Massmart/Wal-Mart commit R15m to local farmers

This is consistent with the South African retailer's objective to ensure that small farmers benefit from its fresh produce retail proposition.

Fifteen of Massmart's Game stores include its fresh produce concept, 'Foodco' while five of the group's Makro stores include 'Fresh', a fruit and vegetable offering.

Abroad, TechnoServe has partnered with Wal-Mart in South America and India to operationalise its Direct Farm programme, while locally the TechnoServe team has been developing a smallholder farmer blueprint for Africa with a detailed strategy for SA.

TechnoServe SA Country Director, Earl Sampson, said they would develop a pilot small-scale farmer program which would allow Massmart the opportunity to test and move to scale, aiming to deliver a Direct Farm program which would engage viable small farmers within the next 5 years.

The programme, representing an investment of more than R15 million, includes training, mentoring, technical assistance and establishing essential links to both finance and retail markets.

The pilot project is based around the Trichardtsdal area in Limpopo and will start with between 30 and 50 small-scale farmers.

As a voluntary condition to the Competition Tribunal's approval of the R16.5 billion mega deal, between US giant Wal-Mart, and Massmart, the companies set up a R100 million supplier-development programme in a bid to improve the competitiveness of South African manufacturers and producers.

"The Massmart-Wal-Mart Direct Farm programme will seek to identify, develop and support the smallholding farmers, to supply Massmart with fresh produce through take-off agreements that will ensure commercial and sustainable business for the farmers," said Mncane Mthunzi, the Massmart executive responsible for the programme.

According to Sampson, these targeted small-scale farmers could potentially form a core of the next generation of commercial farmers.

"We are excited about this programme, and our investment in this initiative will assist in job creation whilst also contributing to the economic empowerment of participating farmers", Mthunzi said.

Earlier this year, Wal-Mart/Massmart acquired Fruitspot to assist Makro with its procurement and distribution of fresh and processed fruit and vegetables.

Fruitspot served retailers including Spar (SPP) and Famous Brands (FSB), as well as the catering industry, and bought much of its produce directly from farmers.