AFGRI Agri Services, Kagiso Trust (through the Tyala Impact Fund) and Potatoes South Africa (“PSA”) today signed a ground-breaking agreement aimed at addressing the major challenges faced by South Africa’s new era farmers – access to technical support, access to finance and access to markets. The agreement will give rise to a sustainable solution that will involve the co-operation of three reputable players in their field of expertise to provide a holistic approach to these challenges.
Whilst initially focused on potato farming in South Africa, with the aim of establishing commercial new era potato farmers, the solution will not be limited to potatoes in the longer term, with the intention being to establish commercial new era farmers in other export crops, including avocados, grapes and apples.
“South Africa’s land reform process is likely to not yield the desired success if support for new era farmers does not improve considerably. Without structured support and appropriate funding, new era farmers who venture into commercial farming are bound to fail, given that commercial farming is a capital-intensive business requiring specific knowledge and support. The battle to secure support has already forced many struggling new era farmers to rent out their land to established farmers,” says Mankodi Moitse, the CEO of Kagiso Trust, one of South Africa’s leading development agencies. “If this is left unchanged, South Africa is likely to see more new era farmers being forced out of the commercial agricultural space, which will render the land reform process futile.”
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