AGCO Expanding Company In Africa

AGCO said the company is expanding its business into Africa, which it sees as having significant potential for growth in the agricultural sector, Chairman, President and CEO Martin Richenhagen said. “Large areas across Africa have suitable soils and climate for successful agriculture, but many areas are not yet cultivated or are not productive enough,” Richenhagen said. “We believe that increases in agricultural productivity can be achieved through mechanization.”

About 11% of the world’s arable land is in Africa, of which about 86% remains uncultivated. The company believes that this low proportion of cultivated land can be attributed to a lack of complementary inputs. For example, only 10% of African farms’ power comes from engines, while only 5% of the land is properly irrigated.