Amadlelo Agri About
Amadlelo Agri About Amadlelo Agri, a short preview Amadlelo Agri is a diverse majority black-owned agribusiness established in 2004 with the main objective of transforming dormant and under-utilised land into profitable and sustainable agribusinesses. About us For over a decade, the collaborative efforts of Amadlelo Agri have been at the forefront of transforming the agriculture industry and unlocking the land potential in communities in the Eastern Cape and KwaZulu-Natal. The company’s four commercial farms are responsible for milk production from 4 500 milk cows, 1 000 hectares of irrigation land and about 176 staff members. Since 2016, the five farms have earned R1.4-billion in revenue, created 150 jobs and paid out R101-million in wages. The projects have 3 000 direct beneficiaries and 10 000 indirect beneficiaries. It has also pioneered other milestones which are indicative of the success that Amadlelo Agri has enjoyed in South Africa’s agricultural sector: • Amadlelo Agri’s tried-and-tested model has been replicated and is being used in five dairy enterprises which are located in rural areas and on communal land. • A testament to its healthy relationship-building and trust ethos, Amadlelo Agri continues to leverage successful rural community partnerships, inclusive of a dynamic network of successful commercial farmers. Amadlelo is a 72% black-owned agribusiness with a broad representation. The journey of Amadlelo is reflected in this timeline: 2004 Amadlelo Agri is established 2006 First dairy in partnership with University of Fort Hare Ncera macadamia nursery established Workers and beneficiaries at Ncera nursery 2008 Middledrift Dairy established in partnership with National Empowerment Fund (NEF) Government (through DRDAR/ECRDA) issues a call for proposals for Shiloh and Keiskammahoek 2009 First macadamia hectares are planted 2010 Shiloh and Keiskammahoek dairies receive infrastructure funding from government 2011 Ncora Dairy is established in partnership with provincial government 2012 Fort Hare Piggery business is established in partnership with university and No2 Piggeries Simpiwe Somdyala 2017 Tulsacap buys equity in Amadlelo, making it a 72% majority-owned company 2019 A five-year strategy focussing on improving efficiencies and balance sheets and diversifying the business is adopted 2021 Ongoing transformation and growth journey
The dairy industry value chains in South Africa face challenges in terms of transformation, with a few large white-owned commercial dairies concentrated in the Western Cape, Eastern Cape and KwaZulu-Natal provinces dominating the sector. Ownership of productive assets (livestock, mechanisation, etc) as well as processing continue to be untransformed. To contribute towards transformation a group of commercial dairies in KwaZulu-Natal and Eastern Cape, black professionals and social investors came together over the years to establish Amadlelo Agri (Pty) Ltd (Amadlelo is an Nguni word referring to grazing lands or pastures). Amadlelo aims to unlock the potential of dormant and underutilised land and agricultural assets to create commercially viable agribusinesses through partnerships with government, communities and other private-sector entities. Amadlelo is a broad-based 72% majority black owned and operated agribusiness operating five different community dairy farms and with interests/investments in macadamia, piggery and dairy processing plant Coega Food Group through the Coega Project Trust (CPT). VISION Development of an inclusive, prosperous future through sustainable and profitable agribusiness. OUR STRATEGY Nurture black talent, strengthen Amadlelo’s balance sheet and ensure consistent positive cash-generating ability of operations by building on existing dairy capabilities, income diversification, strong community relations and strategic partnerships. STRATEGY 2024-2030 STRATEGIC PRIORITIES PRIORITY ONE Defend and grow the dairy business. • Improve farm performance • Buy leased cows • Invest in our own farm with secure tenure • Facilitate infrastructure improvements • Invest in renewable energy • Scale up and expand farm operations PRIORITY TWO Develop staff and retain talent. • Compelling employee value proposition • Effective use of the Talent Grid geared for personal development, performance improvement and succession planning PRIORITY THREE • Invest in value-adding, processing • Diversify investments and income streams Beneficiaries and reach • 2 200ha irrigated milking platform • 1 600 direct beneficiaries represented through various Secondary Cooperatives and Trusts • Partnership with University of Fort Hare with a focus on graduate placement, research, innovation and technology • 10 000 indirect beneficiaries represented through Secondary Cooperatives or Community Trusts The combined dairies and Amadlelo group employ about 200 people on a permanent basis and produce about 20-million litres of milk per annum with the potential to increase this to 32-million by 2028. BENEFICIARIES NCORA DAIRY TRUST Beneficiaries: 1 268 people Milking platform: 687ha SEVEN STARS DAIRY TRUST Beneficiaries: 35 households Milking platform: 750ha MIDDLEDRIFT DAIRY Beneficiaries: 65 households Milking platform: 164ha SHILOH DAIRY TRUST Beneficiaries: 300 households Milking platform: 400ha FORT HARE DAIRY TRUST Beneficiary: University of Fort Hare Milking platform: 210ha The map below illustrates the location of the dairy farms in the province. PRIORITY FOUR Improved governance. • Strengthen governance and community participation through committees at farm level • Ongoing review of Sharemilk Agreements • Improved stakeholder relations PRIORITY FIVE Thriving and sustainable communities. Execute shared-value approach, focus on improving local and rural black small-scale farmer procurement
