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Our Enterprise and Supplier Development

Enterprise and Supplier Development activities focus on suppliers throughout our manufacturing value chain. The Group supports primary agriculture projects, logistics companies and other SME suppliers. Pioneer Foods continues to support commercial farming operations whose beneficiaries are mentored by external commercial farmers and by Pioneer Foods employees. Pioneer has also started to support Independent Distribution Contractor within our Sasko brand.

The raisins and fruit farms take 3-5 years to produce to full capacity hence a long term view is required when implementing these initiatives. Pioneer Foods provides long term funding to these farms. During the 2017 financial year the Group purchased raisins to the value of R31.6m from these BEE suppliers.

Supplier development initiatives include the following focus areas:

Details of some of the Group’s enterprise and supplier development projects and its beneficiaries are shown in the table below:

Beneficiaries Description
Agri Dwala, Napier, Western Cape This venture was established in 2006 and since then has acquired 600ha of land as well as access to 800ha of leased land. The farm produces wheat, canola, oats and lupines, as well as livestock. The project is now 100% black owned and supports 19 BEE beneficiaries. The farm is very well maintained and under the supervision of beneficiaries and directors Maruis Engel and Daniel Pieters, it has produced 2000 tons in the last 2 seasons. In addition to agriculture, the beneficiaries have also developed a B&B and events venue.
Aquanoir, Vanrynsdorp, Western Cape Aquanoir was Pioneer’s first BEE farm project. Using capital form Pioneer Foods, the project acquired 155 hectares of suitable agricultural land in Vanrhynsdorp for R 3m in 2008. Additional capital was used to establish raisin-grape vineyards & drying facilities, cover cultivation operating expenses and cover raisin-drying operating expenses. Of the 155 ha, 20 ha has been developed, while 87ha is leased to a neighbouring farm. There are 4 BEE beneficiaries and the farm produces 85-92% choice grade raisins, and enjoyed a record raisin yield of more than 100 tons in 2016/2017 season.
Perde Eiland, Marchand, Northern Cape Perde Eiland farms raisins and lucerne, and supports 12 BEE Beneficiaries. With a loan from Pioneer Foods, the venture acquired a 35ha farm in 2011 and has so far developed 29ha of it. Additional capital was used to establish raisin-grape vineyards & drying facilities, cover cultivation operating expenses and cover raisin-drying operating expenses. The farm is very well maintained and under supervision of a beneficiary supervisor (Jeffrey Matladike) and the mentorship of Gerrit Nel. Both are 100% committed to the success of the project.It produced a record raisin yield of more than 300 tons in the 2016/17 season. All the beneficiaries are permanently employed and started receiving a crop-bonus since 2015.
Sanddraai, Groblershoop, Northern Cape Government funds started this farm in 2002. Funding from Pioneer Foods in 2012 was used to establish an extra 11.26 hectare raisin grape vineyard with additional production capacity of 85 tons of raisins. Total capacity of 115 tons (14.9 hectares) There are 23 BEE beneficiaries with a 52.5% shareholding of the farm, 14 of these are permanently employed. These beneficiaries helped produce a record raisin yield of 100 tons in the 2016/17 season. The farm is in a healthy financial position, and should be able to repay the loan ahead of the scheduled date.
Doornkloof, Laingsburg, Western Cape Pioneer Foods helped to purchase 53 ha of cultivable land for this project. Main lines for irrigation are in place on all lands of Doornkloof. Initially 23 hectares were planted with trees. 3 ha poor orchards have been removed and 19 ha new orchards have since been planted. Since 2012, production has doubled as well as revenue and Doornkloof has developed into the best producing fruit farm in the area. The average production / ha in the past season was 26.5 tons / ha with a total production of 936 tons of fresh fruit, despite frost damage. It supplies Pioneer’s Worcester Treefruit operation with apricots, pears and peaches. There are 4 BEE beneficiaries with 51% shareholding. They helped produce a record 936 tonnes of fresh fruit in the 2016/2017 season.
Sasko Bochum IDC, Limpopo The SASKO Bochum IDC is managed by Peter Theledi. Theledi stated the IDC in November 2016 and now employs 41 staff. Theledi began his career at Pioneer as a welder in the Olifantsfontein Bakery. He worked his way up through the company over 13 years to Depot Manager at Rosslyn. He was then given a loan and grant funding which enabled him to launch the IDC. He was initially distributing Sasko bread but has now added Sasko flour, White Star and Spekko rice to his stable of brands.
Heart of Kayamandi Pioneer Foods has supported this Kayamandi Township agricultural hub with the capacity to produce approximately 76 800 vegetable bunches every year. We will also be exploring partnership opportunities for mentorship and other support for this hub to ensure it is self-sustainable.

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