Pioneer primary agriculture and supplier development - Agri SAAgri SA

Pioneer primary agriculture and supplier development

Primary producers

Northern Cape, Eastern Cape and Western Cape provinces.

Why it was started?
Enterprise and supplier development activities focus on suppliers throughout the value chain. The Group supports primary agriculture projects. Pioneer Foods continues supporting eight commercial farming operations, which beneficiaries are mentored by external commercial farmers and by internal Pioneer Foods employees.

How was it done?
A few aspects were looked at to improve the business. Supplier engagement was improved by implementing a total value of ownership (“TVO”) approach. This resulted in more emphasis on transformation, leading to a larger number of high-value contracts being allocated to a vendor base with level 4 or higher B-BBEE credentials. Supplier development initiatives include the following focus areas:

  • Access to business development support;
  • Access to market opportunities; and
  • Access to finance.

Pioneer Foods support eight majority Black owned farm operations. These farms focus on raisin grapes, peach and nectarines. Examples of projects supported include Varhoyi and Mgodleni Co-operative This is a community initiative in the rural Eastern Cape Province just outside King Williams Town. Pioneer Foods supports this project whereby the community farms maize, which is used as animal feed by their customers. This project employs youth and old people in the community and it generates income for this community. Heart of Kayamandi Co-operative Pioneer Foods support this Kayamandi Township agricultural hub with the capacity to produce approximately 76 800 vegetable bunches every year.

How it was funded?

Social and economic implications
This project improved the income of farmers involved and created job opportunities in the area.

Benefit to initiator
Pioneer Foods buys its produce during the harvesting seasons.