Leadership guest note

HOW OIL FARMING IS CREATING WEALTH FOR SA SMALL FARMERS

Ellis Levember CEO of Seda Essential Oils Business (SEOBI) explains how essential oils farming has evolved and how the company’s dream of becoming the biggest essential oils producer in Africa is starting to become a reality.

“Past studies have indicated that it is difficult for inexperienced farmers to manage a 20 acres’ farm. This led to us establishing an important project in the past financial year; a model farm of only 6 acres. As small as it may seem, it is producing quality oil and a much higher profit margin”.

My “If it’s not an ark, don’t build it. If it’s not something new, don’t even attempt it”. This is the mantra I live by.

Our main business at SEOBI is much more than the development of small businesses in the essential oils industry in South Africa. It is also about developing innovative ideas and entrepreneurial skills amongst communities throughout the country with the goal of creating jobs.

Where essential oils were perhaps an ark five years ago - with not so many people believing in it- it has now grown into an industry with unlimited potential. ‘Green’ and ‘organic’ is the way to go, not only in food production, but also in how cosmetic and cleaning products are manufactured.

We have developed a new business model that is currently changing the landscape of farming in the industry. Past studies have indicated that it is difficult for inexperienced farmers to manage a 20 acres’ farm. This led to us establishing an important project in the past financial year; a model farm of only 6 acres. As small as it may seem, it is producing quality oil and a much higher profit margin.

SEOBI now provides the farmer with material, seedlings, training as well as final processing steps. As soon as the entrepreneur can handle the first acre, materials and seedlings for the next 6 acres are further provided. Thereafter, the success of a farm becomes the responsibility of the farmer with the full support of SEOBI.

In the financial year of 2015/2016, SEOBI not only supported more than 150 existing SMMEs and clients but we also expanded our activities to the Eastern and Northern Cape regions. While Rose Geranium remains the main product, Yarrow, German Chamomile and Roman Chamomile have been added to the line of business. Our dream as a company is to become the biggest essential oils producer in Africa. This is starting to become a reality, with the DRC, Liberia, Zimbabwe and even Swaziland showing interest in SEOBI becoming involved in their production of Rose Geranium.

Agricultural activities in South Africa experienced many challenges with the extremely high temperatures and low rainfall during the period under review. The drought ultimately led to the postponement of harvesting, which had a direct impact on revenue since no oil could be produced. As a way of minimising the negative effects of the weather on crops, we have implemented an Agri Weave ground cover that serves as mulch, suppresses weeds and conserves moisture content in the soil.

SEOBI is like a train with different stations but with a very clear destination and my staff and I keep the train on its track.

CONTACT:

Tel: +27 12 808 3061 Email: admin@seobi.co.za www.seobi.co.za 