Since2000,therehavebeenover50landdealswithforeignersinTanzania—comprisingabout1.2millionhectares95andin2009alone,about60millionhectaresofAfricanlandwaspurchasedorleasedbyforeigncountriesandcompanies.96HottargetsforlandacquisitionsareMauritius,Uganda,Rwanda,Burundi,Togo,Nigeria,GambiaandSierraLeone,asthesecountrieshavethemostarablelandavailable.97ThesedealsarefacilitatedbyAfricanstateslookingtoattractforeigndirectinvestment.Forexample,Ghanaallowsforeignownershipoflandthrough50-yearleaseagreementswithoptionstorenew98andZambiaoffersfacilitatedaccesstoland,99with99-yearleaseagreements.100
Characteristics of these deals
Thereisalackoftransparencyaboutthesedeals,includingtheirextent,thecostpaidforthelandandtheintendedpurposeoftheuseoftheland.101
Theyoftenrelyonandinvolvebilateralagreements102/103andincludedirectstateinvestmentorindirectinvestmentthroughstateloansorgrants.104/105
Theyareexportorientedinnature,oftenfocusingoncashcropsandbiofuels.106
Theyoftenincludefreeaccesstowater,taxexemptionsandrepatriationofprofits.107
PotentialimplicationsforAfrica[sub-heading]
Thedevelopmentofinfrastructureandlocalmarkets,oneoftheconditionsforinvestment,oftendoesnotoccurandcannotbeenforcedretroactively.108
Arablelandandincreasedagriculturalproductionwillneedtomeetlocalfoodneeds,giventheprojectionofadoubledsub-Saharanpopulationby2050.109
Large-scalelandacquisitionscouldresultinlocalpeoplelosingaccesstotheresourcesonwhichtheydependfortheirfoodsecurity.110
ManyAfricancountriesdonothavethelegalmechanismsorcapacitytoprotecttraditionallandrights.111This,combinedwithalackoftransparency,putsAfricanfarmersatgreatrisk.112
Africa an El Dorado for South Africa’s Agribusiness Giants 9
whichlanddealsshouldbebased.81Theseincludemappinganddocumentinglandrights,interestsandclaimswithanemphasisontheinclusionofsmallholdersandcommunitiesandtheprotectionofnationalfoodsecurity.82Rwandaiscompletinganationwideprogrammetoissuelow-costlandtitles;Coted’Ivoire,BeninandBurkinaFasoarepilotingrurallandtenuremaps;Tanzaniahasnearlycompletedsurveyingitscommunallands;andMozambiqueandGhanaarescalinguppilotprojectsfortheregistrationofcommunalland.83ItshouldbenotedthatwhileclarityaroundlandownershipcouldbenefitAfrica’ssmallholders(whocouldgainmoresecuretenure),themovetowardsmappingcommunallandsandregisteringlandparcelscouldalsobeasteptowardsthewholesaleprivatisationofland.84Forexample,mostlanddealsinAfricainvolvenoorlowlandfees;andnegotiationstakeplacebetweenstateintermediaries.85Thiscouldleadtothepoliticalelitebeingincentivisedtodispossesslocalsoftheirland,aswellascontributetorisinglandcosts.86Increasedcostoflandalsohasnegativeimplicationsforpeasantsandsmallholderswholackthecapitaltostayinthe‘game’87whenspeculationaroundlandraisesprices.
AnadditionaldriverfortheacquisitionofAfricanlandisthegrowingmarketdemandforbiofuelcrops.88Demandforethanolisincreasingrapidlyandglobalproductionhasmorethantripledsince2000,equalling38.4milliontonsby2010.89Itisestimatedthatby2030biofuelproductionwillrequire35millionhectaresofland.90ASwiss-basedenergycorporation,asubsidiaryofAddaxandOryxGroup,spentGPB258millionin2011,tolease10,000hectaresfor50yearsinSierraLeone,togrowsugarcaneforethanolproductionforexporttoEurope.91SouthAfricansugargiants,IllovoandTongaatHulett,haveidentifiedethanolproductionasincreasinglyimportanttotheirbusinesses,withplansforfurtherexpansionintothissector.92/93ThiswillhavemajorimplicationsforAfricanfoodsecurity,ifarablelandisdivertedtotheproductionofbiofuelcrops.
Enter South African agribusiness
SouthAfricanagribusinessexpansionintotherestofthecontinentisspurredonandsupportedbynationalimperatives.SouthAfrica’sNational Development Plan: Vision for 2030notesthata“capable,strong,competitiveandwelldevelopedagribusinesssectorisessentialtoensuretheglobalcompetitivenessofourdifferentagro-foodvaluechainsandthusfoodsecurity”.113Itfurthernotesthatfactorssuchascompetitiveaccesstofinance,technologyandmarketscontributetothestrengthofthecountry’sagribusinesssector,114whichisarguablythemostdevelopedandsophisticatedonthecontinent.ItmustbenotedthatownershipandcontrolofSouthAfrica’sagribusinesssectorreflectsthefragmentedallocationofbenefitsandburdenstodifferentracegroups,gendersandgeographicalareas,asinflictedbytheapartheidregime—inparticular,accesstoarableland,water,education,subsidiesandcredit.115Eventhougheconomicliberalisationremovedthissupport,thisgroupcontinuestoenjoytheentrenchedbenefitsofsupport,alongwithaccesstoqualityinfrastructureandaccumulatedcommercialknowledge.116/117
ItisworthnotingthatthemajorityofcompaniesdiscussedinthispaperarebackedbythePIC,whichisresponsibleformanagingthesubstantialSouthAfricangovernmentpensionandunemploymentfunds.ThePICmanagesassetsworthmorethanR1.4trillion.118WhileoneofitsdivisionsfocusesonSouthAfrican-basedprojectswithdevelopmentalimpact,thePICisincreasinglylookingtoAfricanmarketsforincreasingreturnsoninvestment.119In2012theyinvestedinEcobankTransnationalIncorporated(Nedbankownsa20%stakeinEcobank),operatinginmorethan35countriesinAfrica,followedbyinvestmentinDangoteCementinNigeriaandintocompaniesworkingintheedibleoilrefinerysectorandhospitality.120Theyarelookingtoinvestininfrastructure,particularlyport,railandairports,aswellasagriculturalindustries,oilandgas,andinformationandcommunicationstechnology.121
10 A F R I C A N C E N T R E F O R B I O S A F E T Y
SouthAfricancompaniesdominatetheAfricanagribusinessmarket.Theyappearedtentimesonalistofthetop20Africanagribusinessesoperatingonthecontinentin2010(seeAppendix2),withthreeentriesfromMoroccoandNigeria,twofromCoted’Ivoire,onefromAlgeriaandonefromEgypt.Thelistrankscompaniesaccordingtoturnover.122TheSouthAfricancompaniesare:TigerFoods,PioneerFoodsGroup,TongaatHulett,AstralFoods,AFGRI,IllovoSugar,AVI,RainbowChicken(nowRCLFoods),CloverHoldingsandOceanoGroup.123(SeeAppendix1foralistofthemainbusinessactivities,locations,shareholderinformationandtherevenuegeneratedfromAfricandivisionsforthesecompanies.)Inaddition,SouthAfrican-ownedShopriteHoldingsisthecontinent’sbiggestsupermarketchain.124SouthAfricahoststheheadquartersof16leadingAfricanagribusinesses,includingNigerianBreweries.125Figure3providesanoutlineofthetopSouhAfricanandinternationalfirmsoperatinginthesub-Saharanagro-foodsupplychain.
Push-pull factors for South Africa’s entry into Africa
DuringthetransitionperiodleadinguptoSouthAfrica’sfirstdemocraticelectionsin
1994,localcompaniesbeganlookingtoexpandintoAfricaandtheinternationalmarket.126SouthAfrica,aswithmanyAfricanstates,hadliberaliseditseconomicpolicies,privatisedmanypreviouslystate-controlledentitiesandopeneditselfuptocompeteinaglobalisedtradingmarket.127TheSouthAfricanmarketwasconstrained,oversuppliedandofferedlimitedprofitmargins.128Consequently,localcompanieswereeagertoexplorethenewopportunitiesofferedforcapitalaccumulationbyneighbouringstates.Figure4indicatestheagriculturalsub-sectorstargetedforacquisitioninAfricabetween2006and2011.
Thepushfactorsforexpansionincludefiercemarketconditions,insecurityaroundland,risinginputcostsandlabourissues.
Fierce market conditions and competitionIncreasingconsolidationintheSouthAfricanagribusinessmarkethasforcedcompaniestolookelsewhereforincreasedmarketshareandreturnoninvestment.129Cheapimportsarefuellingconsolidationofthelocalindustry,asincreasinglysmalleroperatorsareunabletocompeteandareacquiredbybiggerplayers130whoarealsotakingstrain.ThedumpinginSouthAfricaofpoultryproductsthatoriginateinBrazilandtheEuropeanUnionhasaffected
Figure 3: The sub-Saharan agro-food supply chain: presence of large and local firms (2008)
Agricultural inputs
Top5foreigncompanies:• BASF• DowChemicals• Bayer• DuPont• LindeGroup
Top5Africancompanies:• SASOL• AECI• OmniaHoldings• ChemicalServices
Industries• ChimiquesdeSenegal
Food processors
Top3foreigncompanies:NestleUnileverArcherDanielsMidlandTop3Africancompanies:TigerBrandsTongaatHulettAFGRIBeveragesTop3foreigncompanies:CocaColaInBevAnheuser-BuschTop3Africancompanies:SABMiller
Food retailers or distributorsNoforeigncompanies:
Top5Africancompanies:BidVestGroupShopriteHoldingsPicknPayStoresMassmartHoldingsSparGroup
FoodservicesTop3foreigncompanies:CompassGroupMcDonald’sSodexo
Farm
s/fa
rmla
nd p
urch
ases
Cons
umer
s
Source:OECD2008(modifiedtoreflectsub-SaharanAfrica)
Africa an El Dorado for South Africa’s Agribusiness Giants 11
theprofitabilityofagribusinessgiantssuchasRainbow(RCIFoods),AFGRIandAstralfoods,131/132andthesugarindustry(IllovoandTongaatHulett),whoarestrugglingtocompeteagainstcheapsugarimportsfromIndiaandBrazil.133Thesegroupsclaimthatgovernment’srecentincreasesinimporttariffsfortheseproductswillnotbeenoughtosecurethesustainabilityofthelocalmarket.Over-regulationiscitedasanotherreasonwhySouthAfricanagribusinessesarelookingelsewhereforgrowth;Shoprite,forexample,claimsthatonerouslabellingrequirementsandthestringentConsumerProtectionActarecuttingintoitsprofits.134
Inaddition,localagribusinessisfeelingthepinchasconsumerswithincreasinglyhighlevelsofdebtreducetheirspending.Clover,Rainbow,AVI,AFGRIandAstralhaveindicatedthatdepressedconsumerspending,withnoreliefinsight,isafactorlimitinggrowthintheSouthAfricanmarket.135/136/137/138CloverhasnotedthattheglobalfinancialrecessionandvolatilityoftheRandarepushfactorsfortheirAfricanexpansionplans,139asdoesRainbow,citingalsotheabove-inflationarycostsforpowerandfuel.140/141TheweakerRand,accordingtoAVI,hasalsoincreasedpressureoninputcosts,142andAFGRIhasstatedthattheinternationaloilpriceandthevolatilityofcommoditypriceshavenegativeimplicationsforgrainproduction.143
Land issuesAccesstoarablelandandwaterarealsobecomingchallengesinSouthAfrica.144AFGRInotesthelossoflandinMpumalangatominingactivitiesandthatfarmersarefacingwaterscarcitiesacrossthenation.145UnresolvedissuesaboutlandredistributioncontributetouncertaintyaboutthefutureofagribusinessventuresinSouthAfrica.146Forthosecompaniesreliantonaccesstoorownershipoffarmland,includingRainbow,TigerBrands,Clover147andAFGRI,148landreformandredistributionwillhaveseriousconsequences.RumoursoftherulingAfricanNationalCongresspartywantingtotransfer30%ofthecountry’sarablelandtopreviouslydisadvantagedfarmersby2014hascausedunease,149whiletherecentannouncementthatregisteredcommercialfarmshaveuntilearly2015tohandoverhalfownershipoftheirfarmstoworkersiftheydonotparticipateingovernment’swillingbuyer-willingsellerredistributionprogrammehasdeepenedthisunease.150Thisstatementhassincebeenretractedbygovernment.ThishasresultedinlocalagribusinesseslookingtootherAfricancountriesforgrowthopportunitiesandnewmarkets151andthepotentialtomakeaneconomickilling.
Labour issuesFormostofthesecompanies,labourunresthasaffectedprofitsoverthelastfewfinancial
Figure 4: Acquisition activity by target agricultural sub-sectors (2006–2011)
Source:CapitalIQU,Press,CopalResearch
12 A F R I C A N C E N T R E F O R B I O S A F E T Y
years.152/153AFGRIcitesthehistoricfarmworkerstrike154andShoprite,RainbowandAstralFoodstheprolongedminingstrikesashavingnegativelyaffectedsales.155/156/157Inaddition,companiessuchasCloverindicatethatincreasinglocallabourcosts158and[thefact]thatSouthAfricanwages[are]outstrippingproductivity159furtherdepressprofitmargins.160
Rising raw material and input costsAstralnotesthatlocalmaizeandsoyapriceshavebeenatrecordhighsaffectingprofitability.161ThishasledSouthAfrica’spoultryproducers,accordingtoRainbow,tolooktoAfricanmarketswheremaizeandsoyaproductioncostswerelowerorsubsidised.162Illovoperceivesthesteepriseininputcostsforsugarproductionasaconstraintongeneratingprofit.163
AccordingtotheAgbiz/IDCconfidenceindexforthethirdquarterof2013,onlyhalfofagribusinessdecision-makersandexecutivesarepositiveaboutthelocalagribusinessenvironment.164Whilethe2013/2014AgribusinessInsightsSurveybyPricewaterhouseCoopers(PwC)indicatesthat70%ofsurveyedchiefexecutiveofficerswanttoexpandintoAfricaand90%ofthosewhohadalreadyexpandedtheiroperationsintothecontinentanticipatedarevenueincreaseduring2014.165
ThepotentialprofitstobemadefromAfrica’semergingconsumermarketaredrivingagribusinessexpansionplans.TheUnitedNationsDevelopmentProgrammeestimatesthatAfrica’smiddleclasswillexceedIndia’sinnumberby2020166andthisincreasewillbeaccompaniedbyariseindisposableincomelevels.167AnestimatedUS$174billionwillbespentonfoodandbeverageseachyear.168Thisishistoricallyunderservedmarketisveryappealingtolargeagribusiness—fromsuppliers,anufacturersandprocessorstoretailers.
High returns on investmentShopritechiefexecutiveofficer,WhiteyBasson,claimsthatAfricaiswherethereallyprofitableactionis.Byend2012,theturnoverfromShoprite’sAfricanstoresrepresented11.1%ofthegrouptotalandby2014turnoverwas12%higherthaninSouthAfricanstores.Salesin
Shoprite’sAfricanstoresrose28.1%inthelastsixmonthsof2013providinga45%returnoninvestment—thisdespiteslowgrowthforthegroupoverall.
Asearlyas2003Massmartacknowledgedthat“businessbeyondSouthAfrica’sbordersearnsfarhighermargins,theaveragestoreoutsideSouthAfricaisearningtwiceasmuchinbottom-linetermsasstoreswithinSouthAfrica”.169/170In2011Massmartwasacquiredbytheworld’slargestretailer,Walmart,inadealthatrequiredcompetitionapprovalinsixAfricancountries—SouthAfrica,Swaziland,Zambia,Namibia,TanzaniaandMalawi.171ItplanstoenterAngolaby2015andhavefourstoresinthecountryby2017andiscurrentlybuildingitsfirststoreinKenya.172Agro-processorssuchasOceanaaregenerating19%oftheirsalesrevenue(2013)fromAfricancountriesotherthanSouthAfricaandNamibia,whichgeneratedthemost,whileonly10%ofrevenueisderivedfromEuropeandtheFarEast.173
Attheendof2013WoolworthscloseditspilotstoresinNigeria,citingpoorprofitsandthechallengingbusinessenvironment;Shoprite,however,continuestodowellinthesamelocation,indicatingthatthepricepointforgoodsisimportant.174
Inaddition,agribusinessexpansionissupportedbybusinesssynergies.Forexample,Shoprite’spresenceonthecontinent(ithasstoresin1,525corporateand377franchiseoutletsin16Africancountries)facilitatestheexpansionofotherbusinesses.Clovernotesthatdairyexportsintosub-SaharanAfricahavebenefitedfromtheaggressiveexpansionofSouthAfricansupermarketsintotheregion.175TherearealsoconnectionsbetweenthesubsidiariesofSouthAfricancompaniesinAfrica.Forexample,ShopriteappointedZambeefinZambiatooperatethecompany’sin-storebutcheriesinitsZambian,GhanaianandNigerianstores,176andZambeefisinajointventurepartnershipwithSouthAfrica’sRCL
ShopritesoldmorebottlesofJCleRouxsparklingwineinits19Angolanstoresthanits1,400-oddSouthAfricanstoresandmorecansofRedBullinjustfiveAngolanstoresthaninSouthAfrica’sentiregroupinthelastsixmonthsof2013.
Africa an El Dorado for South Africa’s Agribusiness Giants 13
Foods.177OthermultinationalcompanieswillpiggybackontheexpansionofSouthAfrica’sagribusinesses.Forexample,ChickenLicken,constrainedbyinconsistentchickensupplieswhentryingtoexpandintotheNigerianmarket,hasindicatedthatitwillfollowinthefootstepsofRainbowChickentoguaranteequantityandqualityofchickens.178
Size and type of investment
SouthAfricaninvestmentintoAfricaisledbytheprivatecorporatesectorandfocusesmainlyonthetelecommunications,financialservicesandretailsectors.179SouthAfricanagribusinessesareinvestinginfarmingenterprises(directownership,landleases,contractfarming),retailing(directownership,jointventures,franchising),processing(milling,value-adding),supplyofagriculturalinputs,andfoodproducts.ThemaintargetsformergersandacquisitionsaretheAfricanfoodprocessingandretailsectors;SouthAfrica(21.7%)andtheUnitedStates(28%)dominatemergersandacquisitionswithinthesesectors.180
SouthAfricaexportsfourtimesmorethanitimportstootherpartsofAfrica—investmentinacquisitions,mergersandstart-upsinotherAfricancountriesincreasedfromR9billionin1997toR30billionin2002,181primarilyintheformofshoppingmalls,fast-foodoutlets,foodandretailchainsanddepartmentstores.182Between1994and2012,exportstothecontinentrose7.6%from10%withanestimatedvalueofR157billion.183
SouthAfricainvestsinmoreAfricanprojectsthananyothercountry(examplesincludebankingandinsuranceservices,agro-processing,informationtechnologyandtelecommunications),althoughtheamountinvestedisnotthehighest.184India,theUnitedStates,UnitedKingdom,CanadaandChinainvestthemostcapitalinthecontinent.185Thenumberofoverallprojectshasincreasedbyover500%inthelastdecade,with75initiatedin2013aloneataninvestmentofR14billion.186AccordingtoErnst&Young’slatest2014AttractivenessSurvey,Africahasrapidlymoveduptheranksfromthirdlastin2011tosecond-mostattractiveinvestmentdestinationintheworldin2014.187Thevalueofforeigndirectinvestmentprojectsonthe
continentby2014wasUS$52,6billion,withanincreasingnumberofintra-Africanprojects(22.8%in2013)encouragedbythecreationofregionalvaluechainsandstrongerregionalintegration.188SouthAfricaleadsthewayvis-à-visintra-Africanprojects,followedbyKenyaandNigeria.189Therehasbeenashiftinprojectfocusfromtheextractiveindustries(miningofmetalsandcoal,oilandnaturalgas)toconsumer-relatedindustries(includingmediaandtelecommunications,technology,retail,consumerproductsandfinancialservices).190Ernst&YoungestimatesthatSouthAfrica’sforeigndirectinvestmentintoAfricahascreatedover45,000jobssince2003.191
SouthAfricancompanieshavealsoexpandedservices(bankingandinsurance)tothecontinent.StandardBankoperatesin17Africancountries;AbsaboughttheAfricashareofBarclays,itsparentcompany,andoperatesin12countries;FirstRandboughttheMerchantBankofGhana;andNedbankhasaccessto35Africancountriesthroughits20%stakeinEcobank.192
RetailingTheSouthAfricanfoodretailmarketisdominatedbyfourcompanies—Shoprite,Pick‘nPay,WoolworthsandSpar.Theformertwoenterprisesdominatetheformalsector,eachofthemhavingacquiredaround40%controlby2003.193SouthAfricansupermarketsareenteringAfricainsearchofhighprofitratesandtoescapethesaturationornearsaturationofthelocalmarket.
Shoprite,nowAfrica’sbiggestsupermarketchain,operatesthrough1,525corporateand377franchiseoutletsin16Africancountries;by2010itheld34%ofthesupermarketmarketshareonthecontinent.194FurtherexpansionplansincludebuildingaregionaldistributioncentreinNigeriaalongwithanother20to30storesandbuildingalogisticscentreinAngolawithanadditional21stores.ShopritewasthefirstSouthAfricanretailertoopenintheDRC.HavingafootprintinmorethanoneAfricancountryisbeneficialfortheexpandingagribusiness.Itreducestheriskofpoliticalandeconomicinstabilityhavingadevastatingeffectonearnings;itallowsforanearly-moveradvantageinunderdevelopedmarkets;anditprovidessufficientscaletomaximiseprofits.195
14 A F R I C A N C E N T R E F O R B I O S A F E T Y
ShopriteisanexampleofanagribusinessthathasbuiltupanextensiveAfricanportfolioallowingittoweatherdownturnsinindividualcountries.196Thecompanyhasovercomethedifficultyofsuitablelocationsthroughthegroup’sownpropertydivisionthatresearches,identifiesandleasespremisesordevelopsnewshoppingcentrestoaccommodatethesupermarket.197
LocalrivalPicknPayhas100storesinAfrica;SparhasstoresinNamibia,Botswana,Mozambique,ZimbabweandSwaziland;andWoolworthsoperates59storesinBotswana,Namibia,Lesotho,Swaziland,Ghana,Kenya,Tanzania,Uganda,ZambiaandMozambique,withplanstoopenanadditional15storesby2017.198Thesegroupsareleasingpremisesandcitethelackofretailspaceasafactorinhibitinggrowth.199Massmart,whichoperatesin11sub-SaharancountriesincludingNigeria,TanzaniaandGhana,isplanningtoopentwostoresinAngolain2015andafurthertwoby2017.200ItwillalsobuilditsownstoreinKenya,havingbeenunabletoattainmarketsharethroughacquisitions,andislookingforopportunitiestoexpandtoSenegalandCameroon.201
Agro-processingFoodprocessingcompaniesdrivetheAfricanagro-foodsector202byturningprimaryagriculturalproductsintoconsumablecommodities.203InSouthAfrica,thesectorisdominatedbymultinationalcompanies—10%ofagro-processingcompaniesareresponsiblefor70%ofthesector’sturnover.204TigerBrands,involvedinmillingandprocessingofmaizeandwheat,holds50%ofmarketshare,205aswellas25%ofthebreadmarket.206
Ontherestofthecontinent,multinationalssuchasUnilever,Parmalat,Nestle,Danone,Cadbury,Syngenta,CloverandDangoteFlourMills(TigerBrandsholdsa63.35%shareholding)holdstrongmarketpositions.However,therearealsoAfricancompanieswithextensivereach,includingBIDCO(anedibleoilprocessingcompanyheadquarteredinKenya),EastAfricanBreweries,CheetahMalawi,(whichsellsprocessedindigenousspicesacrosseasternandsouthernAfrica),207TigerBrands,RainbowChickenandAstralFoods.
Thesectordisplaysvarieddegreesofconsolidation.Thetopfiveagro-processingcompaniesinSouthAfricaaccountfornearly40%oftheagro-foodrevenueofthecountry,whileinNigeria,thetopfiveaccountforonly11%.208Agro-processingisseenasavitalactivitytocounteractAfrica’sincreasingimportationofmajorcommodities—currentlythecontinentimports72%ofthese,includingitsstaplefoods.209
Rapidurbanisationrates(itisestimatedthatby2030Africa’stop18citieswillhaveacombinedspendingpowerofUS$1.3trillion210)drivemarketopportunitiesintheprocessingsector.Urbanisationistraditionallyaccompaniedbyanutritiontransition,whichreferstothechangeindietfromtraditionalfoodconsumption(dietsprimarilyderivedfromplant-basedfoodsources,lowinfatandhighinfibre)tomorewestern-styledietsthatareenergy-denseandlowinfibre.211Theurbandietencouragesanincreasedconsumptionofprocessedfoodswhich,inturn,impliesincreasedprofitmarginsforagro-processors.212
SouthAfricanprocessinggiantsaremakinginroadsintotheAfricanmarket.TigerBrandshascontrollingsharesinHacoinKenya;theChocolaterieConsiferieCamerounaiseinCameroon;DangoteFlourMillsandUACFoodsinNigeria;NationalFoodHoldingsinZimbabwe;EastAfricanTigerBrandsinEthiopia;andfullcontrolofDeliFoodsinNigeria.213Itsmajoritystake(63.35%)inDangoteFlourMillsgivesitsubstantialmarketshareintheconsolidatedNigerianflourmillingindustrywherejustthreeproducerscontrol80%ofthemarket.TigerBrandsalsoexportsitsproductsthroughoutthecontinent,214withadistributionnetworkthatspansmorethan22Africancountries.215Besidesthat,ithasa
Africa an El Dorado for South Africa’s Agribusiness Giants 15
substantialshareholding(41.92%)inanotherSouthAfrican‘giant’—theOceanaGroup.
OceanaGroupisSouthAfrica’slargestfishingcompanyandhassubstantialcoldstoragefacilitiesinSouthAfrica(110,000refrigeratingpalletpositionsforfishandfruit)216andNamibiawhereitalsohasalargestakeintheindustry.217Thegroup’sstatedpurposeis“tobeAfrica’smostefficientconverteroffishingrightsintovalue”.218AlthoughitcurrentlyhasfacilitiesinSouthAfricaandNamibiaonly,thegroupsellsitsproductsthrough23operatingsubsidiariesintotheAfricanmarket.219ThreemillionofitsLuckyStarmealsandabout1.4millionofitshorsemackerelmealsareconsumedeachdayinAfrica.220HorsemackerelissoldintoAngola,Cameroon,DemocraticRepublicofCongo,Mozambique,Namibia,ZambiaandZimbabwe.221Oceanaisontheacquisitionpathtobuyupfishingrightsandinmid-2014itacquiredconditionalapprovalfromSouthAfrican’sCompetitionTribunaltopurchaseFoodcorp’sfishingbusiness.222Foodcorp,SouthAfrica’sthirdlargestfoodproducer,isitselfawholly-ownedsubsidiaryofNewFoodHoldings(Pty)Ltd,whichiscontrolledbyCapitauInvestmentManagementLimited,whichiscontrolledbyRCLFoods.223
RCLFoodsencompassesRainbowChicken,TSB(oneofSouthAfrica’slargestsugarproducerswitha32%interestintheRoyalSwazilandSugarCorporation)andVectorLogisticsSolutions.224Itownsa25%shareinUnilever,225amultinationalconsumergoodscompanywithover400brands.RainbowChickenisSouthAfrica’slargestprocessorandmarketerofchicken;itbreedsandrearsitsownlivestockandownsfivefeedmills,sixprocessingplants,distributionandmarketingchannels.226OverfourmillionchickenpiecesaresoldinSouthAfricaeveryweek.227RCLhasenteredintojointventuresonthecontinenttoexpanditsmarkets.TheseventuresincludeZambeef’sbeefandchickenoperationsinZambia.228ZambeefalsohasoperationsinGhanaandNigeria229anditoperatesShoprite’sin-housebutcheriesinZambia,GhanaandNigeria.RCLFoodswillinvestinanewrearing,layingandhatchingoperationinZambiaoverthenextfewyears.230In2014,RCLFoodsacquireda49%stakeinBotswana’sbiggestcoldchaindistributionfirm,SennFoodLogistics,forclose
onR80million.231This,incombinationwithVectorLogistics’long-termplansforexpansionintootherAfricancountries,ensuresreliabledistributionchannelsforRCLFoodsandcapturesthelogistics,salesanddistributionmarketopportunitiesinthosecountries.232However,RainbowisnottheonlySouthAfricanpoultrycompanyinterestedinnewAfricanmarkets.
Astral,witha22%shareoftheSouthAfricanpoultrymarket,iscloseontheheelsofRainbowwithits23%share.233Itisanintegratedpoultryproducermanufacturinganimalfeeds,involvedinbroilergeneticsandtheproductionandsaleofday-oldchicks.234ThecompanyhasbeenoperatingapoultryfeedbusinessinZambiaforsomeyearsandinJune2010itopenedTigerChicks,anewstate-of-the-artbroilerbreedingfarmandhatchery,alsoinZambia.235Inaddition,AstralsupplieschicksandhatchingeggstoindependentoperationsinSwaziland,BotswanaandMozambique.236In2012,thecompanyopenedahatcheryinMozambique,acountrythatimportsmostofitspoultryrequirements,andisconsideringexpandingtheoperationtoincludebroilerproductionandslaughteringfacilities.237Inearly2014Astralenteredintoalong-termsupplyagreementwithQuantumFoods,forabout550,000broilersaweek.238QuantumfallswithinthePioneerFoodGroup.239
PioneerFoodshasprioritisedAfricaforgrowth,flaggingthecontinentas“asignificantopportunityforthegroupinthemediumterm”.240Pioneer’sAfricanoperationsspanBotswana,Namibia,ZambiaandUganda.241Inmid-2014BraitannounceditwaslookingforopportunitiesforitsPremierFoodstoexpandinthefast-movingconsumergoodsmarketintherestofAfrica,242whilebeer-brewinggiant,SouthAfricanBreweries(SAB),hasbeenoperatinginAfricaforyears.SABhasbusinessoperationsin15Africancountriesandastakein21othercountries,throughanalliancewithCastel,aFrench-ownedfirm.243Home-brewersandbootleggerssupplytwo-thirdsofallalcoholconsumedinAfrica244andSABispursuingthecaptureofthelower-incomeendofthebeermarketthroughmakingimitationsoflocalbeersthatarenotpreserved;theNigerianbrandiscalledShake-Shakeasthecartonhastobeshakenbeforedrinking
16 A F R I C A N C E N T R E F O R B I O S A F E T Y
tomixthesediment.Thisbrandisnowsoldin11countries.245TheexpansionofSABMillerhasincreasedopportunitiesforlocalfarmerswhosupplythecassavaandsorghumforthecompany’seconomy-brandlagers.246
AFGRIhasanextensivefootprintbothgeographicallyandacrosstheagribusinessspectrum.IthasJohnDeeredealershipsandequipmentoutletsinZambia,Congo-BrazzavilleandGhana;grainprocurementandstoragefacilitiesinZimbabwe;financialservicecentresinZimbabweandUganda;anda51%ownershipofBnotHarelinNigeria,anagriculturalpharmaceuticalcompanythatalsodealsinanimalfeedsandday-oldchickhatcherysupplies.247
CompaniessuchasPioneerFoodsbenefitfromcheapimportsofsubstanceslikesugarintoSouthAfrica,butanincreaseinsugarpriceswillmeanreducingsugarcontentorswitchingtoartificialsweetenersinitsproductswhileSouthAfrica’ssugargiantsaretakingstrainandlookingtoAfricanoperationstoprovide
higherreturnsoninvestment.248TongaatHulettandIllovobothhavefarmingandagro-processingplantsinAfricancountries—thesetwocompaniesarediscussedinmoredetailonlateroninthepaper.
FarmingAfricanfarmland,historicallyignoredbyinvestmentfunds,isbecomingacorecommodityofinvestmentportfolios.Thisisstimulatedbytheemphasisonmorepredictablefarmingsystems—theuseoftechnology,biotechexpertise,geneticsandland-managementpractices—toincreaseyields.249Besidestheopportunitytogrowcommoditycropsforexport,Africa’srapidlyincreasingurbanpopulation(thepopulationof30Africancitiesisexpectedtodoubleby2050)250presentsexcitingopportunitiesforforeignandlocalfarmers,growersandretailerstorakeinprofits.
ExpansionbySouthAfricanfarmersintoAfricadeviatesfromthenorm.African
AgriSA facilitates South African farming expansion
AgriSA,aunionrepresenting70,000large-andsmall-scalefarmersinSouthAfrica,hasanAfricaPolicyCommitteethathelpstosecurefundingforSouthAfricanfarmerswantingtoextendtheirfarmingoperationstootherAfricancountries.254Theorganisationhasbeenapproachedinitsprivatecapacitybymorethan20Africancountries(includingCongo-Brazzaville,Senegal,Uganda,AngolaandLibya)255lookingtorecruitSouthAfricancommercialgrowers.256Currently,theorganisationisinvolvedintalkswithgovernmenttoworkoutasystemofprotectionforSouthAfricanfarmersoperatinginAfrica,giventheSouthAfricangovernment’sdecisionnottorenewexpiringbilateraltreaties.257ExistingAgriSA-initiatedassociationsinCongo-Brazzaville(theCongoFarmer’sUnion)andMozambique(AgriSAMoz)arepreparingfordiscussionstonegotiateagreementsthatwillhaveinternationalvalidityandstanding.258AgriSAhasformedAgriAllAfricatoexploreissuessuchastheseandthegroupisnegotiatingwithmajorinputsuppliersandorganisationsonthecontinent,suchastheNEPADBusinessFoundation.259ItisalsointheprocessofsettingupassociationsinZambia,theDRC,Malawi,Tanzania,GabonandAngola.260TheorganisationspecifiestheminimumconditionsthatcountriesneedtomeetbeforeAgriSA-affiliatedcommercialfarmerswillbeginoperations.Theseincludeagreementsonland-userights,leasingorfulltitle(landmustbefreeormadeavailableataminimumcost);farmersmustenjoytaxholidayswhileestablishingoperationsandreducedimportdutiesonfarminputsandequipment;protectivemeasuresforinvestments,incomeandpropertymustbeinplace;andtherepatriationofprofitsandthereasonableassuranceofsafety.261AllfarminginitiativesinwhichAgriSAhasplayedafacilitatingrolemustconformtocertainstandards.262Theinitiativemustarisefrom“broadnationalconsensusandageneralneedinthatcountry”;itmustbedriven“outsidetheparty-politicalarena”;andtheinvolvementofSouthAfricanfarmersinthehostmarketmaynotresultinunfaircompetitionforlocalproducersbut“shouldcontributemeasurablytothedevelopmentofnewmarkets”.263AgriSAisamemberoftheSouthernAfricanConfederationofAgriculturalUnions,alongwith17otherorganisationsin12Africancountries.264
Africa an El Dorado for South Africa’s Agribusiness Giants 17
countriesareactivelywooingthecountry’scommercialfarmersinattemptstoraisetheirownproductionlevels,whileSouthAfricanfarmersareacquiringandleasinglandinotherAfricancountriestocreateplatformsfromwhichtheycancompetemoreeffectivelyonlocalandglobalmarkets(particularlyagainstSouthAmericanrivals),251aswellaswantingtodiversifyfromtheunstablepoliticalandeconomicclimateinSouthAfrica.252Manyareaffectedbycommoditypricefluctuationsandfarmgateprices—whichescalatewithincreasesininputcosts(seed,water,fertiliser)andbusinesscosts(electricity,labour,otheroverheads).253
SouthAfricanfarmersproducegrapesinEgyptandareconsideringolivefarmingandprocessinginMoroccoandsugarandbananaoperationsinSudan,aswellassugaroperationsinMozambique.265ThemostpublicisedofthesedealswasthatbetweenAgriSAandtheCongolesegovernmentwhichledto15SouthAfricancommercialfarmers(partofagroupof70)settingoffin2010onanother‘greattrek’toreachthe80,000hectaresgrantedtothem—afurther10millionisavailable—inanarea50kmnorthofDolisieintheNiariProvinceofCongo-Brazzaville.ThedealwasuniqueinthatitwasbrokeredbetweentheCongolesegovernmentandafarmers’union—AgriSA.Congo-BrazzavillehadapproachedAgriSAin2009,lookingtorecruitcommercialfarmers.ThestructureddealisgovernedbyabilateralagreementbetweentheCongoleseandSouthAfricangovernments.ThefarmsintheCongoareseenasextensionsoftheSouthAfricanfarmersexistingbusinessoperationsintheirhomecountry.Thedealcomprisesa30-yearlease(withthepossibilityofextension),taxexemptionsonimports,afive-yeartaxholidayandtherepatriationofprofitstoanylocation.Intheeventofexpropriationofland,farmerswillbecompensatedforland,infrastructureandlossofproduction.Asingledry-landhectareintheCongocanyield10tonsofmaizeasopposedto3tonsinSouthAfrica.TheCongolesestate-ownedlandwasclassifiedasunder-utilisedandunoccupied,butlocalfarminggroupshaveindicatedthatitwasbeingusedbysubsistencefarmers.TheCongolesegovernmentseestheinitiativeasapotentialavenuetoreducethecountry’sdebtlevelsthroughreducedfood
importsandnewfoodexportsintotheregion.TheSouthAfricafarmerssaytheyaretheretodiversifytheirbusinesses;assistlocalfarmerstocommerciallydeveloptheirownland;andtransferskillsandtechnology.Itisimportanttonotethatthesegroupsareextendingtheirbusinessoperationsandnotrelocating.
ProcessinggiantsIllovo,TSBandTongaatHulettallproducesugarinBotswana,Mozambique,Namibia,SouthAfrica,SwazilandandZimbabwe,throughownershipofpreviouslystate-ownedestates,out-growerschemeslinkedtocoreestatesandmills,andcontractfarmers.266Tongaat-Hulett,whichproducesrefinedcarbohydrateproductsfromsugarandmaize,includinganimalfeed,isalsoAfrica’sbiggestproducerofstarchandglucose.267Thecompanyhasanextensivefootprint—morethan300,000hectaresofland—anditworksin27locationsinSouthAfrica,Botswana,Namibia,Swaziland,MozambiqueandZimbabwe.268ItsprimesugarestatesareinZimbabwe,MozambiqueandSwaziland,withpackinganddistributionoperationsinBotswanaandNamibia.269
IllovoSugarisAfrica’sbiggestsugarproducer,operatingfromsixAfricancountriesandproducingmorethantwomilliontonsofsugarannually.270Italsoproducesarangeofdownstreamproducts,includinghigh-qualityalcoholfordistillingpurposes.ThecompanyoperatesinZambia,Zimbabwe,Tanzania,Malawi,Swaziland,SouthAfricaandMozambique,271althoughitmustbenotedthatin1996itsoldoffmostofitsestatesinSouthAfricaduetothethreatoflandreform.Itbeganacquiringmajorityshareholdingsfrom1996onwardsinIllovoSugarMalawi,theonlysugarproducerinthecountry(76%);ZambiaSugar,theleadingsugarproducerinthecountry(82%);KilomberoTanzania(55%);UbomboSwaziland(60%);andMaragraMozambique(90%).272Besidesthemarketopportunitiesofferedbysugar-importingAfricancountries—Africa’ssugardemandisgrowingat3.6%annually273—thesecompaniesarewell-poisedtotakeadvantageofthegrowingdemandforethanolandrenewableelectricityintheSouthernAfricanDevelopmentCommunity(SADC)region.
Tongaat-Hulettidentifiesethanolproductionasincreasinglyimportanttoitsbusinessand
18 A F R I C A N C E N T R E F O R B I O S A F E T Y
planstoconstructlarge-scaleelectricityplantsatitsSouthAfricanmillsin2014and2015,aswellasalarge-scalebio-ethanolplantatoneofmills.274AtitsMozambican,SouthAfricanandZimbabweanplantsthesugarmillsarealreadygeneratingelectricityandtheplantinZimbabweproducesethanol.275IllovoinvestedinproductionfacilitiesinTanzaniaandbeganmakingethanolfrommolassesin2013.ItisconsideringstartingfuelandpotableethanolproductioninZambiaandMalawi.276ThesugarmillinSwazilandproduceselectricityfrombagasseco-generationandsellsitintothenationalpowergrid.277Thecompanyalreadyproduces91%ofitsownenergyrequirementsfromrenewableresourcesandislookingatthepotentialofco-generatingelectricitytobesoldintotheSouthAfricannationalgrid.278
Inputs—with a focus on seedsLowagriculturalproductionlevelsinAfricaareblamedonthelackofimprovedseedandinputs(syntheticfertilisers,pesticidesandherbicides).Aspartofthe‘modernistparadigm’embodiedbyorganisationssuchastheAllianceforaGreenRevolutioninAfrica(AGRA,)thereisemphasisonincreasingthesupplyandqualityofinputstoAfricanfarmers.279TheWorldBank,forexample,claimsthatitisthelowuseofmoderninputsandagro-technologiesthatseverelyconstrainsthegrowthofcompetitiveagribusinessonthecontinent.280
Seedsarebigbusiness.TheglobalcommercialseedmarketwasestimatedtobeworthUS$45
billionin2012;in2014SouthAfrica’sshareisaboutUS$450millionandtheAfricanmarketisestimatedtobeworthUS$1.1billion—andthisisenoughseedtocultivateonlyonetenthofarableland.281Tencompaniescontrol75%oftheworld’scommercialseedmarket282283andthreeofthemdominate:Monsanto(23%ofmarketsharein2007),DuPont(15%ofmarketsharein2007)andSyngenta(9%ofmarketsharein2007).284Thesecompaniesarealsopesticideproducersthatfocusonthedevelopmentofproprietaryhybridandgeneticallymodifiedseed.285TheyareallmarketleadersontheAfricancontinent,togetherwithVilmorin,Technosem,Baddar,286asaretheincreasingchainsofsmall-scalesupplierssetupthroughtheAGRAinitiative,ProgrammeforAfrica’sSeedSystems(PASS).Theprogrammehasassisted80smalltomedium-sizedAfricancompaniestoproduce80,000tonsofcertifiedseedin2014.287
Maizeaccountsforaround50%ofcommercialseedsalesinAfrica,vegetablesforabout24%(mainlyimportedseed)andwheatforabout13%.288Maizeandwheatarestaplefoodcrops,aswellasbeingcommodityexportcrops.
MonsantooperatesinAlgeria,BurkinaFaso,Kenya,Malawi,Morocco,SouthAfricaandZimbabwe289andSyngentaplanstoexpandfurther,havingcommittedtobuildingaUS$1billionbusinessinAfricaby2022.290NotablepartnershipsforSyngentaincludecollaborationwithKilimoSalama,toofferinsurance,andUWEZO,atrainingprogrammeforsmallholdersinKenyaandtheAfricaAcademy,launchedin2013,whichprovideseducationforfarmingsystems.291ThereareplansforSyngentatoacquireMRISeedZambiaandMRIAgro,Zambia’sleadingdeveloper,produceranddistributorofwhitemaizeseed.292ThiscropiscriticaltoAfrica’sfuturefoodsecurityandthemarkethashighgrowthpotential.293Inaddition,thegermplasmlibraryattheTorreyMesaResearchInstitute(TMRI)containsoneofthemostcomprehensivecollectionsofAfrica’sdiversegeneticresources.294
In2012,SouthAfrica’sCompetitionAppealCourtapprovedthemergerofPannarwithPioneerHi-Bred(afullyownedsubsidiaryofDuPont)resultinginSouthAfrica’scommercialseedmarketbeingdominatedbytwoUnitedStates-basedcompanies(Pioneer
Africa an El Dorado for South Africa’s Agribusiness Giants 19
andMonsanto)affordingthemalmosttotalownershipofthegermplasmforthecountry’sstaplefoodcrops—whitemaizeandwheat.PioneerHi-Bred’spurchaseofPannar,SouthAfrica’sbiggestseedcompany,providesaccesstothecompany’suniquemaizegermplasmlibrarydevelopedoverthelast50yearsinAfricantestingconditions,aswellasaccesstoPioneer’sAfricannetwork.ThisisanexampleofinternationalagribusinessenteringthecontinentthroughmergersandacquisitionswithSouthAfricanagribusinessgiants.
PannarhasbeensellingseedsinandfromSouthAfricasince1958andwasthefirstprivatecompanytointroduceitsownmaizehybridsinthe1960s.TodayithascompaniesineightothercountriesandeightAfricanresearchandseed-conditioningstations—fiveinAfrica,twointheUnitedStatesandoneinArgentina.Pioneer-Pannaremploysover300peopleinAfricaandservicesmorethanhalfamillioncustomers.
Pannarconcentratesonmaize,wheat,sunflower,grainandforagesorghum,soybeansanddrybeans.Thedemandfor‘improved’maizeseedinAfricaisgrowingwith35millionhectaresavailableformaizeproduction.Accordingtothe2013DataBookofitsparentcompany,DuPont,acriticalelementofthegrowthstrategyisto“advanceourpenetrationinrapidlygrowingdevelopingmarkets”andacquiringPannarwasasignificantsteptowardsbringing“technologicalinnovationtoagricultureinAfrica”.295Thecompany’sshareholdershavebenefittedfromUS$1.3billiongeneratedincashflowandUS$2.7billionpaidoutindividendsandsharerepurchases.Inits2013lettertoshareholders,DuPontnotesthatAfrica’sgrowingpopulationoffers“abundantopportunitiesforsciencetomakeadifferenceinfeedingpeople”andthatitiswell-positionedto“providesolutionstothesechallenges”.
Seedoccupiesauniquepositionasthe“platformfortechno-economictransformation”ofagriculture,296andisperceivedastheidealvehicleforsellingproprietarygenetictraits,297thankstoitscaptivemarket(theworld’sfarmers)andanestablisheddistributionnetwork298.Theembeddedintellectualpropertyineachseedcanbechargedforrepeatedly,withoutre-investmentininitial
research,developmentandregulatorycosts.299Beyondthis,seedofferscorporationstheopportunitytocapturerevenuederivingfromcomplementarysalesofchemicalproducts.300
MostseedcurrentlyusedinAfricaissavedonfarmsorexchangedwithfamilyand/orcommunitymembers.Thisimpliestheexistenceofavastandrelativelyuntappedmarketforseed,inparticularforsalesofimprovedseed—i.e.hybridisedorgeneticallymodified(GM)seed—withthepromiseofhigheryields.Forexample,Tanzania’spotentialmarketformaizeseedis70,000metrictonsandonly7,500ofthisiscurrentlyhybridseed.301HybridisedandGMseedrequiresapackageofinputstorealiseitsyieldpotential.Thus,asthemarketforthesetypesofseedsgrows,sodoesthemarketforthemandatedinputs—fertiliser,herbicidesandpesticides.
Public-privatepartnershipsbetweenmultinationalseedcompaniesandAfricangovernmentsandregionalbodiesalsoenableaccesstolocalgermplasmandgeneticresources.Onceaccessed,whatoncewaspublicisprivatisedandprotectedthroughpatentingtoproducecorporateprofit.302Itisworthnotingthatcorporateseedcompaniesrequiregeneticrawmaterialtocreatepatentedseedandthesystemrequiresanannualinjectionof7%newgeneticmaterialeachyear.303
Support for Agribusiness Expansation in Africa
SouthAfricanagribusinessfacesthesamechallengesinAfricanmarketsaslocalenterprises.Theseincludepoorandfragmentedinfrastructure;304thelackofhumancapacity,particularlyforhigh-skilledwork;305cumbersomeandonerousregulations;securinglocalfinance;306andcomplexandoftenundocumentedlandtenuresystems.307/308TheWorldEconomicForum,theWorldBank,and
20 A F R I C A N C E N T R E F O R B I O S A F E T Y
theAfricanDevelopmentBankhaveidentifiedthetopthreechallengestoconductingbusinessinAfricaasfinancing,corruptionandinfrastructurechallenges.309
However,SouthAfricanagribusinessisoftenatanadvantageoveritsAfricancounterparts.Ithascapacityintermsofexpertiseandleverageinthesector,310accesstocapitalandinfluence,accesstoorownershipofadvancedtechnology,theabilitytouseeconomiesofscaleandreceivesthebenefitofdirectandindirectsubsidies.ChallengestoandadvantagesheldbySouthAfrica’sagribusinessarediscussedfurtherbelow.
Infrastructure and incentives
ThelackofadequateInfrastructureisamajorimpedimenttothegrowthofagribusinessinAfrica.Infrastructureencompassesroads,railways,powerandcommunication,aswellassocialinfrastructure—watersupply,sanitation,sewagedisposal,educationandhealth.311Thecontinenthastheworld’slowestelectrificationrate(30.5%),verylowraildensity(lessthan3kmperthousandkms2)312andreliablepowersupplyisfrequentlyunavailable313—citizensin30ofthe47countriesfaceregularpoweroutagesandinterruptions.314Inaddition,thecontinenthasthehighesttransportcostsintheworld.HalfofallAfricanfarmerslivemorethanfivehoursawayfromamarket315andfewAfricancitizenslivewithin2kmofanall-weatherroad—about32%inKenya,31%inAngola,26%inMalawi,24%inTanzania,18%inMaliand10.5%inEthiopia.316Further,Africahasroadsurfacesononly152kmper1,000squarekm2ofland.317
SouthAfrica’s2011NationalDevelopmentPlan(NDP)highlightsthecontinent’s“massiveinfrastructuredeficit”asakeychallengeforAfrica.318BridgingthisgapwillcostaboutUS$93billionperyear,about40%ofwhichneedstobespentonthepowersector.319TigerBrandscitesthelackofinfrastructure,particularlyinenergy,waterandtransport,asachallengetoconductingbusinessinAfrica,320whileClovernotesthatlonger-termexpansionintotheregionwillrequirethecompanytoinvestindevelopingitsowninfrastructure.321ThelackofrefrigerationfacilitiesinmanycountriesposesaproblemtocompaniessuchasClover,RainbowandAstralthatworkwith
chilledandambientproducts.322Thelackofinfrastructurehasaknock-oneffectforfactorssuchasrents,whicharedeterminedbythehighcostofdevelopment.323WoolworthscloseditsthreepilotstoresinNigeriain2013duetohighrentalcosts,complexsupplychainissuesandinfrastructuraldifficulties,whichlimitedprofit.324Transportcostsareanothernegativefactor—theprofitmarginsmadebyAfrica’struckingcartelsareexceptionallyhigh,reaching160%inWestAfrica.325InCameroon,transportingcassavaovera130kmdistanceaccountsforupto35%ofthecostofthefinalproduct.326Inthemid-1990swhenRwandatackledthisthornyissueandreformeditstruckingrules,pricesfellby75%.327
TheabilitytoinvestininfrastructuredevelopmentisaprimeadvantageforSouthAfricanagribusiness,whetheritisinthehomeorhostcountry.Forexample,ShopritehasbuiltshoppingmallsandcentrestohouseitssupermarketsandisconcludingajointpropertydevelopmentventurewithStandardBankandtheResilientPropertyIncomeFundtofacilitatefurtherexpansion.328ResilienthasincreasedtoR1billionitscapitalallocationtodevelopingpropertiesinNigeriafortheventure;twopropertiesareunderdevelopmentandnegotiationsforafurthersixsitesareinthepipeline.329
Besidesdirectinvestment,corporateagribusinessbenefitsalsofromindirectsubsidisationarisingfromstateinfrastructuralspending.Agribusinessrequiresanenormousamountofinfrastructure;muchofthecostofthisisnotbornebythecompanyitselfbutratherbytaxpayersinthehostcountry.330 Africancountriesareatthestartofa20–30yearinfrastructureinvestmentcycleandhavecommittedbillionsofdollarstoimprovingthecontinent’sinfrastructure.331ThroughitsinvolvementintheAfricanUnionanditschairmanshipofthePresidentialInfrastructureChampioningInitiativewithintheNewPartnershipforAfrica’sDevelopment(NEPAD),SouthAfricacontributestoregionalintegrationstrategiesthatemphasiseinfrastructuredevelopment.332Governmentinvestmentincommunicationstechnology,includingsatellitesandinternetcapabilities,isanotherindirectsubsidythatfacilitatestheefficiencyofagribusinessandhenceitsprofitability.333
Africa an El Dorado for South Africa’s Agribusiness Giants 21
Governmentinvestmentinportsandairports,whichfacilitatethefasttransferofgoodsfromoneendoftheworldtotheother,isanotherformofindirectsubsidy.334Manyoftheitemsimportedfromoverseasaresubsidisedbytheirhomegovernment,whereasdomesticsubsidiesinmanydevelopingcountriesarerestrictedbyagreementswithinternationalbodies,suchastradetreatieswiththeWorldTradeOrganisation(WTO).335Theabilityofacompanytobuildregionaldistributionwarehousesandnetworkslowerstheamountofemployeesneeded,allowsthebusinesstobenefitfromregionaleconomiesofscale,336andthuslowerstransactioncosts.337Thisallowsittoovercomethestructuralchallengesfacedbysmallercompetitors.
InthecaseofagribusinessexpansionintoAfrica,severalincentivesareofferedtoforeigninvestors.Anincentivecanbedefinedasanymeasurableadvantagegivenbygovernmenttoaspecificenterpriseorindustry.338Inthiscase,preferentialtaxtreatmentgiventoforeigndirectinvestmentoverlocalinvestmentisanincentivescheme.Foreign-ownedagribusinessinAfricabenefitsfromtheseschemeswhichrangefromdirectincentives(provisionoflandandinfrastructure)toindirect(taxreductions,accelerateddepreciationallowances,taxholidays,andreducedimporttariffs).339Othernon-fiscalincentivesincludesubsidisedfinancing.340
Ghanaallowsforeigncompanies100%ownershipinlocalcompaniesalongwithcorporatetaxrebatesofupto75%,exemptionfromcustomsimportdutiesonplantandmachinery,initialcapitalallowancedepreciationof50%andfullrepatriationofearnings.Italsoallowsforeignownershipoflandthrough50-yearleaseagreementswithoptionstorenew.341Nigeriaoffersunrestrictedcapitalallowanceforagribusinessandguaranteesupto75%ofloanstakenfromlocalcommercialbanks,aswellastaxexemptionforfiveyearsandzerodutiesonagriculturalmachinery.342Zambiaallowstowaiveimportdutiesandvalue-addedtaxandpromisedtoinvestininfrastructure(roadsandpowergrids)ineffortstoattractSouthAfricanfarmers.343Tanzaniahassanctionedzero-ratingofcapitalgoodsandallinputs(fertilisers,pesticidesandherbicides),reducedimporttariffs,defermentofvalue-addedtaxpaymentsandvalue-addedtaxexemptionsonexports,togetherwithfacilitatedaccesstoland344with99-yearleaseagreements.345InMozambiqueagriculturalenterprisesarecurrentlytaxed10%onlyonincome(comparedwithastandardcompanyincometaxof32%)andthisissettodecreaseto2%in2015.346
Incentivesgivenonadiscretionarybasis(appliedonacase-by-casebasisasopposedtobeingbasedonastandard)createopportunitiesforcorruptionandrent-seekingbehaviourbypublicservantsandpoliticians,
EXAMPLES OF INFRASTRUCTURAL ADVANTAGES
• AVI:spentmorethanR500millionontwodeep-seatrawlersandafreezerfactoryshipforitsI&Jbrandin2013.356
• Rainbow:expandeditslocalwarehousingandmillingcapacitytocaterforexpandedAfricansalesin2013.357
• AFGRI:ownsandleasesstoragefacilitiesinGhana,ZambiaandZimbabwe,alongwithgrainbunkersinZambiaandCongo-Brazzaville.358
• Oceana:ownsandoperatesthroughasubsidiary,CCSLogistics,10publicrefrigeratedwarehousefacilitiesinSouthAfricaandNamibia,offeringatotalof110,000refrigeratedpalletpositions,aswellasfruithandling,blastfreezingandtransportservices.359
• TigerBrands:hasadistributionnetworkthatspans22Africancountries.360
• Clover:ownsoneofthelargestchilledandambientdistributionnetworksinSouthAfrica,361comprising13ownedandoperatedfactoriesand21distributioncentres.362
22 A F R I C A N C E N T R E F O R B I O S A F E T Y
particularlyiftheprocessesandproceduresthroughwhichtheincentiveisgrantedarenottransparent.347Forexample,mostlanddealsinAfricainvolvenoorlowlandfeesandnegotiationstakeplacebetweenbeneficiariesandstateintermediaries,348whichcouldencouragethepoliticalelitetodispossesslocalsoftheirlandaswellascontributetorisinglandcosts.349Allowingrepatriationofprofitstothehomecountryand/orexemptionfromtaxationalongwithreducedimportandexporttariffsenablestheflowofmuch-neededcapitaloutofthehostcountry350andthiscanbedoneatveryshortnotice,whichcreatesvolatilityinthehomecountry’seconomy.351Also,arisingfromthemultinationalortransnationalcorporation’sabilitytotransferpricingwithinsubsidiariessothatthetruevalueofproductsenteringandleavingthecountryisnotrecordedaccurately,thehostcountrycanlosethetaxrevenue.352
Thereislittleevidencethattaxincentivesbenefitthehostcountrybuttheseareoftenusedasameanstoamelioratedisadvantageousbusinessconditionsordisablinggovernmentpolicies.353However,thispracticedoesnotnecessarilyincentivisehomecountrygovernmentstore-crafttheirpoliciesandprocedures354whichmayalsobenefitlocalbusinesses.Foreigninvestmentisdeterminedratheronfactorssuchasmarketsize,levelofprivatisation,availabilityofresourcesandeaseofdoingbusiness.355
Human resource issues
Thelackofhumancapacitytodriveeconomicgrowthandtransformationoftheindustrypresentsafurtherhindrancetocapital.FewerchildrengotoschoolinAfricathanonanyothercontinent;halfdonotevengotoprimaryschool363andofthosethatdo,onlyoneinthreeemergeswithbasicliteracyandnumeracyskills;364andofthosegoingtohighschool,only23%graduate.365Over90millionAfricanyouthsfighttofindjobsinthepoorlypaidinformalsector.366
Acountry’sGrossExpenditureonResearchandDevelopment(GERD)ispresentedasapercentageofitsGrossDomesticProduct(GDP).ThisisknownastheGERD/GDPratioandindicatestheamountthatacountry
spendsonresearchanddevelopment.367OnlythreeAfricancountries(Malawi,UgandaandSouthAfrica)spendmorethantheAfricanUniontargetof1%ofGDPonresearchanddevelopment(2010),368whiletheremainderspendlessthan0.48%.369Toalargeextent,mostresearchanddevelopmentisfundedbyinternationaldonorsandprivateforeignorlocalcompanies.370Thenumberofresearcherspermillionpeoplerangesfrom25inMozambique,UgandaandGhanato825inSouthAfrica.371Onaverage,thecontinenthasverylownumbersofMastersandDoctoralgraduates.AgriculturalresearchnolongerdominatestheresearchagendasofAfricancountries,whichfocusmoreonmedicineandrelatedfields,372whileAfrica’sshareofworldsciencecontinuestodecrease.373Africa’sInnovationOutlook,releasedin2010,notesthatthecontinentneedstoinvestsignificantlyindevelopinghumanresources,strengtheningscientificinstitutionsandfundingscience,technologyandengineering.374TheHumanCapitalStrategy(HCS)oftheAfricanDevelopmentBank,(AfDB),releasedin2014,aimstomakehigh-impactinvestmentsineducation,scienceandtechnologytoaddressthiscrisissituation.375TheBankwillsupportinvestmentsinskillsandtechnologyinnovation,socialentrepreneurshipandlendingoperations.376TheseinvestmentsaimtoensurethatAfrica’supcoming‘youthbulge’isanopportunityandnotathreat.377ThereportcitesthehighinvestmentmadebySoutheastAsiaascontributingtohighreturnsonhumanresourcesthathaveenableditsindustrialtransformation.378
ThesestatisticshaveimplicationsforthelevelofinnovationpossiblebylocalfirmsinAfricancountrieswherethelackoffunds,informationandqualifiedpeopledoesnotsupporthome-growninnovation.379Anadditionalbarriertodevelopmentismarketdominationbyestablishedenterprises.380The15thAnnualGlobalCEOSurveybyPricewaterhouseCoopersindicatedthattheshortageoftalentinAfricacurbedinnovationandstifledmarketopportunities.381Almosthalfofthoseinterviewedforthesurveysaidthatthecostofskilledtalentwasclimbinghigherthanexpectedandthatretainingskilledstaffwasachallenge.382
Africa an El Dorado for South Africa’s Agribusiness Giants 23
SouthAfricanagribusinessesbringwiththemhighlyskilledhumanresources,expertiseandexperience,skillsdescribedbyAFGRIaskeytosuccessfulexpansiononthecontinent383theequivalentofwhichareoftenunavailableinthehostcountry.Tongaat-Hulett,forexample,needsworkerswithhighlyspecialisedskillsforcane/sugarandmaize/starchagro-processingandhasinvestedintraininganddevelopmentprogrammes.384Illovoprovidesconsiderabletrainingtoindigenousgrowersinthecountriesinwhichitoperatestoovercometheskillsshortage.385Duringitsexpansionistdriveinthe1990sSABMillerusedskilledSouthAfricanmanagementteamstopenetrateAfricanmarkets,whileSanlamhaspurchasedstakesinexistingbusinessesandbuiltupthecapacityoflocalstaff.386
Integrated regional markets
Weakgovernance,bureaucracy,andonerousandsometimescontradictoryregulationsareoftencitedbycapitalasbarrierstogrowthoftheagribusinesssectorinAfrica.387SouthAfricancorporateagribusinessrequiresstandardisedextensivemarketstobenefitfromeconomiesofscale,whileAfricanfoodandagriculturalmarketsareextremelyfragmentedandofsub-optimalsizeforprivateinvestment.388Forexample,Shopritenotesthatintra-Africantradeischallengingdueto“tedioustradeagreementsandadministration-heavyimport/exportrequirements”.389ThecompanywithdrewfromEgyptin2006despitehavingplannedtoopen100storesthere,citingrestrictivetradepracticesforitsreversal.WoolworthsclosedshopinNigeriaduetothechallengingbusinessenvironmentthere.390Asfarasthesecompaniesareconcerned,inefficiencieswithincustomsagenciesandgovernmentdepartmentsinflictcostlytimedelayswhichimpactnegativelyoncostsandprofits.391
TheWorldBankrecommendsdeepenedmarketreformsofparastatalsandtradepolicies;movingtowardsarule-basedandpredictablepolicyenvironment;acceleratingtheintegrationofmarketsbyimplementingtradeliberalisationschemes,moderninformationandcommunicationtechnology;reducingtransactioncostsandguardingagainstfraudandcorruption.392Tothisextent,AFGRIactively
workswithandsupportseffortsbySADCandtheCommonMarketforEasternandSouthernAfrica(COMESA)tomaintainsustainableagriculturalenterprises.393
Ethiopia,forexample,hasputinplacethefast-trackedadministrationofforeigndirectinvestment—investorsneedtoestablishacompany,developabusinessplanandestablishtheyhavecapacity—then,withinaveryshortperiodoftime,landismadeavailable.394InitsfirstAfricanRetailDevelopmentIndexreport,A.T.KearneyrankedRwandafirstonitslistofdesirablecountriesinwhichtoconductbusiness(basedonitsbusiness-friendlyapproachandrecenteconomicreforms)andthenNigeria(basedonitsrapidurbanisation,youthfulpopulationandrisingmiddleclass).395
RegionaleconomiczonesandharmonisedregulatorysystemsareperceivedasonewayofnavigatingthecomplexitiesofdifferentAfricanmarkets.396COMESA,theEasternAfricanCommunity(EAC)andSADCarethreesuchorganisations.397TogethertheyhaveinitiatedtheTripartiteFreeTradeAreaagreementwhichspans26Africancountriesacrossthecontinent398andintegratesthesethreeregionaleconomiccommunities,aimingtoopenupnewdistributionchannels,addvaluetoprocesses,facilitatemanufacturingandenablebusinessestoachieveeconomiesofscale.399InWestAfricatheEconomicCommunityofWestAfricanStates(ECOWAS)drivesregionalharmonisationefforts.400
SouthAfricasupportsregionalintegrationattheSADC,SouthernAfricanCustomsUnion
24 A F R I C A N C E N T R E F O R B I O S A F E T Y
andtheTripartiteFreeTradeArealevels.InSouthAfrica,ajointpartnershipbetweentheDepartmentofAgriculture,ForestryandFisheriesandSouthAfrica’sagribusinesssector(JADAFA)aimstopromoteagriculturaltradeandagro-industrialinvestmentpartnershipsinAfrica.410JADAFAprovidesinformationonagriculturalmarketstofacilitatethisandtoguideinvestmentandengagementwithstakeholdersintargetcountries.411Regionaleffortsaimedattheharmonisationoftradeandseedlaws,intellectualpropertyrightsandphytosanitaryregulationshavebeenineffectforthepasttwodecades,oftenwithoutparticipationfromcivilsocietyorganisationsinaffectedcountries.
Innovation and technology
Innovationisthecreationofaneworsignificantlyimprovedproductorprocess.412SouthAfrica’sNDPemphasisesthat“Innovationistheprimarydriveroftechnologicalgrowthanddriveshigherlivingstandards”.413TheWorldBankclaimsthatthegrowthofcompetitiveagribusinessinAfricaisseverelyconstrainedbytheminimaluseofmoderninputsandlimitedaccesstoimprovedtechnologies;itproposesthattheuptakeandmoreintensiveuseofimprovedseed,fertilisersandotherinputswouldaddresstheAfricanagriculturalperformancedeficit.414
Technologiesrelevanttoagribusiness,and
REGIONAL BODIES:
COMESA:isdevelopingaregionalagro-foodssectorstrategyforprocessedfoods;401itsSimplifiedCertificateofOriginallowssomeproductsexemption/sfromcomplexcertificationrules.402
ECOWAS:aimstopromoteeconomicintegrationacross15countriesbasedonavisionof“modernandsustainableagriculture,basedontheeffectivenessandefficiencyoffamilyfarmsandthroughthepromotionofagriculturalenterprisesthroughtheinvolvementoftheprivatesector”.403
SADC:itsfunctionistoco-ordinateandharmoniseagriculturalpoliciesandprogrammes.404
KEYAGRICULTURALINITIATIVES:[heading]
UnitedStatesFeedtheFutureprogramme:hungerandfoodsecurityinitiativethatworkswiththeprivatesectortofosterprivatesector-ledgrowthinemergingmarkets.405
AllianceforaGreenRevolutioninAfrica(AGRA):workstoboostfarmproductivityandincomeswithacorefocusontheharmonisationoflawsandpoliciesthatallowforacross-borderflowoftechnology.TheorganisationisprimarilyfundedbytheRockefellerFoundationandtheBillandMelindaGatesFoundation,bothofwhichhavelinkstobiotechnologyresearch;thelatterisashareholderinMonsanto.FormoreinformationonAGRA,refertothepublicationbytheAfricanCentreforBioSafety,(ACB):Giving with one hand and taking with two: A critique of Agra’s African Agriculture Status Report 2013.406
GrowAfrica:apartnershipplatformtoaccelerateinvestmentsinAfricanagriculture.
SouthernAgriculturalCorridorofTanzania:aimstobring350,000hectaresoffarmlandintocultivationwithsupportfromcompaniessuchasDuPont,Monsanto,SyngentaandGeneralMills.407
USAID’sTradeHubSouthernAfrica:aimstofacilitatestructuredtraderegimesandstrengthenregionalorganisations,suchastheSADCSeedTradeAssociation;theseedinformationplatformoftheSouthAfricanNationalSeedOrganisation(SANSOR);andtheRegionalMarketInformationPortal408oftheSouthernAfricanConfederationofAgriculturalUnions(SACAU).
TheEuropeanUnion-SADCInvestmentPromotionProgramme:emphasisesprivate-sectorinvolvement,includingformulationofpolicypositionswithinkeygrowthsectors.409
Africa an El Dorado for South Africa’s Agribusiness Giants 25
perceivedasinnovative,includehybridandGMseed(theinnovationbeingtheproprietaryknowledgeembeddedintheircore);advancesinwarehousing,packaginganddistributionchains;watermanagementtechniques;andinformationandcommunicationtechnology.Thisisnottosaythatthereisnofarm-andcommunity-levelinnovationtakingplaceintheAfricanagriculturalsector.Farmersthemselvesarenormallyinnovative;examplesincludeafarmer-designedhybridbeehive,athree-potcookingplatethatsavesfuelandamethodforgrowingfingermilletfromseedlings—allwinnersattheEastAfricanFarmerInnovationFairin2013.415
WhileearlytechnologiesprovidedSouthAfricanagribusinesseswithanadvantagewhenexpandingintoAfricanmarkets,newerinnovationsandaccesstosophisticatedtechnologiesoffertheadvantageofproductdifferentiation,increasedefficienciesandcostsavings.
SouthAfricanagribusinessesownandusearangeofsophisticatedtechnologies.Forexample,Cloverusesbactofugationtechnologytoextendtheshelflifeofitsfreshmilkto18days—theindustrystandardinSouthAfricais12days.416AVI’sadvancedprocessingofitswet-fishline(i.e.freshfish),commissionedin2013,allowsforimprovedyieldsandcostsavings.417Inaddition,Cloverownsandoperatestheonlyultra-high-temperature(UHT)processedcheeseproductionfacilityinSouthAfrica.418
Innovationwithinthepackagingindustryhasbecomeanimportantinputintermsofthedifferentiationofproducts.419Clover’snewshapetubforbutterisdesignedtobemoreattractiveontheshelfandhas,atthesametime,cutannualproductioncostsbyR1million,420whiletheshelflifeforitslong-lifemilkandTropikafruitjuiceblendshasbeenextended,421servingtoovercomethechallengesofrefrigerationinAfrica.ClaimsofsuccessfromTigerBrandsrestonthe“perpetualrenovationandinnovationofitsbrands”anditconstantlychangesitspackagingandmarketingtosuitindividualcountrymarkets.422PartoftheR567millioninvestedincapitalprojectsbyAVIin2013wasallocatedtoautomatedpackagingatoneofitsplants,inordertoincreaseefficiency.423Shoprite’ssuccessrestsinpartonitsautomatedsupplychainthatallowsfor
centralisedprocurement,whichreducescostsandimprovesservicelevels.424
AFGRI’sworld-classsiloinventorymanagementsystem,includingelectronicsilocertificates,isanexampleofinformationandcommunicationtechnologyaffordingagribusinessanadvantage.425Shoprite’spoint-of-saledevices(10,000ofthemthroughoutthecompany’schainonthecontinent)areusedinan“efficientconsumerresponse”paradigm.Thistechnologyallowssupermarketstoavoidwastageandminimisetheirrisk,aspurchasescanbetrackedandstockisorderedondemand.426ItalsoenablesShopriteautomaticallytoupdatepricesincountrieswithfluctuatinginflationrates,aswellasprovidingfinancialandticketingservicesatthecheck-outcounter.427
Pannar’sexpansionintothemarketalongwithMonsantoandSyngenta,alignedwithAGRA’spushtosetupdistributionchannelsfor“improved”hybridseed,hasimplicationsforAfrica’ssmall-scalefarmers.Whiletheuseofhybridseedcanleadtoimprovedyields,itdoessoonlyundercertainconditions—whenaccompaniedbyfertiliser,pesticideandirrigationuse.428Small-scalefarmersfrequentlycannotaffordmandatedinputsand,ifaccessingcredit,thepurchasethereofcanleadtoindebtedness.Inaddition,dependenceonasystemthatrequiresfarmerstopurchaseseedaneweachyear(hybridseedisdesignedforsingleuse)createsfurtherfinancialburdensforagriculturalists.429Besidesthefinancialimplications,thefarmingsysteminwhichtheseseedsproducebest(highuseofpesticides,fertilisersandwater)isnotconducivetomaintainingagriculturalbiodiversity.430
26 A F R I C A N C E N T R E F O R B I O S A F E T Y
The potential impact on Africa’s agricultural value chain
ThissectionprovidesananalysisofsomeofthepotentialimpactsthatSouthAfricanagribusinessexpansioncouldhaveonthecontinent’sagriculturalvaluechain.
Market structure
Theentryofcapitalised,sophisticatedagribusinessintorelativelyunformedAfricanmarketswhereitenjoysacomparativeadvantage431canchangethestructureofthehostmarketineverything,fromsupplyanddistributionchainstoconsumptionpatterns.432Itscomparativeadvantagesrestonitssizeandbargainingpowerwhichcandeterminepricespaidtosuppliers,433itsabilitytonegotiatemorefavourabletaxconditions,anditscapacitytoharnesseconomiesofscaleacrossitsnetworktoreducetransaction,distributionandmarketingcosts.434Itssuperiorcompetence,knowledge,contactsandsupportservicescandampendomesticentrepreneurshipandcompetitivenessandhindertheemergenceofsmalleroperators.435Inmanycases,theentryoflargecorporatecompaniescanreinforceexistingdualisticeconomicstructuresandincreaseincomeinequalities—inparticularthedividebetweenruralandurbanopportunities—andcontributetotherateofurbanisation.436
Corporateprocessors,suppliersandretailersrequirecertainmarketconditionstoensureareturnoninvestment.Typically,theyneedacriticalmassofconsumers,favourabletaxconditions,infrastructure,accesstocredit,reliableenergysupplies,easeofcross-bordertransactionsandtechnicalexpertise.437Inshort,corporateagribusinessrequiresstandardisedandregulatedmarketsthatminimisecontingenciesandthereforerisk.And,inturn,thegreatertheregulatoryrequirementsareinanindustry,themoreconcentrateditisexpectedtobe,ascostsbecomelessprohibitive
whenspreadoverincreasedproductoutput.438Regulatoryrequirementsincludephytosanitarystandardsthatconformtointernationalregulationsandenabletheeasymovementofgoodsbetweendifferentmarkets.Thishasnegativeimplicationsforsmallerplayerswhocannotcomplywiththeburdenofrequirements439/440andwhoarewithoutthenecessarylevelofbusinesssophisticationandcapital.441
Asexamples,TigerBrandsandShopriteseemintentonpursuingconsolidationoftheirinterestsonthecontinent.TigerBrandscontrols50%oftheSouthAfricanmaizeandwheatmillingandprocessingmarket,togetherwith25%ofthebreadmarket.WithitscontrollingsharesinDangoteFlourMillsinNigeria,ithassubstantialmarketshareinanalreadyconsolidatedflourmillingindustry—Dangoteheld18%ofmarketsharein2008,FlourMillsofNigeria38%,andIdealGroup14%,withthebalancetakenupbymuchsmallerplayers.442Inaddition,TigerBrandshascontrollingsharesincompaniesoperatinginCameroon,Kenya,ZimbabweandEthiopiaandthegroup’sdistributionnetworkinAfricaspans22countries.ItalsohasacontrollingshareinOceana,anotheragribusinessgiantonthecontinent,whoseaimistobe“theleadingempoweredfishingandcommercialcoldstoragecompanyinAfrica”.Consolidationofpowerinagribusinesscanleaddirectlytoeconomiclossforbothsuppliersandconsumers,evidencedbyacalculablelossofincomewhenagribusinessisinapositiontoundermineitscompetitionandincreaseitsownprofitsattheexpenseofeithergroup.443Throughtheexerciseof‘buyerpower’corporateagribusinesscanimposeverticalrestraintsonsuppliers,suchasforcingthemnottoselltocompetitors,ornottosellatlowerprices.444Whencontrolofthefoodsystemshiftstothosewhocontrolsupplyanddistributionasopposedtoproduction,asmallnumberofbuyerscancontrolalargernumberofsellers(amarketformknownasoligopsony)minimisingtheirriskandmaximisingtheirprofit.
ShopritedominatesthesupermarketsceneinSouthAfricaandalreadyhasa34%marketshareinAfrica’ssupermarketsector,operatingin16Africancountries.ThecompanyacknowledgesthatinruralAfrica“theShoprite
Africa an El Dorado for South Africa’s Agribusiness Giants 27
storemaybetheonlystore,resultinginabinarydependencybycommunities”445Expansionofthe‘mega’intonewmarketstendstodisplacethesmallandvariedfarmersandsupplierswhotraditionallyoperateinthatspace.Forexample,by2002theformalsectorinSouthAfricahadovertakentheinformalsector—vendors,smallstandsandspazas(informalconveniencestoresinSouthAfrica).Althoughsupermarketsectorheldlessthan2%ofallfoodretailoutlets,itsshareoftotalfoodretailinSouthAfricawascloseto60%446andthisfigureincreasedto94.5%by2007.447The1,700-oddsupermarketsatthattimehadreplacedanequivalentof350,000spaza-typeshops.Smallshopsprovidemorejobspervolumethansupermarketsandemergingevidenceindicatesthatmegamarketsjettisonthreejobsforeverytwotheycreate.448
TheSouthAfricanDepartmentofAgriculture,ForestryandFisheriesnotesthatthepotentialtocreatesustainablejobsandinclusiveenterpriseswithinthesectorlieswiththesmallandmediummarket,asopposedtocorporationsthatcurrentlydominatethemarket.449Despitethisacknowledgementthough,SouthAfrica,throughthePIC,continuestosupport‘mega’agribusinessinthecountryandeffectivelyitsexpansionintothecontinent.Anothernegativeimpactisfeltbystreetvendorswhoprovideavitalstreamofincometomanyandafoodsecuritynetformanymore.InLagos,Nigeria,theurbanpoorspenduptohalftheirfoodbudgetsonstreetfoodandthroughoutAfricamorethan50%ofchildrenrelyonstreetfoodforalargeportionoftheirdailyintake.450Theseinformalvendors,aswellasstreetmarketsforfruit,vegetables,meatandpoultry,arevitalintheprovisionoffoodtotheurbanpoor.Itisatplaceslikethesethaturbandwellerscanbuyinindividual,muchsmalleramounts,accordingtowhattheycanafford(andmanyofthesesmallerstoresmayevenoffercredit).451Supermarketshavetheability“toraisesellingpricesanddepressinputprices,todeterentry,toredistributeprofittooneself,fromotherfirms,andmoreimportantlytosustainthesebenefitsovertime”.452Inaddition,beingthelinkbetweenconsumersandsuppliers,theretailerisinapowerfulpositiontoinfluencewhatwillbeconsumedandthepriceofthatconsumption.453
Inshort,increasingconsolidationoftheAfricanagribusinessmarketbycorporatecapitalislikelytoshutoutsmallerplayers,decreaseemploymentopportunitiesanddeterminethestructureofanyfuturesystem.
Food production
AsAfricaurbanisesandmillionsgothroughthenutritiontransition,movingfromstaplefoodssuchassorghum,milletandmaizetoanenergy-dense,high-fatandlow-fibreWestern-stylediet,454thetypeofprocessedfoodtheyeathashealthimplications.‘Cheap’andready-madefoodinthesupermarkets,whilecontributingtocalorificintake,oftencontainsmoreunhealthyfats,saltandsugaraswellasloweramountsoffibre,whichcancontributetochronicconditionssuchasobesity,heartdiseaseandstrokes.455Thesearenotconditionsthattheurbanpoorareinanyconditiontotacklefromaretroactiveperspective.Healthhasbeenpositionedasanindividualchoice,howevermarketing,misinformationandthemythofaWesternlifestylecombinetoshapeindividualfoodpreferences—andnowhereisthismoreapparentthaninamodernsupermarket.SouthAfricanagribusinesses,byduplicatinglocalpatternsofproduction,processing,distributionandretailonthecontinent,arearguablyalsoexportingacultureofnutritionalimbalance:obesityandmalnutrition.
ThereisnodoubtthatAfricanfarmersneedsupport.Forexample,poorpost-harveststorageaccountsfor40%loss;thisequates
28 A F R I C A N C E N T R E F O R B I O S A F E T Y
toalossoffoodstaplesvaluedatUS$4billioneveryear.456In2012about18%ofAfrica’smaizeharvestwaslostpost-harvest.457Whatisdebatableishowthisshouldbedone.Thedrivetoincreaseyieldsinorderto“feedtheworld”,whichwasa“rallyingcryforexport-orientatedagriculturalpolicy”intheUnitedStatesinthe1970s,conflatedtheissuesoffoodsecurityandfoodproduction.458Itdidnotthen,anddoesnotnow,takeintoaccountthenegativeenvironmentalandsocialeffectsofhigh-yieldmodernfarming.Thepromotionofuniformity(intermsofcropsandfarmingpractices)acrossabroadspatialscalehasresultedinthehighuseofsyntheticagrichemicalinputsandrelianceonnon-renewableresources;459andincreasedgreenhousegasemissions,whichcontributetoclimatechangeandaradicaldecreaseinbiodiversity.460/461/462/463Climatechangeandbiodiversityhaveadirectbearingontheabilityofhouseholds,communitiesandcountriestoremainfoodsecure.Thosewholookforshort-termprofits,ortoexternalisetheirenvironmentalcost,maynotbetakingthesefactorsintoaccount.464
Thenarrativeonyieldincreasealsodoesnotconsiderthebroader,interlockingfactorsandconstraintsthataffectproductionability,465suchasaccesstoland,capital,information,marketsandwater.Africacannotincreasefoodproductionatthespeedandscalerequiredwithoutharnessingtheproductivepotentialofsmallholderagriculture.466Mostofthesearewomen,workingonplotsoftwohectaresorless.467Theopportunityistohelpthesefarmerscreateasurplus,addvaluetotheir
produceanddevelopasentrepreneurs.468TheInternationalFoodPolicyResearchInstitutefoundthatpromotingstaplefoodproductioncontributedmoretoeconomicgrowththanpromotingexportproduction,asstaplecropshaveamorecentralroleinthelivelihoodsofthepoor.469GiventhatfoodinsecurityinAfricarevolvesaroundproblemsofaccess(poverty)asopposedtoproduction,afocusonyieldsseemscounterintuitive.
Implications for Africa’s food sovereignty movement
TheaggressiveexpansionoforganisedagribusinessexpansionintoAfricahasimplicationsforthecontinent’snascentfoodsovereigntymovement.Foodsovereignty,asdefinedattheNyeleniDeclarationonFoodSovereigntyheldinMaliin2007,is“therightofpeopletohealthyandculturallyappropriatefoodproducedthroughecologicallysoundandsustainablemethodsandtheirrighttodefinetheirownfoodandagriculturesystems.”470Themovementisbuiltontheprinciplesofpeople-centredagrarianreform,ademocraticfoodsystem,seeingfoodasahumanright,agroecologicalproductionmethodsandsolidarityinproduction,redistribution,consumptionandstruggle.471Themovementmakesanessentialconnectionbetweenfoodsovereigntyandpoliticalsovereigntyandarguesagainstacapitalisteconomicsystem.472
Thefindingsofthispaperindicatethatcorporateagribusinessisexpandingrapidlyonthecontinentanditdoesthisthroughaccessingcapital,sophisticatedtechnologyandadvancedlogisticsinfrastructure,aswellasusingitshumanresourcesandmarketknowledgetogenerateanadvantageforitself.ItspresenceinAfricanmarketscanrapidlychangemarketstructurealltogetherandeliminatealternativeoptionsandblocktheemergenceoftheagriculturalsectordesiredbythefoodsovereigntymovement.
Themovementwoulddowelltoconsiderexpandingitsfocusbeyondprimaryproductionandtoengagemoreactivelywiththeentirefood-valuechainfrominputsthroughtoretailing.Inaddition,themovementcouldlookatspecificpointsofinterventionordemandtoensureaspaceforthefoodsovereigntyvision.Theseinclude:
Africa an El Dorado for South Africa’s Agribusiness Giants 29
• Demandingegalitarianfood-valuechains.• Demandingprotectionandsupportoflocal
markets.• Demandingsupportoflocalsystemsof
production,storageanddistribution.• Demandingthatgovernmentsgivestandard,
asopposedtodiscretionary,incentivestoagribusinesses,i.e.thatlocalbusinessreceivedthesameincentivestructureasforeigncapital.
• Demandingthatalltransactionsinvolvinglandaretransparentandthatinformationonthesetransactionsispubliclyadvertisedandtherebeingopportunitiesforpublicconsulationandengagement.
Local innovation
Africahopestobenefitfromtechnologytransferscomingfromforeigndirectinvestmentintheagribusinesssector.Transferoftechnologyisoftenusedasarationaleforencouragingforeigndirectinvestment;however,thewayinwhichtechnologyistransferredisasimportantasthetypeandamountoftechnologybroughtintothecountry.Itsuseandadaptationmustbeallowedtospilloverintolocalproduction,elseitremainsanincome-generatingtoolforthehomecountry.473Thisisparticularlyneededwherethehostcountryallowsrepatriationofprofitsand/ordoesnotimposedoubletaxation.Theimportationofpatentedtechnologycanresultinmarketdominancebytheforeignfirmtothefurtherdetrimentofsmall-scaleenterprises.474
SouthAfrica,arguablythecontinent’smostformalisedeconomy,itselfdisplayslowlevelsoflocalinnovationdespiteitshighinvestmentinresearchanddevelopmentandhigherlevelsofhumanresources.In2011thecountry’sDepartmentofAgriculture,ForestryandFisheriesnotedthatresearchinthepublicsectorhasincreasinglybecomeskewedtowardscommercialsectorinterests.475Thisisinlinewithglobaltrendstowardscommercialisingpublicresearch.476Ifcorporateandforeign-ownedagribusinesseffectivelydominatesamarketandsetsthepricesthiscouldhavenegativeeffectsontechnologyadoptionanddiffusion.477Intellectualpropertyrightsregimesalsoallowagatekeeperfunctiontothosewhoownkeytechnologies.478
Increasinguseoftechnologycanalsoleadtojoblossesonfarms;479thishasparticularlydireconsequencesforsub-SaharanAfricawhichemploysmostofitslabourforceinagriculture.DuPontspokesperson,PaulSchickler,commentedthatwhilethiscouldhappen,hewasconfidentthatawholenewsetofjobopportunitieswouldemerge,althoughadmittedlynotforunskilledlabour.480
Theemphasisontechnologytransferignoresthefactthatlocalinnovationislikelytodeclineinconsolidatedmarketscontrolledbymultinationalagribusiness.481Itismorelikelythatstrengthenedintellectualpropertyrightsandpatentinglawswillprotecttheprofitsofagribusinesscorporations—profitswhichcanbeexpropriatedbacktothehomecountry.TheWorldBank’sDevelopmentReportof2008notestheincreasinglycomplexnatureofagriculturaldevelopment,whichneedstoaddresssocial,environmentalandeconomicsustainability.482Italsostatesthattherelationshipbetweenscienceandsocietyneedstobequestioned—whodirectsthescientificagendaandwhobenefits?483Theabilitytoinnovateandexploittheresultsisincreasinglyamainsourceofcompetitiveadvantageamongknowledgeeconomiesofthedevelopedworld.484
Equity and rights
Economicgrowthdoesnotnecessarilyaddresssocialandstructuralinequities,whichareoftenignoredinthehypearoundthepotentialofagribusinessexpansion.485Africaistheworld’ssecond-mostinequitableregionintheworld,withaverageGinicoefficientscloseto0.45.486Publicdebthasincreasedacrossthesub-Saharanregionfrom29%ofGDPin2008to34%in2013.487CountriessuchasGhana,Malawi,ChadandCameroonareoperatingatseriousfiscaldeficits.488ThefactthatincreasingGDPlevelsinmanyAfricancountries(Ethiopia,Ghana,Nigeria,TanzaniaandZambia)isbeingdrivenbystateinfrastructuralspendingisoftenunder-ratedorignored.489/490Thesupposedbenefitsthataccruetocountriesthatopentheirdoorstoforeignagribusinessinvestmentmustbeseenagainstthebackdropofadrivetocreateuniform,low-riskmarketsthatallowcapitaltogainagoodreturnoninvestment.Itisdifficultforstatestoprotestretroactively
30 A F R I C A N C E N T R E F O R B I O S A F E T Y
theunkeptpromisesofjobopportunities,skillstransferorinfrastructuredevelopment,491particularlyiftheprofitsandinvestmentfundscaneasilyberepatriatedelsewhere,492whichhasthepotentialtocausevolatilityinthehostcountry’seconomy.493
TherewillbenoshiftinAfrica’sdepressingdemographicsunlessgrowthisaccompaniedbyequitableredistribution,494butthemodernnarrativeisfocusedon“biotechnology,syntheticfertilisersanddebt-drivencommercialisation”,whichalsocontradictstheagro-ecologicalapproachesputforwardbyfarmer-basedfoodsovereigntymovements.495
Thereareseveralconcernsaroundharmonisationofregionalregulationsrelatedtoagribusiness.TheAllianceforFoodSovereigntyinAfrica(ASFA)hassuggestedthatAfricangovernmentsare“beingco-optedenmasseintorestructuringtheirseedlawsandsupportingtheimplementationofplantvarietyprotection(PVP)lawsthroughfast-trackedregionalharmonisationprocessesandtradingblocs”.496CommentingontheSADC’sDraftPVPProtocol,theorganisationnotesthatwhiletheprotocolprovidessecuremarketsforprivateinvestment,especiallytheprotectionofprivateownershipoverseedintheformofintellectualpropertyrights,itunderminestherightsoffarmersandmostlikelywillincreaseseedimports,facilitatethemonopolisationoflocalsystemsbyforeigncompaniesanddisrupttraditionalfarmingsystemsonwhichmillionsofAfricansdependforsurvival.497Inaddition,itwouldencourageindustrialplant
breedingthatfeedsintoindustrialisedfarmingmodels,knowntohavenegativesocialandenvironmentalimplications.498Thelackofpublicparticipationindeliberationsonregionalharmonisationmeansthatthevoicesofthoselikelytobemostaffectedhavenotbeenheard.
Conclusion
SouthAfricanagribusinessgiantsareinvestinginAfricawhileescapingfromsaturatedandhighlyregulatedhomemarkets;adepressedlocaleconomy;thestrainofdecreasedconsumerspending;uneasinessaboutlandredistribution;highlevelsofcrime;increasingcostsofproduction,fromlabourtoinputs;andaretargetingAfrica’sburgeoningmiddleclass,withitsrisinglevelsofdisposableincome,tomakehighreturnsontheircorporteinvestments.
Expansionintothecontinentvariesintypeandsizewithsomecompaniesdevelopingtheirowninfrastructure(Shoprite)andsomeleasing(WoolworthsandPicknPay);someenterthroughmergersandacquisitions(TigerBrands),somethroughcontractfarming(IllovoandTongaatHulett),andothersthroughjointventures(RCL).However,SouthAfrica’stopagribusinesses,includingthecountry’sretailgiants,arealllookingtoAfricanmarketsforfuturegrowth.
Theyfacechallengesrelatedtoinfrastructure,regulationsandgovernance,andthelackofskilledhumanresources,butareabletoovercomeorminimisethesetrialsthroughaccesstocapitalandextensiveandsophisticatedtechnologyandlogisticsnetworks.Inaddition,theybenefitfromthedirectandindirectincentivesofferedtoforeignagribusinesses,includingtaxincentivesandtherepatriationofprofitandstatespendingoninfrastructuredevelopment.
ThereareimplicationsfortheexpansionofSouthAfricanagribusinessintothecontinent.OrganisationscouldreplicatethesamepatternsofconsolidationappliedintheSouthAfricanmarket,effectivelyexcludingthepossibleemergenceofastrongsmall-
Africa an El Dorado for South Africa’s Agribusiness Giants 31
scalesector(farming,processing,retailing).Inaddition,corporateagribusinessdemandsuniformity,volumeandquality-assuredproductsforprocessingandretailingwhich,inturn,demandsaparticularfarmingmodel.Itrequiresindustrial-stylefarmingwithmoderninputs—hybridseed,highfertiliserandpesticideuseandregularirrigation.Thisapproachhasbothsocialandenvironmentalimplications.Itwillimpactnegativelyonsmall-scalefarmers,retailersandsuppliersunabletocompete,informalnetworksoffoodvendorsandspaza-styleshops,andthosereliantoncommunallandsfortheirfoodsecurity,aswellasbiodiversityloss,soildegradationandwaterscarcity.Thesefactorsplayaroleindeterminingfoodsecurityandnutritionlevels.Bygainingmarketadvantagethroughtheuseofsophisticatedtechnology,regionaldistributioncentresandlogisticschains,thereisariskthatSouthAfricanagribusinessinAfricawillimpedelocalinnovationandentrepreneurship.
Expansionisframedwithinaparticular‘modernity’narrativethatispromotedthroughinternational,regionalandnationalinstitutionalframeworks.ThelikelihoodthatSouthAfricawillexportitsownconstrictedandconsolidatedagribusinessprofileintoAfrica,replicatingtheinequitiesandchallengesforsmall-scaleproducersithascreatedbackhome,posesathreattotheagriculturalwellbeingofthecontinent.
32 A F R I C A N C E N T R E F O R B I O S A F E T Y
Appendix 1: South Africa’s leading expansionist agribusinesses
Company Description of activities Major shareholders (>2%)
Profit (Africa)
TigerFoods Milling,baking,cereals,consumerbrands
BesidesSouthAfrica,thegroupownsorhascontrollingsharesinbusinessesinChile,Cameroon,Nigeria,Ethiopia,Kenya,ZimbabweandNigeria.
PublicInvestmentCorporation,ColonialFirstStateGlobalAssetManagement,J.P.MorganAssetManagement,TigerConsumerBrandsLtd,LazardAssetManagementLLCGroup,TigerBrandsFoundationSPV,TigerBrandsBlackManTrust,BlackRockInc.,InvestecAssetManagement,CoronationAssetManagement,VanguardGroup.
Incomefromtheirnon-SouthAfricaentitiesincreasedby25%toreach744million—6%ofthetotalturnoverofR11,204millionfortheyearending31March2014.
PioneerFoodsGroup
Produceranddistributoroffood,beveragesandrelatedproducts—includinganimalfeeds—throughtheSasko,BokomoandCeresBeveragesdivision.
Botswana,Namibia,UgandaandZambia.
AgriVoedselBeleggingsLtd,PublicInvestmentCorporateLtd,PioneerFoodsBroad-basedBEETrust,ThembekaCapital,CoronationAssetManagement,CoronationLifeAssuranceCo.Ltd,MMIHoldings.
Turnoverfromnon-SouthAfricaninvestmentsincreased6.7%from2012to2013,toreachR1,137million.499
RainbowChicken(RCLFoods)
Breeder,processorandmarketerofchicken.
IsasubsidiaryofRCLFoods,whichalsoownsFoodcorpandVector(logistics)andhasjointventuresinZambiaforbeefandchickenoperations.
RemgroLimited(69.7%),BEEshareholdersandgeneralpublic.
FiguresfromtheZambianoperationswillbeincludedinthe2014annualreport.
Africa an El Dorado for South Africa’s Agribusiness Giants 33
Company Description of activities Major shareholders (>2%)
Profit (Africa)
AFGRI Grainmanagement,retailandequipmentsales,financialandinsuranceservices,poultrydivision,crushingandoilextraction,animalfeed.
Zambia,Ghana,Congo-Brazzaville,UgandaandNigeria.
AgriGroupeInvestments(60%),PublicInvestmentCorporation,BafepiAgri(Pty)LtdandAFGRImanagement.Canadian-basedFairfaxFinancialHoldingsisthemajorshareholdinginAgriGroupeInvestments.
TheAfricandivision’sinputtoprofitsarenotdisaggregated;however,tractorsalesinAfricaincreasedby50%in2013,totallingR401million;andthefinancialservicesdivisionindicatedaR7millionprofitfromloansintoAfricanoperations.
CloverHoldings Producesdairyandnon-dairybeverages;distributeschilledandambientconsumergoods;salesandmerchandisingofconsumergoods.
CloverMilkProducersTrust,PublicInvestmentCorporation,CoronationFundManagers,Investec,Vorster,J.H.,AllanGrayInvestments,Sanlam.
Cannotbedisaggregated.
OceanaGroup Fishingandcommercialcoldstorage.
OperationsinSouthAfricaandNamibia;distributesintoBotswana,Lesotho,Swaziland,Zimbabwe,Malawi,Angola,Mauritius,Nigeria,Cameroon,DemocraticRepublicoftheCongoandNigeria.
TigerBrandsLimited,BrimstoneInvestmentCorporationLtd,KhulaTrust—Oceana’sblackemployeesharetrust.
In2014thegroupalsoacquiredLusitaniaandthefishingrightsofFoodcorp.
Accordingtothe2013annualreport,salesintotheSADCregionhavedoubledandtheAfricanmarketcontributes20%oftheR4,997millionrevenuein2013.
AnglovaalIndustries(AVI)
Hasabrandportfoliocomprising33ownedbrandsand20internationalbrandsunderlicence.BrandsincludeI&JfishandFiveRosesTea.
AffiliatesinBotswana,ZambiaandNamibiaandthird-partydistributionnetworksintootherAfricancountries.
PublicInvestmentCorporation,AVIBlackStaffEmpowermentScheme,AVIInvestmentServices
In2013,revenuefromsalesinAfricancountriesincreasedby14.7%toR639.4millionduetogrowthintheMozambique,Zambia,Angola,BotswanaandNamibiamarkets.
IllovoSugar Producerofsugaranddownstreamproducts.
Zimbabwe,Zambia,Swaziland,Mauritius,TanzaniaandMalawi.
ABFOverseasLimited,AllanGrayLimited,PublicInvestmentCorporation.
IllovomadeR1.89billionprofitin2013withMalawiandZambiacontributing70%ofthat.500
34 A F R I C A N C E N T R E F O R B I O S A F E T Y
Company Description of activities Major shareholders (>2%)
Profit (Africa)
AstralFoods Poultryproducerinvolvedinbroilergenetics,animalfeeds,saleofday-oldchicks,integratedbreederandbroilerproductionoperator.
Mozambique,Zambia,Swaziland.
PublicInvestmentCorporation,InvestecOpportunityFund,FidelityDevonshireTrust,AllanGrayInvestmentCouncil,AstralOperationsLtd,PrudentialPortfolioManagement,InvestecAssetManagement,SanlamInvestmentManagement,ColonialFirstStateGlobalAssetManagement.
In2013,nearlyaquarterofitsR44,944millionprofitcamefromAfricanoperationsandsales.
TongaatHulett Agricultureandagri-processingbusinessfocusingonsugarcaneandmaize.Propertydevelopment
Botswana,Namibia,Swaziland,MozambiqueandZimbabwe.
PublicInvestmentCorporation,BEE-THInfrastructureSPV,AllanGrayInvestments,BEE-yoMobaSPV,InvestmentSolutions,CoronationFundManagers.
In2014,operatingprofitfromtheSwazilandoperationwasR70million,Mozambique,R168millionandZimbabweR330millionoutofR1,061billionoverall.
Source:Unlessotherwiseindicated,allinformationhasbeensourcedfromthecompanywebsiteandlatestavailableannualreport.
Africa an El Dorado for South Africa’s Agribusiness Giants 35
Appendix 2: Africa’s top 20 agribusiness companies
Rank Name Country Turnover (US$bn) Activities Employees
1. TigerBrands SouthAfrica 2.8 Manufactures,processesanddistributesfoodproducts,whichincludemillingandbaking,confectioneries,generalfoods,edibleoilsandderivatives.
14,000+
2. PioneerFoodsGroup
SouthAfrica 2.2 Manufacturesawiderangeofcerealsandjuiceproducts.
11,000+
3. Cévital Algeria 1.8 Manufacturessugar,margarineandvegetableoil;andmanagessupermarketsandfranchises.
12,500
4. Tongaat-Hulett
SouthAfrica 1.5 Producesfoodproductsfromsugarcane,rawsugarmillingandrefining,andspecialtystarchesandsweeteners;bio-fuelproductionandelectricityco-generation.
42,000
5. AstralFoods SouthAfrica 1.2 Producesanimalfeeds,animalfeedpre-mixes,broilerchickgeneticbreeding,andbroilerchickoperations.
7,700+
6. AFGRI SouthAfrica 1.2 Handles,storesandmarketsgrainandlivestock;financesgrainforadiversecustomerbase;processesagriculturalproductsintoanimalfeedandotherendproducts.
4,000+
7. FlourMillsNigeria
Nigeria 1.2 Producesarangeoffloursusedinmanufactureofcakes,biscuits,pastaandbread;producesfertiliser,andsellsbaggedcementthroughwholly-ownedsubsidiaries.
5,000+
8. IllovoSugar SouthAfrica 1.1 Operatesinallareasofsugarproduction,fromgrowingsugarcanetomilling,refiningandpackagingsugar;manufacturesdownstreamby-products.
5,500+
9. AnglovaalIndustries
SouthAfrica 1.0 Manufactures,processes,marketsanddistributesbrandedconsumerproductsinthefood,beverageandfashioncategories.
7,900+
36 A F R I C A N C E N T R E F O R B I O S A F E T Y
Rank Name Country Turnover (US$bn) Activities Employees
10. RainbowChicken
SouthAfrica 0.9 Operatesintegratedfarmingfacilitiesthatproduce,processandmarketbroilerchickensunderthe“Rainbow,”“FarmerBrown”and“BonnyBird”labels;producesanimalfeedthroughEpol(Pty)Limited.
–
11. CloverHoldings
SouthAfrica 0.8 Dairyproductprocessing,manufacturingandmarketing.
6,500+
12. EgyptianSugarandIntegratedIndustries
Egypt 0.8 Producesandmanufacturessugarandsweeteners.
–
13. CentraleLaitière
Morocco 0.7 Producesdairyproducts,inparticularpasteurisedandsterilisedmilk,yoghurtsandbutter.
–
14. CompagnieSucrièreMarocainedeRaffinage
Morocco 0.7 Produces,packages,andmarketssugar.
–
15. CargillCôted’Ivoire
Côted’Ivoire 0.7 Producescocoaproductsincludingcocoaliquor,butter,cakeandpowder.
–
16. SIFCA(Groupe)
Côted’Ivoire 0.6 Cultivates,processesandmarketsvegetableoil,naturalrubberandcanesugar.
25,000+
17. DangoteSugarRefinery
Nigeria 0.5 Produces,refines,packages,andsellsgranulatedrawwhitesugardomesticallyandregionallyinAfrica.
–
18. LesieurCristal Morocco 0.5 Producesvegetableoils,soapproductsandlivestockfeed.
–
19. NestleNigeria
Nigeria 0.5 Manufactures,marketsanddistributesfoodproducts.
–
20. OceanaGroup
SouthAfrica 0.5 Interestsinfishing,coldstorageandshipping.
2,000+
Africa an El Dorado for South Africa’s Agribusiness Giants 37
References1 Weatherspoon,D.&ReardonT.(2003).Riseof
SupermarketsinAfrica:ImplicationsforAgrifoodSystemsandRuralPoor.DevelopmentPolicyReview5(3).
2 RobertsP.(2008).TheEndofFood.NewYork:HoughtonMifflin.Pp.ix–xxvi.
3 Weatherspoon,D.&ReardonT.(2003).RiseofSupermarketsinAfrica:ImplicationsforAgrifoodSystemsandRuralPoor.DevelopmentPolicyReview5(3).
4 Pimbert,M.et al.(2001).GlobalRestructuring,Agri-FoodSystemsandLivelihoods.InternationalInstituteforEnvironmentandDevelopment,GatekeeperSeries100.
5 Lang,T.&Heasman,M.(2004).FoodWars—TheGlobalBattleforMouths,MindsandMarkets.London:EarthscanPublicationsLtd.Chp1:11–46.
6 Pimbert,M.et al.(2001)GlobalRestructuring,Agri-FoodSystemsandLivelihoods.InternationalInstituteforEnvironmentandDevelopment,GatekeeperSeries100.
7 Satgar,V.(2007).ThestateoftheSouthAfricancooperativesector.[Online].Availableat:http://www.copac.org.za/files/State%20of%20Coop%20Sector.pdf.Accessedon12October2013.
8 Maathai,W.(1998).Thelinkbetweenpatentingoflifeforms,geneticengineering&foodinsecurity.Review of African Political Economy25(77):526–528.
9 Amanor.K.S.(2012).From Farmer Participation to Pro-poor Seed Markets: The Political Economy of Commercial Cereal Seed Networks in Ghana.PolicyBrief047:FutureAgriculturesBriefings.[Online]..Availableat:www.future-agricultures.org.Accessed15July2013.
10 Maathai,W.(1998).Thelinkbetweenpatentingoflifeforms,geneticengineering&foodinsecurity.Review of African Political Economy25(77):526–528.
11 FAO.(2009).GlobalAgriculturetowards2050.High-levelexpertforum,Rome12–13October2009.[Online].Availableat:ttp://www.fao.org/fileadmin/templates/wsfs/docs/Issues_papers/HLEF2050_Global_Agriculture.pdfAccessedon12September2013.
12 Mellon,M.(2013).Let’s Drop “Feed the World”: A plea to move beyond an unhelpful phrase.UnionofConcernedScientists.[Online].http://blog.ucsusa.org/lets-drop-feed-the-world-a-plea-to-move-beyond-an-unhelpful-phrase-229.Accessedon10October2013.
13 Maathai,W.(1998).Thelinkbetweenpatentingoflifeforms,geneticengineering&foodinsecurity.Review of African Political Economy25(77):526–528.
14 FAO.(2009).GlobalAgriculturetowards2050.High-levelexpertforum,Rome12–13October2009.[Online].Availableat:ttp://www.fao.org/fileadmin/templates/wsfs/docs/Issues_papers/HLEF2050_Global_Agriculture.pdfAccessedon12September2013.
15 Mellon,M.(2013).Let’s Drop “Feed the World”: A plea to move beyond an unhelpful phrase.UnionofConcernedScientists.[Online].http://blog.ucsusa.org/lets-drop-feed-the-world-a-plea-to-move-beyond-an-unhelpful-
phrase-229.Accessedon10October2013.16 IbrahimForum.(2011).AfricanAgriculture:From
MeetingNeedstoCreatingWealth.[Online].Availableat:http://www.moibrahimfoundation.org/downloads/2013/2011-facts-and-figures.pdf.Accessedon1June2014.
17 Mellon,M.(2013).Let’s Drop “Feed the World”: A plea to move beyond an unhelpful phrase.UnionofConcernedScientists.[Online]..http://blog.ucsusa.org/lets-drop-feed-the-world-a-plea-to-move-beyond-an-unhelpful-phrase-229.Accessedon10October2013.
18 Ibid.19 Max-Neef,M.A.(2004).Foundationsof
Transdisciplinary,preparedforpublicationinaforthcomingeditionofEcological Economics.
20 Bawden,R.(2004).Chp3:TheCommunityChallenge:TheLearningResponseinMulti-partyCollaborationasSocialLearningforInterdependence:DevelopingRelationalKnowingforSustainableNaturalResourceManagement.Journal of Community & Applied Social Psychology 14:137-153.
21 Gonzalez,C.(2012).Theglobalfoodsystem,environmentalprotection,andhumanrights. Natural Resources & Environment26(3):7.
22 Mhlanga,N.(2010).Privatesectoragribusinessinvestmentinsub-SaharanAfrica.Rome:FoodandAgricultureOrganisation:RuralInfrastructureandAgro-IndustriesDivision.
23 UniversityofPretoria.(n.d.).Agribusinessmanagement.[Online].Availableat:http://web.up.ac.za/default.asp?ipkCategoryID=16723.Accessedon20May2014.
24 Deloitte.(n.d.).DeloitteAfricaAgribusinessUnit(DAAU):GrowandProsper.[Online].Availableat:http://www.deloitte.com/assets/Dcom-SouthAfrica/Local%20Assets/Documents/Deloitte%20AgriBusiness.pdf.Accessed14May2014.
25 Hawkins,D.(2010).ThebackboneofAfricanagricultureneedsstrengthening.[Online]..Availableat:http://www.hardmanandco.com/team/blog/2013/september/backbone-african-agriculture-needs-strengthening.Accessedon5June2014.
26 Sharife,K.(2010).SouthAfrica-Congo‘landgrab’:Exploitationorsalvation?Mail & Guardian.
27 Hawkins,D.(2010).ThebackboneofAfricanagricultureneedsstrengthening.[Online].Availableat:http://www.hardmanandco.com/team/blog/2013/september/backbone-african-agriculture-needs-strengthening.Accessedon5June2014.
28 Hawkins,D.(2010).ThebackboneofAfricanagricultureneedsstrengthening.[Online].Availableat:http://www.hardmanandco.com/team/blog/2013/september/backbone-african-agriculture-needs-strengthening.Accessedon5June2014.
29 WorldBank.(2013).GrowingAfrica:unlockingthepotentialofagribusiness.[Online].Availableat:http://www.thetradebeat.com/news-announcements/growing-africa-unlocking-the-potential-of-agribusiness.Accessedon10June2014.
30 Ibid.31 UNDP.(2012).Therolesandopportunitiesforthe
privatesectorinAfrica’sagro-foodindustry.UNDPAfricanFacilityforinclusivemarkets.[Online].Availableat:www.undp.org/africa/privatesector.
38 A F R I C A N C E N T R E F O R B I O S A F E T Y
Accessedon16June2014.32 WorldBank.(2013).GrowingAfrica:unlockingthe
potentialofagribusiness.[Online].Availableat:http://www.thetradebeat.com/news-announcements/growing-africa-unlocking-the-potential-of-agribusiness.Accessedon10June2014.
33 VonBraun,J.&Meinzen-Dick,R.(2009).“LandGrabbing”byForeignInvestorsinDevelopingCountries:RisksandOpportunities.IFPRIPolicyBrief13–April2009.
34 Green,A.R.(2012).Africa:GrowingAfrica’sLand.[Online].Availableat:http://allafrica.com/stories/201207030260.html.Accessedon4June2014.
35 Kim,R.Larsen,K.&Theus,F.(2009).Introductionandmainmessages.InAgribusinessandInnovationSystemsinAfrica.Eds:K.Larsen,Kim.R.&F.Theus(EDS).WashingtonDC:WorldBank.
36 ACB.(2014).CAADPandtheG8NewAllianceonFoodSecurityandNutrition(NAFSN):seed,soilfertilityandecologicalagricultureopportunitiesandthreats.ACB discussion document, draft 25 June 2014. Johannesburg:AfricanCentreforBiosafety.
37 Ibid.38 UNDP.(2012).Therolesandopportunitiesforthe
privatesectorinAfrica’sagro-foodindustry.UNDPAfricanFacilityforinclusivemarkets.[Online].Availableat:www.undp.org/africa/privatesector.Accessedon16June2014.
39 Ibid.40 Hanna,S.(2013).SAagribusinessescontinuetolookto
Africafornewmarkets.[Online].Availableat:http://www.africanbusinessreview.co.za/business_leaders/-sa-agribusinesses-continue-to-look-to-africa-for-new-markets.Accessed19May2014.
41 UNDP(2012)TherolesandopportunitiesfortheprivatesectorinAfrica’sagro-foodindustry.UNDPAfricanFacilityforinclusivemarkets.[Online].Availableat:www.undp.org/africa/privatesector.Accessedon16June2014.
42 Thomas,S.(2012).Shoprite’sAfricanexpansion.[Online].Availableat:http://www.financialmail.co.za/business/2012/12/24/shoprite-s-african-expansion.Accessedon19May2014.
43 Ibid.44 WorldBank.(2013).GrowingAfrica:Unlockingthe
potentialofAgribusiness.NewYork:WorldBank.45 Ibid.46 UNDP.(2012).Therolesandopportunitiesforthe
privatesectorinAfrica’sagro-foodindustry.UNDPAfricanFacilityforinclusivemarkets.[Online].Availableat:www.undp.org/africa/privatesector.Accessedon16June2014.
47 AfricaProgressPanel.(2014).GrainFishMoney:FinancingAfrica’sGreenandBlueRevolutions.AfricaProgressReport2014.
48 UNDP.(2012).TherolesandopportunitiesfortheprivatesectorinAfrica’sagro-foodindustry.UNDPAfricanFacilityforinclusivemarkets.[Online].Availableat:www.undp.org/africa/privatesector.Accessedon16June2014.
49 AfricaProgressPanel.(2014).GrainFishMoney:FinancingAfrica’sGreenandBlueRevolutions.AfricaProgressReport2014.
50 Deloitte&Touche(2012)DeloitteonAfrica:Therise
andriseoftheAfricanmiddleclass.[Online]Availableat:http://www.deloitte.com/assets/Dcom-India/Local%20Assets/Documents/Africa/Deloitte_on_Africa-%281%29_rise_and_rise.pdf.Accessedon12August.
51 Mhlanga,N.(2010).Privatesectoragribusinessinvestmentinsub-SaharanAfrica.Rome:FoodandAgricultureOrganisation:RuralInfrastructureandAgro-IndustriesDivision.
52 IGD(n.d.).IGDAGINVEST:catalysingagribusinessinvestmentsinAfrica.[Online].Availableat:http://www.google.co.za/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CB0QFjAA&url=http%3A%2F%2Fwww.igdleaders.org%2Finsight%2Figd-aginvest-catalyzing-agribusiness-investments-in-africa%2F&ei=WSLqU9TpOYWm0QWg24HIBQ&usg=AFQjCNH9kAQwC2GL2Ymg6em4ci6w8MTGhA&bvm=bv.72676100,d.d2k.Accessedon15July2014.
53 Ibid.54 Mhlanga,N.(2010).Privatesectoragribusiness
investmentinsub-SaharanAfrica.Rome:FoodandAgricultureOrganisation:RuralInfrastructureandAgro-IndustriesDivision.
55 Hall,R.(2011).ThenextGreatTrek?SouthAfricancommercialfarmersmovenorth.PaperpresentedattheInternationalConferenceonGlobalLandGrabbing(6–8April2011).
56 Hall,R.(n.d.).(2013).Exportingdualism?TheExpansionofSouthAfricancapitalinAfricanfarmlanddeals.Belville,WesternCape:InstituteforPoverty,LandandAgrarianStudies.
57 Mhlanga,N.(2010).Privatesectoragribusinessinvestmentinsub-SaharanAfrica.Rome:FoodandAgricultureOrganisation:RuralInfrastructureandAgro-IndustriesDivision.
58 Sharife,K.(2010).SouthAfrica-Congo‘landgrab’:Exploitationorsalvation?Mail & Guardian.
59 Sharife,K.(2010)SouthAfrica-Congo‘landgrab’:Exploitationorsalvation?Mail & Guardian.
60 Green,A.R.(2012).Africa:GrowingAfrica’sLand.[Online].Availableat:http://allafrica.com/stories/201207030260.html.Accessedon4June2014.
61 AfricaProgressPanel.(2014).GrainFishMoney:FinancingAfrica’sGreenandBlueRevolutions.AfricaProgressReport2014.
62 Ibid.63 VonBraun,J.&Meinzen-Dick,R.(2009).“Land
Grabbing”byForeignInvestorsinDevelopingCountries:RisksandOpportunities.IFPRIPolicyBrief13–April2009.
64 Ibid.65 Ibid.66 Ibid.67 Hawkins,D.(2010).ThebackboneofAfrican
agricultureneedsstrengthening.[Online].Availableat:http://www.hardmanandco.com/team/blog/2013/september/backbone-african-agriculture-needs-strengthening.Accessedon5June2014.
68 Ibid.69 Ibid.70 Green,A.R.(2012).Africa:GrowingAfrica’sLand.
[Online].Availableat:http://allafrica.com/stories/201207030260.html.Accessedon4June2014.
71 VonBraun,J.&Meinzen-Dick,R.(2009).“Land
Africa an El Dorado for South Africa’s Agribusiness Giants 39
Grabbing”byForeignInvestorsinDevelopingCountries:RisksandOpportunities.IFPRIPolicyBrief13–April2009.
72 Green,A.R.(2012).Africa:GrowingAfrica’sLand.[Online].Availableat:http://allafrica.com/stories/201207030260.html.Accessedon4June2014.
73 VonBraun,J.&Meinzen-Dick,R.(2009).“LandGrabbing”byForeignInvestorsinDevelopingCountries:RisksandOpportunities.IFPRIPolicyBrief13–April2009.
74 Ibid.75 Green,A.R.(2012).Africa:GrowingAfrica’sLand.
[Online].Availableat:http://allafrica.com/stories/201207030260.html.Accessedon4June2014.
76 ACB.(2014).CAADPandtheG8NewAllianceonFoodSecurityandNutrition(NAFSN):seed,soilfertilityandecologicalagricultureopportunitiesandthreats.ACB discussion document, draft 25 June 2014.Johannesburg:AfricanCentreforBiosafety.
77 KPMG.(2014).WaterscarcityinAfricashouldgetmoreairtimeonGovernmentandbusinessagendas.[Online].Availableat:http://www.kpmg.com/za/en/issuesandinsights/articlespublications/press-releases/pages/water-scarcity-in-africa.aspx.Accessedon30June2014.
78 Ibid.79 Ibid.80 UNEP.(n.d.).Improvingthequantity,qualityand
useofAfrica’swater.[Online].Availableat:https://na.unep.net/atlas/africaWater/downloads/chapters/africa_water_atlas_123-174.pdf.Accessedon29June2014.
81 AfricaProgressPanel(2014)GrainFishMoney:FinancingAfrica’sGreenandBlueRevolutions.AfricaProgressReport2014.
82 Ibid.83 Ibid.84 Ibid.85 Green,A.R.(2012).Africa:GrowingAfrica’sLand.
[Online].Availableat:http://allafrica.com/stories/201207030260.html.Accessedon4June2014.
86 Ibid.87 Ibid.88 VonBraun,J.&Meinzen-Dick,R.(2009).“Land
Grabbing”byForeignInvestorsinDevelopingCountries:RisksandOpportunities.IFPRIPolicyBrief13–April2009.
89 IbrahimForum.(2011).AfricanAgriculture:FromMeetingNeedstoCreatingWealth.[Online].Availableat:http://www.moibrahimfoundation.org/downloads/2013/2011-facts-and-figures.pdf.Accessedon1June2014.
90 Ibid.91 Ibid.92 Tongaat.(2013).AnnualReport.[Online].Available
at:http://www.tongaat.co.za/imc/annual_reports/ar_2013/comment/strategic_position.asp.Accessedon15June2014.
93 ESI-AFrica.com.(2011).IllovotoproduceethanolfrommolassesinTanzania.[Online].Availabletat:http://www.esi-africa.com/illovo-to-produce-ethanol-from-molasses-in-tanzania/.Accessedon29June2014.
94 Landmatrix.(2014).TargetRegion.[Online].Availableat:http://www.landmatrix.org/en/get-the-detail/by-
target-region/.Accessedon12June2014.95 JADAFA.(2012).CountryProfiles.[Online].Available
at:http://jadafa.co.za/country-profiles/tanzania-3/.Accessedon10June2014.
96 JADAFA.(2012).CountryProfiles.[Online].Availableat:http://jadafa.co.za/country-profiles/tanzania-3/.Accessedon10June2014.
97 IbrahimForum.(2011).AfricanAgriculture:FromMeetingNeedstoCreatingWealth.[Online].Availableat:http://www.moibrahimfoundation.org/downloads/2013/2011-facts-and-figures.pdf.Accessedon1June2014.
98 Arora,M.(2014).InvestmentgrowthinAfricanagriculture.PaneldiscussionbyStandardBankatAgizCongress2014.[Online].Availableat:http://www.agbiz.co.za/congress-2014/archive/agbiz-congress/Accessedon22June2014.
99 Biswalo,D.M.(2011).Thegainsandlossesofforeigndirectinvestmentinagriculture:theTanzaniacasestudy.PaperpresentedattheForeignDirectInvestmentsinAgricultureinEasternAfricaconference.HeldatLaicoRegencyHotel,Nairobi-Kenya,20–23October2011.
100 Arora,M.(2014).InvestmentgrowthinAfricanagriculture.PaneldiscussionbyStandardBankatAgizCongress2014.[Online].Availableat:http://www.agbiz.co.za/congress-2014/archive/agbiz-congress/Accessedon22June2014.
101 Green,A.R.(2012).Africa:GrowingAfrica’sLand.[Online].Availableat:http://allafrica.com/stories/201207030260.html.Accessedon4June2014.
102 Green,A.R.(2012).Africa:GrowingAfrica’sLand.[Online].Availableat:http://allafrica.com/stories/201207030260.html.Accessedon4June2014.
103 VonBraun,J.&Meinzen-Dick,R.(2009).“LandGrabbing”byForeignInvestorsinDevelopingCountries:RisksandOpportunities.IFPRIPolicyBrief13–April2009.
104 Green,A.R.(2012).Africa:GrowingAfrica’sLand.[Online].Availableat:http://allafrica.com/stories/201207030260.html.Accessedon4June2014.
105 VonBraun,J.&Meinzen-Dick,R.(2009).“LandGrabbing”byForeignInvestorsinDevelopingCountries:RisksandOpportunities.IFPRIPolicyBrief13–April2009.
106 Green,A.R.(2012)Africa:GrowingAfrica’sLand.[Online].Availableat:http://allafrica.com/stories/201207030260.html.Accessedon4June2014.
107 Sharife,K.(2010).SouthAfrica-Congo‘landgrab’:Exploitationorsalvation?Mail & Guardian.
108 Sharife,K.(2010).SouthAfrica-Congo‘landgrab’:Exploitationorsalvation?Mail & Guardian.
109 Arora,M.(2014).InvestmentgrowthinAFRICANagriculture.PaneldiscussionbyStandardBankatAgizCongress2014.[Online].Availableat:http://www.agbiz.co.za/congress-2014/archive/agbiz-congress/Accessedon22June2014.
110 AfricaProgressPanel.(2014).GrainFishMoney:FinancingAfrica’sGreenandBlueRevolutions.AfricaProgressReport2014.
111 AfricaProgressPanel.(2014).GrainFishMoney:FinancingAfrica’sGreenandBlueRevolutions.AfricaProgressReport2014.
112 AfricaProgressPanel.(2014).GrainFishMoney:
40 A F R I C A N C E N T R E F O R B I O S A F E T Y
FinancingAfrica’sGreenandBlueRevolutions.AfricaProgressReport2014.
113 NDP.(2011).NationalDevelopmentPlan:Visionfor2030.Pretoria:NationalPlanningCommission.
114 Ibid.115 NSS.(2009).StatisticalReforminSouthAfrica.
[Online].Availableat:http://www.statssa.gov.za/nss/index.asp?link=about.asp.Accesson15September2013.
116 VanSchalkwyk,H.,Groenewald,J.,Fraser,G.,Obi,A.&VanTilburg,A.(2012).Unlockingmarketstosmallholders:LessonsfromSouthAfrica.TheNetherlands:WageningenAcademicPublishers.
117 O’Laughlin,B.,Bernstein,H.,Cousins,B.&Peters,P.(2013).Introduction:Agrarianchange,ruralpovertyandlandreforminSouthAfricasince1994.JournalofAgrarianChange13(1):1-15.
118 IOL(2014)PICnotguidedbypolitics-Matjila.[Online]Availableat:http://www.iol.co.za/business/news/pic-not-guided-by-politics-matjila-1.1729770#.U-HDKihD9FI.Accessedon12August2014.
119 IOL(2014)PICnotguidedbypolitics-Matjila.[Online]Availableat:http://www.iol.co.za/business/news/pic-not-guided-by-politics-matjila-1.1729770#.U-HDKihD9FI.Accessedon12August2014.
120 IOL(2014)PICnotguidedbypolitics-Matjila.[Online]Availableat:http://www.iol.co.za/business/news/pic-not-guided-by-politics-matjila-1.1729770#.U-HDKihD9FI.Accessedon12August2014.
121 IOL(2014)PICnotguidedbypolitics-Matjila.[Online]Availableat:http://www.iol.co.za/business/news/pic-not-guided-by-politics-matjila-1.1729770#.U-HDKihD9FI.Accessedon12August2014.
122 Harding,C.I.(2011).Ranked:Africa’stop20agribusinesscompanies.[Online].Availableat:http://www.howwemadeitinafrica.com/ranked-africas-top-20-agribusiness-companies/13532/.Accessedon31May2014.
123 IbrahimForum(2011)AfricanAgriculture:FromMeetingNeedstoCreatingWealth.[Online].Availableat:http://www.moibrahimfoundation.org/downloads/2013/2011-facts-and-figures.pdf.Accessedon1June2014.
124 Mhlanga,N.(2010).Privatesectoragribusinessinvestmentinsub-SaharanAfrica.Rome:FoodandAgricultureOrganisation:RuralInfrastructureandAgro-IndustriesDivision.
125 Ibid.126 Miller,D.(n.d.).FoodFrontiersinZambia:Resistance
andpartnershipsinShoprite’sretailempire.[Online].Availableathttp://africafiles.org/article.asp?id=18515.Accessedon16may2014.
127 Ibid.128 Miller,D.(n.d.).FoodFrontiersinZambia:Resistance
andpartnershipsinShoprite’sretailempire.[Online].Availableathttp://africafiles.org/article.asp?id=18515.Accessedon16may2014.
129 Ibid.130 Clover.(2013).IntegratedReportfortheyear
ended30June2013.[Online].Availableat:http://www.clover.co.za/media/shared/downloadable/annualreport/2013/clover2013arl.pdf.Accessedon29June2014.
131 AstralFoods.(2014).InterimResultssixmonths
ending31March2014.[Online].Availableat:http://www.astralfoods.co.za/presentations/Interim%20Results%20Presentation%20for%20the%20six%20months%20ended%2031%20March%202014.pdf.Accessedon2July2014.
132 AFGRI.(2013).AnnualReport[Online].Availableat:http://www.afgri.co.za/financials/2013/AFGRI_Annual_Report_2013.pdf.Accessedon1July2014.
133 Business Day2014).Sugarlookstoethanoltohelppickupspeed.[Online].Availableat:http://www.bdlive.co.za/businesstimes/2014/04/27/sugar-looks-to-ethanol-to-help-pick-up-speed.Accessedon29June2014.
134 Harding,C.(2012).Interview:ShopriteCEOtalksretailinAfrica.[Online].Availableat:http://www.howwemadeitinafrica.com/interview-shoprite-ceo-talks-retail-in-africa/21086/.Accessedon2July2014.
135 Clover.(2013).IntegratedReportfortheyearended30June2013.[Online].Availableat:http://www.clover.co.za/media/shared/downloadable/annualreport/2013/clover2013arl.pdf.Accessedon29June2014.
136 RCLFoods.(2013).Auditedresultsfortheyearended30June2013.[Online].Availableat:http://www.rclfoods.com/pdf/yearly-reports/2013InvestorPresentation.pdf.Accessedon30June2014.
137 AVI.(2013).IntegratedAnnualReport.[Online].Availableat:http://www.avi.co.za/system/presentations/attachments/93/original/AVIAR2013Lo-Res.pdf?1380547249.Accessedon1July2014.
138 AFGRI(2013).AnnualReport[Online].Availableat:.http://www.afgri.co.za/financials/2013/AFGRIAnnualReport2013.pdf.Accessedon1July2014.
139 Clover.(2013).IntegratedReportfortheyearended30June2013.[Online].Availableat:http://www.clover.co.za/media/shared/downloadable/annualreport/2013/clover2013arl.pdf.Accessedon29June2014.
140 Ibid.141 Jacks,M.(2014).Shopritetoopen13newstoresacross
sub-SaharanAfrica.[Online].Availableat:http://www.ventures-africa.com/2014/02/shoprite-to-open-13-new-stores-across-sub-saharan-africa/.Accessed28May2014.
142 AVI.(2013).IntegratedAnnualReport.[Online].Availableat:.http://www.avi.co.za/system/presentations/attachments/93/original/AVIAR2013Lo-Res.pdf?1380547249.Accessedon1July2014.
143 AFGRI(2013).AnnualReport[Online].Availableat:http://www.afgri.co.za/financials/2013/AFGRI_Annual_Report_2013.pdf.Accessedon1July2014.
144 Hanna,S.(2013).SAagribusinessescontinuetolooktoAfricafornewmarkets.[Online].Availableat:http://www.africanbusinessreview.co.za/business_leaders/-sa-agribusinesses-continue-to-look-to-africa-for-new-markets.Accessed19May2014.
145 AFGRI.(2013).AnnualReport[Online].Availableat:http://www.afgri.co.za/financials/2013/AFGRI_Annual_Report_2013.pdf.Accessedon1July2014.
146 Clover.(2013).IntegratedReportfortheyearended30June2013.[Online].Availableat:http://www.clover.co.za/media/shared/downloadable/annualreport/2013/clover2013arl.pdf.Accessedon29
Africa an El Dorado for South Africa’s Agribusiness Giants 41
June2014.147 Ibid.148 AFGRI(2013)AnnualReport[Online].Availableat:
http://www.afgri.co.za/financials/2013/AFGRI_Annual_Report_2013.pdf.Accessedon1July2014.
149 Sharife,K.(2010)SouthAfrica-Congo‘landgrab’:Exploitationorsalvation?Mail & Guardian.
150 IOL.(2014).Farmeroutcryoverlandbill.[Online].Availableat:http://www.iol.co.za/news/politics/farmer-outcry-over-land-bill-1.1707603.Accessedon24June2014.
151 Hanna,S.(2013)SAagribusinessescontinuetolooktoAfricafornewmarkets.[Online].Availableat:http://www.africanbusinessreview.co.za/business_leaders/-sa-agribusinesses-continue-to-look-to-africa-for-new-markets.Accessed19May2014.
152 Clover.(2013).IntegratedReportfortheyearended30June2013.[Online].Availableat:http://www.clover.co.za/media/shared/downloadable/annualreport/2013/clover2013arl.pdf.Accessedon29June2014.
153 Jacks,M.(2014).Shopritetoopen13newstoresacrosssub-SaharanAfrica.[Online].Availableat:http://www.ventures-africa.com/2014/02/shoprite-to-open-13-new-stores-across-sub-saharan-africa/.Accessed28May2014.
154 AFGRI.(2013).AnnualReport[Online].Availableat:http://www.afgri.co.za/financials/2013/AFGRI_Annual_Report_2013.pdf.Accessedon1July2014.
155 Jacks,M.(2014).Shopritetoopen13newstoresacrosssub-SaharanAfrica.[Online].Availableat:http://www.ventures-africa.com/2014/02/shoprite-to-open-13-new-stores-across-sub-saharan-africa/.Accessed28May2014.
156 AstralFoods(2014)InterimResultssixmonthsending31March2014.[Online].Availableat:http://www.astralfoods.co.za/presentations/Interim%20Results%20Presentation%20for%20the%20six%20months%20ended%2031%20March%202014.pdf.Accessedon2July2014.
157 RCLFoods.(2013).Auditedresultsfortheyearended30June2013.[Online].Availableat:http://www.rclfoods.com/pdf/yearly-reports/2013InvestorPresentation.pdf.Accessedon30June2014.
158 Clover.(2013).IntegratedReportfortheyearended30June2013.[Online].Availableat:http://www.clover.co.za/media/shared/downloadable/annualreport/2013/clover2013arl.pdf.Accessedon29June2014.
159 Business Day(2014)Sugarlookstoethanoltohelppickupspeed.[Online].Availableat:http://www.bdlive.co.za/businesstimes/2014/04/27/sugar-looks-to-ethanol-to-help-pick-up-speed.Accessedon29June2014.
160 Hanna,S.(2013).SAagribusinessescontinuetolooktoAfricafornewmarkets.[Online].Availableat:http://www.africanbusinessreview.co.za/business_leaders/-sa-agribusinesses-continue-to-look-to-africa-for-new-markets.Accessed19May2014.
161 AstralFoods.(2014).InterimResultssixmonthsending31March2014.[Online].Availableat:http://www.astralfoods.co.za/presentations/Interim%20Results%20Presentation%20for%20the%20six%20
months%20ended%2031%20March%202014.pdf.Accessedon2July2014.
162 BusinessDayLive.(2013).NewnameforRainbowChickentoreflectwiderbrandrange.[Online].Availableat:http://www.bdlive.co.za/business/retail/2013/07/04/new-name-for-rainbow-chicken-to-reflect-wider-brand-range.Accessedon30June2014.
163 Business Day(2014).Sugarlookstoethanoltohelppickupspeed.[Online].Availableat:http://www.bdlive.co.za/businesstimes/2014/04/27/sugar-looks-to-ethanol-to-help-pick-up-speed.Accessedon29June2014.
164 Hanna,S.(2013).SAagribusinessescontinuetolooktoAfricafornewmarkets.[Online].Availableat:http://www.africanbusinessreview.co.za/business_leaders/-sa-agribusinesses-continue-to-look-to-africa-for-new-markets.Accessed19May2014.
165 PricewaterhouseCooper.(2014).Howconfidentareyou?AgribusinessInsightsSurvey2013/14.[Online].Availableat:http://www.pwc.co.za/en_ZA/za/assets/pdf/agribusinesses-benchmarking-survey-2014.pdf.Accessedon15July2014.
166 UNDP.(2012).TherolesandopportunitiesfortheprivatesectorinAfrica’sagro-foodindustry.UNDPAfricanFacilityforinclusivemarkets.[Online].Availableat:www.undp.org/africa/privatesector.Accessedon16June2014.
167 Thomas,S.(2012).Shoprite’sAfricanexpansion.[Online].Availableat:http://www.financialmail.co.za/business/2012/12/24/shoprite-s-african-expansion.Accessedon19May2014.
168 Ibid.169 FranchiseAssociationofSouthAfrica.170 Weatherspoon,D.&Reardon,T.(2003).Riseof
SupermarketsinAfrica:ImplicationsforAgrifoodSystemsandRuralPoor.DevelopmentPolicyReview5(3).
171 Reuters.(2011).WalmartcompletesMassmarttakeover.[Online].Availableat:http://www.fin24.com/Companies/Retail/Walmart-completes-Massmart-takeover-20110620.Accessedon1July2014.
172 Motsoeneng,T.&Ndebele,N.(2014).SouthAfrica’sMassmarttoenterAngolawithtwostores.[Online].Availableat:http://www.reuters.com/article/2014/04/08/us-africa-summit-idUSBREA3712520140408.Accessedon1July2014.
173 OceanaGroup.(2014).Integratedreport2013.[Online].Availableat:http://www.oceana-integratedreport.co.za/sites/default/files/2013/Front/Full_Integrated_Report_2013.pdf.Accessedon29June2014.
174 AFKInsider.(2013).WoolworthspullsoutofNigeria,citespoorprofits.[Online].Availableat:http://afkinsider.com/33531/woolworths-pulls-out-of-nigeria/.Accessedon3July2014.
175 Clover.(2013).IntegratedReportfortheyearended30June2013.[Online].Availableat:http://www.clover.co.za/media/shared/downloadable/annualreport/2013/clover2013arl.pdf.Accessedon29June2014.
176 Douglas,K.(2012).ShopritetakesontheDRC.[Online].Availableat:http://www.howwemadeitinafrica.com/shoprite-takes-on-the-drc/18854/.Accessedon1July2014.
177 RCLFoods.(2013).Auditedresultsforthe
42 A F R I C A N C E N T R E F O R B I O S A F E T Y
yearended30June2013.[Online].Availableat:http://www.rclfoods.com/pdf/yearly-reports/2013InvestorPresentation.pdf.Accessedon30June2014.
178 Financial Mail.(2013).Africa’sgrowingappetiteforfastfoods.[Online].Availableat:http://www.financialmail.co.za/business/money/2013/09/12/africa-s-growing-appetite-for-fast-foods.Accessedon29June2014.
179 Mail & Guardian.(2013)SAbusinessisbloominginAfrica.[Online].Availableat:http://mg.co.za/article/2013-06-28-00-sa-business-is-blooming-in-africa.Accessedon12June2014.
180 Arora,M.(2014).InvestmentgrowthinAfricanagriculture.PaneldiscussionbyStandardBankatAgbizCongress2014.[Online].Availableat:http://www.agbiz.co.za/congress-2014/archive/agbiz-congress/Accessedon22June2014.
181 Miller,D.(n.d.).FoodFrontiersinZambia:ResistanceandpartnershipsinShoprite’sretailempire.[Online].Availableathttp://africafiles.org/article.asp?id=18515.Accessedon16May2014.
182 Ibid.183 DPME.(2014).SouthAfricanPresidency’s20Year
Review.Pretoria:DepartmentofPublicMonitoringandEvaluation:Chapter8.
184 Mail & Guardian.(2013).SAbusinessisbloominginAfrica.[Online].Availableat:http://mg.co.za/article/2013-06-28-00-sa-business-is-blooming-in-africa.Accessedon12June2014.
185 Mail & Guardian.(2013).SAbusinessisbloominginAfrica.[Online].Availableat:http://mg.co.za/article/2013-06-28-00-sa-business-is-blooming-in-africa.Accessedon12June2014.
186 Ibid.187 Ernst&YoungGlobalLimited(2014)EY’s
attractivenesssurvey:Africa2014:ExecutingGrowth.[Online].Availableat:http://www.ey.com/Publication/vwLUAssets/EY-attractiveness-africa-2014-Lite/$FILE/EY-attractiveness-africa-2014-Lite.pdf.Accessedon1July2014.
188 Ibid.189 Ibid.190 Ibid.191 Mail & Guardian. (2013).SAbusinessisblooming
inAfrica.[Online].Availableat:http://mg.co.za/article/2013-06-28-00-sa-business-is-blooming-in-africa.Accessedon12June2014.
192 Ibid.193 Weatherspoon,D.&Reardon,T.(2003).Riseof
SupermarketsinAfrica:ImplicationsforAgrifoodSystemsandRuralPoor.DevelopmentPolicyReview5(3).
194 Harding,C.(2012).Interview:ShopriteCEOtalksretailinAfrica.[Online].Availableat:http://www.howwemadeitinafrica.com/interview-shoprite-ceo-talks-retail-in-africa/21086/.Accessedon2July2014.Thesecountriesinclude:Angola,Botswana,Ghana,Lesotho,Madagascar,Malawi,Mauritius,Mozambique,Namibia,Nigeria,Swaziland,Tanzania,Uganda,ZambiaDemocraticRepublicofCongoandSouthAfrica.
195 Ernst&YoungGlobalLimited.(2014).EY’sattractivenesssurvey:Africa2014:Executing
Growth.[Online].Availableat:http://www.ey.com/Publication/vwLUAssets/EY-attractiveness-africa-2014-Lite/$FILE/EY-attractiveness-africa-2014-Lite.pdf.Accessedon1July2014.
196 Ibid.197 Douglas,K.(2012).ShopritetakesontheDRC.[Online].
Availableat:http://www.howwemadeitinafrica.com/shoprite-takes-on-the-drc/18854/.Accessedon1July2014.
198 Motsoeneng,T.(2014).SouthAfrica’sWoolworthseyes15storesacrossAfricain2-3years.[Online].Availableat:http://www.reuters.com/article/2014/04/10/us-africa-summit-woolworths-idUSBREA391GA20140410.Accessedon29June2014.
199 Ibid.200Ibid.201 Ibid.202 UNDP.(2012).Therolesandopportunitiesforthe
privatesectorinAfrica’sagro-foodindustry.UNDPAfricanFacilityforinclusivemarkets.[Online].Availableat:www.undp.org/africa/privatesector.Accessedon16June2014.
203 Ibid.204 Ibid.205 Ibid.206 ACB.(2014).GMcontamination,cartelsandcollusion
inSouthAfrica’sbreadindustry.Johannesburg:AfricanCentreforBiosafety.
207 UNDP.(2012).TherolesandopportunitiesfortheprivatesectorinAfrica’sagro-foodindustry.UNDPAfricanFacilityforinclusivemarkets.[Online].Availableat:www.undp.org/africa/privatesector.Accessedon16June2014.
208 Ibid.209 Ibid.210 Ibid.211 DuPlessis,L.M.,Kruger,H.S.&Sweet,L.2013.
PaediatricFood-BasedDietaryGuidelinesforSouthAfrica:Complementaryfeeding:acriticalwindowofopportunityfromsixmonthsonwards.South African Journal of Clinical Nutrition26(3)(Supplement):129-14.
212 UNDP.(2012).TherolesandopportunitiesfortheprivatesectorinAfrica’sagro-foodindustry.UNDPAfricanFacilityforinclusivemarkets.[Online].Availableat:www.undp.org/africa/privatesector.Accessedon16June2014.
213 Arora,M.(2014).InvestmentgrowthinAfricanAgriculture.PaneldiscussionbyStandardBankatAgbizCongress2014.[Online].Availableat:http://www.agbiz.co.za/congress-2014/archive/agbiz-congress/Accessedon22June2014.
214 *Hedley,N.(2013).LocalfoodcompanieslooktoexpandfurtherinAfrica.[Online].Availableat:http://www.bdlive.co.za/business/retail/2013/10/24/local-food-companies-look-to-expand-further-in-africa.Accessedon12June2014.**Maritz,J.(2013)SouthAfricanfoodcompaniescontinueexpansionintorestofcontinent.[Online].Availableat:http://www.howwemadeitinafrica.com/south-african-food-companies-continue-expansion-into-rest-of-continent/24110/.Accessed12June2014.***Arora,M.(2014).InvestmentgrowthinAfricanAgriculture.PaneldiscussionbyStandardBankatAgbizCongress2014.[Online].Availableat:http://www.agbiz.co.za/
Africa an El Dorado for South Africa’s Agribusiness Giants 43
congress-2014/archive/agbiz-congress/Accessedon22June2014.
215 TigerBrands(n.d.).TigerBrands.[Online].Availableat:http://www.tigerbrands.co.za/ourworld.php#socioQuick.Accessedon29June2014.
216 Oceana(n.d.).Oceana.[Online].Availableat:http://www.oceana.co.za/.Accessedon30June2014.
217 Ibid.218 OceanaGroup.(2013).OceanaGroupLimited
SustainabilityReport2013.[Online].Availableat:http://oceana-integratedreport.co.za/sites/default/files/2013/sus/Sustainability_Report_13Dec.pdf.Accessedon30June2014.
219 SAMAG.(n.d).TheOceanaGroup:FreshProfits.[Online].Availableat:http://thesa-mag.com/features/agriculture/oceana-group-fresh-profits/.Accessedon29June2014.
220 OceanaGroup.(2013).OceanaGroupLimitedSustainabilityReport2013.[Online].Availableat:http://oceana-integratedreport.co.za/sites/default/files/2013/sus/Sustainability_Report_13Dec.pdf.Accessedon30June2014.
221 Ibid.222 CompetitionTribunal.(2014).Inthematterbetween
OceanaGroupLimited/FoodcorpLimitedandtheCompetitionCommission.[Online].Availableat:http://www.comptrib.co.za/assets/Uploads/Oceana-Foodcorp-Final-Version-Non-Confidential-3.pdf.Accessedon3July2014.
223 Ibid.224 RCLFoods.(2014).InvestorRelations.[Online].
Availableat:http://www.rclfoods.com/investor-relations.Accessedon30June2014.
225 Foodcorp.(2013).RainbowChickenAcquisitionofMajorityStakeinFoodcorpgetsthego-ahead.[Online].Availableat:http://www.foodcorp.co.za/news/brand-news/rainbow-chicken-aquisition-of-majority-stake-in-foodcorp-gets-the-go-ahead.aspx.Accessedon30June2014.
226 RainbowChicken.(n.d.).CompanyProfile[Online].Availableat:http://www.rainbowchicken.co.za/about_company.aspx.Accessedon30June2014.
227 Ibid.228 RCLFoods.(2013).Auditedresultsforthe
yearended30June2013.[Online].Availableat:http://www.rclfoods.com/pdf/yearly-reports/2013InvestorPresentation.pdf.Accessedon30June2014.
229 Ibid.230 Maritz,J.(2013).SouthAfricanfoodcompanies
continueexpansionintorestofcontinent.[Online].Availableat:http://www.howwemadeitinafrica.com/south-african-food-companies-continue-expansion-into-rest-of-continent/24110/.Accessed12June2014.
231 Jacks,M.(2014).RCLFoodsacquiresSennFoodsfor$7.7million.[Online].Availableat:http://www.ventures-africa.com/2014/05/rcl-foods-acquires-senn-foods-for-77m/.Accessedon30June2014.
232 Ibid.233 Astral.(n.d).AboutUs.[Online].Availableat:http://
www.astralfoods.co.za/.Accessedon30June2014.234 Ibid.235 Maritz,J.(2013).SouthAfricanfoodcompanies
continueexpansionintorestofcontinent.[Online].
Availableat:http://www.howwemadeitinafrica.com/south-african-food-companies-continue-expansion-into-rest-of-continent/24110/.Accessed12June2014.
236 Ibid.237 Finweek(2012)AstralscramblesforbiggerAfrican
nestegg.[Online].Availableat:http://finweek.com/2012/03/09/astral-scrambles-for-bigger-african-nest-egg/.Accessedon2July2014.
238 Naidoo,N.(2014).AstralentersintosupplyagreementwithQuantum.[Online].Availableat:http://www.cnbcafrica.com/news/southern-africa/2014/04/03/astral-enters-into-supply-agreement-with-quantum/.Accessedon2July2014.
239 Ibid.240 Hedley,N.(2013).Localfoodcompanieslookto
expandfurtherinAfrica.[Online].Availableat:http://www.bdlive.co.za/business/retail/2013/10/24/local-food-companies-look-to-expand-further-in-africa.Accessedon12June2014.
241 Ibid.242 Ibid.243 Sanchez,D.(2014).InSABMiller’smarchacross
Africa,NigeriaNo.2beermarket.[Online].Availableat:http://afkinsider.com/58288/sab-millers-march-across-africa-nigeria-2-beer-market/.Accessedon16June2014.
244 Ibid.245 Ibid.246 Ibid.247 AFGRI.(n.d.).AFGRIAfrica.[Online].Available
at:http://www.afgri.co.za/ops_afgri_africa.php.Accessedon1July2014.
248 Business Day (2014).Sugarlookstoethanoltohelppickupspeed.[Online].Availableat:http://www.bdlive.co.za/businesstimes/2014/04/27/sugar-looks-to-ethanol-to-help-pick-up-speed.Accessedon29June2014.
249 Hawkins,D.(2010).ThebackboneofAfricanagricultureneedsstrengthening.[Online].Availableat:http://www.hardmanandco.com/team/blog/2013/september/backbone-african-agriculture-needs-strengthening.Accessedon5June2014.
250 IbrahimForum.(2011).AfricanAgriculture:FromMeetingNeedstoCreatingWealth.[Online].Availableat:http://www.moibrahimfoundation.org/downloads/2013/2011-facts-and-figures.pdf.Accessedon1June2014.
251 Latham,B.(2011).S.[South]AfricafarmersshunLibya,targetSudanbananas,Egyptgrapes.[Online].Availableat:http://farmlandgrab.org/post/view/18207.Accessedon11June2014.
252 Agbiz(2014)AgbizConfidenceIndexMarch2014.Pretoria:AgriculturalBusinessChamber.
253 Ibid.254 Hall,R.(2013)Exportingdualism?TheExpansion
ofSouthAfricancapitalinAfricanfarmlanddeals.Bellville,WesternCape:InstituteforPoverty,LandandAgrarianStudies.
255 Lourens,C.(2010).AfricannationsturntoSouthAfricaforagriculturalexpertise.[Online].Availableat:http://www.bloomberg.com/apps/news?pid=newsarchive&sid=acnRtxdc3zIQ.Accessedon5June2014.
256 Ibid.257 AgriSA.(2012/2013).AnnualReport.[Online].
44 A F R I C A N C E N T R E F O R B I O S A F E T Y
Availableat:http://www.agrisa.co.za/wp-content/uploads/2013/08/Verslage-2013-Africa.pdf.Accessedon1July2014.
258 Ibid.259 Ibid.260 Ibid.261 Agriallafrica(n.d.)Policy.[Online].Availableat:http://
www.agriallafrica.com/policy.html.Accessedon29June2014.
262 Ibid.263 Ibid.264 SACAU.(2013).AnnualReport2013oftheSouthern
AfricanConfederationofAgriculturalUnions.[Online].Availableat:http://www.sacau.org/wp-content/uploads/2014/04/sacau-version-3d_custom_version.pdf.Accessedon28June2014.
265 Latham,B.(2011).S.[South]AfricafarmersshunLibya,targetSudanbananas,Egyptgrapes.[Online].Availableat:http://farmlandgrab.org/post/view/18207.Accessedon11June2014.
266 Hall,R.(2013).Exportingdualism?TheExpansionofSouthAfricancapitalinAfricanfarmlanddeals.Bellville,WesternCape:InstituteforPoverty,LandandAgrarianStudies.
267 TongaatHulett.(n.d.).TongaatHulett.[Online].Availableat:http://www.tongaat.co.za/.Accessedon30June2014.
268 Ibid.269 Ibid.270 IllovoSugar.(2014).AboutUs.[Online].Availableat:
http://www.illovosugar.co.za/Home.aspx.Accessedon29June2014.
271 Ibid.272 Ibid.273 Farmer’s Weekly.(2014).PositioningIllovo
SugarforgrowthinAfrica.[Online].Availableat:http://www.farmersweekly.co.za/article.aspx?id=55986&h=Positioning-Illovo-Sugar-for-growth-in-Africa.Accessedon30June2014.
274 Tongaat.(2013).AnnualReport.[Online].Availableat:http://www.tongaat.co.za/imc/annual_reports/ar_2013/comment/strategic_position.asp.Accessedon15June2014.
275 TongaatHulett.(n.d.).TongaatHulett.[Online].Availableat:http://www.tongaat.co.za/.Accessedon30June2014.
276 ESI-AFrica.com.(2011).IllovotoproduceethanolfrommolassesinTanzania.[Online].Availableat:http://www.esi-africa.com/illovo-to-produce-ethanol-from-molasses-in-tanzania/.Accessedon29June2014.
277 Farmer’s Weekly.(2014).PositioningIllovoSugarforgrowthinAfrica.[Online].Availableat:http://www.farmersweekly.co.za/article.aspx?id=55986&h=Positioning-Illovo-Sugar-for-growth-in-Africa.Accessedon30June2014.
278 Ibid.279 AGRA.(n.d.).AboutUs.[Online].Availableat:http://
agra-alliance.org/who-we-are/our-story/#.U94yf_mSxHw.Accessedon3August2014.
280 WorldBank.(2013).GrowingAfrica:UnlockingthepotentialofAgribusiness.NewYork:WorldBank.
281 GROW.(2014).ThecommercialseedmarketinAfrica2014.[Online].Availableat:https://store.agra-net.com/reports/commercseed14.html.Accessedon26
June2014.282 Mooney,P.(2012).Concentrationoftheseedindustry.
InSeed Freedom: A Global Citizen’s Report.NewDelhi:Navdanya.
283 Hubbard,K.(2013).Seed Industry Consolidation is still ‘out of hand’.[Online].Availableat:http://blog.seedalliance.org/2013/09/17/seed-industry-consolidation-is-still-out-of-hand/.Accessedon1October2013.
284 NationalAgriculturalMarketingCouncil.(2012).DesktopviewoftheSouthAfricanseedindustry:Alookatthevaluechainanddifferentactivitiesandrole-players.[Online].Availableat:http://www.namc.co.za/upload/per_category/South%20African%20Seed%20Industry%20-%20a%20desktop%20study.pdf.Accessedon28May2014.
285 GRAIN.(2010).Globalagribusiness:twodecadesofplunder.SeedlingJuly2010.
286 GROW.(2014).ThecommercialseedmarketinAfrica2014.[Online].Availableat:https://store.agra-net.com/reports/commercseed14.html.Accessedon26June2014.
287 AGRA.(2014).NewreportfindsAfricanseedindustrynowdominatedbylocalstart-ups.[Online].Availableat:http://www.agra.org/media-centre/news/new-report-finds-african-seed-industry-now-dominated-by-local-startups-/#.U6vtt0BLOZQ.Accessedon26June2014.
288 GROW.(2014).ThecommercialseedmarketinAfrica2014.[Online].Availableat:https://store.agra-net.com/reports/commercseed14.html.Accessedon26June2014.
289 Monsanto.(n.d).Whoweare.[Online].Availableat:http://www.monsanto.com/whoweare/pages/our-locations.aspx.Accessedon13June2014.
290 FarmChemicalInternational(2013).SyngentatoacquireAfricancornseedbusiness.[Online].Availableat:http://www.farmchemicalsinternational.com/markets/africa/syngenta-to-acquire-african-corn-seed-business/.Accessedon12June2014.
291 Syngenta.(2013).Global[Online].Availableat:http://www.syngenta.com/global/corporate/en/news-center/events-and-presentations/pages/feature-27-05-2013.aspx.Accessedon12June2014.
292 FarmChemicalInternational.(2013).SyngentatoacquireAfricancornseedbusiness.[Online].Availableat:http://www.farmchemicalsinternational.com/markets/africa/syngenta-to-acquire-african-corn-seed-business/.Accessedon12June2014.
293 Ibid.294 Ibid.295 DuPont.(2013).DataBook.[Online].Availableat:
www.dupont.com.Accessedon29June2014.296 Rangnekar,D.(2001).Access to Genetic Resources,
Gene-based inventions and Agriculture.[Online].Availableat:http://www.planttreaty.org/content/access-genetic-resources-gene-based-inventions-and-agriculture.Accessedon3September2013;Howard,P.(2009)VisualizingConsolidationintheGlobalSeedIndustry:1996-2008.Sustainability1:1266-1287.
297 Brahy,N.(2009).Intellectual Property of Agricultural Resources and Biodiversity.ExpertSubmissiontotheUnitedNationsSpecialRapporteurontheRighttoFood,OlivierdeSchutter.[Online].Availableat:http://www.unamur.be/droit/crid/propriete/rapport-olivier-
Africa an El Dorado for South Africa’s Agribusiness Giants 45
de-schutter.Accessedon3March2013;Wield,D.,Chataway,J.&Bolo,M.(2010).Issuesinthepoliticaleconomyofagriculturalbiotechnology.Journal of Agrarian Change10(3):342-366;Fulton,M.&Giannakas,K.(2001).AgriculturalBiotechnologyandIndustryStructure.AgBioForum4(2):pg137-151.
298 Moss,D.L.(2011).Competitionandtransgenicseedsystems.The Anti-trust Bulletin56(1):81.
299 Fulton,M.&Giannakas,K.(2001).AgriculturalBiotechnologyandIndustryStructure.AgBioForum4(2):pg137-151.
300 Wield,D.,Chataway,J.&Bolo,M.(2010).Issuesinthepoliticaleconomyofagriculturalbiotechnology.Journal of Agrarian Change10(3):342-366.
301 IGD(n.d.).IGDAGINVEST:catalysingagribusinessinvestmentsinAfrica.[Online].Availableat:http://www.google.co.za/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CB0QFjAA&url=http%3A%2F%2Fwww.igdleaders.org%2Finsight%2Figd-aginvest-catalyzing-agribusiness-investments-in-africa%2F&ei=WSLqU9TpOYWm0QWg24HIBQ&usg=AFQjCNH9kAQwC2GL2Ymg6em4ci6w8MTGhA&bvm=bv.72676100,d.d2k.Accessedon15July2014.
302 ACB.(2012).AllianceforaGreenRevolutioninAfrica(AGRA).LayingthegroundworkforthecommercialisationofAfricanAgriculture.Johannesburg:AfricanCentreforBiosafety.
303 Brahy,N.(2009).IntellectualPropertyofAgriculturalResourcesandBiodiversity.ExpertSubmissiontotheUnitedNationsSpecialRapporteurontheRighttoFood,OlivierdeSchutter.[Online].Availableat:http://www.unamur.be/droit/crid/propriete/rapport-olivier-de-schutter.Accessedon3March2013.CGRFA.(2010).TheSecondReportonTheStateoftheWorld’sPlantGeneticResourcesforFoodandAgriculture.Rome:FoodandAgricultureOrganisationCommissiononGeneticResourcesforFoodandAgriculture.
304 Green,A.R.(2012).Africa:GrowingAfrica’sLand.[Online].Availableat:http://allafrica.com/stories/201207030260.html.Accessedon4June2014.
305 Ibid.306 Maritz,J.(2012).CommercialfarmingintheCongo
notforthefaint-hearted.[Online].Availableat:http://www.howwemadeitinafrica.com/commercial-farming-in-the-congo-not-for-the-faint-hearted/21576/.Accessedon1June2014.
307 Hawkins,D.(2010).ThebackboneofAfricanagricultureneedsstrengthening.[Online].Availableat:http://www.hardmanandco.com/team/blog/2013/september/backbone-african-agriculture-needs-strengthening.Accessedon5June2014.
308 Hanna,S.(2013).SAagribusinessescontinuetolooktoAfricafornewmarkets.[Online].Availableat:http://www.africanbusinessreview.co.za/business_leaders/-sa-agribusinesses-continue-to-look-to-africa-for-new-markets.Accessed19May2014.
309 PricewaterhouseCoopers.(n.d.).CompetingforAfricanmarkets:Strategiestowinnewbusinessnow.[Online].Availableat:http://www.pwc.com/us/en/view/issue-16/strategies-win-african-business.jhtml.Accessedon16June2014.
310 Hanna,S.(2013).SAagribusinessescontinuetolooktoAfricafornewmarkets.[Online].Availableat:http://www.africanbusinessreview.co.za/business_leaders/-
sa-agribusinesses-continue-to-look-to-africa-for-new-markets.Accessed19May2014.
311 Deloitte.(n.d.).AddressingAfrica’sinfrastructurechallenge.[Online].Availableat:http://www2.deloitte.com/content/dam/Deloitte/global/Documents/Energy-and-Resources/dttl-er-africasinfrastructure-08082013.pdf.Accessedon26June2014.
312 Arora,M.(2014).InvestmentgrowthinAfricanagriculture.PaneldiscussionbyStandardBankatAgbizCongress2014.[Online].Availableat:http://www.agbiz.co.za/congress-2014/archive/agbiz-congress/Accessedon22June2014.
313 Fletcher,P.(2014).ShopritefaceschallengesinNigeria’ssecondcity.[Online].Availableat:http://www.bdlive.co.za/africa/africanbusiness/2014/04/10/shoprite-faces-challenges-in-nigerias-second-city.Accessedon5June2014.
314 DPME.(2014).SouthAfricanPresidency’s20YearReview.Pretoria:DepartmentofPublicMonitoringandEvaluation:Chapter8.
315 AfricanDevelopmentBankGroup.(2010).AgricultureSectorStrategy2010–2014.AfricanDevelopmentBank:AgricultureandAgro-IndustryDepartmentandOperationalResourcesandPoliciesDepartment.
316 Juma,C.(2012).PoorinfrastructureisAfrica’ssoftunderbelly.[Online].Availableat:http://www.forbes.com/sites/mfonobongnsehe/2012/10/25/poor-infrastructure-is-africas-soft-underbelly/.Accessedon26June2014.
317 DPME.(2014).SouthAfricanPresidency’s20YearReview.Pretoria:DepartmentofPublicMonitoringandEvaluation:Chapter8.
318 Ibid.319 Ibid.320 TigerBrands.(n.d.).TigerBrands.[Online].Available
at:http://www.tigerbrands.co.za/ourworld.php#socioQuick.Accessedon29June2014.
321 Clover.(2013).IntegratedReportfortheyearended30June2013.[Online].Availableat:http://www.clover.co.za/media/shared/downloadable/annualreport/2013/clover2013arl.pdf.Accessedon29June2014.
322 Ibid.323 AFKInsider.(2013).WoolworthspullsoutofNigeria,
citespoorprofits.[Online].Availableat:http://afkinsider.com/33531/woolworths-pulls-out-of-nigeria/.Accessedon3July2014.
324 Ibid.325 AfricaProgressPanel.(2014).GrainFishMoney:
FinancingAfrica’sGreenandBlueRevolutions.AfricaProgressReport2014.
326 Ibid.327 Ibid.328 StandardBank.(2014).ResilientPropertyIncome
Fund.[Online].Availableat:file:///C:/Users/Stefanie/Downloads/Flash_Note_20140210_113413260.pdf.Accessedon19June2014.
329 Ibid.330 Norberg-Hodge.(2000).Bringingthefoodeconomy
home.Thesocial,ecologicalandeconomicbenefitsoflocalfood. UnitedKingdom:ISECChp5,6,7&8.
331 Deloitte.(n.d.).AddressingAfrica’sinfrastructurechallenge.[Online].Availableat:http://www2.
46 A F R I C A N C E N T R E F O R B I O S A F E T Y
deloitte.com/content/dam/Deloitte/global/Documents/Energy-and-Resources/dttl-er-africasinfrastructure-08082013.pdf.Accessedon26June2014.
332 DPME.(2014).SouthAfricanPresidency’s20YearReview.Pretoria:DepartmentofPublicMonitoringandEvaluation:Chapter8.
333 Norberg-Hodge.(2000).Bringingthefoodeconomyhome.Thesocial,ecologicalandeconomicbenefitsoflocalfood.UnitedKingdom:ISECChp5,6,7&8.
334 Ibid.335 Ibid.336 Miller,D.(n.d.).FoodFrontiersinZambia:Resistance
andpartnershipsinshoprites’retailempire.[Online].Availableathttp://africafiles.org/article.asp?id=18515.Accessedon16May2014.
337 Reardon,T.,Timmer,C.,Barrett,C.&JulioBerdegué.(2003).TheRiseofSupermarketsinAfrica,Asia,andLatinAmerica.AmericanAgriculturalEconomicsAssociation85:5.pp.1140-1146.
338 Jordaan,D.(2012).Anoverviewofincentivestheoryandpractice:Afocusontheagro-processingindustryinSouthAfrica.Pretoria:DepartmentofAgriculture,ForestryandFisheries:Directorate:Agro-processingsupport.
339 Ibid.340 Ibid.341 Arora,M.(2014).InvestmentgrowthinAfrican
agriculture.PaneldiscussionbyStandardBankatAgbizCongress2014.[Online].Availableat:http://www.agbiz.co.za/congress-2014/archive/agbiz-congress/Accessedon22June2014.
342 Mhlanga,N.(2010).Privatesectoragribusinessinvestmentinsub-SaharanAfrica.Rome:FoodandAgricultureOrganisation:RuralInfrastructureandAgro-IndustriesDivision.
343 Hall,R.(2011).ThenextGreatTrek?SouthAfricancommercialfarmersmovenorth.PaperpresentedattheInternationalConferenceonGlobalLandGrabbing(6–8April2011).
344 Biswalo,D.M.(2011)Thegainsandlossesofforeigndirectinvestmentinagriculture:theTanzaniacasestudy.PaperpresentedattheForeignDirectInvestmentsinAgricultureinEasternAfricaconference.HeldatLaicoRegencyHotel,Nairobi-Kenya,20–23October2011.
345 Arora,M.(2014)InvestmentgrowthinAfricanagriculture.PaneldiscussionbyStandardBankatAgbizCongress2014.[Online}Availableat:http://www.agbiz.co.za/congress-2014/archive/agbiz-congress/Accessedon22June2014.
346 Ibid.347 Jordaan,D.(2012).Anoverviewofincentivestheory
andpractice:Afocusontheagro-processingindustryinSouthAfrica.Pretoria:DepartmentofAgriculture,ForestryandFisheries:Directorate:Agro-processingsupport.
348 Green,A.R.(2012).Africa:GrowingAfrica’sLand.[Online].Availableat:http://allafrica.com/stories/201207030260.html.Accessedon4June2014.
349 Ibid.350 Jordaan,D.(2012).Anoverviewofincentivestheory
andpractice:Afocusontheagro-processingindustryinSouthAfrica.Pretoria:DepartmentofAgriculture,
ForestryandFisheries:Directorate:Agro-processingsupport.
351 Mwilima,N.(2003).ForeigndirectinvestmentinAfrica.AfricaLabourResearchNetwork:LabourResourceandResearchInstitute.
352 Ibid.353 Jordaan,D.(2012).Anoverviewofincentivestheory
andpractice:Afocusontheagro-processingindustryinSouthAfrica.Pretoria:DepartmentofAgriculture,ForestryandFisheries:Directorate:Agro-processingsupport.
354 Ibid.355 Mwilima,N.(2003).Foreigndirectinvestmentin
Africa.AfricaLabourResearchNetwork:LabourResourceandResearchInstitute.
356 Engineering News.(2014).I&JinvestsR500minnewvessels,processingfacilityupgrade.[Online].Availableat:http://www.engineeringnews.co.za/article/ij-invests-r500m-in-new-vessels-processing-facility-upgrade-2014-06-04.Accessedon1July2014.
357 RCLFoods.(2013).Auditedresultsfortheyearended30June2013.[Online].Availableat:http://www.rclfoods.com/pdf/yearly-reports/2013InvestorPresentation.pdf.Accessedon30June2014.
358 AFGRI.(2013).AnnualReport[Online].Availableat:http://www.afgri.co.za/financials/2013/AFGRI_Annual_Report_2013.pdf.Accessedon1July2014.
359 Oceana.(n.d.).Oceana.[Online].Availableat:http://www.oceana.co.za/.Accessedon30June2014.
360 TigerBrands.(n.d.).TigerBrands.[Online].Availableat:http://www.tigerbrands.co.za/ourworld.php#socioQuick.Accessedon29June2014.
361 Clover.(n.d.).BusinessOverview[Online].Availableat:http://www.clover.co.za/company-overview.Accessedon29June2014.
362 NovaCapital.(2011).CloverIndustriesLtd.[Online].Availableat:http://www.novacapitalpartners.com/marketcommentary/Nova%20Company%20Research%20-%20Clover%20Industries%20Ltd%20-%20June%202011.pdf.Accessedon29June2014.
363 AfricanDevelopmentBank.(2014).TheBank’sHumanCapitalDevelopmentStrategy(2014–2018).[Online].Availableat:http://www.afdb.org/fileadmin/uploads/afdb/Documents/Policy-Documents/AfDB_Human_Capital_Strategy_for_Africa_2014-2018.pdf.Accessedon20June2014.
364 AfricaProgressPanel.(2014).GrainFishMoney:FinancingAfrica’sGreenandBlueRevolutions.AfricaProgressReport2014.
365 AfricanDevelopmentBank.(2014).TheBank’sHumanCapitalDevelopmentStrategy(2014–2018).[Online].Availableat:http://www.afdb.org/fileadmin/uploads/afdb/Documents/Policy-Documents/AfDB_Human_Capital_Strategy_for_Africa_2014-2018.pdf.Accessedon20June2014.
366 Ibid.367 NEPAD.(2010).ExecutivesummaryofAU-NEPAD’s
AfricanInnovationOutlook2010.Pretoria:AU-NEPAD.368 NEPAD.(2010).ExecutivesummaryofAU-NEPAD’s
AfricanInnovationOutlook2010.Pretoria:AU-NEPAD.369 Ibid.370 Ibid.371 Ibid.
Africa an El Dorado for South Africa’s Agribusiness Giants 47
372 Ibid.373 Ibid.374 Ibid.375 AfricanDevelopmentBank.(2014).TheBank’sHuman
CapitalDevelopmentStrategy(2014–2018).[Online].Availableat:http://www.afdb.org/fileadmin/uploads/afdb/Documents/Policy-Documents/AfDB_Human_Capital_Strategy_for_Africa_2014-2018.pdf.Accessedon20June2014.
376 Ibid.377 Ibid.378 Ibid.379 NEPAD.(2010).ExecutivesummaryofAU-NEPAD’s
AfricanInnovationOutlook2010.Pretoria:AU-NEPAD.380 Ibid.381 PricewaterhouseCoopers.(n.d.).Competingfor
Africanmarkets:Strategiestowinnewbusinessnow.[Online].Availableat:http://www.pwc.com/us/en/view/issue-16/strategies-win-african-business.jhtml.Accessedon16June2014.
382 Ibid.383 AFGRI.(2013).AnnualReport[Online].Available
at:http://www.afgri.co.za/financials/2013/AFGRI_Annual_Report_2013.pdf.Accessedon1July2014.
384 TongaatHulett.(n.d.).TongaatHulett.[Online].Availableat:http://www.tongaat.co.za/.Accessedon30June2014.
385 IllovoSugar.(2014).AboutUs.[Online].Availableat:http://www.illovosugar.co.za/Home.aspx.Accessedon29June2014.
386 Ernst&YoungGlobalLimited.(2014).EY’sattractivenesssurvey:Africa2014:ExecutingGrowth.[Online].Availableat:http://www.ey.com/Publication/vwLUAssets/EY-attractiveness-africa-2014-Lite/$FILE/EY-attractiveness-africa-2014-Lite.pdf.Accessedon1July2014.
387 PricewaterhouseCoopers.(n.d.).CompetingforAfricanmarkets:Strategiestowinnewbusinessnow.[Online].Availableat:http://www.pwc.com/us/en/view/issue-16/strategies-win-african-business.jhtml.Accessedon16June2014.
388 UNDP.(2012).TherolesandopportunitiesfortheprivatesectorinAfrica’sagro-foodindustry.UNDPAfricanFacilityforinclusivemarkets.[Online].Availableat:www.undp.org/africa/privatesector.Accessedon16June2014.
389 Harding,C.(2012).Interview:ShopriteCEOtalksretailinAfrica.[Online].Availableat:http://www.howwemadeitinafrica.com/interview-shoprite-ceo-talks-retail-in-africa/21086/.Accessedon2July2014.
390 AFKInsider.(2013).WoolworthspullsoutofNigeria,citespoorprofits.[Online].Availableat:http://afkinsider.com/33531/woolworths-pulls-out-of-nigeria/.Accessedon3July2014.
391 Harding,C.(2012).Interview:ShopriteCEOtalksretailinAfrica.[Online].Availableat:http://www.howwemadeitinafrica.com/interview-shoprite-ceo-talks-retail-in-africa/21086/.Accessedon2July2014.
392 WorldBank.(2013).GrowingAfrica:UnlockingthepotentialofAgribusiness.NewYork:WorldBank.
393 AFGRI.(n.d.).AFGRIAfrica.[Online].Availableat:http://www.afgri.co.za/ops_afgri_africa.php.Accessedon1July2014.
394 Green,A.R.(2012).Africa:GrowingAfrica’sLand.
[Online].Availableat:http://allafrica.com/stories/201207030260.html.Accessedon4June2014.
395 Fletcher,P.(2014).ShopritefaceschallengesinNigeria’ssecondcity.[Online].Availableat:http://www.bdlive.co.za/africa/africanbusiness/2014/04/10/shoprite-faces-challenges-in-nigerias-second-city.Accessedon5June2014.
396 PricewaterhouseCoopers.(n.d.).CompetingforAfricanmarkets:Strategiestowinnewbusinessnow.[Online].Availableat:http://www.pwc.com/us/en/view/issue-16/strategies-win-african-business.jhtml.Accessedon16June2014.
397 Ibid.398 Ibid.399 DPME.(2014).SouthAfricanPresidency’s20Year
Review.Pretoria:DepartmentofPublicMonitoringandEvaluation:Chapter8.
400PricewaterhouseCoopers.(n.d.).CompetingforAfricanmarkets:Strategiestowinnewbusinessnow.[Online].Availableat:http://www.pwc.com/us/en/view/issue-16/strategies-win-african-business.jhtml.Accessedon16June2014.
401 UNDP.(2012).TherolesandopportunitiesfortheprivatesectorinAfrica’sagro-foodindustry.UNDPAfricanFacilityforinclusivemarkets.[Online].Availableat:www.undp.org/africa/privatesector.Accessedon16June2014.
402 AfricaProgressPanel.(2014).GrainFishMoney:FinancingAfrica’sGreenandBlueRevolutions.AfricaProgressReport2014.
403 UNDP.(2012).TherolesandopportunitiesfortheprivatesectorinAfrica’sagro-foodindustry.UNDPAfricanFacilityforinclusivemarkets.[Online].Availableat:www.undp.org/africa/privatesector.Accessedon16June2014.
404 Ibid.405 Ibid.406ACB.(2013).Givingwithonehandandtakingwith
two:AcritiqueofAgra’sAfricanAgricultureStatusReport2013.Johannesburg:AfricanCentreforBiosafety.
407 AfricaProgressPanel.(2014).GrainFishMoney:FinancingAfrica’sGreenandBlueRevolutions.AfricaProgressReport2014.
408USAID.(2014).SouthernAfricaTradeHubStrategicPartnershipGrants:Results&ReflectionsfromMozambique,MalawiandZambia.[Online].Availableat:http://www.jadafa.co.za/LinkClick.aspx?fileticket=MfGRd11cf9Y%3d&tabid=173Accessedon29May2014.
409UNDP.(2012).TherolesandopportunitiesfortheprivatesectorinAfrica’sagro-foodindustry.UNDPAfricanFacilityforinclusivemarkets.[Online].Availableat:www.undp.org/africa/privatesector.Accessedon16June2014.
410 JADAFA.(n.d.).JointAgribusinessDepartmentofAgricultureForumforAfrica.[Online].Availableat:http://www.jadafa.co.za/.Accessedon10June2014.
411 Ibid.412 NEPAD(2010)ExecutivesummaryofAU-NEPAD’s
AfricanInnovationOutlook2010.Pretoria:AU-NEPAD.413 NDP.(2011).NationalDevelopmentPlan:Visionfor
2030.Pretoria:NationalPlanningCommission.
48 A F R I C A N C E N T R E F O R B I O S A F E T Y
414 WorldBank.(2013).GrowingAfrica:UnlockingthepotentialofAgribusiness.NewYork:WorldBank.
415 CGIAR.(n.d.).CelebratingcreativeandinnovativefarmersaroundEastAfrica.[Online].Availableat:http://ccafs.cgiar.org/blog/celebrating-creative-and-innovative-farmers-around-east-africa#.U7ZWHfmSxHw.Accessedon2July2014.
416 Clover.(2013).IntegratedReportfortheyearended30June2013.[Online].Availableat:http://www.clover.co.za/media/shared/downloadable/annualreport/2013/clover2013arl.pdf.Accessedon29June2014.
417 AVI.(2013).IntegratedAnnualReport.[Online].Availableat:http://www.avi.co.za/system/presentations/attachments/93/original/AVI_AR_2013_Lo-Res.pdf?1380547249.Accessedon1July2014.
418 Ibid.419 NovaCapital.(2011).CloverIndustriesLtd.[Online].
Availableat:http://www.novacapitalpartners.com/marketcommentary/Nova%20Company%20Research%20-%20Clover%20Industries%20Ltd%20-%20June%202011.pdf.Accessedon29June2014.
420 Clover.(2013).IntegratedReportfortheyearended30June2013.[Online].Availableat:http://www.clover.co.za/media/shared/downloadable/annualreport/2013/clover2013arl.pdf.Accessedon29June2014.
421 Ibid.422 TigerBrands.(n.d.).TigerBrands.[Online].Available
at:http://www.tigerbrands.co.za/ourworld.php#socioQuick.Accessedon29June2014.
423 AVI.(2013).IntegratedAnnualReport.[Online].Availableat:http://www.avi.co.za/system/presentations/attachments/93/original/AVI_AR_2013_Lo-Res.pdf?1380547249.Accessedon1July2014.
424 PricewaterhouseCoopers.(n.d.)CompetingforAfricanmarkets:Strategiestowinnewbusinessnow.[Online].Availableat:http://www.pwc.com/us/en/view/issue-16/strategies-win-african-business.jhtml.Accessedon16June2014.
425 AFGRI.(2013).AnnualReport[Online].Availableat:http://www.afgri.co.za/financials/2013/AFGRI_Annual_Report_2013.pdf.Accessedon1July2014.
426 Cohen,M.&Garret,J.(2009).TheFoodPriceCrisisandurbanfood.(in)security.Human Settlements Working Paper Series.London:InternationalInstituteforEnvironmentandDevelopment.
427 Microsoft.com.(n.d.).Africa’sbiggestfoodretailerchoosesnewpoint-of-serviceoperatingsystem.[Online].Availableat:https://www.google.co.za/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CDQQFjAA&url=http%3A%2F%2Fwww.microsoft.com%2Fcasestudies%2FServeFileResource.aspx%3F4000001350&ei=7HO2U4i0O7Tb7AaSh4H4CQ&usg=AFQjCNFm2ITnqfAO_Ia_H-aYGT9qB1MtWA&bvm=bv.70138588,d.ZGU.Accessedon2July2014.
428 DeSchutter,O.(2011).TheRightofEveryonetoEnjoytheBenefitsofScientificProgressandtheRighttoFood:FromConflicttoComplementarity.Human Rights Quarterly33:304-350.
429 Ibid.430 CGRFA.(2010).The Second Report on The State of
the World’s Plant Genetic Resources for Food and
Agriculture.Rome:FoodandAgricultureOrganisationCommissiononGeneticResourcesforFoodandAgriculture.
431 VonBraun,J.&Meinzen-Dick,R.(2009).“LandGrabbing”byForeignInvestorsinDevelopingCountries:RisksandOpportunities.IFPRIPolicyBrief13–April2009.
432 Miller,D.(n.d.).FoodFrontiersinZambia:Resistanceandpartnershipsinshoprites’retailempire.[Online].Availableathttp://africafiles.org/article.asp?id=18515.Accessedon16May2014.
433 Kirsten,J.,Agdulrahman,A.&Bopape,L.(2007).TheimpactofmarketpoweranddominanceofsupermarketsonagriculturalproducersinSouthAfrica:AcasestudyoftheSouthAfricandairyindustry.NationalAgriculturalMarketingCouncil.
434 Reardon,T.,Timmer,C.,Barrett,C.&JulioBerdegué.(2003).TheRiseofSupermarketsinAfrica,Asia,andLatinAmerica.AmericanAgriculturalEconomicsAssociation85:5.pp.1140–1146.
435 Jordaan,D.(2012).Anoverviewofincentivestheoryandpractice:Afocusontheagro-processingindustryinSouthAfrica.Pretoria:DepartmentofAgriculture,ForestryandFisheries:Directorate:Agro-processingsupport.
436 Ibid.437 UNDP.(2012).Therolesandopportunitiesforthe
privatesectorinAfrica’sagro-foodindustry.UNDPAfricanFacilityforinclusivemarkets.[Online].Availableat:www.undp.org/africa/privatesector.Accessedon16June2014.
438 Fulton,M.&Giannakas,K.(2001).AgriculturalBiotechnologyandIndustryStructure.AgBioForum4(2):pg137–151.
439 Reardon,T.,Timmer,C.,Barrett,C.&JulioBerdegué.(2003).TheRiseofSupermarketsinAfrica,Asia,andLatinAmerica.AmericanAgriculturalEconomicsAssociation85:5.pp.1140–1146.
440Weatherspoon,D.&Reardon,T.(2003).TheriseofsupermarketsinAfrica:ImplicationsforAgrifoodSystemsandtheRuralPoor.Development and Policy Review21(3).
441 Jordaan,D.(2012).Anoverviewofincentivestheoryandpractice:Afocusontheagro-processingindustryinSouthAfrica.Pretoria:DepartmentofAgriculture,ForestryandFisheries:Directorate:Agro-processingsupport.
442 LeadCapital.(2008).Nigeria’sFlourMillingIndustry.[Online].Availableat:file:///C:/Users/Stefanie/Downloads/Flour%20Milling%20Industry%20Report%20010408%20-%20LeadCapital.pdf.Accessedon2July2014
443 Kirsten,J.,Agdulrahman,A.&Bopape,L(2007).TheimpactofmarketpoweranddominanceofsupermarketsonagriculturalproducersinSouthAfrica:AcasestudyoftheSouthAfricandairyindustry.NationalAgriculturalMarketingCouncil.
444 Ibid.445 ShopriteHoldings.(2013).SustainabilityReport.
[Online].Availableat:www.shopriteholdings.co.za/sustainability/sustainability/Pages/Sustainability-Report2013.aspx.Accessedon23April2014.
446 Weatherspoon,D.&Reardon,T.(2003).RiseofSupermarketsinAfrica:ImplicationsforAgrifood
Africa an El Dorado for South Africa’s Agribusiness Giants 49
SystemsandRuralPoor.DevelopmentPolicyReview5(3)
447 Kirsten,J.,Agdulrahman,A.&Bopape,L.(2007).TheimpactofmarketpoweranddominanceofsupermarketsonagriculturalproducersinSouthAfrica:AcasestudyoftheSouthAfricandairyindustry.NationalAgriculturalMarketingCouncil.
448449 DepartmentofAgricultureandForestry[DAFF].
(2010).IntroducingAgro-processing:TheStatusoftheAgro-processingIndustryinSouthAfrica.[Online].Availableat:http://www.nda.agric.za/doaDev/sideMenu/AgroProcessingSupport/docs/Brief_introducting%20agro%20processing.pdf.Accessedon21June2014.
450 Cohen,M.&Garret,J.(2009).TheFoodPriceCrisisandurbanfood(in)security.Human Settlements Working Paper Series.London:InternationalInstituteforEnvironmentandDevelopment.
451 Ibid.452 Kirsten,J.,Agdulrahman,A.&Bopape,L.(2007).
TheimpactofmarketpoweranddominanceofsupermarketsonagriculturalproducersinSouthAfrica:AcasestudyoftheSouthAfricandairyindustry.NationalAgriculturalMarketingCouncil.
453 Lang,T.&HeasmanmM.(2004).FoodWars—TheGlobalBattleforMouths,MindsandMarkets.London:EarthscanPublicationsLtd.Chp1:11–46.
454 DuPlessis,L.(2013).InfantandyoungchildfeedinginSouthAfrica:stopthecrying,belovedcountry.South African Journal of Clinical Nutrition26(1):4–5.
455 Cohen,M.&Garret,J.(2009).TheFoodPriceCrisisandurbanfood(in)security.Human Settlements Working Paper Series.London:InternationalInstituteforEnvironmentandDevelopment.
456 AfricaProgressPanel.(2014).GrainFishMoney:FinancingAfrica’sGreenandBlueRevolutions.AfricaProgressReport2014.
457 Ibid.458 Mellon,M.(2013).Let’s Drop “Feed the World”: A plea to
move beyond an unhelpful phrase.UnionofConcernedScientists.[Online].http://blog.ucsusa.org/lets-drop-feed-the-world-a-plea-to-move-beyond-an-unhelpful-phrase-229.Accessedon10October2013.
459 Barthel,S.,Crumley,C.&Svedin,U.(2013).Bio-culturalrefugia—Safeguardingdiversityofpracticesforfoodsecurityandbiodiversity.Global Environmental Change.[Online].Availableat:http://www.sciencedirect.com/science/article/pii/S0959378013000757.Accessed14August2013.
460Gonzalez,C.(2012).Theglobalfoodsystem,environmentalprotection,andhumanrights. Natural Resources & Environment26(3):7.
461 NPC.(2011).National Development Plan: Vision for 2030.Pretoria:NationalPlanningCommissionRepublicofSouthAfrica.
462 VonBraun,J.&Meinzen-Dick,R.(2009).“LandGrabbing”byForeignInvestorsinDevelopingCountries:RisksandOpportunities.IFPRIPolicyBrief13–April2009.
463 AfricaProgressPanel.(2014).GrainFishMoney:FinancingAfrica’sGreenandBlueRevolutions.AfricaProgressReport2014.
464 VonBraun,J.&Meinzen-Dick,R.(2009).“Land
Grabbing”byForeignInvestorsinDevelopingCountries:RisksandOpportunities.IFPRIPolicyBrief13–April2009.
465 Sassenrath,G.F.,Heilman,P.,Luschei,E.,Bennett,G.L.,et al.(2008).Technology,complexityandchangeinagriculturalproductionsystems.Renewable Agriculture and Food Systems23(4):285–295.
466 AfricaProgressPanel.(2014).GrainFishMoney:FinancingAfrica’sGreenandBlueRevolutions.AfricaProgressReport2014.
467 Ibid.468 Ibid.469 Ibid.470 Jacobs,R(n.d.)Theradicalisationofthestrugglesof
thefoodsovereigntymovementinAfrica.[Online]Availableat:http://viacampesina.org/downloads/pdf/openbooks/EN-11.pdf.Accessedon10August2014.
471 Jacobs,R(n.d.)TheradicalisationofthestrugglesofthefoodsovereigntymovementinAfrica.[Online]Availableat:http://viacampesina.org/downloads/pdf/openbooks/EN-11.pdf.Accessedon10August2014.
472 Jacobs,R(n.d.)TheradicalisationofthestrugglesofthefoodsovereigntymovementinAfrica.[Online]Availableat:http://viacampesina.org/downloads/pdf/openbooks/EN-11.pdf.Accessedon10August2014.
473 Jordaan,D.(2012).Anoverviewofincentivestheoryandpractice:Afocusontheagro-processingindustryinSouthAfrica.Pretoria:DepartmentofAgriculture,ForestryandFisheries:Directorate:Agro-processingsupport.
474 Ibid.475 DAFF.(2011).PlantBreeders’RightsPolicy.Pretoria:
DepartmentofAgriculture,ForestryandFisheries.476 Vanloqueren,G.&Baret,P.(2009).Howagricultural
researchsystemsshapeatechnologicalregimethatdevelopsgeneticengineeringbutlocksoutagro-ecologicalinnovations.ResearchPolicy38:971–983.
477 RoyalSociety.(2009).Reapingthebenefits:Scienceandthesustainableintensificationofglobalagriculture.London:RoyalSociety
478 Moss,D.L.(2011).Competitionandtransgenicseedsystems.The Antitrust Bulletin56(1):81.
479 AfricaProgressPanel.(2014).GrainFishMoney:FinancingAfrica’sGreenandBlueRevolutions.AfricaProgressReport2014.
480Sherry,S.(2013).DuPontbetsonAfrica’sglobalfoodrolewithPannarSeeddeal.[Online].Availableat:http://www.bdlive.co.za/business/agriculture/2013/08/01/dupont-bets-on-africas-global-food-role-with-pannar-seed-deal.Accessedon12June2014.
481 Moss,D.L.(2011).Competitionandtransgenicseedsystems.TheAntitrustBulletin56(1):81.
Schenkelaars,P.(2011).DriversofConsolidationintheSeedIndustryanditsConsequencesforInnovation.Amsterdam:CommissiononGeneticModification(COGEM).
482 Kim,R.,Larsen,K.&Theus,F.(2009).Introductionandmainmessages.InAgribusinessandInnovationSystemsinAfrica.Eds:K.Larsen,Kim.R.&F.Theus(EDS).WashingtonDC:WorldBank.
483 Ibid.484 Ibid.485 AfricaProgressPanel.(2014).GrainFishMoney:
50 A F R I C A N C E N T R E F O R B I O S A F E T Y
FinancingAfrica’sGreenandBlueRevolutions.AfricaProgressReport2014.
486 AfricanDevelopmentBank.(2014).TheBank’sHumanCapitalDevelopmentStrategy(2014–2018).[Online].Availableat:http://www.afdb.org/fileadmin/uploads/afdb/Documents/Policy-Documents/AfDB_Human_Capital_Strategy_for_Africa_2014-2018.pdf.Accessedon20June2014.
487 AfricaProgressPanel.(2014).GrainFishMoney:FinancingAfrica’sGreenandBlueRevolutions.AfricaProgressReport2014.
488 Ibid.489 Ibid.490Deloitte.(n.d.).AddressingAfrica’sinfrastructure
challenge.[Online].Availableat:http://www2.deloitte.com/content/dam/Deloitte/global/Documents/Energy-and-Resources/dttl-er-africasinfrastructure-08082013.pdf.Accessedon26June2014.
491 VonBraun,J.&Meinzen-Dick,R.(2009).“LandGrabbing”byForeignInvestorsinDevelopingCountries:RisksandOpportunities.IFPRIPolicyBrief13–April2009.
492 Jordaan,D.(2012).Anoverviewofincentivestheoryandpractice:Afocusontheagro-processingindustryinSouthAfrica.Pretoria:DepartmentofAgriculture,ForestryandFisheries:Directorate:Agro-processingsupport.
493 Mwilima,N.(2003).ForeigndirectinvestmentinAfrica.AfricaLabourResearchNetwork:LabourResourceandResearchInstitute.
494 AfricaProgressPanel.(2014).GrainFishMoney:FinancingAfrica’sGreenandBlueRevolutions.AfricaProgressReport2014.
495 ACB.(2012).AllianceforaGreenRevolutioninAfrica(AGRA)LayingthegroundworkforthecommercialisationofAfricanAgriculture.Johannesburg:AfricanCentreforBiosafety.
496AFSA.(2014).AFSAmakessmallgainsforfarmers’rightsinDraftSADCPVPProtocol.Briefingpaper.AllianceforfoodsovereigntyinAfrica.
497 Ibid.498 Ibid.4994-Traders.com.(2014).PioneerFoodGroup.[Online]..
Availableat:http://www.4-traders.com/PIONEER-FOOD-GROUP-LTD-6500189/company/.Accessedon29June2014.
500Business Day.(2014).AlcoholdistilleriestohelpIllovodiversify.[Online].Availableat:http://www.bdlive.co.za/business/agriculture/2014/05/27/alcohol-distilleries-to-help-illovo-diversify.Accessedon29June2014.
PO Box 29170, Melville 2109, South Africawww.acbio.org.za
top related