Page 53 - IDC

CITY PRESS, 15 OCTOBER, 2017 7
business

CHIMWEMWE MWANZA
The 5 value
business@citypress.co.za
atering to a tiny segment of the food
market may not, at first glance, appear to chains funded
have the makings of a successful business
plan. However, Fresh Earth Bake House
has proved that a business can create
Cvalue and profitability by selling products by the IDC
that appeal to a discerning market.
Owner Matthew Ballenden has found a niche of
consumers who care about the quality of the product FIELD PROCESSING
they buy and have the spending power to disregard price.
As the economy continues to bite chunks out of South
Africans’ spending power, the local food retail market is
experiencing stagnant growth. Going against the tide,
Ballenden established Fresh Earth Bake House in A
2011 in Booysens, southern Johannesburg.
Six years later, his business is now considered a project in
pioneer of gluten- and wheat-free products in South partnership
Africa. In fact, the bakery currently rates as the
only independent gluten-free factory in South Africa with the
to be compliant with global food safety standards.
considering how far we have come,” says Ballenden. IDC
“Achieving ISO 22000 Food Safety System
Certification compliant status was not easy,
“It is the strength of this grading and the quality of
our products that have placed us on a remarkable
growth curve.”
None of the bakery’s products contain fillers, trans
fats, gluten, preservatives, or artificial colourants or
sweeteners. This is the crux of the unique selling point
he presents to his target market, which he describes as
being the middle- to high-end health-conscious consumer.
“Strategy is everything for a start-up because if you have
a solid plan, you can knock down any possible barriers to PROFIT SHARE Staff at the bakery have a 30% stake in the business PHOTOS: EUGENE GODDARD HORTICULTURE-BASED
entry, be it funding or a hostile market that is less
“Many consumers, especially in the middle- to high- Fresh Earth
receptive to your products,” says Ballenden. PRODUCTS
He adds that he knew from the outset that the concept
of gluten- or wheat-free products would be new to South
African consumers, but he hedged his bets against the
strength of the country’s burgeoning middle class, who
had the spending power to buy luxury goods and services.
end market, and across the racial spectrum, prefer to
items to its product range, which includes breads, rusks, RISING
use health products which – in the case of foods such as
bread and biscuits – are gluten- or wheat-free.”
In addition, Ballenden says some consumers’ digestive
systems are intolerant to wheat or gluten products,
making his offerings their preferred choice.
With new entrants, backed by cash-flush
multinationals, penetrating the local market, the
landscape is fast becoming competitive. This has been a
factor in prompting Ballenden to become more
innovative and expand on his product offering.
The company has since added a host of gluten-free
muffins, granolas, pizza bases, wraps and cookies.
“We had little choice but to scale up our Finding a niche of consumers who place
production capacity, and this required us to buy
new machinery. It is in times like this where our MEAT AND DAIRY
partnership with the Industrial Development quality above price has helped this
Corporation (IDC) has helped to put us on a firm PRODUCTS
growth path.” baker to whip up profits and growth
While he describes the initial process of
obtaining IDC support as painstaking, Ballenden is
quick to add that the funding and business support
supplied by the IDC has been critical to the A notable feature of the bakery’s business model failed attempts to break into markets in the rest of Africa,
establishment – and growth – of his business. is that it ticks all the boxes when it comes to import the company has set its sights on export opportunities in
“As entrepreneurs operating in different sectors of the replacement – because consumers can easily source the lucrative US, European and Asian markets.
economy, I am sure we all have different experiences. MEASURING locally made products, which otherwise would have to Lamenting the poor intra-African trade which currently
“The team which the IDC had assigned to prove the SUCCESS have been imported to meet demand. exists, he says it is one of the factors hindering the
viability of our concept was thorough and meticulous. Matthew The company currently employs 49 staff, who, through growth of small, medium and micro enterprises (SMMEs)
They kept asking for documents, some of which I didn’t Ballenden of a BEE transaction, have bought a 30% equity in the across the continent. “For SMMEs to grow and become
have. But six months later, the IDC decided to take a risk Fresh Earth business. Ballenden is looking to grow his staff sustainable, they require access to new markets, yet that
with my concept.” Bake House complement in the next two years. After repeated but isn’t happening as much and as fast as it should be.”

THE LAND OF MILK AND OPPORTUNITY

NOSIPIWO MANONA MAKING
business@citypress.co.za MOOLA
The herd at FISH AND SEAFOOD
yeleti Jeanet Rikhotso, the managing director of Middledrift
Middledrift Dairy, sees great potential in the Dairy is 650 PRODUCTS
Nfuture of the business. cows strong,
Despite the challenges of limited space and severe with 300
drought that threaten the sustainable growth of the calves that
farm, 30-year-old Rikhotso does not intend giving up represent the
on her dream of seeing it succeed. business’
“I am looking forward to us being named one of the growth
top 10 farmers in South Africa within the next two potential
years,” says Rikhotso. PHOTOS: LEON
“Our biggest challenge lies in growing pastures for SADIKI
cow feed, given that the land has been dry for the past
18 months,” she said.
The Eastern Cape, like all the other regions of South
Africa, has been experiencing severe drought for the
past two years.
Farmers have been badly affected, with some of
their farms having been declared disaster areas.
Rikhotso says even though the land has been
dry in Middledrift, she remains hopeful for the
future.
“We have to make do with what is available
to us and see how we can survive until we
have turned the corner,” she says.
Because of the space challenges, Rikhotso FORESTRY
says it also becomes difficult to grow the benefit of our cows, not for the benefit of others. they grew their own, like they normally do.
number of cows they have on the farm. “There are a host of different challenges in “As soon as we can go back to growing our own
The communal farm relies on land allocation running this business, but we will not be preferred quality of feed, we will make huge savings on
to grow its herds. deterred,” she says. our expenditure – because growing our own cuts on
“We continuously negotiate with the owners of the Out of her team of 17 workers, there are three costs.”
available spaces to provide us with their land so we can FARMING FOR women working at Middledrift Dairy. Every reiterates that, despite the challenges, they are
grow our herds, but they are very reluctant to give in,” THE FUTURE Rikhotso says there used to be more women working growing from strength to strength.
says Rikhotso. Nyeleti on the farm, but since City Press last visited the area in “We now have seven farms – six in the Eastern Cape
However, she adds, they will not give up negotiating Jeanet 2015, they have left. and one in KwaZulu-Natal.
because their farm can only accommodate 650 cows Rikhotso, the “Somehow, it seems they lose interest in this kind of “We also pride ourselves on the benefits realised by
and their 300 calves. managing work. Maybe they do not see it working for them. But the local communities and for black empowerment.
“With more land, by the time the calves are old director of work continues and we look forward to having more Amadlelo has 350 employees. We have 25 black junior
enough, the business can grow further in terms of Middledrift women playing a role in the dairy because there are and senior managers,” says Every.
production and profits,” she says. Dairy, is few women in farming in South Africa.” “Every year, we take a minimum of 20 students for
Many farmers, whose farms have greener pastures, determined to Jeffrey Every, the chief executive officer at Amadlelo training and grooming into professional farmers.
also become targets of neighbouring farmers, who force see her farm Agri, a cooperative of black dairy farmers, shares “This is a guarantee that there is a bright future in
their own herds to feed illegally. succeed Rikhotso’s views, saying the biggest challenges they our business and the farming business in general.”
Rikhotso says they have also become targets of have had are the shortage of rain and having to opt for He says business is still good for Amadlelo as supplies
neighbouring farmers. buying feed instead of growing it themselves. are swelling and have grown to the point where local
“When their own pastures have grown dry, even “But despite the drought, we are pushing through the businesses are buying their milk directly from the
though we have fencing around our farm, they cut the barriers. We buy cow feed from suppliers and we get Amadlelo dairy collective and selling it at a profit.
fence and force their herds into our feeding space. by with what we have at our disposal,” he says. “Our quality is still the best and our clients are
“This is another challenge because we put so much Every adds that acquiring feed from outside sources happy. The challenges have not dented our quality
effort into ensuring the quality of our feed for the means they spend more on the feed than they would if assurance.”