Tiger Brands Bolsters Local Agriculture by Backing Over 70 Small-Scale Farmers in Musina

Tiger Brands, Africa's leading fast-moving consumer goods manufacturer and home of the iconic All Gold Tomato Sauce brand, has been working tirelessly to enhance the local agricultural sector, particularly focusing on bolstering small-scale farmers. In a move that strengthens South Africa's food supply chain, the company has shown substantial support to the farming community in Musina, Limpopo, uplifting more than 70 small-scale tomato farmers.

The company's annual procurement of 70,000 to 100,000 tonnes of tomatoes underscores its significant role in the South African tomato value chain, a sector integral to the brand value of All Gold, estimated at R1-billion within the substantial R10-billion sauce and condiments segment.

Tiger Brands' involvement in the local production supply chain is deep-rooted. When faced with disease outbreaks or production shortfalls, it turns to neighboring African nations for supply, keeping global imports as a last resort. This strategy not only illustrates the company's dedication to the local market but also its intent to foster intra-African trade relations.

Strategically positioned, Tiger Brands operates two tomato processing facilities in Musina and Lutzville, specializing in transforming freshly harvested tomatoes into paste, which is then transported to a plant in Boksburg, Gauteng for the final stages of processing and packaging.

The need for a transformed and inclusive supply chain became evident in 2018, prompting Tiger Brands to initiate enterprise development support programs, aimed at providing technical know-how and financial incentives to small-scale farmers who achieve production targets. This extends to supplying farmers with seedlings, which amounted to 29 million seeds last year, valued at R13-million. Additionally, Tiger Brands has facilitated a system where farmers receive "advance cash," amounting to 10% of their contracts, and offers subsidies for transport costs, easing the financial burden on farmers.

The push towards creating a more equitable agricultural environment is apparent through Tiger Brands' interventions targeted at black farmers, who have been historically underserved in terms of technical expertise. The company acknowledges this gap and actively works to provide the necessary support to enable them to meet the quality standards demanded by the market.

Tiger Brands goes beyond lip service by extending letters of intent to small-scale farmers, ensuring that all their produce will be taken up, thus alleviating concerns about market access. More than R100-million has been invested to date in supporting these farmers and aggregators. Moreover, supply contracts are reviewed annually to maintain fair and equitable terms for both Tiger Brands and the producers.

Significantly, Tiger Brands does not simply participate at the buying end of the agricultural spectrum. Sipho Modiba, Tiger Brands' agricultural manager, points out that the company is actively engaged from seed breeding to harvest. Producers are remunerated based on the sugar content of their tomatoes, denoted by Brix rating, ensuring that a premium is placed on quality.

Even though South Africa has approximately 695 tomato producers, the emerging farmer sector only accounts for 5% of national production. Nevertheless, in Musina alone, Tiger Brands sources tomatoes from 38 commercial and 70 small-scale farmers, providing permanent employment for around 600 individuals and seasonal jobs for approximately 4,000 workers. The peaks of the harvest seasons in Musina and Lutzville span different parts of the year, culminating in a combined processing capacity reaching up to 500 tonnes of tomatoes daily at the Musina plant.

Tiger Brands' unwavering commitment to the growth of small-scale farmers and local production of tomatoes ensures that a significant percentage of the country's 600,000 tonnes per annum of tomatoes is sourced from within its borders, echoing the brand's dedication to nurturing the All Gold label's heritage and its supporting agricultural sector.