The Group’s operations encompass a value chain which includes farmers and suppliers across South Africa. 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 whose beneficiaries are mentored by external commercial farmers and by internal Pioneer Foods employees.
Supplier engagement 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:
|Primary agriculture projects||Pioneer Foods support eight majority Black owned farm operations in Northern Cape and Western Cape provinces. These farms focus on raisin grapes, peach and nectarines. As part of the supplier development Pioneer Foods buy their produce during their harvesting seasons.|
|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 generate 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.|