A new South African fruit export company has been launched with the specific aim of establishing a true black empowerment fruit export company.
The initiative is led by fruit exporter In2Fruit, in partnership with new fruit marketing entrepreneur Enoch Ralehoko and Black Economic Empowerment (BEE) producers who supply In2Fruit.
The new company, Rainbow Produce Company (Pty) Ltd, signals a major entry of BBE entrepreneurs and investors into the R15bn South African fresh produce export marketing sector.
Initially Rainbow Produce will be supported by In2Fruit, itself a fairly new export marketer which has made strong inroads in the South African export sector during the past two years. In2Fruit will provide support services to Rainbow Produce Company.
Once fully established, Rainbow Produce Company will have at least a 50 per cent black shareholding.
Rainbow's first managing director, Enoch Ralehoko, took up the role on 1 November 2014.
“Rainbow will have the full infrastructure backing of In2fruit at its disposal in order to secure the efficient running and managing of its export activities,” said In2Fruit’s managing director Sarel Joubert. “All back office functions will be performed by In2fruit. Where required, In2fruit will coordinate a mentorship programme assisting with management and technical advice.”
Enoch Ralehoko, who holds a masters’ degree in agricultural administration from Stellenbosch University, says Rainbow will build its business on sustainability and creating confidence amongst BEE growers to choose the company as their preferred marketer. “The major reason why I am here is because this is something new for the South African fruit industry. It is true transformation and we must build sustainability for both BEE producers and the company.”
Joubert noted that Rainbow Produce Company would be supported by In2fruit financially until it is self-efficient.
“Rainbow and In2fruit will work closely together with investment institutions which will assist BEE producers with finance and financial management,' he explained.
Ralehoko, who has previously been manager of marketing and agribusiness at the Western Cape Department of Agriculture, said Rainbow's strategy was to deliver a niche customer experience to BEE growers.
“We are uniquely positioned to deliver a one stop shop, offering a tailor-made marketing proposition to all our growers. Rainbow will focus on the marketing needs of BEE producers and is the producer's extension to the customer, which includes timeous delivery to preferred international customers where it will be able to achieve competitive and sustainable returns for its partners.”
Alec Abrahams, a BEE grape grower from the Hex River Valley, welcomed the establishment of Rainbow Produce. Abrahams outlined that his company, Siyazama Klipland, was excited about being the first BEE table grape grower to join Rainbow Produce as a supplier. Siyazama Klipland is a BEE company with six shareholders of which 80 per cent are women.
“We are extremely excited about what Rainbow Produce will mean to us. We know how important it is to have the support and mentorship of companies such as Rainbow Produce and In2Fruit. The fact that we have been successful grape growers for the past eight years is due to successful mentorship from one of our fellow Hex River producers,” he added.
Another Breede River Valley grape producer, Willow Creek is in the process of joining Rainbow Produce and will be followed by other BEE producers as the season progresses. Siyazama Klipland and Willow Creek is expected to contribute around 170,000 cartons of table grapes to Rainbow Produce this season, giving the company a very solid start in the grape export business.
