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Danone invests R75m in black-owned dairy

Dairy giant Danone has signed an agreement worth R75 million with Ncora Dairy in Keiskammahoek in the Eastern Cape. This investment will benefit over 1 200 community members living within the vicinity of the farm

by Noluthando Ngcakani
27th October 2022
Danone signs a multimillion rand agreement with Amadlelo Agri, owners of Ncora Dairy. The investment is set to bolster black dairy farmers in the Eastern Cape. Photo: Supplied/Food For Mzansi

Danone signs a multimillion rand agreement with Amadlelo Agri, owners of Ncora Dairy. The investment is set to bolster black dairy farmers in the Eastern Cape. Photo: Supplied/Food For Mzansi

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Food systems need to be transformed to be fit for the future, says operations director at Danone Southern Africa Kid Nkantsu. Marking its 50th anniversary, the dairy juggernaut signed a multi-million Rand agreement with Ncora Dairy this week in Keiskammahoek in the Eastern Cape.

Simphiwe Somdyala, the CEO of Amadlelo Agri. Photo: Supplied/Food For Mzansi

The 600-hectare dairy operation is one of several dairies that make up Amadlelo Agri, a majority black-owned raw milk producer. Amadlelo Agri chief executive Simphiwe Somdyala says the momentous partnership worth R75 million will go towards milking 10.5 million litres of milk from 2 400 dairy cows.

“Our business started with the support of other farmers from the Eastern Cape, KwaZulu-Natal, and local government to build infrastructure. We are extremely thankful for the support we have been offered which has set us in good stead to reach this incredible partnership milestone.”

A first for black dairy trust

The agreement is set to benefit over 1 200 community members living within the vicinity of the farm, with approximately 35 people from the community employed on the farm itself.

“I look forward to this partnership and the value that this will bring in upskilling us to be a zero carbon emission generating farm,” says Somdyala.

In 1972 a legacy moment was created by the dairy company’s late and former CEO Antoine Riboud, when he stated that Danone’s corporate responsibility will not end at the factory gate but will also serve social progress.

At the signing ceremony, operations director at Danone Southern Africa Kid Nkantsu announced that the partnership with Ncora Dairy Trust was one of the first black-owned dairy farms to become a supplier to the food producer in Southern Africa.

“Business success should always go hand in hand with improving the livelihoods of our communities,” says Nkantsu.

‘Partnerships are the future of dairy’

Nkantsu further emphasises that the agricultural sector is facing multiple challenges, including economic development, climate change, water scarcity, and biodiversity loss.

Danone Southern Africa’s operations director Kid Nkantsu. Photo: Supplied/Food For Mzansi

He says it is critical to create models that support sustainable farming and drive solid investment.

“Today’s agreement forms a significant part of this commitment as it aims to develop and promote regenerative models of commercial agriculture. Ncora is a farm with so much potential, growing with a community who live close to nature – the very essence of what Danone stands for. As a farm that has all the necessary infrastructure in place, we believe that they are geared towards our journey of strengthening the resilience of the sector through protecting soil, empowering farmers, and promoting animal welfare.”

Meanwhile, former deputy president and director of the UN Women Phumzile Mlambo-Ngcuka says partnerships with the private sector to bolster farming is critical to meeting the country’s objectives.

Mlambo-Ngcuka is also a shareholder of the Ncora Dairy Trust.

She tells Food For Mzansi, “I am inspired by being part of this journey with Ncora and Danone – one that ensures farmers are given the opportunity to grow their skills and become more sustainable, but also that ensures Danone receives the very best milk for their products while placing the environment front and centre.”

ALSO READ: KZN beef specialist shares tips to grow herd

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Noluthando Ngcakani

With roots in the Northern Cape, this Kimberley Diamond has had a passion for telling human interest stories since she could speak her first words. A foodie by heart, she began her journalistic career as an intern at the SABC where she discovered her love for telling agricultural, community and nature related stories. Not a stranger to a challenge Ngcakani will go above and beyond to tell your truth.

Tags: dairy farmDanoneEastern Cape
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