After 83 years in the produce trade, Outspan (Pty) Ltd was wound up voluntarily at a trip-down-memory-lane function in Pretoria, South Africa earlier this month.
Former board members and executives paid tribute to the company and Kallie Schoeman, the last chairman of Outspan International, said it had provided an “enormously strong foundation” for the South African citrus industry.
The company faced a number of challenges including South Africa’s distance from its northern hemisphere markets; climatic diversity across production areas; the wide variety of pests and diseases with which to contend; and poor soil, erosion, drought and floods.
Von Broembsen attributed the initial success of the South African citrus industry to producers working together to form co-operatives which enabled growers to pool knowledge and resources.
In 1926, citrus growers broke away from the Fruit Growers’ Co-operative Exchange to form their own Citrus Exchange (SACCE) and farmers were canvassed to join the co-ops. By 1929, 61 per cent of exports were channelled through SACCE and, within a year, four million cartons were exported.
The Niven family gave their citrus brand name, Outspan, to the Citrus Exchange for member use in 1933 and 20 years later, SACCE established its own research section.
Outspan International (Pty) Ltd was formed as a Citrus Exchange subsidiary in 1992, becoming Outspan International Ltd two years later. The following year Outspan International Ltd and Unifruco Ltd amalgamated as Capespan Group Holdings International Ltd and the South African Citrus Growers Association (CGA) was formed.
In 2001, the Outspan Citrus Centre was taken over by CGA and the name changed to Citrus Research International. Finally, in 2002, the Outspan Foundation Block was taken over by the CGA.
After Capespan Group Holdings was established, Outspan and Unifruco acted as non-operating companies, each holding approximately 39 per cent of the Capespan Group shares on behalf of growers. Because of elements in the structure, this multi-tiered Capespan shareholding contained complexities. Thus, towards the latter part of 2008, Capespan initiated a shareholding simplification process to increase share tradeability, unlock shareholder value, further commercialise the group and improve corporate governance.
Consequently, Unifruco and Outspan were wound up voluntarily in 2009, with Capespan taking over all their remaining assets and liabilities.
Although the Outspan brand is here to stay, the November 6 commemoration marked the end of a historical Outspan International era in the South African fruit industry, but also heralded a rejuvenated future for Capespan’s citrus exports.
Louis von Broembsen, the company’s ex-head of technical and research, said Outspan would be remembered for putting the South African citrus industry on the map. He said: “The fact that the South African citrus industry grew from small beginnings to the second-biggest citrus exporter in the world is thanks to the foresight of its founders and the bold decisions they made. This achievement is even more remarkable when considering the odds stacked against them.”
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