SUSTAINABLE AGRICULTURE AND FOOD PRODUCTION

Agricultural machinery for recycling businesses for farmers

Agricultural machinery for recycling businesses for farmers

Market

Final Products

Agricultural machinery

Required Inputs

Material and component suppliers

Competing Products

Medium competition
Imported machinery

Potential for Export

Medium

Process

Complexity – Type of Process

Medium – mechanical process

Technology

Design and machinery

Equipment and Material

Machinery tools, such as forging, laser welding, cutting and CNC

Human Resources

Trained technicians, mechanical engineers and marketing experts

Business Linkage

Forward Linkage

Farm owners

Local/Regional/Nationwide

Local Market- Upper Egypt Region

Backward Linkage

Steel and mechanical spare parts suppliers

Supporting Entities

Material and machinery spare parts suppliers and testing facilities

Competitive Edge

Locally available and tailored machinery with lower cost

Economic Features

Revenue Stream

Sales and maintenance of agricultural machinery

CAPEX

Consists of the cost of machinery with an average range of 1.1M EGP

Note: This CAPEX represents the indicative investment size, however, this investment opportunity can grow in implementation to a larger sized investments.

Investment Size

Small (between 500k-5M EGP)

Considerations

Key Challenge

Scale up production and produce high-quality equipment

Advantages

Product is in high demand and would replace imported alternatives as well as fill the gap of access to agricultural machinery within recycling businesses

Potential Pathways to Growth

Production, sales and/or distribution of a diverse portfolio of various types of machinery – local manufacturing of certain components to sell nationally/export – selling full solution rather than only the machinery (e.g., automation, operations and maintenance, spare parts etc.)

General Impact

Environmental

Reduces CO2 emissions by enhancing recycling businesses

Social

Cost-competitive products for agriculture and creates job opportunities

Impact on Sub-market(s), Cluster(s) and Value Chain(s)

Relevant sub-market

Technology/equipment manufacturing

Lies within the following
value chain/cluster(s)

Agricultural waste

Impact

Enhances the quality of pre-processing activities for agricultural waste

* Source of the information: The above figures were updated by Chemonics Egypt for UNIDO in 2023

Studies

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