South Africa’s fruit industry is making significant strides toward transformation, with a bold 2038 goal set to create a fully inclusive sector. Achieving this vision requires an integrated approach fostering black participation at every value chain level.
Fruit SA’s Subtrop Transformation Showcase, recently held at the Tshivhase Agridam Farm in Thohoyandou, Limpopo, underscored the power of collaboration in driving true transformation.
Now in its third edition, the event highlighted the impact of existing initiatives and the challenges new-era farmers still face. Key stakeholders, including Fruit SA, Subtrop, financial institutions, and government bodies, came together to explore opportunities for growth and support.
Key barriers to transformation
In a discussion on the state of transformation, Fruit SA CEO Fhumulani Rathsitanga and Subtrop CEO Derek Donkin unpacked the barriers and opportunities in the industry.
Transformation, Rathsitanga emphasised, extends beyond ownership and equity. “A space where black players have sustainable and profitable businesses and are able to invest back into their businesses” is her definition of true progress.
According to the National Agricultural Marketing Council (NAMC) Annual Performance Plan 2024/5, black farmers currently hold less than 10% of market and production share, and this is a stark reminder of the work still ahead.
Rathsitanga identified three major barriers to transformation: access to patient capital finance, skills development, and access to land and water. She emphasised that overcoming these challenges is crucial to fostering a more inclusive and sustainable fruit industry.
Echoing these concerns, Donkin pointed to land security issues as a major roadblock to financial access.
“Number one is access to security, which one would need to borrow money from a bank. Many farmers are on communal land and have permission to occupy, but they can’t use that as security against a bank loan,” he explained.
The cost of fruit farming is high, and without secure financing, new-era growers struggle to expand operations. Beyond finance, attracting young entrepreneurs to agriculture and developing the right skills across the value chain remain critical concerns. “Not equipping the value chain with the necessary skills is a major challenge. Education and training are vital,” Donkin stressed.
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Grower perspectives: Making transformation work
For fruit farmers like Khuliso Madima, transformation initiatives have made a real impact. The litchi farmer credits Subtrop’s programmes with broadening her understanding of the industry through collaboration.
“Subtrop introduced me to a group of fellow growers, which has helped a lot. It has exposed me to the importance of collaboration – you see how others approach challenges and the solutions you can apply on your own farm,” she shared.
Madima believes financial support, export assistance, and market integration are key to unlocking further growth. “We need more financial support from banks and private sector players. I also need assistance in exporting and marketing my products globally. Once I’m out there, I should know which agents to contact so they can sell my fruit internationally,” she explained.
Despite the challenges, Madima is determined to scale her business. “I want to improve my quality and start exporting. I already have the volumes; I just need to take my fruit beyond South Africa’s borders.”
Similarly, Lutendo Nevondo, an avocado and litchi farmer from Vondo village in Limpopo, acknowledged the critical role Subtrop has played in her journey. “They support us with essential knowledge to help make our fruit businesses a success,” she said.
Financial backing has also been a game-changer. “Subtrop nominated me for funding, which will enable me to build a dam and fence my farm,” Nevondo shared.
She believes achieving the 2038 transformation goals will require a mindset shift among farmers. “We need to treat our farms as businesses, stay committed, and work hard to achieve success.”
Her personal vision is clear: “I obtained my SA Gap certificate in December last year and am now preparing to export my produce in the upcoming harvest season.”
Road ahead for fruit industry
A key feature of the showcase was a farm and packhouse tour, allowing attendees to witness transformation in action. The event also featured a panel discussion, titled “How can we collaborate more effectively to sustain inclusive growth in the fresh fruit industry?”
Moderated by Leona Archary, CEO of Agda, the panel brought together top industry leaders: Derek Donkin, CEO of Subtrop; Themba Rikhotso, CEO of Land Bank; Desry Lesele, agricultural manager at Nedbank; Zander Ernst, director of marketing and production at Allesbeste Farms; Dr Madime Mokoena, director of BBBEE charter compliance; and Vusi Ndlozi, director of agribusiness support and development services, Limpopo department of agriculture and rural development.
The discussion reaffirmed that while progress is evident, much more remains to be done to dismantle systemic obstacles and unlock the full potential of black growers in the fruit industry.
With bold goals set for 2038, experts agree that strategic partnerships, innovative solutions, and a commitment to transformation will determine the road ahead.
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