ian van brouwershaven 2010 - saiaesaili.co.za/sites/default/files/van brouwershaven - an example...

STEPHEN MOHALE’S PACKHOUSE :

An example of commercial enterprise collaborating in a government rural upliftment project

Ian van BrouwershavenIan van Brouwershaven

2010

Tegnies

Alfa…Alfa…

MathReasonLogic

EmotionsPerceptionsIntuition

dAd Sparrius, the economy is not a toaster, 2008

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Presentation ScopePresentation Scope

• Example of an individual project!Example of an individual project!– Commercial agriculture viewpoint

• Why should commercial farming play a role in• Why should commercial farming play a role in rural development?

• What role can commercial farming play in rural development?

• How can commercial farming enage in rural development?

Tegnies

OverviewOverview

Stephen MohaleStephen MohaleMarketing

Outbound LogisticsPost Harvest

HandlingFarming Operation

Inbound Logs

Inbound Logs

j o a t

LabsHRStores &AdminTechnical

Horti‐culture

Financial Security…

j.o.a.t

350h F ( 50h ti )• 350ha Farm ( 50ha active p.a)• 2000 ton of tomatoes p.a. • 125 workers• Operating the past 25 Years

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OverviewOverview

Limpopo D.O.A

MopaniDistrict

LetabaBranch

Land reforms

EngineeringGOVERMENT

Stephen Mohale

MarketingOutbound LogisticsPost Harvest


Inbound Logs

Inbound Logs

TegniesLabsHR

Stores &AdminTechnical

Horti‐culture


j.o.a.t

OverviewOverview

The request..• a New Packhouse

Limpopo D.O.AGOVERMENT

• a New Packhouse• Underroof loading area

Requ

est

Stephen Mohale



Inbound Logs

Inbound Logs

TegniesLabsHR


Horti‐culture


j.o.a.t

OverviewOverview

Tegnies

Overview MarketingOutbound Logistics

Post Harvest Handling

Farming OperationInbound Logistics Overview


Horti‐culture


• 1600ha active• 150 000 ton of tomatoes p aGOVERMENT

Limpopo D.O.A

• 150,000 ton of tomatoes p.a• 7000 workers R.I.E

Professional services

Vela VKE

Stephen Mohale



Inbound Logs

Inbound Logs

TegniesLabsHR


Horti‐culture


MarketingOutbound Logistics


Farming OperationInbound Logistics


Horti‐culture


Vela VKEDesign + Spec

Functional requirement / conceptual designProject

Context?

GOVR.I.E

Professionalservices

Tender docs / process

Contractors

L,DOAEng Facilitator

Stephen Mohale

Contractors

DeliverableFinal Project

Project Management

Stephen Mohale



Inbound Logs

Inbound Logs

Requ

est


Horti‐culture

Financial Security…Tegnies


• Why should commercial farming play a role inWhy should commercial farming play a role in rural development?

• What role can commercial farming play in• What role can commercial farming play in rural development?

H i l f i i l• How can commercial farming engage in rural development?

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Why…Why…

• Hard reasons:Hard reasons:• Better competition serves the “client”

• Soft reasons:• Soft reasons:• Values and principles of the “social responsibility”

• Opportunity to create partnership / establish relationsOpportunity to create partnership / establish relations

• Personal relation with Stephen…

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What role…What role…

• Money / financial assistance??Money / financial assistance??• What about tax!!

• Help manage / implement projects??• Help manage / implement projects??• Time, resources, responsibility!!

• Partnerships / Collaboration??• Partnerships / Collaboration??• Conflicting objectives

• Unbalanced power• Unbalanced power

• Efficiency poor

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Suggestion :Suggestion :

• Share ‘non‐sensitive’ intellectual property• Time efficient• Time efficient

• Requires no cash flow

• Greatly increase probability of successGreatly increase probability of success

• Create value for the economy

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MarketingOutbound Logistics


Farming OperationInbound Logistics

Labs

gLogisticsHandling

g pLogistics

HRStores &AdminTechnical

Horti‐culture

Financial Security…Natuurboerdery®

Plantmaterial, Packaging material, Farming advice

Stephen Mohale


Farming Operation

Inbound Logs

Farming advice

Labs

gHandling

Farming OperationInbound Logs

HRStores &AdminTechnical

Horti‐c lt re


j.o.a.t

Admin culturey

The New Start‐up

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200 beneficiaries





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How…How…

1 Exposure to ZZ2’s system1. Exposure to ZZ2 s system1. Farm and packhouse visits

2. Discussions and advice

3. Playing open cards

2. Professional assisted IP transfer2. Professional assisted IP transfer1. Needs analysis

2. Functional requirement / recommendations

3. Concept designs

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How…How…

2 1 Needs Analysis2.1 Needs Analysis

Government/Stephen• Under roof loading area mechanized packline to• Under roof loading area, mechanized packline to improve labour eff, glass office, catwalk…

ZZ2• Grading/cooling facility to improve income potential,Grading/cooling facility to improve income potential, Handling procedures, Running cost issues, farm infrastructure, Foodsafety requirements

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How…How…

2 2 Functional requirements2.2 Functional requirements

ZZ2• Documented for reference guidance• Documented for reference, guidance

• Conceptual calculations

• Ballpark budgetBallpark budget

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How…How…

2 2 Functional requirements2.2 Functional requirements

ZZ2• Documented for reference guidance• Documented for reference, guidance

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How…How…

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ResultResult

ZZ2’s involvement hasZZ2 s involvement has

• Provided impetus to the project

fi d di i f l i• Defined a direction of value creation

• Increased the possibility of a successful rural development project– Spinoffs for the economy as a whole

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OpportunitiesOpportunities

Value increase:Value increase:

• + R 600,000 p.a in market value of produceM j b– More jobs

– More money in the rural economy

– More tax for the next government project.

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ChallengesChallenges

• Efficiency of the government / processEfficiency of the government / process– 3 to 4 years for a R5/6m project

Stephen Mohale:– Stephen Mohale: "I only hear about tenders every day. They then keep on announcing in

the media that they are helping us. What help? When? I would like to h d ffi i l h h h l dmeet the government department or official that has helped me one

day," Mohale said. *Business report, 31 March 2010

*http://www.busrep.co.za/index.php?from=rss_&fArticleId=5412312

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ChallengesChallenges

• SuccessionSuccession– Stephen is 62 years old, who will follow up?

Will the investment bear fruit?– Will the investment bear fruit?

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In ConclusionIn Conclusion

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The “”Hard” ironyThe Hard irony

• Is commercial farming not successful ruralIs commercial farming not successful rural development??

• Reason has a formidable enemy in human• Reason has a formidable enemy in human behaviour!!

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The ‘Soft’ RealityThe Soft Reality

• Why should commercial farming play a role in rural development?

• What role can commercial farming play in rural development?

• How can commercial farming engage in rural development?

Wh• When…

• Where…

• What else…

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Ending noteEnding note

• Stephen’s packhouse project is still activeStephen s packhouse project is still active• Initialized in 2008/9?

• ZZ2 involved in November 2009

• RIE, Vela VKE contracted in 2010

• Delivery likely in 2011Delivery likely in 2011

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ian van brouwershaven 2010 - saiaesaili.co.za/sites/default/files/van brouwershaven - an example...

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