AFGRI Equipment’s latest offerings on show at Arlington Tillage Day

Centurion, 20 April 2017 – AFGRI Equipment is once again proud to be part of the Arlington Tillage Farmers Day taking place on 20 April. For the past couple of years, AFGRI Equipment, through its branch in Bethlehem and Marquard, has supported the Arlington Farmers Union by showcasing the latest high quality agricultural equipment.

This year will be no different and we look forward to giving our valued clients the opportunity to test the latest high quality, technologically advanced equipment we offer.

On show from AFGRI Equipment will be a variety of premium equipment to view and experience. (more information on the equipment to attract clients, it can include prices, especially if they are offering “special show prices”). Clients will be given the opportunity to test drive the equipment/tractors.

In the last three years, interest in the Arlington Tillage Farmers Day has grown and it is now one of the largest agricultural equipment demonstrations in the Free State.

AFGRI Equipment acquires Ratten & Slater in Western Australia

AFGRI Equipment are delighted to announce the acquisition of Ratten & Slater.

 The acquisition took effect on the 4th April 2017 with AFGRI having acquired all three locations at Gnowangerup, Albany and Esperance. Ratten & Slater commenced operations in Esperance in 1964 and have since grown to service a large area in the south east and south west of WA. As AFGRI continues in its growth phase, we acquired Ratten & Slater to further expand our footprint and customer base in WA echoing our vision to be the market leader in our field with a strong and reputable brand. Whilst being John Deere dealers, we also have various other franchises including Manitou, Bourgault, Kuhn, Trufab and Croplands.

AFGRI made this acquisition to further our well-established mission, to be the preferred supplier of premium agricultural equipment, services and solutions. With the constant improvements in technology, additional experts in different fields are required. This further expansion will allow us to better cater to the needs of our customers, and meet their need for premium new and used equipment, competitive parts and reliable servicing.

AFGRI, a private company started over 90 years ago in South Africa, is a leading agricultural services and processing company. In 2004, AFGRI holdings acquired T & H Walton Stores and changed the name of their operations to AFGRI Equipment Pty Ltd in 2013. This current acquisition follows on from our previous acquisitions of Jolly & Sons in 2015 and Greenline in August 2016. The acquisition now means AFGRI will operate out of 14 dealerships across WA including our previous 11 branches of Boyup Brook, Carnamah, Dalwallinu, Geraldton, Perth-Guildford, Lake Grace, Moora, Pingelly, Wagin, Witchcliffe and Wongan Hills. Throughout our operations, our employees are from a mix of different cultures with a strong Australian backbone. From senior management through to our branches, we strongly believe in being engaged in our local community.

AFGRI Operations Director Gollie Coetzee said the management team have implemented the best practices to ensure AFGRI is ready to supply the market with premium products and service excellence at our newly-acquired locations. “This whole acquisition process has been absolutely positive. It was a willing-buyer, willing-seller scenario so there was no push from anybody and the way that the whole transition has gone has been tremendous,” he said. Mr Coetzee said an important aspect was making the transition for our new employees and customers smooth and comfortable. “The main message from this transition is to comfort our new employees and customers and let them know to not be alarmed,” he said.  “We had opportunity to talk to our new staff and our staff had the opportunity to put their concerns forward.  “Our employees are our business and we have a strong employee culture based on our values.” Mr Coetzee said he anticipates a great relationship moving forward. “With our mission and values being very similar to Ratten and Slater, we believe everything will continue to run smoothly and we are looking forward to what the future may bring,” he said.

Uplifting farmers will reduce poverty in Africa

Centurion, 4 April 2017. – The agricultural sector in Africa has the potential to lift the continent and its people out of poverty.

Tinus Prinsloo, CEO of Agri Services at AFGRI, says Africa can take its rightful place as a major food producer if farmers in Africa can be uplifted from subsistence farmers to commercial farmers.

“It will happen, but it will take time as farmers in Africa and investors in the sector face a series of challenges,” Prinsloo said at the 2017 congress of the International Federation of Agricultural Journalists that kicked off in Pretoria yesterday. AFGRI is a diamond sponsor of the weeklong event themed Africa, it’s time!

In a panel discussion about how cooperation between regions, governments and sectors can contribute to the agricultural sector in Africa, Prinsloo said access to funding is a major challenge for farmers in Africa.

“The volatile currency markets and foreign exchange regulations make it difficult for farmers to raise capital to expand their operations.” Interest rates across the continent are also generally very high, which further discourage investments.

He said South African farmers are willing to invest in the agricultural sector in Africa, but their efforts are hampered as they are expected to use their South African assets as collateral to get financing. “If this can change, much more capital will be available for investment in the sector,” Prinsloo said.

A major benefit of improved access to funding and significant investments will help small scale farmers to mechanise, which will greatly improve their production.

“The agricultural sector on the continent can expand significantly if finance cost can be reduced in order to attract investments and to get South African farmers to help and train small scale farmers in Africa,” Prinsloo concluded.

BUSINESS DAY: Mandatory sale of Bank of Athens adds another string to AFGRI’s bow

Bank of Athens’ parent, the National Bank of Greece, was compelled to sell its 99.81% interest in the bank as part of an agreement with the European Stability Mechanism

The South African Bank of Athens’ parent company was forced to offload its South African subsidiary, which had R1.5bn in deposits and R2.3bn in assets at the end of 2016, in terms of European Central Bank (ECB) conditions.

Afgri has snapped up the Greek bank’s interest, but declines to say at what price.

The agricultural services company is unwilling to divulge its plans for Bank of Athens, which Reserve Bank records show obtained the bulk of its deposits from the private non-financial corporate sector and households, while its two largest asset groups comprise residential mortgages and commercial and other mortgage advances.

This differs from Afgri’s R12bn debtors’ book, built up through Unigro Farmer Lending, Unigro Insurance Brokers and GroCapital Financial Services on behalf of the Land Bank. The Land Bank provides financial services to agribusiness.

Afgri CEO Chris Venter could not comment on how Bank of Athens’ clients complemented Afgri’s offering before the deal won regulatory approval.

“We … require all approvals. Afgri views this as a change in the holding structure, which will provide benefits to our clients.”

Afgri said on Tuesday that it had applied for regulatory approvals from the Reserve Bank, the minister of finance and the competition authorities.

Bank of Athens’ parent, the National Bank of Greece, was compelled to sell its 99.81% interest in the bank as part of an agreement with the European Stability Mechanism, which injected €2.71bn in capital in December 2015 after the ECB found a €4.6bn capital shortfall at the bank.

The ECB required National Bank of Greece to “dispose of noncore assets outside Greece” as a condition of the bail-out.

The rest of the shortfall was covered through “private means” and bolstered by the bank’s positive third-quarter results for 2015.

The National Bank of Greece is regarded as one of that country’s four systemically important financial institutions.

It expects the deal with Afgri to close within the second half of 2017 and enhance its liquidity by about €55m.

Venter said Afgri was impressed with the strides Bank of Athens had made in specialised offerings, especially in “the application of technology and innovative solutions”.

“Afgri, through its 94-year history, prides itself on knowing agriculture and agricultural cycles … [and is able] to use this knowledge in affording clients access to finance that will assist them through their production cycle,” said Venter.

“This acquisition provides an additional retail and alliance banking platform to current and prospective Afgri customers where deposit-taking and lending is possible.”

AFGRI acquires stake in bank and broadens financial offering

AFGRI Holdings Proprietary Limited (“AFGRI”), the leading agricultural services and food processing company is pleased to announce the potential acquisition of the National Bank of Greece Group’s stake in the South African Bank of Athens Limited (“SABA”), corresponding to 99.81% of the issued share capital (the ‘’Transaction”) of SABA .

The Transaction is subject to customary closing conditions, including, regulatory approvals from the South African Reserve Bank (“SARB”), the South African Minister of Finance as well as the South-African Competition Authorities. AFGRI is liaising with SARB in this regard and is in the process of preparing the prescribed applications for the regulatory approvals under the guidance of appointed advisors.

“AFGRI values the support of clients, depositors and banking partners of the SABA and commits to continue to provide the service excellence they are accustomed to,” said AFGRI CEO, Chris Venter. He went on to say that acquisition would be a further enabler to both AFGRI and SABA customers.

Fairfax Africa Holdings Corporation, the indirect controlling shareholder of AFGRI, has provided its support for the proposed transaction.

SABA was established and has been operational in South Africa since 1947. It offers comprehensive traditional business banking such as lending, transaction banking, treasury and foreign exchange. It is further known for its focus on the development of market leading niche transactional banking offerings in partnership with businesses.

“We are impressed with the strides SABA has made in specialised banking offerings especially as these pertain to the application of technology and innovative solutions,” indicated Venter.

Venter concluded by indicating that the acquisition provides an additional retail and alliance banking platform to current and prospective AFGRI customers where deposit taking and lending is possible and in this way enables AFGRI to continue with its focus of innovation and an enabler to food security.

BUS BYWAY: Large South African Presence at Agritech Expo in April Indicates Strong Interest in Zambia’s Agri Sector

Chisamba, Zambia, March 05, 2017 – “Zambia is an exciting market to explore, not just for South African suppliers to the agriculture sector, but also for South African farmers,” says Liam Beckett, commercial director for the upcoming Agritech Expo Zambia. The award-winning event is owned by the Zambia National Farmers Union (ZNFU) and returns to Chisamba for the fourth time this year from 27-29 April.

He adds, “In certain sectors the South African market has become saturated and many South African companies are looking to branch out across the border, in order to continue their business growth in Africa. In Zambia, there are approximately 400 registered commercial farming professionals, which represents a very lucrative potential market. The Zambian farming sector is also far more advanced than other neighbouring countries and farming methods are also similar to South Africa. Therefore, South African brands and products, such as implements and agro chemicals, are all applicable in Zambia.”

More international pavilions
Last year Agritech Expo Zambia drew a record-breaking attendance of 17 605 visitors. This year even more small-scale, emerging and commercial farmers are expected to descend on the GART research farm in the heart of Zambia’s agri-hub Chisamba, where the latest farming products and services will be showcased. The three-day expo will furthermore feature an even greater international presence with international pavilions from Germany, Zimbabwe, Czech Republic, the Netherlands, the UK and France already confirmed.

Says Liam Beckett, “Just judging from the big increase in international pavilions at Agritech Expo this year, the global interest in Zambia as an agri market is obvious. Already there is major international investment in the country at present as well as projects being planned and if a South African company wants to establish a footprint in Zambia, they need to make sure they grab this business development opportunity now before they miss out.”

The South African companies that have so far booked to exhibit or sponsor at Agritech Expo Zambia include AGRICO, Gallagher Power Fence SA Pty Ltd, Hydraform, Kempston Agri – Claas, Lindsay Africa, Neptun Boot, Organico, Senter 360, Teejet and ROFF. Many other suppliers have headquarters in South Africa, but they are exhibiting as the Zambian branch.

Liam adds, “For South African farmers, Zambia is of interest as there are many new technologies, agro chemicals and commercial farming methods that are available in Zambia that they can learn from. They can also explore renting land on a 99-year lease to expand on their existing South African operations.”

Agritech Expo Zambia will also offer free workshops again, as well as live machinery and product demonstrations and crop trials. New for this year will be specialised agri-sector industry zones and mowing and baling demonstrations.

Multi-award winning Agritech Expo
Agritech Expo Zambia recently won two coveted awards at the ROAR Organiser and Exhibitor Awards in Johannesburg which honour excellence in the exhibition and events industry on the continent. The awards were organised jointly by the Association of African Exhibition Organisers (AAXO) and the Exhibition & Event Association of Southern Africa (EXSA). Agritech Expo won for Best Trade & Consumer Exhibition +12000 sqm and for Distinction in Social Responsibility.

The expo also has an outreach programme at the local Golden Valley Basic School, where, with the assistance of numerous event sponsors, it is assisting the school with much needed infrastructure upgrades, equipment supplies and management of the school’s farm.

As in previous years, Agritech Expo enjoys extensive support from the agri industry with well-known suppliers AFGRI and John Deere returning as platinum sponsors again. Confirmed gold sponsors are Action Auto, Agricon, BHBW, Case Construction, Case Agriculture, Gourock and SARO.

Agritech Expo Zambia is organised by Spintelligent, leading Cape Town-based trade exhibition and conference organiser, and the African office of Clarion Events Ltd, based in the UK. The event is owned by the Zambia National Farmers Union. Other well-known events by Spintelligent include Agritech Expo Tanzania and Agribusiness Congress East Africa.

Agritech Expo Zambia 2017:
Dates: 27-29 April 2017
Location: Gart Research Centre, Chisamba, Zambia

Contact Information:
Agritech Expo Zambia
Annemarie Roodbol
+27217003558
Contact via Email
www.agritech-expo.com

East Africa recognises AFGRI’s contribution to food security

AFGRI Uganda was recognised by the East African people as the largest contributor towards food security at the annual East Africa Book of Records (EABR) awards.

At the handover ceremony recently held in Uganda, attended by members of AFGRI’s management team, EABR honoured AFGRI with the award for Responsible Consumption and Production in recognition of its sustainable contribution to agriculture in the region.

Jacob de Villiers, Managing Director, Grain Management at AFGRI, says the award proves that AFGRI’s initiatives to assist small scale farmers in the region are paying off.  “AFGRI’s Grain Management business in Uganda began in 2013 with the purpose of managing grain for food security and to prevent post-harvest losses on grain commodities.”

Across the African continent, AFGRI assists farmers to develop subsistence farms into semi-commercial farms in its efforts to ensure food security. AFGRI Grain Management in Uganda incorporates Farmer assistance and mentoring services, grain handling, grain storage and grain marketing.

The EABR aims to inspire ordinary people into doing extraordinary things in line with the United Nations Sustainable Development Goals. At the annual awards ceremony, the EABR recognises ground breaking achievements in various categories and records such achievement by awarding certificates to the winners. Companies in East Africa have been enthusiastic about the possibilities in harnessing the unique appeal of being a record breaker. Previous winners of the East African Award include the President of Uganda Yoweri Museveni and other distinguished individuals and companies.

At the 2017 ceremony, the awards were handed over by the Burundi Ambassador to Uganda standing in for the Speaker of Parliament, Honourable Rebecca Kadaga.

De Villiers concluded by saying that this is a tremendous accolade for AFGRI in support of its vision of being an enabler to food security across the continent.

Highvelder: Solomon’s a-‘maize’-ing story

“I know I have proven that I can farm successfully. All I want is to be able to settle on a farm and be allowed to produce food. That is what farming is all about.”

Solomon Masango (36) is a young farmer who grew up in the Carolina district and has a truly amazing story to tell.

He currently farms on a hired stretch of land just north of Carolina that he is transforming from nothing to one of the healthiest and potentially best yielding maize and soy fields per hectare in the district.

The pride and knowledgeable enthusiasm with which Solomon shows off his 90 ha maize crop and 90 ha soy bean crop is a tell-tale sign that his dream of becoming a commercial farmer is well within his reach, given the right opportunity and support. He also has a herd of cattle grazing on the farm.

Things didn’t come easily for Solomon. He has had to stand up against some unpleasant red tape and obstacles put in his way, but his tenacity and will to farm has already earned him the title of “Farmer of the Year”.

Solomon’s story began seven years ago when the Ubuhle Uyazenzela Communal Property Association (CPA), of which he is a member, acquired a farm in a land claim settlement.

He then made an application to work the land, which at that time was lying fallow.

From the outset he made it clear that he did not want to farm on the property for free, so that the other members would be able to receive dividends.

In 2009 he started working on a 50 ha section of the farm with one tractor. He hired only one guard and they worked day and night, rotating day and night shifts between them.

When government authorities saw the progress Solomon was making with the meagre means at his disposal, they stepped in and assisted him with two more tractors, along with two drivers.

Initially the yield was only 20 bags of maize per hectare. With hard work and sheer determination, Solomon used the money from the 2009 crop to buy a second tractor for himself. This enabled him to work only during the day and in 2010 he increased the hectares to 100.

By 2011 he was able to buy a third tractor and was now working 200 ha, producing an average of 3.5 tonnes per hectare.

The following year he received an offer of financial assistance from Afgri and the Department of Agriculture, mentorship from Agri SA and expert advice from Grain SA.

In 2013 he was able to hire more employees and equipment and was working 300 ha with a yield of between four and five tonnes per hectare.

“Only at this stage was I able to show a small profit,” said Solomon.
Still determined to achieve more success and provide more employment opportunities, in 2015 Solomon increased the hectares to 450, now split between 300 ha soy beans and 100 ha of maize.

That same year he was voted Grain SA Farmer of the Year, but according to Solomon, this was when the problems began.

“Certain members of the CPA ordered me off that farm, because, according to them, it was making me too rich.

“I then approached the Department of Land Affairs in Ermelo and explained to them that I was being chased from the farm and I wanted to carry on farming. I told them I had the necessary equipment and was successful, so I needed land where I could farm.”

The matter was taken to court, but the CPA members who had arrived at the court by the busload managed to convince the magistrate that Solomon was using their land to make himself rich and claimed they were not benefiting financially, even though he had proof of regular payments which far exceeded the norm.
The court then ordered him to leave the farm.

Solomon left, taking his tractors and equipment with him and started over again on the adjacent farm, which he hires from the Santungane Trust. He hired some of the labourers he had worked with on the CPA farm to help him out. In addition to providing jobs, he also made his tractor and equipment available to them to work their own small tracts of land on the CPA farm where they were still officially employed.

These actions landed him in court again on charges of disobeying an eviction order.

“But luckily, this time I had a lawyer who put forward a very convincing argument.
“I told the court the people could not chase me from that farm, because I was the one that was providing food for the very people who were chasing me away.”This time the court found in favour of Solomon, but he is afraid to go back to the CPA farm for fear of intimidation.

“That’s how I ended up on the present farm. I hire the farm from the trust on a five-year lease contract.
“At first some of the members of the trust were reluctant, but they had seen how successful I had farmed on the CPA farm and I was granted permission to lease the land.”

Solomon is now looking to government to allocate a suitable farm to him on which he can carry on farming without fear of eviction.

“I know I have proven that I can farm successfully. All I want is to be able to settle on a farm and be allowed to produce food. That is what farming is all about.”

Le Lézard: Fairfax Africa – Initial Public Offering Update

TORONTO, ONTARIO–(Marketwired – Jan. 17, 2017) – Fairfax Financial Holdings Limited (TSX:FFH)(TSX:FFH.U) (“Fairfax Financial”) and Fairfax Africa Holdings Corporation (“Fairfax Africa” or the “Company”) announce that the Company has filed an amended and restated preliminary prospectus (the “preliminary prospectus”) with the securities regulatory authorities of all provinces and territories in Canada, and obtained a receipt therefor, in respect of its initial public offering (the “Offering”) of subordinate voting shares (“Subordinate Voting Shares”).

Fairfax Africa is an investment holding company. Its investment objective is to achieve long-term capital appreciation, while preserving capital, by investing in public and private equity securities and debt instruments of African businesses or other businesses with customers, suppliers or business primarily conducted in, or dependent on, Africa (“African Investments”). Generally, subject to compliance with applicable law, African Investments will be made with a view of acquiring control or significant influence positions.

Fairfax Financial has taken the initiative to create the Company. Fairfax Financial is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management.

In addition to the public offering of Subordinate Voting Shares, and as a condition to the closing of the Offering, the Company will issue to Fairfax Financial, either directly, or to one or more of Fairfax Financial’s subsidiaries, the lesser of (i) 30,000,000 multiple voting shares and (ii) 30% of the post-offering equity capital of the Company, on a private placement basis, in exchange for cash consideration from Fairfax Financial and the contribution by Fairfax Financial of its indirect interest in AFGRI Proprietary Limited (“AFGRI”). Based in South Africa, AFGRI is a leading agricultural services and food processing company with a core focus on grain commodities. Further, cornerstone investors have committed to subscribe for, on a private placement basis, approximately US$116 million of Subordinate Voting Shares. The aggregate equity commitment by the cornerstone investors, together with Fairfax Financial, is up to approximately US$416 million.

RBC Capital Markets is acting as Global Coordinator for the Offering in Canada and the United States. RBC Capital Markets, Citigroup and UBS are acting as Joint Global Coordinators and bookrunners for the Offering in EMEA and elsewhere outside of Canada and the United States. RBC Capital Markets, Citigroup, UBS, BMO Capital Markets, CIBC Capital Markets, National Bank Financial Inc., Scotiabank and TD Securities Inc. are acting as joint bookrunners for the Offering in North America, with Canaccord Genuity Corp., Cormark Securities Inc., Desjardins Capital Markets, GMP Securities L.P., Raymond James Ltd., Dundee Capital Partners and Manulife Securities Incorporated acting as co-managers.

The preliminary prospectus has not yet become final for the purpose of a distribution of securities to the public. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale or acceptance of an offer to buy these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the time a receipt for the final prospectus or other authorization is obtained from the securities commission or similar authority in such jurisdiction. This press release is not an offer of securities for sale in the United States, and the securities may not be offered or sold in the United States absent registration or an exemption from registration. The securities have not been and will not be registered under the United States Securities Act of 1933. A copy of the preliminary prospectus is available on SEDAR at www.sedar.com.

Completion of the Company’s initial public offering is subject to the receipt of customary approvals, including regulatory approvals.

 

Forward-Looking Statements

This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Fairfax Financial’s and the Company’s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Fairfax Financial’s or the Company’s control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, failure to complete the Offering and related transactions, and the factors discussed under “Risk Factors” in the amended and restated preliminary prospectus of the Company dated January 17, 2017. Neither Fairfax Financial nor the Company undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Innovative financing needed for growth in demand for farming equipment

AFGRI, one on the largest distributors of agricultural machinery in South Africa, predicts subdued growth in the market for agricultural machinery to 2020, provided farmers can get access to financing.

The market for agricultural machinery in South Africa is expected to grow by between 3% and 5% over the next four years.
Patrick Roux, Managing Director at AFGRI Equipment, says in South Africa the growth in the market for agricultural machinery will be supported by the rapid expansion of technology that will improve yields and make farming more cost effective.

Globally, the agricultural machinery market is expected to grow at a compound annual rate of over 7% during the period 2016-2020, according to global research company Technavio.

In its latest research report on the agricultural machinery market (released in June), Technavio says globally growth will be driven by growing urbanisation, and different initiatives from governments regarding agricultural activities. Many governments, especially in developing countries, are offering credit facilities and subsidies to farmers, which help them in purchasing advanced machinery.

Roux says the growth in the market for agricultural machinery in South Africa will largely depend on cyclical factors, especially seasonal rains, whilst the consolidation in the sector due to the drought of the past few years will also play a role.
He expects a more robust growth in Africa, where the commercial farmers are less mechanised than their counterparts in South Africa. “The high demand for mechanisation will definitely play a role in the growth in the agricultural machinery market on the African continent. The vast new developments in Africa on clearing bush for arable land will force the mechanisation route for all farmers and innovative plans for structured deal making on equipment will also play a role.”

AFGRI has taken the lead with innovative finance schemes in Zambia and Uganda.
In Zambia, AFGRI’s John Deere dealership, in partnership with Zanaco and the Zambia National Farmers Union (ZNFU), provide agriculture asset finance to help farmers mechanise their operations.

In Uganda, the Abba Mechanisation Circle, through AFGRI’s Agricultural Development Services Division, provides farmers with access to mechanisation, which is purchased by AFGRI and made available to them through rental agreements.
Much more is needed in Africa to drive the agricultural sector and increased demand for agricultural equipment. To assist farmers in Africa to increase their yields through the use of modern equipment, government involvement is crucial, and so is the availability of financing for agricultural equipment, says Roux.

According to Roux, this will require the banking sector to take some calculated risks.
He says as Africa is the lowest mechanised continent, the growing demand for mechanisation will drive the market for agricultural equipment. According to the Technavio report this will be supported by the announcement that agricultural departments across the continent will allocate more than US$ 48 million in subsidies to small farmers during 2015-2017.

Roux says in some countries, notably Zambia, there is good support to make finance available for farmers to buy mechanised equipment, but the difficulty to access finance can hamper the growth rate.
Technavio expects that Asia Pacific (APAC) will continue to generate the bulk of the revenue for the global agricultural machinery market. In APAC the market is expected to reach US$74 billion by 2020 compared to US$46 billion expected in North America. APAC has a larger share of the market mainly due to the growing population in this region, which gradually boosts the demand for food. Increased mechanisation is supported by government initiatives such as subsidies for agriculture and credit availability.

In contrast to this rapid growth, the agricultural machinery market in North America has reached maturity and is expected to witness slow growth due to a decline in the price of commodities and a weak forecasted economic cycle in North America.