‘End of an era’ as Capespan farms return to growers

Two South African fruit growing and marketing companies have extended their footprint in the South African apple and pear business with the acquisition of Western Cape fruit farms that were previously part of Capespan Agri.

Elgin Valley-based producer Dennegeur Farm has confirmed the purchase of Applethwaite Farm from Capespan’s majority owned Zeder Investments.

At the same time, Zeder is understood to have sold its Theewaterskloof apple and pear farm to grower-exporter Betko, based near Villiersdorp in the Vyevoom Valley.

“We are pleased to say that the registration of the deal to buy Applethwaite was confirmed this week,” says Stefan Beukes, CEO of Dennegeur.

Theewaterskloof Farm, meanwhile, adds to Betko’s production and marketing portfolio.

Located near to the group’s own central packhouse and coldstores, the company says it will help to extend opportunities in its business further.

Elsewhere, it has been confirmed that Ceres-based group Dutoit Agri has extended its own packing operations by acquiring the Novo Packhouse in Paarl from Zeder.

Fruitnet understands that a third farm called Misty Cliffs, which along with Applethwaite, Theewaterskloof and Novo remained with Zeder after it sold off the rest of its Capespan assets, has been sold to an Elgin apple farmer.

The rest of Capespan was sold off late last year to an investor called 3 Sisters.

End of an era

Senior fruit growers describe the deals as representing the end of an era in the South African fruit business.

They also say it is perhaps the final chapter in the whole unbundling saga in South Africa’s fruit industry, following its deregulation in 1997.

Prior to that, all of the country’s fresh produce exports were channelled through one company, Unifruco, which later merged with Outspan to form Capespan.

Zeder acquired all of the shares in Capespan Group from fruit growers, they point out, but things have come full circle with the exporter’s last three farms back in the hands of family-run production and marketing companies.

For Stefan Beukes and the Beukes family, it is a special occasion. “My great ancestor founded Applethwaite and eventually sold it to an entrepreneur, Edmond Lombardi, who also founded the Appletiser juice plant,” he recalls.

Indeed, Lombardi’s lightly carbonated and refreshing ‘apple appetiser’ beverage remains an iconic South African fruit drink that is extremely popular around the world.

“We have been working on this deal for some time and it is rewarding to know that it now returns to the Beukes family,” Beukes adds, noting that Dennegeur is also a member of a grower group that supply apples for juicing at the factory.

“It is a good productive farm. That is why we bought it! It will fit in well with our existing operations and will greatly extend our production and packing activities.”

Substantial boost

Roux Groenewald, CEO of Betko, was not available for comment. However, the company promotes itself as trusted growers, packers, distributors and exporters of fresh apples and pears, delivering a year-round supply of fresh fruit to more than 40 countries globally.

Betko was established by the late Japie Groenewald, who grew up on the Oubos family farm in the Zonderend Valley near Riviersonderend.

Groenewald was another early apple marketing pioneer who started his business in the regulated era and, among other things, also made a major contribution to developing the African apple market for South African apples.

Betko’s production is located mostly in the valley below the Theewaterskloofdam, the largest storage dam in the Western Cape.

It is expected that the acquisition of Theewaterskloof, a farm with a unique climate to produce apples and pears, will substantially boost Betko’s business.