Tiger Brands CEO Tjaart Kruger has called for a stronger, more connected agricultural and food value chain, warning that South Africa’s food security and economic growth depend on producers and processors working together to build a more competitive system.
Speaking at the Swartland Show in Moorreesburg, Western Cape on Friday, Kruger used his position at one of the country’s largest food manufacturers to reflect on the relationship between agriculture and the broader food industry, arguing that value is created across the entire chain, from the producer through to processing and the consumer.
He said the relationship between producers and buyers should not be viewed as a simple transaction, but as part of a broader value chain in which each participant’s sustainability matters.
“Producers need buyers, and buyers need producers,” was a central theme of his presentation, as he highlighted the importance of understanding how value moves through the agricultural economy.
For Tiger Brands, this means ensuring that its manufacturing operations remain competitive while maintaining reliable access to agricultural raw materials. Kruger said the company is focused on strengthening its position at key points in the value chain, including improving costs, productivity and food safety.
He also stressed the importance of food security, arguing that South Africa cannot take its ability to produce and process food for granted. The resilience of the agricultural sector is therefore closely linked to the resilience of the country’s food system.
Planning beyond the next season
A recurring message in Kruger’s presentation was the need for longer-term thinking.
Rather than focusing only on immediate pressures, businesses across the agricultural value chain need plans that look three, four and five years ahead, he said. Such planning allows companies and farmers to prepare for changing market conditions, manage risk and make better investment decisions.
That long-term approach is particularly important in agriculture, where producers face risks ranging from weather and input costs to market volatility and changing consumer demand.
Kruger also pointed to the importance of diversification and building resilience into business strategies, rather than relying on a single source of income or one set of market conditions.
Competitiveness is a shared responsibility
Kruger’s remarks also touched on the cost pressures facing businesses and consumers, and the challenge of making South African food production more competitive.
He argued that the industry needs to look beyond individual businesses and consider how the entire value chain can become more efficient. For food manufacturers, the cost of agricultural commodities is only one component of the final price. Processing, logistics, labour, energy and other costs all contribute to what consumers ultimately pay.
This makes cooperation across the value chain increasingly important, particularly at a time when both producers and consumers are under financial pressure.
Kruger also highlighted the role of investment and the need to ensure that South Africa remains an attractive environment for businesses to operate and expand.
Agriculture’s role in the economy
The Tiger Brands CEO positioned agriculture and food manufacturing as more than separate industries, describing them as interconnected parts of a broader economic system.
For farmers, access to viable markets is critical. For food companies, a productive and sustainable agricultural sector is equally important because it provides the raw materials on which processing and manufacturing depend.
Kruger’s message to the farming audience was therefore ultimately about shared interests: a healthy agricultural sector supports food manufacturers, while a competitive food-processing industry creates markets and adds value to agricultural production.
He also spoke about leadership during difficult periods, noting that leadership is relatively easy when conditions are favourable but is tested when budgets come under pressure, circumstances change and people look to their leaders for direction.
For farmers facing increasingly complex economic conditions, that may have been one of the presentation’s most pertinent messages: resilience is not simply about surviving a difficult season, but about making the decisions and investments needed to remain viable when conditions inevitably change.
Kruger’s appearance at the Swartland Show offered a perspective from the other side of the farm gate, underscoring the extent to which the fortunes of South African agriculture and the country’s food manufacturers are intertwined.
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