Petmin’s SamQuarz operation, the largest producer of high-quality silica in South Africa, and McCain Foods, a privately owned multi-national leader in the frozen food industry, have joined forces in a black economic empowerment (BEE) farming project in Mpumalanga.
Mr Isaac Sibanyoni from Ikoti Investments has purchased the farm Bossemanskraal, which is situated 40km from Delmas, with the intention of developing it into a mixed farming operation. He will partner with McCain in a strategic joint venture to grow vegetables – potatoes, carrots, peas and beans – in rotation on irrigated land. The intention is that McCain and SamQuarz will support the project with skills training, technology transfer and financial support to enable the farm to become a self-sufficient mixed farming operation.
SamQuarz and McCain will work together to assist Ikoti to:
As part of this the sponsors will facilitate skills development, technology transfer and overall training in all aspects of mixed agriculture. It is anticipated that about 57 permanent jobs and 80 to 100 seasonable jobs will be created.
McCain will place one of their full-time employees on the farm as a trainer, adviser and mentor to the tenants. In the first year 40ha of potatoes will be grown for the Delmas potato factory. During this time Ikoti will learn about potato production and McCain will be responsible for all productions costs. From the first year, Ikoti will have the option to participate on a profit- and risk-sharing basis to be determined at the start of each season by all parties. In addition to potatoes, carrots (20ha) will be produced in the first year in a cooperative arrangement. Ikoti will have the option to transfer to a full production contract for vegetables at any time.
SamQuarz will finance the building of housing, improvements to the irrigation systems and upgrades to the infrastructure; provide business skills training to the tenants; and ensure that permanent and seasonal labour is sourced locally. The investment by SamQuarz amounts to R1.4 million.
Both parties are committed to working closely together to make sure that the project leads to the creation of a sustainable agri-business. Apart from those directly involved in the farm, the venture will help to uplift the surrounding communities.
The Department of Land Affairs and Agriculture hopes that through Bossemanskraal a viable model will be achieved for the redistribution of farming land in such a way that longterm, sustainable agricultural ventures can be established for the benefit of the previously disadvantaged.
© 2008 Petmin Limited