National Development Plan - Agribusiness contributes to the the way to prosperity - Agricultural ...
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Agribusiness contributes to the
National Development Plan
agricultural business chamber
the way to prosperity
Contents Companies in this publication 2 Foreword 3 AFGRI Limited 4 Agrinet Limited 10 Astral Foods Limited 12 Barloworld Agriculture 14 BKB Limited 15 Capespan Group Limited 20 Deloitte 24 Farmwise Group 29 GWK Group Limited 30 Hans Merensky Holdings (Pty) Limited 32 Kaap Agri Limited 34 KLK Landbou Beperk 52 Land Bank 54 Nedbank 57 NWK Limited 60 Overberg Agri Limited 63 OVK Operations Limited 64 Santam 67 Senwes Limited 73 SSK Limited 75 Standard Bank 81 Sundays River Citrus Company (SRCC) Foundation Trust 86 Syngenta SA (Pty) Limited 90 Humansdorpse Koöperasie trading as The Co-op 91 Tuinroete Agri Limited 93 VKB Agriculture Limited 94
Companies in this publication AFGRI Limited www.afgri.co.za Agrinet Limited www.agrinet.co.za Astral Foods Limited www.astralfoods.com Barloworld Handling SA www.barloworldhandling.co.za BKB Limited www.bkb.co.za The Capespan Group (CGL) www.capespangroup.com Deloitte www.deloitte.com Farmwise Group www.farmwise.co.za GWK Group Limited www.gwk.co.za Hans Merensky Holdings (Pty) Limited www.hmh.co.za Kaap Agri Limited www.kaapagri.co.za KLK Landbou Beperk www.klk.co.za Land and Agricultural Bank of SA www.landbank.co.za Nedbank www.nedbank.co.za NWK Limited www.nwk.co.za Overberg Agri Limited www.overbergagri.co.za OVK Operations Limited www.ovk.co.za Santam www.santam.co.za Senwes Limited www.senwes.co.za SSK Limited www.ssk.co.za Standard Bank www.standardbank.co.za Sundays River Citrus Company www.srcc.co.za Syngenta SA (Pty) Limited www.syngenta.co.za Humansdorpse Koöperasie trading as The Co-op www.humkoop.co.za Tuinroete Agri Limited www.tagri.co.za VKB Agriculture Limited www.vkb.co.za This publication is available online at www.agbiz.co.za. 2 C O M PA N IE S IN T HI S PU B L I C AT I ON
Foreword
Why “Agribusiness’ contribution to the
National Development Plan”?
It is indeed a very rare opportunity in the history of South
Africa, given its fractious past and legacy of conicts, that
a vision is developed that finds significant favour and support
with the majority of people across its immense diversity. This agribusiness sector is essential to ensure the global competi-
vision is captured in the National Development Plan (NDP), tiveness of our different agro-food value chains, and thus food
also known as Vision 2030, and is the product of the National security for the country and its people. Already South Africa’s
Planning Commission’s work over the past number of years. agribusiness sector is the envy of many African countries,
Vision 2030 has been adopted by government as its over- providing competitive access to finance, access to technology
arching policy framework for South Africa, and all policies and access to markets, and contributes significantly to the
and legislation have to be aligned with Vision 2030. country’s relatively good level of food security. This capability
provides an excellent basis for greater growth and employ-
While Vision 2030 is by no means perfect, it does create ment of the sector in order to meet the targets as indicated in
a broad guiding framework for the development of South Chapter 6 of Vision 2030, entitled “An Integrated and Inclusive
Africa and all its people, in order to ensure a more stable and Rural Economy”.
normalised society, greater equality and opportunity, economic
and employment growth, and greater prosperity for all. One However, the contribution of agribusiness to South Africa goes
of the key tenets of Vision 2030 is that it calls for an active much further than just economic participation and services.
citizenry in the cycle of development. This required for Vision The social contribution of agribusinesses to societies and
2030 to be implemented successfully – see diagram. communities in our country is significant and needs to be
recognised. In this publication, Agbiz highlights some of these
South Africa as a country has now reached the critical social and other societal/community contributions of those
implementation stage of Vision 2030. The success of Vision members who elected to participate in this initiative.
2030 will not be measured by the plan itself, but by how
effectively it is implemented to achieve its objectives and This Agbiz publication is not an exhaustive list of active
goals. A capable, strong, competitive and well developed citizenry participation, but provides some insight into the
highly commendable developmental initiatives and approaches
An approach to change of a number of its members. Agbiz trusts that readers will
identify with this constructive contribution by agribusinesses
to making our beloved country, South Africa, a better place to
RISING LIV
live in for all.
NT
- STANDAR ING
DS
DI S
E
O F D E V E LO P M
N
TI ON
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RE
PO UC
STRONG
D
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LEADER- Dr John Purchase
UNITIES
RTY
SHIP
CEO: Agbiz
EFFECTIVE SOCIAL
GOVERN-
COHESION
PORT
MENT
GROW
ACTIVE
CITIZENRY
OP
TH
E
EMME
S
E
TI PL NT
L
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AB OY
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Source: National Development Plan
AGRIBUSINES S CO NTRIBUTES TO THE NATIO NAL DEVELO PMENT PL AN 3
AFGRI’s Corporate Social Investment (CSI) strategy provides support,
sustainable relationships and enables the upliftment of disadvantaged
communities in which AFGRI operates throughout South Africa. The
Group commits itself to CSI projects for three years to work and
holistically develop the communities with high rates of
unemployment, poor education systems and extreme poverty.
AFGRI is committed to creating empowered with technical knowledge, provide education to farm children in
long-term value for all its CSI practical farming skills and general Delmas. The school is a no-fee school
business skills. AFGRI continued its as it provides education to children from
beneficiaries and communities,
support of Buhle this year with a grant disadvantaged backgrounds. The school
ensuring a sustainable and positive
towards farmer support services and serves 265 learners from Grade 0 to 9.
change. The three pillars of AFGRI’s tuition for 10 students studying Poultry AFGRI has been involved with the school
CSI initiatives are: Education; Production, Vegetable Production and for several years. The Group funds the
Poverty Alleviation; and Water and Livestock Production. salary of an additional teacher who
specialises in Mathematics and Science.
Food Security. Initiatives which
Fundisisa Combined School A computer laboratory has also been
were supported in the 2013 financial
The school was established by a local established and donated to the school to
year include the following: farmer in 2008 and is now registered expose the learners to technology and
with the Department of Education to source project information.
Education
Birchcroft Primary School
Birchcroft Primary School is a co-educa-
tional English independent school in
Dullstroom, Mpumalanga. The school
follows the National Core Curriculum and
promotes enriched academic and extra-
mural activities. An annual grant has
been provided to the school to assist 10
local previously disadvantaged learners
who do not have the financial means to
attend the school. Funding is utilised for
tuition, uniforms and other reasonable
expenditure as determined by the school
and approved by AFGRI. AFGRI is
satisfied with the progress that the
learners are making with their school
work.
Buhle Farmers Academy
Buhle Farmers Academy provides
subsidised agricultural education to
emerging farmers in Delmas,
Mpumalanga. Developing farmers are AFGRI funded the science laboratory at Swartklip Combined School in Delmas, Mpumalanga.
4 AFGRI
Swartklip Combined School learners, especially in the foundation Golden Gate Hospice Day
Swartklip Combined School is a no-fee phase with a different mother tongue Care Centre
government school with 1,268 learners than Afrikaans, experience difficulties The purpose of early childhood educa-
from Grade 1 to 12 in Delmas. In the with learning in a new language. AFGRI tion is to protect the children’s rights to
past years, the Grade 12 pass rate for believes that every child has the right to develop their full cognitive, emotional,
Mathematics and Science subjects were fair foundation education and therefore social and physical potential. This foun-
not satisfactory. In order to assist to has invested in funding salaries for four dation educational phase is more impor-
reverse this trend, AFGRI donated a fully Assistant Teachers for the foundation tant to children, especially those who
equipped science laboratory and funded phase. The Assistant Teachers’ duties are coming from disadvantaged back-
science workbooks for the learners. The are to ensure that the learners adjust to grounds, to prevent poor adjustment in
science laboratory will assist the learners the new learning environment and under- school, increased repetition and school
with first-hand experience with science stand the language that they are taught dropout. Golden Gate Hospice Day Care
experiments. in. Centre provides early education to 98
children from 2 to 6 years old. AFGRI
Langelihle Primary School Thubelihle Day Care Centre funds salaries of two teachers at the day
The school is a no-fee government Thubelihle Day Care Centre operating care centre.
education institution with 1,010 learners in Kanana Township, Bethal has been
from Grade 0 to Grade 8 from disadvan- operating in a shack for number of years. Ditshego Pre-School
taged backgrounds in Bethal. AFGRI The children had to endure the bitter Ditshego Pre-school in Mooiplaas infor-
donated a fully stocked library to enhance cold winters of Mpumalanga for the sake mal settlement, provides early childhood
the reading skills and provide information of good quality education. AFGRI seeks education to 140 learners from disadvan-
for learners’ school projects. The library to enhance the learning environment and taged backgrounds. AFGRI provides
was handed over to the school and the has removed the shacks that were used monthly groceries to the pre-school to
community. as classrooms and donated new safe ensure that the children receive healthy
and warm converted containers as class nutritious meals.
Klipheuwel Primary School rooms. The containers are painted in
Klipheuwel Primary School in the bright colours to enhance the learning Philane Primary School
Western Cape is a public no-fee school environment and spark the creativity in Philane Primary School is a no-fee govern-
with 320 children from disadvantaged the children. The Group also supports ment school, providing education to
backgrounds. The school’s medium of the day care centre with monthly grocery 1,015 children from Olivenhoutbosch and
instruction language is Afrikaans. New and learning materials. surrounding areas. The school operates
AFGRI established and donated this computer laboratory to Fundisisa Combined School to expose children to technology and to source project information.
AGRIBUSINES S CO NTRIBUTES TO THE NATIO NAL DEVELO PMENT PL AN 5
AFGRI funds a vegetable production course and vegetable tunnels at the Emdeni Skills Development Centre.
in containers and AFGRI donated the Skills Development Centre in Soweto for kraal. Jehova Jaireh Children’s Home
paint for all classrooms, to enhance the the past years to facilitate the access of provides a home to 46 children. AFGRI
learning environment. The Group also basic development skills to 58 unem- donated blankets, jerseys and other
donated study materials for the learners. ployed youth through agricultural warm accessories to ensure that the
initiatives. AFGRI funds a vegetable children are warm in the cold winter.
Mbusomusha Nursery and production course and vegetable tunnels
Pre-school at the centre. Unathi Drop-in Centre
Safety of learners is crucial in the AFGRI’s commitment to eradicating
learning environment, as the environment Roundabout PlayPumps poverty is characterised by a focus on
contributes to the quality of the educa AFGRI continues to provide five under- sound nutrition, health, wellness and
tion that the children receive. AFGRI resourced primary schools and commu- empowerment of communities. Unathi
funded strong palisade fencing at the nities with clean drinking water in Drop-in Centre in Mokopane is an after
pre-school in Duduza Township in Nigel. Mpumalanga, to ensure that the learners school care centre for 82 orphans. The
This will ensure that the children will and their communities have access to centre provides the children with two
receive education in a safe environment. safe and disease-free water. Roundabout meals a day, assists with their school
PlayPumps provide recreational tools for work and provides recreational activities.
Food and Water Security the children to play at, while it pumps AFGRI renovated the centre and dona-
clean water. tes monthly groceries.
Abraham Kriel (Emdeni
Skills Development Centre) Poverty Alleviation Bethlehem Child and Family
Unemployment is one of the biggest Welfare Society
issues facing the country. It is therefore Jehova Jaireh Children’s Self-respect and self-worth are essential
critical that AFGRI views the matter of Home to AFGRI as they lay a foundation for
unemployment in a sustainable way. The Children’s Home is a safety home a better community of tomorrow. AFGRI
AFGRI has been working with Emdeni for abandoned children in Hammans- supports the Tshepong ya Rona Shelter,
6 AFGRI
Roundabout PlayPumps provide recreational tools for children to play at, while it pumps clean water.
a project of the Bethlehem Child and teaching more than 500 primary school REEA Foundation
Family Welfare Society. The shelter children the importance of polishing their The REEA Foundation is an organisa-
rehabilitates street boys back into the school shoes) and funded a sanitary tion caring for adults living with epilepsy
community and places them back in pads project for girls. and mild mental disorders who cannot
school. AFGRI donated funds to refur- be accommodated in a normal family
bish the centre, to ensure that the boys Tsholanang Community environment. REEA Foundation provides
have lunch at school and have proper Development Centre a well-managed residential centre, with
school uniforms. This centre in Ga-Rankuwa, Pretoria is 24-hour care, providing accommodation
run by grannies with their government for over 40 residents in a comfortable,
Tateni Home-based Care pension to ensure that 192 orphans home-style hostel that includes profes-
Tateni Home-based Care is a community and vulnerable children in the commu- sional medical care at all times. The
based organisation that provides home- nity receive meals. AFGRI assisted the Group donated funds for the running
based care services to the people of centre with funding for kitchen utilities of the home.
Mamelodi and surrounding informal and much needed groceries.
settlements. The organisation special-
Employee Community
ises in giving home-based care and Matthew 25:35 Ministries
support to chronically and terminally ill This international humanitarian aid and
Involvement (ECI)
members of the community, social care, disaster relief organisation provides
support to orphans and vulnerable nutritional food to the less fortunate in AFGRI CARES Programme
children and promotion of community the society. Matthew 25:35 Ministries, At AFGRI, we believe in caring for the
awareness. AFGRI donated 10 new based in Winterton, KwaZulu-Natal communities we operate in, and we
wheelchairs to very ill patients and provides meals and food parcels to 400 express that care through our action.
disabled people, funded the school shoe people. AFGRI provided groceries to AFGRI CARES Programme is a staff
polish project (a project that aimed at disadvantaged families. volunteer programme that encourages
AGRIBUSINES S CO NTRIBUTES TO THE NATIO NAL DEVELO PMENT PL AN 7
employees to get involved in community AFGRI Handbag Project
initiatives that make a difference in the With the high rate of rape incidents in
lives of the beneficiaries. The program South Africa, employees embarked on
me makes it possible for AFGRI employ- a campaign to educate, share experi-
ees to play a significant role in commu- ences and precautions of rape. To bring
nity building. Employees have been some comfort to the rape survivors,
involved in a number of volunteer projects employees donated handbags to the
through AFGRI Cares Programme, Jes Foord Foundation – the organisation
including the following: takes care of, and sometimes provides
a safe house for rape victims immediately
Book Collection Drive after the traumatic incident. More than
With most high school learners unable 600 bags with toiletries were donated to
to read and write, employees embarked the organisation in aid of the rape victims.
on a campaign to donate books and
magazines to less privileged schools International Mandela Day
close to our operations. More than Employees participated in Mandela Day
5,000 study materials were donated to in July 2013 by paving at Philane Primary
schools in Alexandra, Soweto, Bethal, School in Olivenhoutbosch. Employees
Olivenhoutbosch and Nigel. paved the space in between classroom
blocks. Philane Primary School is a no-
AFGRI Fun Day fee government school, providing educa-
Employees hosted 210 pre-school tion to children from Olivenhoutbosch
learners from Ditshego Pre-school and and surrounding areas. More than 1,400
Mvelaphanda Pre-primary School in learners and 30 teachers will benefit from
Kempton Park. Employees ‘adopted’ this initiative.
children for a day, toured the animal farm
and assisted ‘Santa Claus’ with handing
of presents.
Employee Volunteer Day
In March 2013, employees participated
in the UN Volunteer Week at Tateni Home-
based Care in Mamelodi, Pretoria. Volun-
teers planted and irrigated a vegetable
garden, visited and assisted the nursing
staff with bathing the terminally ill patients,
donated 10 wheelchairs to the physically
handicapped and cooked for more than
1,000 orphans and vulnerable children in
the 5 after school drop-in centres.
Tracker Men in the Making
Initiative
On 25 April 2013, AFGRI employees
participated in the Tracker Men in the
Making Initiative. The programme aims
to restore confidence in the young boys,
assist in their growth, provide guidance
on potential study path and to gain entry
into the business/career paths of their
choice. Ten Grade 10 learners from
Steve Tshwete Secondary School in
Olivenhoutbosch and another 10 learn-
ers from East Bank High School in
Alexandra spent a day with 20 mentors
from AFGRI, on the first day of a 3-year
programme.
8 AFGRIThe AFGRI Emerging Farmer Training Programme was
launched on the 21st of May 2013 on the training farm
north of Pretoria.
The AFGRI Emerging Farmer Training Nitro sponsored 8 tons of fertiliser for the over the last 12 months. The selection
Programme was launched on the 21st training farm. process has already started for the next
of May 2013 on the training farm with all Negotiations are underway with Total 15 farmers who will enter the programme
relevant stakeholders like John Deere, and Pannar to get involved in the program- in March 2014.
Pannar, Nulandes, Total and numerous me. Wesbank has approved funds from Harvest Time through the support
AFGRI divisions present. their CSI programme for the training of from UNIGRO Financial Services
A newly established company, the micro farmers (those are farmers financed four emerging farmers during
Harvest Time Investments (Pty) Ltd is farming on less than 5 hectares each). the last season with a total exposure of
responsible for the training and develop- Sylvester Lubambo, Jeffrey Tladi and R2 million. The production facilities were
ment of emerging farmers. AFGRI’s Gregory Lesabe have been appointed as repaid in full. The credit applications, for
Group CEO, Chris Venter is the chairman relationship managers that act as mentors the new season has grown to 8 farmers,
of the board of directors of Harvest Time for the emerging farmers. They all have with a total exposure of close to
clearly showing the commitment to this solid experience in agriculture and have R7 million.
programme from AFGRI. relevant agricultural qualifications. The Harvest Time has been successful in
Harvest Time just acquired the farm actual training takes place on the farm registering as a strategic partner with
next to the Vastfontein Community centre, through the AFGRI mentors over a period the Department of Rural Development.
30 km North of Pretoria. All the theoretical of 5 years. They can assist the farmers with appli-
and practical training takes place on this The emerging farmers first go cations to Government for recapitalisa-
farm. The Vastfontein Community Centre through a selection process before they tion money and can help to manage
is responsible for the personal develop- are enrolled in a 5-year training program- these funds.
ment of the farmers. Harvest Time is me. Passion for farming, a drive to be
working with a group called Makhosikazi successful and access to land are some
(My name is women), that performs all of the criteria used to determine eligibility.
the training for the farmers’ wives. Harvest Time has 15 larger emerging
John Deere, through the AFGRI Brits farmers and 24 micro emerging farmers
Mechanisation Branch, sponsors all the in the programme at the moment. These
equipment for the training farm. Sasol farmers attended three 1-week courses
AGRIBUSINES S CO NTRIBUTES TO THE NATIO NAL DEVELO PMENT PL AN 9Empowerment of the deaf
Agrinet has joined forces with eDeaf (www.edeaf.co.za) and Media
Works, an adult education and training specialist, to empower the
previously marginalised deaf community by finding candidates
suitable employment and providing them with the necessary skills to
successfully integrate into the hearing world.
Klaas Kanyane (left), with the eDeaf Employees, and Eric Wessels (far right).
Traditionally, the deaf community has some career fields the deaf can be just candidates get the full benefit from
not had a high employment rate in South as, if not better, than their hearing the programme and hence a very
Africa. Reasons include the low standard counterparts. smooth transition into their prospective
of education in schools for the deaf and “We are extremely optimistic by the careers.”
a very low level of literacy, as well as changes that are taking place in South The ABET (Adult Basic Education
limited access to information on radio Africa with regard to the integration of and Training) material in English and
and television. the deaf into the hearing world,” says Mathematics, offered by Media Works,
Companies have been encouraged Jesse Kotze, managing member at provides the tools for the unemployed
to comply with employment legislation eDeaf. deaf, who cannot read and write. After
regulating employment targets for the “We believe that eDeaf can make completing the courses they have a com-
disabled in order to achieve their BEE a difference with the products we offer petent level of basic skills to enable them
requirements. This process has proven and our success lies in our mantra – to further their studies, follow a career
to be very successful, indicating that in deaf trains deaf. This ensures that our path or develop their general job skills.
10 A G R IN E TOn completion of the basic ABET 2001, Kungwini Welfare Organisation was
courses, successful candidates must found to address the social needs and
complete a work readiness course to problems of the growing community
enable them to be fully integrated into surrounding the organisation and to
their prospective jobs. For this purpose, assist in the sustainable social
Nazereen Captieux-Bhana, executive development of this community.
member of eDeaf, developed the 18- The Kungwini Children’s Home and
month bridging programme in conjunc the Kungwini Early Learning Centres are
tion with Media Works. The bridging the heart of this continuous sponsorship
programme teaches deaf learners to by Agrinet. One of the aims of the Early
understand and implement English, culti- Learning Centres is to provide the
vating the enjoyment of reading, thus children involved in the project with at
enabling day to day learning. least two balanced and nutritional meals
The success of the Heads Up per day – for many, the only meals they
Bridging Programme is attributed to the will receive.
fact that the programme is developed Today, Kungwini Welfare Organisation
for deaf people by deaf people. manages a diverse number of projects,
Rob Rees, chief operating officer of all focused on making a sustainable
Media Works concludes: “We still have difference in the lives for those involved
a long way to go in ensuring not only the in the prganisation’s project. The organi-
equality of education but also the oppor- sation initiated and manages the
tunity of employment for the deaf commu- following projects:
nity in South Africa. However, with the • The Paul Jungnickel Home for
targets in place, and expansion oppor mentally and physically disabled
tunities for the future, changes will soon adults.
be tangible and very evident.” • The Kunwini Children’s Home for
Agrinet have embarked on the eDeaf children with specific emotional and
training programme in September 2012, behavioural needs.
by sponsoring 15 deaf candidates.These • Social Development - identifying and
candidates received inhouse training addressing specific social problems
on Mondays and Fridays at Agrinet in within the community.
Samrand, and attended classes at the • Social Work Services – providing the
eDeaf facility in Pretoria on Tuesdays, community with prevention, early
Wednesdays and Thursdays. At the end intervention and statutory services.
of February 2013, 6 of these candidates • Community Development – projects
were placed with permanent employment and programmes aimed at the sus-
contracts in Agrinet. Most of them are tainable development of disadvan
currently utilised in the packaging facility, taged community members.
with cross departmental utilisation in • The Nickel Xmas Market – an annual
other departments as the need arises. job creation event, providing crafters
an opportunity to sell their handiwork.
• Kungwini Early Learning Centres –
Kungwini Welfare
provide much needed early childhood
Organisation
education to children in the surround
Agrinet recognises the importance of
ing rural and underdeveloped areas.
community development and contributes
• Kungwini Protection Workshop –
to this with the Kungwini Welfare pro-
provides an employment opportunity
gramme. The focus of the programme is
for adults with disabilities, who are
to sponsor food and general products
not fit for the open labour market.
which can be used to better the lives of
the people involved.
The Paul Jungnickel Home for
mentally and physically disabled adults
was established in 1983 in Zwavelpoort,
Pretoria. Initially the rendering of services
to the disabled was the main focus. In
AGRIBUSINES S CO NTRIBUTES TO THE NATIO NAL DEVELO PMENT PL AN 11Astral’s Wellness Programme reduces workforce HIVrelated deaths
dramatically and reroutes savings on risk insurance to employee
retirement funds.
Employee Wellness Benefits are evident in improved savings to the company in terms of
employee wellness as well as in the reduced absenteeism, lower presen-
Astral Foods, a poultry and feed pro- company’s declining risk cover pre- teeism and enhanced productivity. Annu-
ducer, has achieved a breakthrough in miums. ally Astral invests between R4 million to
terms of its employee wellness, reducing “Astral employees have a provident R5 million in its employee wellness pro-
the number of worker AIDS-related deaths fund and contributions are made to gramme.
from 15 per thousand to approximately insurance risk benefits and the balance With a workforce of 7,700 permanent
8 per thousand in just three years. goes to investments in retirement. Any and 3,700 temporary employees, when
“Aside from the cost to company, the savings made in risk premiums, such one considers that studies have calcu-
impact of diseases on employees, their as disability and death benefits, are lated the impact cost to company per
dependents and their communities was now rerouted directly to the employee employee infected with HIV as ranging
immense,” says Astral Operations HR retirement funds,” says Biddlestone. between four and eight times their annual
director, Len Hansen. Astral’s investment With the improved quality of life salary, the extent of the savings and
into an extensive wellness programme across Astral’s operations inducing increased productivity run into millions
was the start of the reversal of a potential a sharp decline in death and disability of Rands.
catastrophic trend. claims, Astral’s return on investment in
With a healthier and more productive the wellness programme implemented by Understanding the broader
workforce, Astral’s employees also stand Kaelo, a leading corporate wellness implications of employee
to benefit financially as a result of their provider, was over R22 million in 2011 health
improved wellness, explains Andrew alone. This includes the total value of As a starting point in 2008/9, Astral
Biddlestone of Hollard Group Risk. treatment provided as well as direct commissioned Kaelo to undertake an
Impact Study to assess the prevalence,
impact and costs relating to HIV/AIDS.
Through this process, Kaelo established
that AIDS-related deaths among the
Astral workforce were averaging 15 per
thousand, well above the national norm.
Armed with this data, the future impact
of death and disability on Astral’s busi-
ness and employee benefits was calcu-
lated, with the annual cost estimated at
a staggering R42 million.
With a predominantly semi-skilled
workforce based in rural communities
around South Africa, HIV/AIDS was known
to constitute a major mortality risk. Astral
was anxious to understand the underlying
risks that were causing its employee
benefit costs to escalate, as well as the
future impact of AIDS-related deaths on
its customer base and product sales.
From left to right: Justin Savage (Managing Director, Kaelo), Len Hansen (Human Resources Director, “This included the organisational and
Astral Operations Limited) and Marianna Borges (Kaelo). management time costs associated with
12 A ST R A Lrehiring, as well as the productivity losses Since inception of the wellness pro- Astral management remains commit-
through absenteeism,” says Kaelo MD, gramme in Feb 2009, 21,622 full wellness ted to its employee wellness for the long
Justin Savage. The R42 million didn’t screenings have taken place, with 18,358 haul. With the prevalence of chronic con-
take into account a more insidious cost HIV tests completed through Voluntary ditions running at 21%, Astral manage-
- ‘presenteeism’, which is a term Kaelo Counselling and Testing initiatives. The ment is under no illusion that there’s
uses to describe employees who turn up vast majority of employees know their a quick fix. Pro-active healthcare is
for work but who are too unwell to carry HIV status and people identified through a long-term process, with the key aim
out their jobs effectively. the screening process with chronic of promoting healthy lifestyle choices
The study also red-agged other diseases receive treatment, support and and provide education to improve
health problems hampering workplace counseling on an ongoing basis. employee health, and that of their
performance. These included chronic “With such a substantial reduction in families, or prevent illness in the first
illnesses such as TB, diabetes, high the number of claims in the last two place.
cholesterol, hypertension and obesity. years, Astral Foods’ savings has been
It soon became clear that any effective substantial, translating to around R500
intervention would have to address these per employee per year,” concludes
along with HIV/AIDS. Hollard’s Andrew Biddlestone.
Education and Recreation
Meadow ‘Opstal’ at Bekker Goldi Cricket
School reopened Week
Mr Theo Scholtz (Head Meadow Feeds, a division of Astral Goldi, a division of Astral
Operations Ltd, initiated a project to
master Bekker School) prevent the closing down of the farm
Operations Ltd, sponsors
and Mr Chris Schutte section of Bekker School, near Magalies the Goldi Cricket Week
burg, Gauteng. Meadow Feeds rejuve-
(Managing Director of nated the farm section with the support for the past 17 years.
Meadow at the time the of industry key role-players, Alltech, During this period more
Animate Animal Health, Atlas Trading
picture was taken) cutting & Shipping, BKB Grainco, Cargill, than 8,000 boys were
the ribbon on the opening Cheminique International, Deltamune, involved in the Goldi
Immunovet Services, Instavet, National
ceremony of Meadow Chicks, Majesty Oils, Poultry Bulletin and Week.
‘Opstal’ on 3 February SA Outsourcing.
The renovated Meadow “Opstal”
2009. reopened on 3 February 2009.
Bekker School has 650 pupils from
Grade 8 to 12 and has the biggest
school hostel in South Africa.
AGRIBUSINES S CO NTRIBUTES TO THE NATIO NAL DEVELO PMENT PL AN 13Empowering emerging farmers in the Western Cape
Barloworld Agriculture, Southern African distributor of Massey
Ferguson, has continued its support of South Africa’s emerging
farmers with the donation of an MF 290 tractor to the Omega
Farming Trust near Wolseley in the Western Cape.
The Omega Trust, which has 65 benefi- training of staff over a 5-year period;
ciaries, is using the 61 kW tractor to help support by soils, irrigation, financial and
revitalise their land and build a sustain- other experts; and assistance with estab-
able agricultural enterprise for themselves lishing and maintaining infrastructure.
and their families into the future.
The 67-hectare Omega farm was
given to the beneficiaries, many from
distressed circumstances, in 2003 as
part of the South African government’s
land redistribution scheme. A lack of
financial support and know-how saw the
farm fall into disuse, with only a pear
orchard surviving to provide a viable
source of income but with no means of
caring for the trees or bringing the pro-
duct to market.
As the only working tractor on the
farm currently, the 61 kW 4WD MF 290 has
been living up to its name as a reliable
all-rounder. Its duties include land prepa-
ration, transport, raking, lifting bins and
clearing old, non-viable vineyards on the
farm. The immediate focus will be on
cash crops that can be sold locally, and
the first hectare of green beans under
irrigation has already been planted.
The donation of the tractor forms part
of comprehensive assistance being
provided to the Omega Trust by the
Barloworld group of companies through
Barloworld Siyakhula, a company estab-
lished to foster Broad-based Black
Economic Empowerment through enter-
prise development. Together with other
partners, both private and governmental,
Barloworld Siyakhula is providing the
support required to secure a profitable
and sustainable farming venture in the
long-term. In addition to financial assis-
tance, this includes an agricultural
mentor to oversee the project; the Emerging farmers of the Omega Trust near Wolseley in the Western Cape with their new MF 240.
14 BA R LO WO R L D A GR I CU LT U R EBKB Ltd and its subsidiaries:
Broad-based Black Economic Empowerment (BBBEE) Projects and Initiatives
Empowerment Trusts in share price of R5,55 (30 October 2013). • It takes at least a year to get pupils to
Ciskei,Transkei and Lesotho Apart from the increase in the market a level of shearing, so that they can
BKB and its subsidiaries reaffirm its value of our shares over the last eight shear enough sheep to be able to
commitment to the principles of Broad- years, all the Trusts have repaid their earn a decent living wage.
based Black Economic Empowerment loans in entirety.
(BBBEE). The dividends received by the trust With this in mind we decided to register
BKB is still and shall always be are used to re-capitalise the shearing shearing as a SETA accredited course.
closely involved with black African wool sheds and also to improve living con- The course runs over six weeks, and
and mohair producers in the Eastern ditions of the communities in those it covers a very basic farm management
Cape and Lesotho. We assist these areas. In 2012, the Trusts received course. During this time the pupils are
producers with the technical knowledge a dividend of R2,9 million collectively, introduced to the basic skills needed
and where possible infrastructure to and since the formation of the trusts, to survive in an environment like this.
improve the quality and size of the wool dividends in the region of R16 million Special care is given to physical training
and mohair clip and animals bred. We have been distributed to the beneficiaries and cooking skills.
also assist with input financing for these of the trust. Once the theoretical course has been
shearers and classers. completed, pupils are trained in the
The relative increase in the wool and Glen Agricultural College physical shearing of the sheep. Training
mohair clips from Lesotho and in the BKB currently employs ± 1,700 people happens on a farm, and takes two weeks,
Eastern Cape (mainly in the former Ciskei to shear 5,5 million animals for the South after which a pupil will have a basic ability
and Transkei areas) is testament to this. African wool and mohair industry. Of to shear without causing damage to
Used computer equipment is donated to these 1,700 people 80% is Lesotho a sheep.
schools in these areas as well. citizens. BKB recognised the need to From this point on shearers are
BKB conducts training programmes start training South African citizens required to exercise their skills on farms
to shearers and wool classers. These to alleviate unemployment in SA. up until the point where they will be able
wool and mohair schools are presented The training of shearers is a complex to shear at least 60 sheep per day.
regularly throughout the year. BKB, and difficult task due to the following The idea of this period is to hold
through its network of trading outlets, reasons: pupils in an incubation period. For the
ensures that the training of farm workers • The pure physical effort of the task is year that it takes to qualify, pupils earn
receives attention at every opportunity. a stumbling block. Shearers not only a stipend of R800 every two weeks, and
The Empowerment Trusts, created need to be trained in the skill of all lodging and food are supplied.
by BKB eight years ago, is one of the shearing, but also need to be physi- After the year period, shearers will
success stories in the agricultural sector. cally conditioned, to be able to take have the opportunity to become full time
The communal sheep and Angora goat/ the strain, especially on the back employees of the BKB shearing service.
mohair farmers are the beneficiaries of muscles.
these trusts. These producers have • Shearing is a migratory occupation.
organised themselves in shearing sheds Shearing happens on farms through-
which are in the Eastern Cape (former out SA, for at least 9 months of the
Transkei and Ciskei) and in Lesotho. year, during which shearers will not
There are approximately 270 sheds in be able to return home.
Eastern Cape and 300 in Lesotho, • Shearers can earn a decent salary,
servicing about 60,000 communal but it depends on their own effort,
producers. since shearers are paid on a pay for
The three Trusts have a collective work basis.
shareholding of 13.4% of BKB. The • New recruits often do not come from
shares were issued at 15 cents a share a farming background, and need to be Recognition is given to top performing shearing
and have grown 37 times to the current sensitised to the rhythms of farm life. sheds.
AGRIBUSINES S CO NTRIBUTES TO THE NATIO NAL DEVELO PMENT PL AN 15BKB involvement in AgriMes
This report refers to the ENTERPRISE DEVELOPMENT AGREEMENT
between BKB LIMITED and AGRI MEGA EMPOWERMENT
SOLUTIONS (PTY) LIMITED in regards to:
Objective ment market, i.e. those focussing on land • Enhancing and facilitating the image
The contributions shall be paid by BKB reform and agricultural transformation of sectoral service providers with the
to AgriMes for the specific objective of beneficiaries including new and small public and youths.
assisting or accelerating the develop- farmers: • The provision of general services
ment, sustainability and ultimate financial • Communication with members. needed by sectoral service organi-
and operational independence of AgriMes • Member recruiting. sations from time to time.
in terms of the AgriBEE Sector Code as • Organising and hosting interactive
read with the Act, and shall be utilised activities for producers in terms of the Broad-based Black
accordingly by AgriMes. needs of specific operational
Economic Empower
organisations, i.e. information
Certificate sessions, workshops and other.
ment partner of
AgriMes shall, at the commencement of • Organising and hosting focussed AgriMes
each year during the currency of this farmer’s days in accordance with the
agreement, furnish BKB with a certificate needs of operational organisations. BBBEE Partners of AgriMes
issued by an agent accredited in terms • Organising and hosting competitions Agri Mega has a 50% of the shares in
of the Act certifying that AgriMes is on behalf of sectoral service AgriMes. A percentage of 25% of the
a qualifying beneficiary entity in terms organisations. shares of AgriMes belongs to each of
of the Code as read with the Act. • Organising and hosting promotional SAFWA and USAAA, leaving them jointly
The report divines the AgriMes activities on behalf of sectoral service with 50% of the shares and subsequently
related tasks and activities that will gene- organisations. the majority shareholding, which makes
rate BBBEE score card points for BKB. • Provision of supportive AgriMes a full Broad-based Black
communication and logistical Economic Empowerment business.
Role of AgriMes services to representatives of sectoral
AgriMes, a business providing opera- service organisations. The South African Farm
tional services to organised agriculture, • Problem identification on grassroots Workers Association (SAFWA)
focuses on the following: level and timely and effective Article 21 Company
• Organised agricultural entities for communication to avoid crisis Was established with the support of
new farmers. situations. Agri Mega and is an initiative to facilitate
• Organised agricultural entities for • Interaction with sponsors and input recognition for the role of farm workers
traditional commercial farmers. providers in articulation with sectoral in the national agriculture and to facilitate
• Commodity organisations for new service organisations as to obtain the empowerment and development of
farming. optimum advantages for agriculture. farm workers. It aims to emphasise the
• Commodity organisations for tradi- • Continued provision of sector specific role of farm workers as vital producers
tional farming. information to producers through in the quest to facilitate sustainable food
• Farm worker representative organisa- various methodologies and forums. production and to support the workers to
tions. • Continued provision of sectoral benefit from land and agricultural trans-
• Co-ops for new farmers. specific information to roll players formation.
• Agribusinesses deriving from new outside primary agriculture as to
• farming. enhance the position and image of The United South African
• Agriproduct providers. the sector. Agricultural Association
• Agriservice providers. • Continued publishing of promotional (USAAA), Article 21 Company
information to the electronic and Provides organised agricultural services
Tasks of AgriMes written media on provincial level. and products to new farmers, i.e. bene-
AgriMes provides the following functions • Facilitating transformation on ficiaries of land reform and agricultural
to its owner organisations and organised provincial level. transformation. USAAA, a non-political
agricultural structures, commodity • Facilitating training and development entity without related baggage of the
organisations and other clients in the for producers and farm workers on past, already possesses more than 1,000
commercial and agricultural empower- provincial level. members. USAAA’s vision is to contrib-
16 BK Bute towards sustainable commercial • To establish agricultural communi- work that clearly defines the role of
agriculture and sufficient food production cation environments. each stakeholder.
for South Africa and Southern Africa. • To establish and provide coop related • Establish a New Farmer Development
USAAA wants to become an organised services and products at the mobile Model, probably in the Western Cape
agricultural home for the entire agricul- service centres. for new farmers with sustainable
ture, including traditional commercial • To establish markets and marketing capacities and infrastructures.
agriculture and new farmers. It wants to support for new farmers. • Create a New Farmer Development
facilitate mechanism for new farmers • To support and facilitate the develop- Model with mobility, thus enabling
to become successful, high production, ment of product processing plants as the model to visit farmer members
commercial producers. USAAA envisages to expand the agricultural business periodically throughout the Western
working with agricultural related entities environment. Cape by means of mobile Units
as well as non-governmental organisa- • To facilitate rural development. providing most of the services of the
tions, traditional and new organised • To facilitate production capital for new Central entity.
agricultural structures and all related role farmers. • Establish needs for production
players. USAAA wants to contribute • To facilitate the involvement of existing material and equipment and to
towards sustainable food production commercial agribusinesses to sup- deliver on this need.
and facilitating a situation in which South port the new entity and to monitor the • Establish agricultural communication
Africa becomes part of the international development with expertise and environments.
leadership of agriculture. USAAA wants substantial knowledge. • Establish and provide co-op related
its members to adhere to all government • To provide and facilitate extension services and products at the mobile
related agricultural policies and to support and services. service centres.
contribute towards realistic land reform • Establish markets and marketing
and agricultural transformation. Rural Enterprise support for new farmers.
Advancement • Support and facilitate the develop-
AgriMes involvement Agency (REAA) ment of product processing plants as
• Community and rural development to expand the agricultural business
in BBBEE Projects • Expand the agricultural industry environment.
• Agricultural development and growth • To facilitate rural development.
Several Primary BBBEE • Land reform and agricultural • To facilitate production capital for new
Projects involved in: transformation farmers.
New Generation Agri • Functional extension • To facilitate the involvement of existing
• Primarily to address most of the • Agricultural industry support systems commercial agribusinesses to sup-
generic problems faced by new • Farmer support systems port the new entity and to monitor the
farmers. It attempts to cover all the • Holistic farmer support and development with expertise and
strategic initiatives as set out in development substantial knowledge.
government strategy (‘one stop shop’) • Holistic farmer education and • To provide and facilitate extension
and to integrate all services for new training support and services.
farmers in such a way that all the • Commercialised agricultural • Ensure a sustainable support mech-
service providers (‘public private production anism for new farmers.
partnerships’) can approach this sector • Sustainable production and food • Measure the impact of intervention in
in a coordinated fashion within security the farming sector.
a framework that clearly defines the • Job creation • Create sustainable jobs and retain
role of each stakeholder. • Food security jobs.
• To establish a New Farmer Develop- • Poverty alleviation. • Leverage investment from the private
ment Model, probably in the Western sector.
Cape for new farmers with sustain- New Farmer Business • Ensure quality and standards of
able capacities and infrastructures. Development Model service to new farmers.
• To create a New Farmer Development • Address most of the generic • Land reform through partnership and
Model with mobility, thus enabling the problems faced by new farmers. mentorship.
model to visit farmer members It attempts to cover all the strategic • The successful implementation of
periodically throughout the Western initiatives as set out in government a multi-facetted and all inclusive
Cape by means of mobile Units strategy (‘one stop shop’) and to partnership programmes that will
providing most of the services of the integrate all services for new farmers lead to the functional inclusion of
Central entity. in such a way that all the service farm workers in the Western Cape’s
• To establish needs for production providers (‘public private partner- small grain production industry.
material and equipment and to ships’) can approach this sector in • Land reform and agricultural transfor-
deliver on this need. a coordinated fashion within a frame- mation based on extended land
AGRIBUSINES S CO NTRIBUTES TO THE NATIO NAL DEVELO PMENT PL AN 17ownership through partnerships business basic education, HIV/AIDS development objectives. Such pro-
between farm workers and traditional education and foetal alcohol grammes are available at AgriSETA
commercial farmers. syndrome education. and private sector organisations.
• Accelerated land reform to ensure • Support local economic development • Provide training in each of the 32 B
that the Western Cape reaches its through the broadening of rural municipal areas in the Western Cape.
2014 land reform objectives and goals. involvement in agriculture and tourism: • To provide training to the manage-
• Accelerated food production and Agri Mega Group will tie the activities ment and members of USAAA in:
food security in South Africa through of the Development Centre to advance - Organisation establishment and
land reform and the inclusion of the tourism programmes of the development.
state owned land in the land reform various municipalities and will link - Capacity development.
initiative. the activities of Agri Mega Week and - Meeting procedures: Activities of
• Accelerated farm worker and rural other activities with the tourism struc- office bearers and secretariats,
empowerment. ture developed by the Theewaters- notices of meetings; drafting of
• Reaching the outcomes as stipulated kloof Municipality with DBSA funds; agendas; keeping of minutes;
below. Agritourism; Eco-tourism; Agriproces- distribution of agendas and
sing; Light industries; Community minutes; and general meeting
Development of Agri Mega services; and Small businesses. protocols.
Park • Support and link up with municipal - Public speaking and presen-
• The development of a Rural Human integrated development plans, tations.
and Economic Development Centre programmes and projects. - Drafting and writing speeches and
at Agri Mega Park and to utilise the • Support and link up with municipal items.
facility as a provider of holistic socio- local economic development plans, - Negotiating.
economic and welfare development programmes and projects. - Participating as an organised
as to curtail poverty and marginalisa- agricultural structure in the agri-
tion and replace it with wealth creation United South African Agri cultural sector.
through the facilitation of develop- cultural Association (USAAA) - Identifying current trends and
ment and growth opportunities. • Leadership development in USAAA. critical matters in the sector and
• Link in with the regional and local IDP • USAAA wants to negotiate for its reacting on those.
and LED strategies of the following members, and represents members - General office administration and
municipalities and answer the collec- on the same basis that Agri Wes- management.
tive call for rural development and Kaap does for their members. - The critical roles and mandates of
the development of human capital • To empower USAAA to do business. organised agricultural structures.
through the creation of structures • To obtain funds for the empowerment - Communication practices
and infrastructures such as the Rural of members as the members do not regarding the operation, members,
Development Centre at Agri Mega have sufficient financial means. In colleague structures, the media
Park: Overberg District Municipality, this regard USAAA can not support and general sector.
Theewaterskloof Municipality, Over- its members as Agri Wes-Kaap does
strand Municipality, Cape Agulhas for their members. USAAA is simply
Municipality and Swellendam Muni- not a historic financial gain as Agri
AGRIMES activities
cipality. Wes-Kaap which obtains their exis- regarding BBBEE
• Provide empowerment, development tence funds from their members.
and growth opportunities for: Rural • To empower USAAA to become fully BBBEE activities of AgriMes
dwellers, agricultural dwellers, operational through the contributions relate to the following:
agricultural workers, community and inputs of members tutored in all
entrepreneurs and unemployed the aspects of management and Training: Facilitate and
people. functions of an organised agricultural present
• Special empowerment focuses on structure. • Production skills
women, youths, elderly and new • To create partnerships with relevant • Management
farmers, i.e. beneficiaries of land entities to ensure that the said • Farm development
reform and agricultural transforma- empowerment objectives are • General farming
tion. reached. • Marketing
• Facilitate holistic community and • To create an organised agricultural • Human development
human development through training, entity that participates in the broader • Community development
education, adult basic education, environment of organised agricultural • Leadership
personal enrichment programmes, entities. • Organisational
development of rural economies, • Obtain existing programs, catering • Labour matters
Broad-based Black Empowerment, for the said training and capacity • Extension training
18 BK BLabour matters • Exhibitions • Social development organisations
• Labour relations • Demonstrations • Welfare development organisations
• Labour management • FASFacts
• Legal Empower special focus • Development organs of government
• Labour development groups with services and • Schools
• Health and safety functions • Churches
• Co-op development • Women • Organisations against abuse
• Youth • Organisations against HIV/AIDS
Farmer support: Provide and • Disabled
facilitate
• Extension development
• Farm communities
Places of delivery of
• Rural communities
• Network development AGRIMES services
• Enhance commerciality National Focus: Facilitate
• Development of organised agri- • Poverty relief • Agri Mega Park
structures • Job creation • Town venues
• Development of agricommodity • Wealth creation • District venues
organisations • Sustainable food production • Farm venues
• Farm development • Food security • Co-ops
• Market development • Land reform • Expos
• Agridevelopment strategies of • Agri Transformation • Farmer days
various government levels • Interaction between traditional and • Work places
new farmers
Integrate development Conclusion
programmes and structures: Clients and collaborators
Deliver and facilitate of AgriMes In addition to being a BEE entity, the
• Agridevelopment strategies of various Clients and collaborators: nature, services and vision of AgriMes
non-governmental development • New farmers are entirely linked to BBBEE. The BBBEE
agencies • Farm workers value of AgriMes for BKB is therefore
• Integrated Development Programmes • Commercial farmers substantial and as required in the stipu-
(IDP) • Organised agristructures lations of the contract between the two
• Local Economic Development • Agricommodity structures entities.
strategies (LED)
• Agri development strategies of
various agrisupport agencies
• Create and facilitate development
networks for holistic development
• Identify opportunities
Local economic development
through new agriculture:
Deliver and facilitate
• Farmer development
• Farm development
• Production development
• Market development
• Development of commerciality
• Sector development
• Product development
Events: Organise or facilitate
• Expos
• Farmer days
• Co-op days
• Indabas
• Information networks
• Communication
• Media BKB information exchange and training sessions.
AGRIBUSINES S CO NTRIBUTES TO THE NATIO NAL DEVELO PMENT PL AN 19You can also read
