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Limagrain in Africa: development as close as possible to farmers' expectations
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Limagrain has been present in Africa for nearly 15 years. The Group's deployment on this continent is aligned with its purpose: cooperating for the progress of agriculture everywhere, for everyone. Indeed, over this vast territory full of contrasts, Limagrain, in partnership with local players, wishes to provide answers through seeds, the first link in the food chain, to the expectations of African farmers faced with so many challenges.
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Agricultural production,
a major challenge for Africa
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Africa, which has been experiencing strong growth over the past two decades, will account for more than 25% of the world's population, i.e. 2.5 billion people, by 2050. Even though Africa has improved its political stability, uncertainties remain regarding its food security. Droughts, floods, landslides and massive pest attacks are undermining the stability of agricultural production.
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These contingencies have a direct impact on the cost of food. It is therefore a priority for the continent to benefit from domestic agricultural production in quantity and quality. Seed, the first link in the food chain, has a key role to play in the development of efficient and sustainable agriculture. It will enable farmers throughout the world to produce more and better in order to meet the increase in food demand and deal with climate challenges.
For further information: Striving for progress in agriculture
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A brand strategy coherent with a partnership approach
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Limagrain sells its field seeds throughout the world mainly under the LG brand, which was not yet the case everywhere in Africa. The LG brand is now distributed in South Africa alongside the Seed Co and K2 brands, the brands of the other two partners. It is LG and Seed Co, complementary brands, that are developed in West and Central Africa.
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The closest possible presence to markets in Africa and their specific needs
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It was through its Vegetable Seeds activity that Limagrain began to establish itself in Africa in 2006. Today, its 3 Vegetable Seeds Business Units run operations here (Hazera, HM.CLAUSE, Vilmorin-Mikado). Then, from 2013 onwards, the Group developed its Field Seeds activity.
The foundation stone for this strategy was laid with the acquisition of Link Seed in South Africa, then by taking a stake in the capital of Seed Co (Zimbabwe), Africa's leading seed company. Today, on the strength of these operations, the Group's Field Seed strategy is accelerating through the creation of two new joint ventures (JV), thus strengthening its collaboration with Seed Co. This collaboration is based on the complementary nature of the two main partners.
Seed Co brings its knowledge of African territories and farmers as well as its corn genetics and Limagrain its genetic resources (tropical yellow corn, rice, millet, wheat).
Seed Co West and Central Africa¹, is located in Ghana and is primarily dedicated to corn seed and more specifically to the West and Central African markets. In these areas, farmers are seeking to move from subsistence farming to small-scale commercial production in order to make a living from working their land. Limagrain develops high-performance seeds adapted to their very specific needs. In the rest of tropical Africa, Limagrain can draw on the experience of Seed Co, which for more than 70 years has been providing technical support to farmers whose farms are generally small. Agriculture must be capable of feeding a growing and increasingly urban population.
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In South Africa, the JV Limagrain Zaad South Africa² brings together all the Field Seed activities of the three shareholders (Limagrain through its holding company Vilmorin & Cie, Seed Co Group and Zaad Holdings³). The company wishes to assert itself as a reliable and high-performance alternative to its competitors by proposing the widest range of crops on the market: white and yellow corn, soybean, sunflower, wheat, sorghum, malting barley, canola and forage crops. Farmers in South Africa have to adapt to annual climatic variations (rainy season) by choosing to plant the most suitable crop.
Limagrain Zaad South Africa benefits from a critical size on a South African field seeds market that is already highly consolidated, and aims to achieve a 10% market share (6 to 7% today) in corn within 3 years in order to consolidate its position as the 3rd largest South African seed company.
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Limagrain News
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On December 17, 2020, Limagrain published a press release to confirm the resilience of its model with solid results for its fiscal year 2019-2020.
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Read the press release
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¹ Seed Co West and Central Africa, created during the course of fiscal year 2019-2020, is held equally by Limagrain (through its holding Vilmorin & Cie) and Seed Co.
² Limagrain Zaad South Africa, in operation since July 2020, combines the field seeds activities of its three shareholders: Limagrain, through its holding Vilmorin & Cie, and Seed Co, in cooperation with Zaad Holdings, whose subsidiary Klein Karoo Marketing is also included in the joint venture.
³ Business conducted through the company Link Seed, acquired in January 2013 by Vilmorin & Cie, Group Seed Co and its subsidiary Seed Co South Africa and Zaad Holdings through its subsidiary Klein Karoo.
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E-NEWSLETTER PUBLISHED BY THE LIMAGRAIN PRESS DEPARTMENT
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If you no longer wish to receive this information, please send an email to mallory.gramond@limagrain.com.
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