The depot, which became operational in November 2014, was funded with a R1.5 million interest-free loan from the Rhodes Food Group, backed by an innovative and mutually beneficial repayment agreement. The depot has already processed approximately 13,000 tons of apricots, peaches, pears, sultana grapes and figs from 38 producers.
In 2008, the Rhodes Food Group identified CRWG, a company that is 66% owned by 183 female farm workers, as an opportunity for community empowerment and provided the necessary funding to establish 11ha of apricot and 9.5ha of peach orchards on Klipdrif Farm - the tract of land owned by CRWG, and on which the new depot is situated.
Hansie Voslchenk, Manager of CRWG said: "The depot on the Klipdrif farm is more convenient for farmers who no longer need to drive their freights into town for inspection and grading." At 10,000m² the new facility is spacious, provides shaded storage areas, purpose-built delivery bays, and cement work areas that reduce dust pollution and minimise blemishing of fruit. Bathroom and shower amenities are also provided for the workers.
"We will continue to support the evolving ambitions of CRWG," said Job Mpele, Group Human Resources Director of the Rhodes Food Group. "The depot project is an extension of our current enterprise development programme with CRWG. Their success not only benefits us a food group, but also the trustees, the farm and our service providers. The depot was a much needed facility in the area."
The long-term commercial agreements negotiated between the Rhodes Food Group and CRWG make a compelling blueprint for other empowerment and land reform initiatives: the Rhodes Food Group purchases the annual apricot harvest grown by CRWG. The apricots are used in the range of Rhodes Apricot products which include Superfine Apricot jam, Chunky Apricot jam and Apricot halves; the Rhodes Food Group also rents the depot from CRWG for the months of November to March, with the R1.5 million loan being reduced each year over a 10-year period. CRWG then has the opportunity to generate additional rent from the facility when it is not in use for the seven-month period from April to October.
"The Rhodes Food Group plans to collaborate further on initiatives that streamline and add value to the supply chain, particularly those where financial empowerment can be nurtured in previously disadvantaged communities," concluded Mpele.
