DUPONT
BETS ON AFRICA’S GLOBAL FOOD ROLE WITH PANNAR SEED DEAL
By
Shannon Sherry via BDLive
MULTINATIONAL DuPont’s acquisition of
a majority stake in SOUTH AFRICA’S Pannar Seed signals the increasing pace of the
new race for AFRICA as the continent’s role in feeding a global population of
more than 9-billion by 2050 becomes clear.
Background Information:
OUT OF
AFRICA ……AND BACK IN
AFRICA HAS BY FAR MOST OF THE WORLD’S UNUSED LAND AVAILABLE FOR AGRICULTURE.
In addition, as DuPont Pioneer president Paul Schickler put it: "AFRICA
represents a significant opportunity for improved productivity. AFRICA is the
new frontier, with 1-billion people to be added to its population by 2050, an
expanding middle class and natural assets such as soil and climate."
AFRICAN average grain yields are less than two tonnes a hectare, "about
one third of what is achieved in other developing regions and only one fifth of
yields in developed countries. With
35-million hectares available for maize production, AFRICA represents a
significant opportunity for improved productivity."
DuPont Pioneer is a subsidiary of DuPont and the world’s leading developer
and supplier of plant genetics. It provides agronomic support and services to
farmers seeking to raise productivity and profitability.
Greytown-based Pannar Seed is one of AFRICA’S largest seed breeders,
producers and suppliers with operations in nine countries on the continent. The
cost of the acquisition has not been disclosed but Mr Schickler said it was
"one of the biggest transactions in DuPont’s history and the biggest"
it has made in AFRICA.
The deal follows on a joint venture announced in September 2011 between
leading SOUTH AFRICAN agribusiness Senwes and Bunge EUROPE, one of the world’s
"big four" food companies, to develop grain and oilseed operations in
SOUTH AFRICA for the domestic market and export to the rest of AFRICA.
In a joint statement Pioneer and Pannar said they "are partnering to
increase the scope of research and innovation in the AFRICAN seed industry,
bringing farmers in SOUTH AFRICA and throughout the continent more product
choices and better products, faster and more efficiently than either … could do
on its own."
SIGNIFICANT CONTRIBUTOR TO FOOD SECURITY IN AFRICA
To this end Mr Schickler announced Pioneer’s investment of R62m in a
"world-class" technology hub to serve the region. It is similar to
the company’s facilities in BRAZIL, INDIA and CHINA and will consist of a
network of research and testing facilities across the continent, with its
centre at Delmas.
It is just the seventh centre of this kind in the world — three are in the
US. Mr Schickler said he saw South Africa as a "significant contributor to
food security in AFRICA and other export markets". He was excited about
merging the "unique and distinct germplasms" and characteristics of
"subtropical" SOUTH AFRICAN and "temperate" NORTH AMERICAN maize.
"The two germplasm pools together can develop more than either on its own.
The breeding systems are advanced and can only be brought to market with a
global partner," Mr Schickler said.
Pannar’s small and unprofitable but important wheat-breeding programme will
be continued. "Pioneer has a similar programme and we see this as a great
opportunity to make a more successful business out of wheat," he said.SOUTH
AFRICA is a net importer of wheat and local farmers struggle to make wheat
growing profitable. Last year SOUTH AFRICAN farmers planted the smallest area
of wheat in more than 100 years.
Mr Schickler said although the increasing use of technology will lead to job
losses on farms — SUB-SAHARAN AFRICAN countries employ vast numbers in
agriculture, in contrast to modern agricultural economies such as the US and BRAZIL
— he is confident that "a whole set of new employment opportunities"
will be created in a plethora of related industries, including banks, transport
and all sorts of agribusinesses.
"These jobs are admittedly not for unskilled labour, but we are also
looking forward to playing a role in improving education through partnerships
with NGOs, governments and academic institutions."
He pointed to a $20m agreement with the Limpopo provincial agriculture
department to improve smallholder maize productivity.
"We believe the SOUTH AFRICAN smallholder farmer will play an
increasingly crucial role in the nation’s food security and we aim to give them
the tools and skills to do that through this effort," DuPont Pioneer
director for AFRICA Pamela Chitenhe said.
No comments:
Post a Comment