Barley Emerging Farmers Economic Development Programme

Agriculture remains an important economic activity in South Africa. Historically, the minority white population and the state have owned the most productive land. Although emerging black farmers have some access to agricultural land, they still lack technical and business farming skills; they are unable to secure financing and lack access to reliable markets for their produce.

A study conducted by ICCO and BOP Inc in 2013 (Market Investigation of Black Emerging Farmers in South Africa Horticulture), identified production challenges (lack of irrigation capacity, knowledge and equipment, storage & transport and access to inputs) and market challenges (product quality and knowledge, standards, pricing, market knowledge and business skills). These challenges are fuelling a significant reduction in young people living in rural areas and contributing to a growing sense of dissatisfaction with the slow rate of economic progress among the majority black population.

The aim of the project is developing a sustainable local quality barley supply for Heineken N.V. by empowering black emerging farmers through improved capacity and market access, which promote economic and livelihood development.

The PPP project will integrate previously excluded emerging black farmers into a sustainable supply chain with a guaranteed market. For Heineken and Soufflet, the project provides enhanced business opportunities through replacement of imports with locally grown barley and strengthen BBBEE compliance. The project period provides a setting-up pilot period, which if successful provides a model for scaling up and expansion by other investors and other partnerships.

The programme is being carried out by Icco, together with partners Heineken Brouwerijen B.V., Solidaridad Network SA Trust, Malteries Soufflet.