Smallholder farmers are often able to supply produce but they sometimes do not have access to markets to sell it, which means that the future of inclusive supply in the value chain could depend on off-take contracts, therefore, Tiger Brands has launched an enterprise supplier development fund to support smallholder farmers, processors and distributors in the food-processing value chain.
The fund comprises two separate funds to support these two functions. The first fund is called Balimi, which means farmers in Sesotho. It assists farmers with loans to support primary production activities and inputs. The second fund is Depumo and focuses on post-harvest processes.
According to Mary-Jane Morifi, Chief Corporate Affairs officer at Tiger Brands the fund provides for two aspects of supplier development, primary production and post-harvest”. Morifi says the agro-processing giant established the fund to open the supply chain to smallholder farmers, by signing contracts with these farmers to secure a market for their produce, Tiger Brands hopes to help them develop into commercial farmers.
Tiger Brands is South Africa’s largest food company housing multiple reputable brands, with a wide variety of commodities. For example, 58 small-scale farmers from the Western Cape and North West supply Tiger Brands with wheat.
Tiger Brands assists farmers with technical support and knowledge regarding the best cultivar to grow and when to harvest. The food industry also provides an opportunity for small-scale farmers to process their harvest before delivering to Tiger Brands, which increases the product’s value.Morifi also said that much more potential can be unlocked in the small-scale processing industry.
by Amanda Mkhize
