NWK AGRI - SERVICES ZAMBIA

NWK AGRI-SERVICES ZAMBIA

Changing with the times in Zambian agriculture

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With Us NWK Agri-Services Zambia is discovering opportunities for the development and growth of small scale farmers Writer: Phoebe Calver | Project Manager: Kane Weller

he business was established in the Mumbwa district as Mumbwa Cotton Ginnery Limited. Later it developed to a privately owned Company by the name of Dunavant.

The business was sold on to Louis Dreyfus Company (LDC), a Company best known as an international grain merchant. Today LDC still owns 40 percent of the shares, with the remaining 60 percent sold to the South African-based agricultural Company, NWK Limited. The Company has maintained an impressive status as long-term market leader in the cotton industry in Zambia. Now NWK Agri-Services proudly manages the largest cotton out-grower scheme in Zambia, with a farmer base of 120,000 to its name.

NWK Agri-Services’ focus remains firmly with small scale farmers; each year the business strives to gain more cotton farmers to grow as part of

NWK Agri-Services. Expanding into commercial farming is an aspect the Company is looking into, however, this will be focused on input supply and grain handling due to the lack of commercial farmers involved in cotton production.

Traditionally known as a cotton-only Company, NWK Agri-Services ran an out-growers scheme in Zambia where the small-scale farmers are producing the cotton and delivering it back to NWK Agri-Services. Since NWK South Africa’s involvement with the business five years ago, it has made a unique effort to diversify in the Company by involving itself in grain handling as well as input supply to farmers.

As a persistent innovator in the sector, NWK Agri-Services has had to face some adversity in the past few years. The Company began an ambitious initiative which focused on efforts to mechanise small scale farmers, something which has now been put on hold.

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AGRIFOCUS LIMITED

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grifocus Limited is an owner-run business whose model is based on the provision of solutions aimed at: Crop Protection These solutions cover the crop in the field and post-harvest using soft pesticides. Key crops covered are maize, soybeans, cotton, groundnuts, vegetables, sorghum and sunflower.

Striving for production of 100,000 tonnes of seed cotton

“The timing couldn’t have been worse for us. We’ve had two of the worst drought years in recent history due to the El Nino phenomenon, which really hammered the yields of the newly mechanised farmers and hampered our progression in the project. Even though it’s a concept that we firmly believe in and know has a lot of potential in the future, we have had to put the brakes on it for now,” explains Pierre Lombard, Chief Executive Officer at NWK Agri-Services Zambia.

Not only has the Company had to battle with the elements, it has also had the ongoing battle of succeeding while dealing with the cost of finance in Zambia as well as fluctuating currencies.

“No farmer can be truly successful in an environment where they have to pay 30 percent interest. It is an aspect we need to resolve before we will consider resuming with the project.”

Lombard adds.

Crop Productivity The solutions provided are inoculants and soil conditioners that unlock bound soil nutrients and improve soil moisture retention.

Adopting an extensive yield improvement programme

Extensive yield improvement

Cotton is and will remain the mainstay of NWK Agri-Services’ business for the foreseeable future, but it is clear this is dependent on what happens across international markets. For the Company, the goal of reaching a consistent production of around 100,000 tonnes of seed cotton is at the forefront of its plans.

“As far as cotton is concerned the

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As far as cotton is concerned the drive has always been to improve the yield, and to that end we have an extensive yield improvement programme which we use to train our farmers

The solutions are targeted at benefiting both smallholder farmers and large scale farmers in the form of products backed by technical extension advice both through the electronic media (via WhatsApp groups and e-mail platforms) and through field visits with the goal of transferring the above technologies to empower the farmers.

NWK plays a key role by availing Agrifocus Limited’s products and technical support through its well established network. Women and youths who form the most vulnerable group in the Zambian rural society are key targets of the technology transfer program or extension service delivery.

AgriFocus Limited pays particular attention to a range of health and safety issues including storage and transport considerations, personal and environmental protection, and safety in use, re-entry after use, waste disposal and emergencies relating to spillages, poisoning and fire.

AgriFocus Limited has taken the deliberate approach to avoid dealing in highly toxic pesticides on its product portfolio.

T +211 846 289 E info@agrifocuszambia.com

www.agrifocuszambia.com

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drive has always been to improve the yield, and to that end we have an extensive yield improvement programme which we use to train our farmers,” expands Lombard.

Despite the efforts the Company goes to in order to achieve the highest standards in cotton production, progress is limited due to stresses on the cotton industry. Given the relative low international cotton lint price, there is very little investment in cotton production; in order for NWK Agri-Services to remain competitive, it is continuously looking for ways to reduce cost while focusing on ways to increase seed cotton volumes.

Diversifying product range

NWK Agri-Services Zambia is one of a few businesses in the Country to involve itself in a broader base of activities, as Lombard goes on to clarify: “Most of the cotton companies are cotton only companies; therefore the fact that we’re involved in other aspects is really diversifying our brand

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SARO AGRO INDUSTRIAL LTD

...we have found other avenues to grow the profitability of the Company. We did invest a fair amount of money in grain handling equipment, building grain handling sites and started working with silo bags for grain handling...

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s a part of the wider SARO Group, which commenced operations in 1987, SARO Agro Industrial Ltd (SARO) was founded in 2007. As a multi-faceted supplier and manufacturer of machinery, the Company also offers an extensive range of products and associated implements for farmers throughout the region.

Our ranges include tractors, trailers and agricultural equipment, machinery for a wide variety of industries, pumps and irrigation equipment, generators and electric motors and solar power solutions.

Our world-class after-sales and parts back-up services mean you can count on maximising the productivity of your equipment. Whether it’s a routine repair or a major breakdown we are there for you. We also conduct periodic servicing to ensure you get the best uptime at the lowest cost.

With complete maintenance packages available at its various workshops and outlets in Lusaka, Mkushi or Kitwe, SARO are well placed to offer its products and services to a wide range of sectors of the Zambian workforce as well as exporting our products to the Democratic Republic of Congo, Angola and Malawi.

With investment and development into our human resources, we aim to better serve our customers and deal swiftly and promptly with both our customers and employees.

The Company also invests into the infrastructure of the Zambian agricultural industry to support economic growth and improve the lives of the Zambian people!

T 241477 / 845675 / 0965000051 E saro@saroagri.co.zm

www.sarozambia.com One of a few businesses in the Country to involve itself in a broader base of activities

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SARO AGRO INDUSTRIAL LTD

Supplying all your farm machinery needs Since 1940 we have been helping farmers improve their yields and maximise their profits.

We guarantee quality and provide world-class after-sales service.

Plot No. 5284 Buyantanshi Road, (off Lumumba Rd.) Heavy Industrial Area, P O Box 35168, Lusaka, Zambia

• Small scale farming sector • Crop processing machines • Emerging farming sector • Commercial farming sector • Water utility / municipal sector • Road and building contrators • Generating sets • Solar power and pumping solutions

Tel: 241477, 845675, 0965000051 Email: saro@saroagri.co.zm

www.sarozambia.com

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The next big thing

Promoting a more sustainable future

and differentiating us from the other companies within the industry. In essence, cotton is a very seasonal activity, so we have tried to increase activity throughout the year.”

In its retail department, NWK AGRI-SERVICES is looking to diversify its product range. Looking closely at suppliers who are willing to support the Company in their search for the ideal product range; something that a large number of suppliers are prepared to do.

In order to facilitate these changes, the Company has had to hone its supply chain management strategy. For some products it uses a central warehouse approach, supported by an efficient distribution function. Bulky products like fertiliser and animal feeds are delivered by suppliers directly to the various retail outlets.

Lombard adds: “We had to

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strike the balance over the past three years of trying to cut costs whilst being as effective as possible. Therefore, we have found other avenues to grow the profitability of the Company. We did invest a fair amount of money in grain handling equipment, building grain handling sites and started working with silo bags for grain handling specifically.”

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The African market has room for exponential growth and is often spoken about as the ‘next big thing’ in terms of potential. However, in order for this potential to materialise with a positive effect for companies such as NWK Agri-Services, Zambia will need to reach a point where its agricultural policies are more stable; unfortunately interference from the Government in aspects such as closing boarders and interference in the agricultural commodity markets are hindering private sector involvement and progress.

Lombard continues: “We hope that the whole system will evolve to a point where the Government is less involved in the agriculture markets, while focusing their attention on the development of the sector through infrastructure development and extension services. This would be the ideal way to open up opportunities for private agricultural companies to get more involved in the process of unlocking the vast agricultural potential of the country.”

Capitalising on opportunities are vital for a Company such as NWK Agri-Services to thrive. For example there are opportunities in retail to expand its operations.

“If the correct strategy is implemented we believe that the Company can at least double the number of retail stores we run in the next two-three years. In order to achieve the desired expansion we are

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Knowledge Grows Knowledge Grows Knowledge Grows

Maize Maize Maize Maize

Knowledge Grows

Yara has arrived to serve serve Yara has arrived to serve Yara hasthe arrived to serve Yara has arrived to Zambian serve Yara has arrived to serve Farmer the Zambian Farmer the Zambian Farmer the Zambian Farmer the Zambian Farmer Yara Kapiri Yara Zambia Zambia Kapiri Factory: Factory: Phone: Phone: +260 21 21 184 184 6380 6380 /// +260 +260 21 21 121 121 5086 5086 Phone:+260 +26096 96968 9688617 8617 Phone: +260 +260 21 184 6380 +260 21 121 5086 Phone: +260 96 968 8617 Website: Plot Website: www.yara.co.zm www.yara.co.zm Plotno no2323 2323 Yara Zambia Kapiri Factory: Yara Zambia Kapiri Factory: Website: www.yara.co.zm Plot no 2323 Yara Zambia Kapiri Factory: Great GreatNorth NorthRoad Road Great North Road Phone: +260 2121 184184 6380 / +260 121 5086 Phone: +260Phone: 96 968 +260 8617 96 968 8617 Phone: +260 6380 / 21 +260 21 121 5086 Yara ZambiaPhone: Kapiri no 12600, Mwembeshi Road, 21 184 6380 / Address: +260 21 Plot 121 Phone: +260 96 Lusaka 968 8617 Kapirimposhi Address: Plot5086 noFactory: 12600, Mwembeshi Road, Lusaka Kapirimposhi Website:+260 www.yara.co.zm Plot no 2323 Address: Plot no 12600, Mwembeshi Road, Lusaka Kapirimposhi Website: www.yara.co.zm Plot no 2323 North Road Postal Address: P Website: www.yara.co.zm Plot no 2323 Address: P.O. .O. Box Box 34863 34863 Phone: +260 21 184 6380 / +260 21 121 5086 Phone: +260Great 96 968 8617 Postal Address: P .O. Box 34863 Address: Plot no 12600, Mwembeshi Road, Lusaka Kapirimposhi Great North Road Great North Road Website: www.yara.co.zm PlotRoad, no 2323 Address: Plot no Mwembeshi Lusaka Kapirimposhi Postal Address: P.O.12600, Box 34863 Address: Plot no P12600, Road, Lusaka Kapirimposhi North Road Postal Address: .O. Box Mwembeshi 34863 Great Postal Address: P.O. Box 34863 Kapirimposhi Address: Plot no 12600, Mwembeshi Road, Lusaka Mazabuka Factory: Phone: +260 877 +260 97 97Mkushi 877 8414 8414 Warehouse: Phone: +260 97 877 8414 Postal Address: P.O. BoxPhone: 34863 +260 97 877 8414 Phone: +260 96 968 8616 Plot Plot No No 22622/m 22622/m Plot No 22622/m Plot No 22622/m Tazara Compound Livingstone Kaleya Livingstone Road RoadMkushi Kaleya Area Area Livingstone Road Kaleya Area Livingstone Road97 Kaleya Phone: +260 877Area 8414 Phone: +260 96 968 8616 Mazabuka Phone: 97 877 8414 Phone: +260 96 968 8616 Mazabuka Mazabuka Mazabuka Plot No +260 22622/m Tazara Compound Plot No 22622/m Tazara Phone: +260 97 877 8414 Phone: +260 96 968 8616 Livingstone Road Kaleya Area MkushiCompound Livingstone Road Kaleya Area Mkushi Plot No 22622/m Tazara Compound Mazabuka Mazabuka Livingstone Road Kaleya Area Mkushi Mazabuka

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trying to utilise our already extensive footprint; having started from zero we already have 12 retail outlets spread throughout the country,” Lombard says.

NWK Agri-Services prides itself on its aggressive growth strategy which brought the Company much success in its grain handling and storage division. Having started from zero within the grain industry five years ago, NWK Agri-Services has built a strong business, handling and storing in excess of 100,00 tonnes of grain, including maize, soya and sunflower per annum.

“The type of growth which we hope to achieve would be to double up on our grain handling and storage ability. Obviously this is all dependent on the policy framework referred to previously.” Lombard concludes.

“The grain market is moving towards bulk handling and therefore we will adjust accordingly. Currently, virtually all of the production by small scale farmers is handled in bags. However, end users are increasingly looking at bulk handling as a way to reduce costs.”

Zambia Maize Growers SCIENCE WITH SERVICE DELIVERING SUCCESS Phb 30B50

P3506W P3812W KAIMBI

P2859W ASSEGAI P3506W PHB 3253 MUKULUMPE

PHB 30G19 NKHOSI

Pioneer DuPont Zambia Plot No. 35283 Mwembeshi Road Industrial Area P.O. Box 33282 Lukaka, Zambia

Tel: +260 211 846299/846318 Cell: +260 971 399475 Fax: +260 211 845091

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NWK AGRI-SERVICES ZAMBIA Plot 397A Kafue Road Makeni Lusaka Zambia T: +26 211 274970 E: info@nwkzambia.com http://nwkzambia.com

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