No man is an island, and any farmer trying to make a success of his business entirely on his own, is bound to fail. Nico Groenewald from Standard Bank gives some insight into the importance of partnerships during the fourth episode African Farming’s new season, aired on Honey, channel 173, Tuesdays at 17:00.
For today’s farmer partnerships or collaboration with other farmers are an important tool if he wants to succeed.
“The first that comes to most farmers’ minds when we talk about collaboration is collaborative farming, often in the form of a cooperative where everybody pools their resources for mutual benefit.
“A study done by Kwena Komape (from the department of agriculture, land reform and rural development) found that by 2012 there were already close to 17 000 co-ops registered in South Africa, mostly agriculture co-ops. This is indeed a form of collaboration and does have many benefits such as access to a broader skill set, equipment marketing opportunities and several more. The downside unfortunately includes challenges such as disputes around profits (or losses), distorted contributions and potential personal liability issues.”
However, that is not the only form of collaboration or partnership in farming.
“Collaboration does not have to be confined to a formal structure such as a co-op between farmers. Given the complexity of the agricultural value chains, volatile markets, and the fast pace of change, it is important that farmers align themselves with people who are strategically important to their success,” says Nico.
“Joining organised agriculture, taking hands with other players in the value chain, connecting with research bodies, selecting a mentor, and many more will assist in putting your farming operation on track.”
For more information, visit https://www.standardbank.co.za/southafrica/business/products-and-services/business-solutions/industry/agribusiness
