Farming is a high-risk business, where conditions can change at almost any minute. To limit the ever-increasing input costs that growers face, “Die Kragspan” came up with comprehensive, innovative commercial solutions that have so far saved farmers nearly R13 million.
Formed through an alliance between InteliGro and VKB, Die Kragspan was born from a need for increased sustainability in the commercial farming sector. Access to funding has always been a challenge for farmers, and the rising interest rates and problems at the Land Bank exacerbated already poor conditions.
InteliGro’s Regional Director (North), Johan Nienaber, says that the alliance formed through Die Kragspan is meant to harness their collective resources so that input costs are minimised while at the same time optimising their outputs through technical expertise.
“Growers not only want to see results in their fields, but they also want to see it in their bank accounts,” he says.
The commercial solutions offered by Die Kragspan have changed every year since its inception. This is not only to accommodate the changing needs of growers but also because they are meant to improve growers’ financial fortune throughout the season, says VKB executive director Bertie Smith.
“The 0% surcharge, 0.5% discount on Multigreen fertiliser, and 1% discount on Dekalb seed, a 3% discount on InteliGro crop solutions, as well as a six-month period during which no interest is charged on growers’ VKB accounts, are only possible because of the wholehearted support of our trusted suppliers.”
The support from these suppliers allowed Die Kragspan to save growers R7.1 million in input costs during the 2021-2022 season.
“This supports the initiative to address the sustainability of our growers jointly and substantially,” adds Nienaber.
Robust commercial offerings
In the first two seasons in which Die Kragspan was active, the solutions offered had only applied to summer row crops. In the 2021-2022 season, potatoes were added, and in the upcoming season, growers who produce stone and pome fruits will be included in the solution coverage.
By constantly reviewing the terms of the solution, Die Kragspan caters to the changing needs of farmers, and the deferred terms are designed to support the farmers’ purchasing patterns and the physiological development of their produce. The deferred terms on potatoes, and stone and pome fruit for instance, can extend to a maximum of 120 days, while interest on row-crop purchases can be deferred by up to six months.
The commercial solutions also include technical support, which Nienaber says is meant to provide farmers with thorough support.
“Growers have access to training, reliable pest and disease data, spray clinics, and crop-solution trials. The aim is to enable growers to make the best possible decisions with their trusted business partners. This results in improved yield quantity, quality, and profitability, as well as environmentally friendly farming practices.”
Smith emphasises that Die Kragspan offers solutions for many types of growers.
“Right from the outset, Die Kragspan team ensured that our offering would be relevant to all growers in our network. Inclusivity is the alliance’s motto, because only by being inclusive can one truly advance the cause of food security and the sustainability of our growers.”
ALSO READ: VKB paving the way for successful new-era farmers
Sign up for Mzansi Today: Your daily take on the news and happenings from the agriculture value chain.
