Through the Tiger Brands Agriculture Aggregator model they are enabling small-scale farmers to form part of their supply chain, thereby transforming the local agricultural sector.
Tiger Brands transforming agriculture sector
As one of Africa’s biggest food manufacturers, Tiger Brands is extremely reliant on agricultural produce for its inputs. However, their high tonnage delivery requirements have, in the past, made it very difficult for small-scale farmers to form part of their supply chain. Yet, through the Tiger Brands Agriculture Aggregator model, the company is enabling farmers to supply them with produce.
By aggregating black small-scale farmers into collectives they are now able to meet the capacity and quality requirements of Tiger Brands. Furthermore, the company provides them with input finance, agrarian and agricultural technical support and business development-support, thereby ensuring their commercial success. In the Western Cape, the For Farmers project combines the first ten black wheat and oat famers to ever be part of Tiger Brands’ supply chain. #SAINC met farmer Thomas Skietekat, who says that without Tiger Brands’ assistance they would not have been able to plant their crops this year.
In Taung, North West, the Baphuduhucwana Production Incubator has grown its farmland from eight hectares to over 700 hectares. The provision of the right cultivars, agrarian and agricultural technical support, interest free loans, as well as access to market, has resulted in these farmers making a profit from the start. Through their aggregator model, Tiger Brands is not only ensuring economic development, but is also transforming the agriculture sector in South Africa.