Our Enterprise and Supplier Development

Enterprise and Supplier Development activities focus on suppliers throughout our manufacturing value chain. The Group’s ESD funding portfolio presently comprises 12 ventures, made up of four farms that are categorised as primary agriculture, seven Independent Distribution Contractors (IDCs) within bread distribution services, and one vending trolley company.

Pioneer Foods continues to support majority black-owned commercial farming operations. These emerging farmers are mentored by established commercial farmers and Pioneer Foods employees to help them increase their yields and quality through sound agricultural practices.

Since the 2016/17 financial year, the Group has supported IDCs who provide distribution services to the Bakeries division. Through favourable funding support, this ESD initiative affords the IDCs an opportunity to grow their businesses and ensures they remain viable and sustainable enterprises.

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 A farm that 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 well maintained and under the supervision of beneficiaries and directors, Marius Engel and Daniel Pieters.
Aquanoir, Vanrynsdorp, Western Cape A raisin farm in Vanrhynsdorp with majority shareholding belonging to four BEE beneficiaries that are under the leadership mentorship of Klaas September.
Perde Eiland, Marchand, Northern Cape A raisin farm in Marchand in the Northern Cape with majority shareholding belonging to 12 BEE beneficiaries and mentored by an experienced commercial farmer, Jeffrey Matladike.
Doornkloof, Laingsburg, Western Cape This has developed into one of the best producing fruit farms in the area. It supplies Pioneer Foods’ Worcester Treefruit operation with apricots, pears and peaches. There are four BEE beneficiaries with a 51% shareholding.
Thabamoroji, Bochum & Tzaneen, Limpopo The Sasko Bochum IDC was enabled by the financial and business support provided by Pioneer Foods. This initiative employs 43 people and covers 12 routes.

A second depot was opened in Tzaneen, employing 62 people and covering 16 routes.

Invoiceworx, Gert Sibande Municipality (Ermelo), Mpumalanga A new IDC in Ermelo became operational in February 2018. This distribution centre employs 31 people and has 16 routes
Tebatso Logistics, Lebowakgomo, Limpopo This IDC launched in September 2018, employs 31 people and will operate 8 routes.
Invoiceworx, Ehlanzeni District Municipality (Nelspruit), Mpumalanga
Province
The IDC started a second depot in Nelspruit during September 2018, employing 29 people and running 9 routes.
LYM Projects, Mthatha, Eastern Cape Launched in September 2018, this IDC employs 9 people and operates 3 routes.
Leytes Strait, Orange Farm area, Gauteng This IDC started in September 2018 and employs 12 people, operating 4 routes.
Khakalomzi Logistics, Blue Downs, Western Cape An IDC operated by Simon Mataba was launched in October 2018. It employs 23 people and operates 7 routes with 7 trucks.
Brainwave Trolley vendor machines were donated to a BEE company as part of the enterprise development grant.