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Plan to boost new farmers

Plan to boost new farmers
 
2008-12-11


AN ambitious BEE plan that promises to forever change the face of the deciduous fruit industry in South Africa, was launched by the Deciduous Fruit Development Chamber (DFDC) during a gala dinner in Paarl.

The DFDC is a temporary body that was established in 2007 to help new farmers integrate into the commercial industry.

Trevor Abrahams, DFDC chairman, said that BEE funding in the fruit industry was primarily aimed at training and social issues. The new plan is revolutionary, as it will now focus on the economical development of beneficiaries.

The plan, which Abrahams jokingly dubbed the Rabe plan - Relativistic Agricultural Black Entrepreneurial (after the Deciduous Fruit Producers TrustCEO, Anton Rabe) - will see current DFDC members transform from insignificant to significant producers in the deciduous industry.

“There will be no begging, and the plan is based on BEE principles combined with sound agricultural practices.

“We need more speed in land reform. According to the plan, 200 hectares of fruit trees will be established annually for five years at an estimated total cost of between R80 million and R100 million. Predicted net profits after eleven years, is R270 million.

“Due to the sheer size of the plan, the stakeholders of the DFPT, such as banks, service providers and exporters will be attracted to it. It will also have a social impact, binding the culturally diverse producers in the deciduous industry into a closely knit family,” Abrahams said.

The first plantings are scheduled for 2009, but the plan will only gather speed from 2010 onwards given the time lag with the ordering and production of nursery trees. Trees will be supplied by the industry at an annual cost of about R6,5 million per year.

Apart from the industry organisations contributing to this cost, the DFPT will also approach service and input suppliers in the value chain to assist with the funding of the project.

The DFPT will also supply invaluable technical services throughout the process. This approach would ensure that only the most suitable cultivars for a specific region are established, Abrahams said.

Abrahams said the DFDC is well supported up and down the value chain, which helps to guarantee the success of its members.

Members not only receive mentoring and support from the various deciduous fruit industry bodies, they are also helped to comply with the strict export protocols in order to compete internationally and they are helped to secure viable markets for their products.

Abrahams is confident that they will be able to keep to their schedule, as the first 400 hectares of land has already been secured.

A total of 202 deciduous fruit farms, owned or partially owned by new farmers, are represented by DFDC.




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