Farmers need more than access to opportunities; they need practical support that enables them to build profitable, sustainable businesses. This was according to a farmer panel at the AgriCulture Gauteng Annual Congress held recently in Pretoria.
Moderated by nutritionist and farmer Dr Ethel Zulu, the panel brought together Quinty Rabophala, director of Kenokatha Farms; Pethole Raseropo, known as “The Seedling Guy”; and Pauline Paulse of Nu Harvest Farm.
Rabophala, who started farming on three hectares after moving from the banking sector, said profitability in agriculture should be viewed differently from conventional business models. Much of the income generated by a growing farm has to be reinvested into infrastructure and productive assets.
“A farming business is not a business that you enter into today, and then you start making money. You build it,” she said.
She explained that her farm continues to reinvest its income into areas such as irrigation and equipment. While she currently hires tractors, she aims to build an asset base that will eventually allow the business to operate with greater independence.
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Compliance can unlock better markets
Rabophala also highlighted compliance as a major learning curve for farmers seeking access to more lucrative markets.
Food safety, testing and certification requirements can initially appear to be barriers, but she said they ultimately create opportunities for farmers who are willing to meet the requirements.
“I don’t see compliance as a stumbling block. I see it as a learning curve. The more you comply, the more the market opens up,” she said.
Her long-term goal is to move beyond intermediaries and export directly to international markets.
For Raseropo, the challenge facing young agricultural entrepreneurs is not a lack of opportunities, but a lack of structure around those opportunities.
“Agriculture has so many opportunities inside. However, when it comes to structures, it does not have structure,” he said.
Raseropo, who studied microbiology and botany before entering the seedling business, said clearer pathways could help young people identify opportunities within the agricultural value chain and build businesses around them.
He pointed to emerging areas such as biostimulants, where farmers need greater access to knowledge and young entrepreneurs could play a role in closing information gaps.
Young entrepreneurs need structured opportunities
At Nu Harvest Farm, Paulse said the experience of commercial farming had reinforced the importance of getting every part of the production process right.
“Farming is attention to detail,” she said, highlighting everything from seeding and planting to irrigation and chemical application.
Small mistakes can have a significant effect on profitability, particularly in an industry where margins can be extremely tight.
Paulse also encouraged farmers to look for opportunities closer to home rather than focusing only on large markets.
Drawing on lessons from international farm visits, she said smaller producers can create viable businesses by supplying local restaurants and industries and tailoring their products to local demand.
Paulse also called for financial institutions to better understand the realities of farming, particularly the cash-flow pressures associated with expansion.
“If we want to open up new land, we’re going to open it up, but we’re only going to get a return on that land after three or four months. Banks need to understand that. They need to work with us,” she said.
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