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F E A T U R E
Not just run-of-themill
www.noordfed.co.za
Not just run-of-themill NoordfedEiendomsBeperk, a subsidiary of agricultural group NWK, has recently acquired a second milling company in KwaZulu-Natal. Essential Business looks at the company's decision and its plans for the future.
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s a leading provider of agricultural services and inputs, NWK Group’s activity is vast and varied — spanning storage solutions, financing packages, agri-economic advisory services and more. The group has over 100 years’ experience serving the South African agricultural market, with the bulk of its activity and distribution taking place in the North West Province. One example of this activity is Noordfed Ltd, a NWK subsidiary based in Lichtenburg. As a milling company that specialises in maize and wheat, Noordfed’s primary activities include the production and distribution of white maize milling products such as white maize meal, white maize rice and white maize samp for both human and animal consumption. These products are distributed to a number of established brands and longstanding clients, including 10/10, Super Goal, HayDay, and Fat Fowl chicken feed. In February this year, Noordfedalso acquired 100% interest in Empangeni Milling, another white maize milling company based in KwaZulu-Natal. A former subsidiary of holding company Grindrod Ltd, Empangeni Milling is already well established in the KwaZulu Natal maize market. The merger remains safely within Noordfed’s area of expertise, and is as a consequence a relatively low risk endeavour for NWK Group. The venture will see NWK’s presence expand geographically into the “garden province” of South Africa. Prior to this acquisition, Noordfed’s produce was primarily distributed in the North West and Gauteng, with only limited distribution in Limpopo and KwaZulu Natal — but this is now set to change.
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“Empangeni Milling/Noordfed has delivered the same service as before to our client base. We foresee a seamless integration that will have no effect on orders, product availability or deliveries,” said Hendrik Roux, former CEO of Empangeni Milling. Roux has since been appointed as managerial head of Noordfed. “A modern mill, the geographic location close to the raw material, and our established market share in KwaZulu-Natal pave the way for the vision that Empangeni Milling/Noordfed has of the future — to ensure that we feed the people of South Africa with passion and with the bestquality product,” said Roux in a press release.
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Broad Based Black Economic Empowerment partner within the firm. The company is in consultation with Intshona Holdings, a black-women-owned company established to empower rural women and farmworkers in South Africa. The transaction proposed by Noordfed would be to the socio-economic benefit of female workers in rural areas and farming communities. Discussions are still underway, but the project looks to be very promising indeed.
Several months into the acquisition, Noordfed is already set to embark on its next project — the establishment of a 6
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Contact Details Contact our office in South Africa Noordfed(Pty) Ltd Agricultural Service 85 Thabo Mbeki St, Lichtenburg, 2740, South Africa Tel: +27 18 632 5037
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