ZEBEDIELA CITRUS
ZEBEDIELA CITRUS
Zebediela Targets
Double Production
in Next Two Years PRODUCTION: David Napier
The Zebediela Citrus farm in Limpopo produces some of South Africa’s best tasting fruits but despite this, as a business, the farm had lost its way. But following a big investment in 2017, Zebediela is very much alive and kicking, and looking to regain former status as the biggest and best producer in the country. 2 / www.enterprise-africa.net
INDUSTRY FOCUS: AGRICULTURE
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The once mighty Zebediela Citrus farm in South Africa’s Limpopo Province is going through a revival period as it looks to regain its reputation as one of the southern hemisphere’s most important fruit producers. Previously, the Zebediela business was known as one which could grow one orange for every eight people in the world. It was heralded as the southern hemisphere’s largest citrus growing farm, but its legacy was sour and tainted. Originally, the business was founded in 1918 but was eventually taken over by the Apartheid government through the ARDC (Agricultural and Rural Development Corporation). Following the dawn of the new South Africa under Nelson Mandela, a plan was put in place to give the farm back to the local community, close to Polokwane, allowing for all to participate in the success of Zebediela, but things again failed to prosper. The local community was not equipped to run a business of such scale. As well as administration and finance struggles,
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// WE ARE PLANNING TO TARGET THE EU IN THE NEXT SEASON. WE ARE ALSO VERY STRONG IN THE MIDDLE EAST AND RUSSIA – THESE ARE KEY MARKETS FOR US. WE PLAN TO GROW INTO CANADA IN THIS COMING SEASON // the farm was also neglected with incorrect citrus trees planted, poor management of irrigation systems, and low yields effecting ability to deliver on international export orders. Unfortunately, the Zebediela case went down as an example of how not to carry out land restitution. But the desire from the local community to make their land work for them was never questioned and after years of difficulty, hope finally came through a cash injection from a new partner, Russia’s Eight Mile Investments, headed by CEO Evgueny Zakharov, who holds an eight-year lease on the farm. Reportedly worth R100 million, the lifeline handed out by the Russian investors has helped Zebediela to keep
jobs and obtain financial stability. The deal saw land owners receive R2.5 million in annual rent payment and a 50% profit share. The investors also made between R60 million and R90 million available in running capital. On the ground, the impact was felt immediately when eight new John Deere tractors, worth R500,000 each, were delivered. Today, the operation is a growing concern. With 250 permanent staff and 800 seasonal workers, Zebediela is a vital part of the local community and the wider South African export programme. The Bjatladi community (which is around 2000 members strong) is now promising a return to maximum capacity at the farm and expansion into
ZEBEDIELA CITRUS
new product ranges to satisfy the needs of its local and international clientele. Enterprise Africa speaks to General Manager, Kobus Swanepoel about how this citrus giant is awakening. SUSTAINABLE GROWTH “At this stage, the relationship is working well and there is strong support for the community from Eight Mile, who also support other projects in the region,” he says. “The farm is 4300 hectares big and we are now cultivating around 800 hectares so there is a lot of space for us to work on. Currently we are farming 750 hectares of citrus and 156 hectares of macadamia nuts. We are expanding into passion fruit and other products.” Asked if more land around the farm will be purchased to accommodate a growing demand for the region’s
product, Swanepoel says Zebediela is home to more than enough space for current requirements. “We have enough land here” he says, “we have 2500 hectares laying here ready to be developed so the plan is to develop 200 hectares per year.” Currently, the plan for the future is to completely revamp the farm by taking out old, small yielding trees and replacing them with high-yield, highly productive plants to ensure maximum production. Some of the trees on site are more than 30 years old and experts usually agree that the productive life for a citrus tree is no more than 25 years. Alongside its famous citrus, the Bjatladi community is also looking to plant soya bean and corn plants on adjacent farms to help diversify its offering. “It is a plan for the future,” admits Swanepoel. “We are going to plant
other, new fruits before we de-bush the land and start to replant citrus. On our other farm, we are planning 400 acres of soya bean and corn.” International demand for these products is strong and the region already has a proven track record with these crops so planting of new products seems like the perfect growth strategy. SUCCESS IS SWEET Currently, Zebediela is gearing up for its next export push. This will include delivering products to markets all over the world including some parts of the EU, the Middle East, Russia and Canada. The business had been restricted when exporting to Europe after not following protocols around spraying but since Eight Mile’s involvement, European export is now firmly back on the agenda. However, the company still battles with
provento
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crop protection
Verspreiders van kwaliteit landbou-chemikalieë 8 Rietbok Str, Industria, Tzaneen, 0850 Tel: +27 (0) 15 307 7042 • provento@telkomsa.net
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INDUSTRY FOCUS: AGRICULTURE
// THE TASTE IS JUST BETTER, I’M NOT SURE EXACTLY WHY, PERHAPS IT’S THE SOIL, PERHAPS IT’S THE CLIMATE, IT’S SWEETER THAN THE REST OF THE COUNTRY AND WE ARE HAPPY ABOUT THAT // the infamous citrus blackspot which has been troublesome for a range of SAbased citrus exporters for some time. “We are still limited in the EU because of the blackspot but I think that should be overcome soon so we are planning to target the EU in the next season. We are also very strong in the Middle East and Russia – these are key markets for us. We plan to grow
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into Canada in this coming season. Zebediela Farm has not exported to Canada before but we adjusted our export strategy so that we can get into that market,” says the GM. One differentiator that sets Zebediela apart from the rest of the country’s producers is its superior taste. “This is something you get only from Zebediela – it’s a much sweeter
orange and the local market is keen on it. We offload a lot of oranges here in the local market as people are happy to buy. The taste is just better, I’m not sure exactly why, perhaps it’s the soil, perhaps it’s the climate, it’s sweeter than the rest of the country and we are happy about that,” explains Swanepoel. DOUBLE TIME While the current set up at Zebediela is stable and largely positive, Swanepoel reminds that challenges remain, and these will have to be carefully navigated if the business is to achieve its vision of doubling production in the next two years. “We are keen on achieving that target but there are factors that could
ZEBEDIELA CITRUS
hold us back,” he says, “first is water. We are in the middle of an extended drought and our dams are empty. We are currently only irrigating from boreholes. Hopefully, we will have a strong rainy season and then we will be able to expand. The second challenge is the demand for new citrus trees from the nursery. Currently, there is a three to four year waiting list. We are on that list and we have managed to purchase around 400 hectares of tree which are in the nursery now.” Of course, the lack of rain has been of real concern to those at Zebediela. Swanepoel confirms that if the dams don’t develop and the boreholes dry out, the business will have to look at
reducing production and taking out the least productive orchards first. “It’s a big problem for us and that is why we pray for rain. But we do believe we will get the water we need,” he says. Away from water and acquisition of new trees, Zebediela is also faced with a weak local economy but this of course presents opportunities for the export arm of the business. “It has been quite difficult, especially with the fuel price and the Rand-Dollar exchange rate. However, the weaker Rand has helped us with our export income,” says Swanepoel. Through all the past challenges and the bittersweet events that have characterised Zebediela over the years,
now seems to be the time when this 100-year old business will start to fulfil its potential. Swanepoel reports that negativity is a thing of the past and the focus on the farm in Limpopo is definitely on the opportunities that lay ahead. “We have to be positive; there are concerns in the country but we are in a good position, everything on the farm is positive and everybody is working for each other. There’s no doubt that there is a positive spirit on the farm right now,” he concludes.
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