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Operational Overview

Molatek
Tsb Sugar commenced the production of animal feeds in 1985. The animal feed plant operation, Molatek, is situated adjacent to the Malelane Sugar Factory from which it receives the bulk of its raw materials.

Molatek started with an elementary process whereby molasses and bagasse were mixed to form a basic animal feed. Today an extensive range of advanced concentrates, licks and energy rations are manufactured and marketed for, amongst others, beef and dairy cattle, sheep, goats, horses and ostriches.

Meticulous control in Molatek's laboratory ensures that a product of outstanding quality is produced. These quality products are fed with tremendous success to livestock by farmers throughout South Africa.

Molatek's primary marketing strategy is the comprehensive distribution of its products with the assistance of a network of co-operatives and other dealers. After sales service is in the hands of well trained technical sales staff.

Quality Sugars
Quality Sugars, Tsb Sugar's marketing division, operates the complete marketing function from its head office in Johannesburg. The sugar is packed and stored in Malelane and dispatched to its customers nationally on a 24-hour basis.

The Selati Brand is very strong in wholesale, and the top national retail chains continually promote the Selati Brand as a key product in their "armoury" to attract more customers to their stores.

Quality Sugars Management Team has over 200 years of combined experience with expertise in selling not only sugar but also household detergents, motor vehicle spares, chicken/poultry products, toiletries and dry rations such as rice, pasta, cereals, etc. The Management Team is consequently very experienced.

The team consists of its own Key Account Sales Team, its own dedicated Sales Force and Merchandising Team and because of its location can react immediately to the ever-changing dynamics of the Fast Moving Consumer Goods business.

In addition to the Key Accounts Team, Quality Sugars has a full time Consumer Marketing Team whose primary focus is to increase sugar consumption at consumer level. This team has spent a great deal of time and financial resources on researching the various markets in terms of sugar consumption, usage and attitudes to sugar. Based on this research, exciting marketing campaigns have worked extremely well over the years. A repertoire of value-added products complements the range of white and brown sugars.

Quality Sugars has continued to grow market share consistently over the years. Its integrated supply chain team of sales and marketing, production and distribution personnel continue to prove their excellence in client relationships and marketing.

Golden Frontiers Citrus
In a ground-breaking broad-based empowerment initiative valued at over R80 million, the workers of the citrus division of Tsb Sugar and the surrounding communities of Nkomazi, Mpumalanga, have been afforded the opportunity to become shareholders of a newly structured giant citrus enterprise.

The operating assets and land of this enterprise will reside in a newly incorporated entity, Golden Frontiers Citrus Pty Ltd, where Tsb Sugar (a wholly owned subsidiary of REMGRO) will hold 51% and the Industrial Development Corporation (IDC), the funder of the empowerment stake, 49%, to be warehoused on behalf of the BEE partners.

According to Tsb Sugar Managing Director Hennie Snyman, the company recognizes its critical role in empowerment, employment equity and land restitution and has thus decided to embark on a long-term strategy to empower the communities and employees in the regions where it has operations.

Tsb Sugar and the IDC are planning to expand the Golden Frontiers Citrus model in the Makhathini area in northern KwaZulu-Natal where the company is expected to develop new citrus orchards in the near future.

The Golden Frontiers Citrus initiative holds good prospects and has the most ideal ingredients for development impact in the industry and the economy. The initiative positions the company as a significant empowered exporter of citrus products and thus a foreign currency earner for South Africa. It creates opportunity for rural development through re-investing in the community the earnings of the empowerment partners through a community trust. It further empowers workers through meaningful ownership of a profitable entity and skills transfer.

In the meantime Tsb Sugar will provide management to the project under a management contract and will continue with all the ancillary services to the new company including financial, human resources management, technical, production and marketing. The company has assembled a well-qualified and experienced management team to manage the citrus operations.

Golden Frontiers Citrus will be one of the largest producers of grapefruit and oranges in South Africa and it exports its citrus to Japan, the Far East, Western and Eastern Europe, the Middle East and Canada. The company's success is largely the result of its competitive edge in marketing, supply chain, and superior product quality. Its annual exports exceed 2.4 million cartons of grapefruit from its three farms totaling 1 450 hectares. The company is EUROGAP certified.

Komati Fruits
Komati Fruits (Pty) Ltd was established six years ago as a joint venture.

Komati Fruits owns a chemical-free packhouse at Hectorspruit which is financed by a fruit importer in Japan and operated by Tsb Sugar.

Komati Fruits’ vision is to earn better returns by:

  • Establishing direct relationships with customers in the export markets.
  • Earning higher sales values through these relationships.
  • Addressing the export cost chain and achieving savings.
  • Being able to control and manage foreign exchange opportunities and risks.

The vision has been realised over the last three years with Komati Fruits earning excellent returns.

The company has succeeded in establishing preferential supply agreements with many importers and receivers and also has equity (20 %) in one of the leading fruit distribution companies in Japan (Regal Farms (Pty) Ltd).

In the rare instances where Komati Fruits cannot cost-effectively develop the required direct relationships, it will continue using South African agents to service important customers. This is currently achieved in the UK through Cape Citrus and in the Middle and Far East through Outspan and Intertrading.

Booker Tate
In 1988, Booker Plc and Tate & Lyle Plc, two major international food production and trading companies with a combined history of over 400 years, merged their agro-industrial and project management businesses to create Booker Tate Limited. Booker Tate's mainstream business is the provision of operational and corporate management, and technical support for both new and established agricultural and agro-industrial businesses around the world.

In October 2004, Booker Tate was acquired by Tsb Sugar International, the expansion arm of Tsb Sugar Holdings, one of South Africa's leading sugar companies. Tsb Sugar owns and operates two sugar factories in South Africa producing nearly half a million tonnes of sugar per year, with significant interest in the citrus and animal feeds industries. This recent development with Tsb Sugar further strengthened the Booker Tate brand and the professional services offered.

Booker Tate has extensive experience in planning, implementing and managing agro-industrial enterprises and projects in diverse and challenging environments. Over the past 50 years it has carried out over 1 500 assignments in more than 120 countries ranging from policy formulation at national level to provision of services to small farmers. Although specialising in providing technical and managerial expertise to the sugar industry, the company has also gained experience in the cocoa, coffee and poultry industries.
With the primary objective of creating profitable and efficiently managed businesses, Booker Tate provides a comprehensive range of services from project planning, through feasibility studies, financing and project development and management, to operational management and ongoing specialist support. The co-ordination of resources, the management of logistics from point of production to market outlet and the integration of independent farmers into commercial agribusiness are particular strengths we can draw upon.

Working in partnership with all stakeholders such as governments, lending agencies, the private sector or outgrower farming communities, Booker Tate provides rigorous and proven management systems with particular attention to high standards of Corporate Governance, and is uniquely placed to add value at all stages of the business process. Very few other companies in the world can match Booker Tate's experience in developing and operating successful commercial agricultural and natural resource-based industrial businesses.

Booker Tate currently provides services to clients in the Caribbean, Middle East, Africa and South East Asia. The experiences gained in these diverse business environments enable Booker Tate to bring unique experience to its client companies.

Mananga Sugar Packers
Tsb Sugar recently purchased a 25.58% stake in Royal Swaziland Corporation (RSSC), following which they formed an equal partnership marketing company, Mananga Sugar Packers, based in Swaziland to pack, market, sell and distribute sugar into the SACU region under the brand name First Sugar.

The Swaziland Sugar Association owns all sugar produced in Swaziland and allocates sugar to different Swazi distributors within the country. Mananga Sugar Packers has now been allocated 30 000 tons of sugar to package and market.

The plant is situated at RSSC's Mhlume Factory and will be able to package one third of Malelane Mill's annual packed tonnage due to new state of the art equipment and machinery.

Mananga Sugar Packers has other packaging contracts in addition to First Sugar. The plant will produce a full range of products for the pre-pack, value-add and industrial markets in the near future.

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