INTERVIEWEnsuring an
INTERVIEWEnsuring an all-year supply of high-quality raisinsThe new CEO of Raisins South Africa, Wessel Lemmer, has clear priorities on howto move the industry forward.You studied the Orange River as a student and now youare based in Upington. How does that feel?It is a privilege to have the opportunity to be part of theagricultural economy of raisins in the Lower Orange River.I studied the impact of floods of different magnitudes and theextent of financial assistance needed for producers to survive.I now have the opportunity to be part of a team working toimprove the business environment of the same producers, someof whom were part of that fieldwork 30 years ago. It is special.Wessel Lemmer, Chief Executive OfficerBIOGRAPHYWessel Lemmer cut his teeth as a student ofagriculture on the Lower Orange River. Asan MSc Agric student at the University of theFree State he studied the financial viability offarms subjected to flooding. Since then, hehas held the positions of Senior AgriculturalEconomist: Markets at Grain SA, ChiefAgricultural Economist at Absa and Headof the Centre of Excellence at the Retail andBusiness Bank division, and General Managerof Agbiz Grain.What influenced your decision to study agriculture?It is a fascinating sector that is impacted by nature and there isnever a dull moment. The production of food is not an easy taskor for the faint-hearted. I also grew up on a farm and it runs inthe family.Your insights as an experienced agricultural economist giveyou a good overall view of the South African agriculturaleconomy. What potential threats and opportunities mustthe raisins sector be most aware of?Some of the most significant non-industry specific threats arebeing dealt with by Agbiz and Agri SA, of which Raisins SA is aprominent member.An individual producer has little influence as a price taker. Butas part of Raisins SA and the Dried Vine Producer Organisation,the raisin industry can address the challenges that the individualproducer faces. Together with packers who are also representedon the board of directors at Raisins SA, it is an industry effort toovercome challenges. We need to expand into new markets,increase and upscale our packing facilities to meet the demandof UK and EU importers. We need to take heed of the strategies ofNORTHERN CAPE BUSINESS 2025/2634
our competitors to be better aligned to relevant EUpolicies and to make sure we create awareness of theimmediate threat of the water quality in our rivers.The same people who pollute the water we use toproduce food, depend on it for their food.Very importantly, we need financiers tounderstand the raisin industry with its diversificationand market-differentiation opportunities thatuniquely reduce the risks, not only for the producersand packers, but also for the financier. This year is apractical example of this factor at work.Is protectionism a threat to the raisin sector?Yes, 25% of our exports are destined for NorthAmerica. Raisin imports from both Canada andSouth Africa may face increased tariff protection bythe USA. South Africa imposes no tariffs on US raisinsyet may face a 31% import tariff. Meanwhile, othercountries apply tariffs but compete in the US marketwithout such penalties.Food safety and climate change is a veryimportant matter for the EU and we need to takeheed of the relevant trading requirements thatwe need to adhere to in order to stay ahead of ourcompetitor countries.Are there fewer raisin farmers than there usedto be?Yes, there used to be more raisin farmers in thepast. Their numbers have dwindled over time butnot because of their own choice. Consolidation infarming is the result of factors outside the control ofa single-farmer family to continue from generationto generation. Smaller family units are forced toadapt or not to exist in the long run. Larger farmscan spread fixed costs such as equipment. Individualsmaller producers do not have bulk purchasingpower unless they cooperate. Machinery hasbecome expensive and the utilisation of thesemachines is more viable and cost-effective at scale.Smaller units are not appealing to investors andfinanciers as they do not necessarily have strongfinancial records and assets as collateral. Small farmscannot easily justify the cost of precision agriculture,advanced technology and specialised labour. Andthere is more to tell…The Vine Academy and Model Farm is a training andresearch facility that also supports new producers.How best are the immediate priorities that yououtlined on your appointment to be achieved?Promote demand for an excellent, quality product:The raisin sector must position itself to outperformother producers and packers competing with oursnacking- and ingredient-market products in theexport destinations we target. We must be betterpricewise, on quality, government policies andmarket access.Increase production: We should reach our target of150 000 tons by following the very best productionpractices and promoting the breeding of new plantmaterial with higher yield potential.Encourage confidence in a fair and secure market:The global raisin market must have confidencethat we can supply them with quality raisins all yeararound. Equally, our producers must have confidencein the packers and exporters of their product.Why is the Vine Academy and ModelFarm important?The VAMF has three distinctive objectives. Firstly,to train the next generation of agriculturists andproducers originating from the Lower Orange Riverfor servicing the region with their acquired skills.Secondly, the VAMF has a strong research objectiveto increase yield and production and to makefarm-level recommendations to increase returns.As a model farm it must perform above averagein practice and performance. Thirdly, the VAMF is asought-after service provider and partner to invest inthe lives and enterprises of new black producers, tohelp them to become successful and independentcommercial producers. ■35 NORTHERN CAPE BUSINESS 2025/26
