COMPANY PROFILE
2013
De Keur
Sowing the seeds of success
CompANY PROFILE
Sowing the seeds of success Editorial: Roland Douglas Production: James Clark
De Keur is one of South Africa’s leading fruit and vegetable producers. With five farms and a number of dedicated packaging facilities, the company produces superior quality foods and supplies them to some of the biggest markets and retailers across the country. Charl du Toit (jnr) tells IndustrySA more about what makes the company, started by his grandfather, an industry leader.
In the fruit growing industry, there are a few essential elements required in order to grow high-quality fresh produce. These elements include ideal weather conditions, perfect terroir and appropriate farming methods and techniques. In the past, we have spoken to numerous fruit and vegetable farming businesses from around the country that have all been very successful and it is clear that South Africa, with its Mediterranean, subtropical climate, is now one of the world’s most important fruit growing regions. In the past few months, fruit exports have received a welcome boost and relationships have been built with BRICS (Brazil, Russia, India, China, and South Africa) nations and also EU countries so that South African companies can access these markets more readily. Fruit and vegetable production for both the local and export market are important for the country’s GDP and
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it is estimated that over R25 billion worth of crops was produced in 2009. The fruit industry is also an important employer creating a significant number of jobs for the country. One company which has been at the centre of the fruit and vegetable industry for nearly 80 years is the De Keur Group, an agricultural business based in the Western Cape, just outside the town of Ceres, two hours north west of Cape Town. Now entering its third generation of Du Toit family ownership, the De Keur Group is looking to continue growing and there are plans in place to add new technology and a new marketing arm to this already sizeable organisation. Charl du Toit (jnr), a De Keur Director, tells IndustrySA that the business started out from humble beginnings, back in 1934.
De Keur
“My grandfather bought the first farm, called De Keur, in 1934 at a public auction” he says. “My father, Charl, joined him in the late 60’s, while my uncle, Gys joined the business in the early 70’s and they bought a second farm, Leeuwrivier, in 1973. Then in 1982, they bought a third farm called Rocklands and in 2008 we bought two more farms, De Hoop and Môreson. “De Keur, Leeuwrivier and Rocklands are situated in the Koue Bokkeveld and De Hoop and Môreson are in Wolseley. The two areas are not too far apart but they do have quite distinct climates. “In 2001, the company also acquired a fruit handling facility in Ceres where all of our fruits are packed. “During the last year, my father and uncle have been handing the business down to the next generation with them moving into an advisory capacity.”
atMARKET The De Keur Group is known for its quality fruit and vegetables; specifically apples, pears and onions. In the Koue Bokkeveld, the terroir and climate is perfectly suited to these crops. Long, hot, sunny summer days allow the fruit to develop optimally, and during the cold, harsh, snowy winters the trees rest and the fertile soil on the slopes prepares for the coming season. “In the Koue Bokkeveld, 90% of our produce is apples, pears and onions, with the remainder being made up of lettuce and nectarines. In Wolseley, we produce butternuts and a range of stone fruits such as peaches and plums. The climate in Wolseley is warmer than the Koue Bokkeveld and therefore suits these types of fruit better,” says du Toit. Because of the quality of the De Keur product, the brand is extremely popular in both the local and
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CompANY PROFILE
“The African continent is the biggest growing area for producers in South Africa at the moment”
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De Keur international markets. “The exceptional quality of our produce provides for a great export market, but we do also have a strong local presence,” explains du Toit. “Our onion crop is almost 100% locally sold, with only a small percentage being exported into Africa. We are one of the main onion suppliers to the very successful Shoprite/Checkers Group in South Africa between January and September. ” Previously, De Keur has used an export partner to move its products into international markets but recently the company decided to bring export and all marketing related activities in-house with the formation of a new company, atMarket, as du Toit explains. “Within the De Keur Group, there is currently, De Keur Estates, which includes all of the production facilities, and De Keur Packing, where all produce are packed. We’ve recently started a new company called atMarket, which will handle all of the marketing and export related activities for the Group. When atMarket is established in the industry, du Toit suggests that the product offering to their clients will increase, since this company will have the ability to act as
an export agent for other producers. As the atMarket business grows and exports becomes an even a bigger part of its business, there will be more of a challenge in meeting international standards but du Toit is not concerned, saying: ”Maintaining standards and adhering to country-specific requirements is vital
“Our quality comes from tried and tested farming methods” when operating in international markets. Fortunately, De Keur’s produce and facilities are of the highest quality and since we have been operating within the international arena for the last decade through other export agents, this should pose no challenge. We are already adhering to the standards set in the markets that we operate in, including GLOBAL G.A.P and BRC Global Standards.” While EU, USA and BRICS markets remain the traditional outlet for South African exporters, it seems that the African continent and its many developing markets are
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CompANY PROFILE now offering lucrative opportunities too. “Continental Africa is the biggest growth market for producers in South Africa at the moment, and will be definitely for the next ten years or so,” says Du Toit. Tina Joemat-Pettersson, Minister for Agriculture, Forestry and Fisheries said in July: “Trade on the continent has grown significantly, with Zimbabwe being one of the top importers of our citrus,” emphasising the fact that South Africa’s neighbours are now more important than ever to its commercial farmers.
A FAMILY AFFAIR The De Keur business has been under Du Toit family ownership since the outset and while on many occasions working with family can be troublesome, De Keur has seen nothing but sustained development and for most part, healthy family relationships. Charl du Toit (jnr) is not the only grandchild of founder Charl (Tippie) du Toit to work within the business. There are a number of family members who make up the company’s leadership team. “I’ve been working for the company since 2002 and have been joined by various family members in my generation over the last 11 years. The current
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management team consists of seven family members and there are also other members of the extended family involved within other parts of the business.” As for future generations, it is a family ambition to sustain the legacy Tippie du Toit began in 1934 for the future. The advantage of keeping the leadership in the family is that the values which have been instilled in the family, and therefore the business, over the years will remain. It is said that Tippie du Toit was a man who believed in good farming practices, respect for all living things, honesty, fairness and dignity to all men and these beliefs have been embraced by the current and past generations. This is seen in the relationships that the De Keur Group builds with its employees, the communities in which it operates, as well as the trusted relationships with various suppliers and customers. “There is a huge drive within our business to forge good relationships with employees and the community at large,” explains du Toit. “Sometimes South Africa gets a bad name for how it treats its workers but the Koue Bokkeveld is well known as an area which cares for its people. At the De Keur Group, we are always looking at how we can improve
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HERE’S TO CELEBRATING THE SUCCESS OF A FRUITFUL BUSINESS As De Keur’s business partner we are proud to see them grow. Nedbank and De Keur Estate have been partnering since 1998. The group is well positioned to service both the local and export markets with their own production/packaging division. Nedbank’s client service team includes an agriculture specialist dedicated to your business. The team also has indepth knowledge of your local environment, which allows for speedy turnaround times. For more information please contact the Business Manager, Herbert Howard at herberth@Nedbank.co.za. Nedbank Business Banking – partnering for growth for a greater South Africa.
nedbank.co.za
Nedbank Limited Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).
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CompANY PROFILE
relations with employees. “We provide a good level of housing, including basic services such as running water and electricity. We have a nurse on our payroll, so that workers can receive the necessary medical treatment and/or advice at the workplace. In addition, we also provide subsidised crèche, as well as after school care facilities to all the children that live on the various farms. We believe that education is a fundamental human right and therefore we strive at empowering our workforce by providing the necessary basic education, as well as advanced training in their specific field of work,” du Toit says. An example of the fantastic community work done by De Keur came about in August 2012 when the company opened a development centre for the youth. This facility aims to develop the children’s learning abilities through the provision of recreational and academic activities. Marlene Coetzee developed and implemented this initiative and provides thorough guidance with the help of well trained staff. The centre’s management were greeted by eager students who couldn’t wait for the doors to open amidst the winter chill. The centre has around 30 learners who attend classes on two week days.
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They are provided with guidance in learning programs, and also have the chance to develop their creativity through internal art projects. Sports programs are also implemented to ensure that all basic abilities of the younger generation are stimulated. De Keur management acknowledge that constructive development of the youth plays a vital role in the community as well as developing individually.
STATE-OF-THE-ART To complement its workforce (over 1500 people in peak times), De Keur is constantly looking at new technology, processes and procedures that will improve efficiency across all areas and contribute to the already successful farming methods used on De Keur’s farms. “We are always looking at new technology and new farming methods; we frequently trial some of our ideas at one or two of the farms and then roll them out on a wider scale if they are successful,” says du Toit. “Currently, we are looking at picking platforms, higher density orchards, mechanical harvesting of onions and the direct planting of onions for example. At the moment, we sow the onion seeds in a warmer area and after about
De Keur 13 weeks, the onion plants are transported to the Koue Bokkeveld and planted by hand. It is these manual processes that we are constantly looking to improve. The packing of fruit and vegetables is an important process within the supply chain and De Keur’s facilities are state-of-the-art. Fruit is packed at the fruit handling facility outside Ceres which has an annual capacity of 80,000 bins and a controlled atmosphere storage capacity of 13,600 bins. Butternuts are packed at the Môreson farm and onions and lettuce are packed at Rocklands where there is another cold storage centre. “Our packing facility is first class,” says du Toit. “Our quality comes from tried and tested farming methods and also high attention to detail in the packing phase. This meticulousness all adds to the quality of the end product.” As the transfer of control from one generation to another is almost completed at the De Keur Group, it is clear that the new guard have strong ambitions and ideas about how to take the company into the future grounded in the legacy left by their grandfather and fathers. The investment into technology is obviously a sensible place to start and the establishment of atMarket will allow for
an increase in marketing activity and access to key export markets. So it seems that the De Keur Group has the perfect mix of essentials and is likely to prosper until it is time for the next generation to fully take charge.
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“We are always looking at new technology and new farming methods; we frequently trial some of our ideas at one or two of the farms and then roll them out on a wider scale if they are successful”
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+27 21 855 4888 www.dekeur.co.za
(0)1603 618 000 info@industrysa.com East Coast Promotions Ltd, Ferndale Business Centre, 1 Exeter Street. Norwich, Norfolk NR2 4QB