Pockets of citrus efficiency

First, he produces maize, soya and white beans on his 9500ha farm in Delmas. Through a deal with Tiger Brands and 21 farmers contracted to him, he supplies about 60% of the beans used in Koo canned food. The beans are cleaned, sorted and graded at a special plant.

The second leg involves the handling, storage and marketing of grain for other farmers, as well as financing them.

Including his own production he stored 90000t of maize, soya and beans during the past season. It involves buying, selling and hedging of prices on the SA Futures Exchange, as well as purchasing seed and fertiliser at lower prices in bulk and supplying farmers - as cooperatives did previously.

A 1300ha citrus farm in Marble Hall is the third leg of Schoeman Boerdery. Here an average of 68000t of navel and Valencia oranges, and lemons, are produced every year."About 70% of that is of a high enough quality to be exported and they go mainly to the Middle East, the Far East and Russia. Some goes into Europe," says Schoeman.

The rest of the harvest is sold to SA supermarkets. Schoeman is the sole citrus provider to Shoprite-Checkers.

A fertiliser manufacturing plant - the fourth leg of the business - is also situated in Marble Hall, supplying farmers in Limpopo and Mpumalanga.

Schoeman says deregulation has weeded out inefficient farmers in SA.

"There are big challenges for farmers in SA and in Africa. It is high-risk and there are no guarantees, with very little support from government. It means that those who survive are tough."

He believes government is starting to understand the importance of agriculture and food security.

"They realise it is important to stabilise the rural areas and create jobs here, now and in the future."

His biggest concern has been land reform, which he says was "too fragmented. The process has not been successful so far in transferring land to productive black farmers."

Schoeman favours a "national indaba" on land reform, involving all major role players such as the agriculture and food industries and government.

"The starting point must be the finalisation of the land audit. Let's get our facts rights or we will start wrongly.

"To whom does the land belong? It is not true that 52% of the land belongs to white farmers. This issue must be finalised, then we have the indaba."

He believes farmers with operations of all sizes, from subsistence to large commercial, have a place.

"A US farmer told my grandad 70 years ago: get bigger, get better, or get out. I would add to that: or produce niche products.

"In Delmas 650ha is the smallest economic unit for a maize farmer. It doesn't make sense to farm 50ha, but you have to start somewhere."

He says small farmers starting out need alternative incomes, and some, for example, have taxi businesses or supply building sand.

"I'm not against it, but the success rate is very low. Government extension services for farmers do not exist anymore and I recommend areturn to that."

Schoeman says he supports a few black farmers with technology transfers and mentoring because "we need successful, black, role-model farmers, but it will take time.

"Farming is a long-term business."

Source: Financial Mail