Our customers are under intense pressure to produce more food with fewer resources – and in order to succeed in meeting that challenge they must also be profitable. Current estimates indicate that by 2030, the growth in global population will drive food demand to a level 60%1 higher than today. At AGCO, we believe that we can help ensure a dependable, adequate and accessible global food supply by equipping our customers with products and services to meet these challenges. We are helping farmers grow crops in a way that supports food security through better soil health, increased operational efficiency, decreased operating costs, improved profitability and, most importantly, improved crop yield.
AGCO works to leverage opportunities that will allow farmers to experience higher profitability through more efficient and sustainable products that can achieve greater productivity. For example, our application equipment division creates products that can increase overall water efficiency and better control the application of fertilizer in order to conserve resources and help protect surrounding ecosystems.
Remanufacturing (REMAN), the process by which we take back used components such as engines, transmissions and gears and remanufacture them to Original Equipment Manufacturer (OEM) specification, delivers results for both the environment and our customers. REMAN parts offer our customers a more affordable replacement option. They also eliminate waste, conserve materials in the product life cycle and require up to 80% less energy to produce than new parts.
We strive to provide the products and services our customers need to prosper over the long term. Along with enabling farmers to increase the technology in their farming practices, we work towards providing them with solutions for better farm productivity and soil health by facilitating precise use of fuel, water and treatment aids. Our Fuse® Technologies strategy, for example, provides comprehensive solutions that enable farmers to plan, produce, and protect crops through the entire crop cycle. Read more about Fuse Technologies here.
For countries in the developing world, the challenge of transforming agriculture to grow enough food to sustainably feed their people goes beyond higher yields and greater field productivity – it extends as well to the important role played by crop storage. In Zambia, for example, inadequate storage infrastructure results in post-harvest losses of more than 30% from insects, rodents and rot. To help address this need we joined USAID’s Feed the Future Partnering for Innovation program to launch the Bag to Bulk initiative.
Today’s farmers are using our proven technology and products to save fuel, effectively use treatment aids, increase crop yield and ensure compliance with environmental regulations. Key to this effort is making the necessary investments in product development, design and manufacturing to meet the varying needs of the developed and developing nations where farmers operate. AGCO also supports these farmers through increasingly innovative technology that allows more efficient operations of farm equipment, saving time and resources and allowing the farmer to do more with less. The significant ongoing investments we are making in Fuse Technologies, as well as efforts to streamline our product development process, are in support of this objective.