Success seen from trial growing projectMay 26, 2006

By Laura Tyrer - Features Writer ENGINEERING NEWS 26 May 2006

Tsb Sugar is committed to sustainable land reform

Following a successful year in operation, Tsb Sugar’s medium-scale grower project is expecting its first returns from Siyathuthuka farm, near Kaapmuiden, in Mpumalanga. The seven medium-scale growers, two women and five men, were established on individual plots of between 35 ha and 40 ha last year in April and are showing promising results with their high-yielding crops. Together, the growers are yielding some 135 t of sugar cane per hectare compared with the 91 t/ha average for the province as a whole. Each of the seven farmers was selected from over 1 300 candidates, based on track records as small-scale growers. The transition from subsistence farming on an average of seven hectares of land each to medium-scale plots has not been a major concern for the growers. "We feel strong and confident. We feel good," says one farmer Eric Sibiya. Tsb Sugar, manufacturer of Selati sugar products, purchased the farm in 2003 as the company's first, of many, contributions to sustainable land reform. The company considers land reform to be the crucial step in creating a stable business environment for the country's agricultural sector. Corporate communications GM Vusi Khoza says that the farm was bought and developed with the specific intention of establishing medium-scale

HENNIE SNYMAN
Tsb Sugar plans to increase the number of medium-scale growers supplying sugar cane to its mills growers on it. Tsb Sugar purchased the 261-ha farm, previously known as 'Kaapmuiden Citrus', and fully redeveloped it over a period of two years at a cost of R15,6-million for the purpose of sugar cane farming. Following a selection process, Siyathuthuka Sugar Estate was registered as a private company owned by the seven growers. The estate operates as a share block scheme where each grower holds shares in the company proportionate to his or her portion of land, giving the grower the specific use of his or her portion. While the growers manage their individual plots on their own accounts, common assets are managed by the body corporate headed by Sibiya. At present, Tsb Sugar holds the casting vote in Siyathuthuka and will continue to do so until the loans it has awarded growers are paid back. In addition to grants from the Department of Agriculture, the growers have been assisted financially with separate financing agreements from Tsb Sugar and Absa bank.

The loans have a twelve-year payback scheme. Tsb Sugar MD Hennie Snyman says that the aim of the project is to increase the number of black growers supplying cane to the company. The Siyathuthuka project is the first of several similar projects, which together plan to
establish 50 medium-scale growers to supply Tsb Sugar. The company is determined that the project succeeds and has gone to great lengths to ensure this. The seven growers underwent two weeks of preparative training with the farm manager prior to takeover of the farm. This included practical drip-irrigation training and an irrigation scheduling and maintenance course. "We didn't know how to use the drip-irrigation system; now we use it here," says Sibiya. The company provides ongoing support to the project offering agronomic advice, subsidised irrigation maintenance, production planning as well as bookkeeping and financial mentoring. Tsb Sugar assists the growers with a bookkeeping service covering long-term budget, annual budget, annual cash-flow budget, monthly income and expense statements, VAT returns and annual tax returns. Besides financial mentoring, Tsb Sugar also offers mentoring in terms of company management. This includes advice on legal requirements and mentoring all aspects of running a company. Although Tsb Sugar has a hand in the farm, offering advice and mentorship, the decision making is ultimately in the hands of the growers, whose livelihoods depend on the success of the project.