Scores of farmers recently gathered at the Agricultural Research Council (ARC) in Rooiwal, Pretoria, to learn about transforming their farm waste into biogas. Officials from the ARC outlined several biogas technology options available in South Africa, each suited to different scales and applications.
By Maile Matsimela, Digital Editor at African Farming
But as presentations focused on technical specifications and research outcomes, agricultural economist Sandile Mahlangu, head of transformation at the South African Cultivar and Technology Agency (SACTA), shifted the conversation from technology to strategy.
“This is your business. Remember they [the ARC] said it’s a project for them. They are probably there for six months, one year or two years, and they’re going to leave. Does it mean when they leave they are also dropping the project, or are they going to continue?”
Also read: Business insights from livestock and crop farmer Nkosana Mtambo
Mahlangu, armed with a master’s degree in Agricultural Economics and an MBA, was addressing a critical challenge facing South African farmers: How to transform from passive participants in agricultural research projects – whether biogas, new cultivars or other innovations – into strategic business owners who can sustain and profit from these technologies long after the researchers have moved on.
Although the day’s focus was on biogas technology, Mahlangu used the opportunity to deliver a masterclass in agricultural business strategy, farmer ownership and the need to move beyond project-dependent thinking that affects farming operations across all sectors.
Beyond Commercialisation: Making Real Money
“I actually don’t like the word ‘commercialised’ because for the past 15 years we’ve been commercialising,” Mahlangu told the audience. “But how do we actually make money out of that? And as a farmer, you should be driving that process.”
His frustration with industry buzzwords reflects a deeper concern about the gap between agricultural research and profitable farming. When researchers introduce technologies like bio-slurry that can cut fertiliser costs and improve soil health, Mahlangu argues that farmers must think beyond the immediate benefits to long-term reinvestment strategies.
“When researchers come to your farm and select you based on their criteria, that’s good money for you, and you will learn something from them,” he explained. “But you must sit them down and tell them what you want. Because this is your business.”
Learning to Say No Strategically
One of Mahlangu’s most provocative recommendations is that farmers must learn to decline opportunities that don’t align with their business strategy. “In business you must also learn to say no if [something] does not align with your strategy. I’m not saying reject everything, because free assistance is money in your pocket, but remember, if it does not align with your strategy, they are wasting your time and your money.”
Also read: Africa’s largest agribusiness & technology platform comes to South Africa in 2026!
“You’re supposed to ask all these questions when you start, not after three or four years of being involved in the project,” he emphasised, citing transport costs as a key consideration. “What if you find that the product you have needs to be supplied in the Free State, and the transport costs eat into your profit margins? Then you have been involved in a project that you don’t need.”
Political Realities and Self-reliance
Mahlangu didn’t shy away from addressing South Africa’s political volatility and its impact on agricultural policy. “If you look [at] the South African landscape, whether we want to agree or not, we are politically aligned with political terms. If you always allow us to tell you what you must do, and the next minister comes and says ‘this biogas thing is not mine’, everything is going to shut down.
“It should be you who informs us where you want to go, and that will definitely help us with progress.”
Also read: What farmers should know | When did your bakkie become your business partner?
“Your business must have its own DNA,” Mahlangu stressed, emphasising the importance of clear business identity. He challenged farmers to define what success means to them personally: “[If], as a farmer, you say commercialisation for you means having two cars, don’t aim for three, because the responsibilities of three are no longer [the same as] for two.”
Perhaps most critically, he warned about the growth trap that catches many agricultural businesses. “Most cooperatives and black companies fail when they’re supposed to be successful. They fail at their peak because they’re not ready for growth. Growth should never surprise you. Growth must be something you would have planned.”
Five Critical Questions for Agricultural Business Owners
Mahlangu challenged farmers to honestly assess their operations using these key questions:
- Do I have a unique advantage over my competitors – something that enables successful market expansion?
- Is it possible for my business to scale up? Moving from a small scale requires new skills and resources.
- Who owns the business? Dependency on external support creates vulnerability.
- Are we building for quick wins or legacy? Different approaches require different strategies.
- What’s your business identity? Alignment between values and operations is crucial.
Taking Action in the Digital Age
The transformation leader emphasised that modern farmers must embrace technology while taking the initiative. “People now are moving with artificial intelligence (AI). Farmers are using smartphones to take photos of diseases and immediately get diagnoses. How do you learn to adapt and adopt some of those technologies?”
Also read: ECDC identifies bankable agribusiness prospects at Chris Hani District Agricultural Show
But technology adoption must be paired with proactive behaviour. “Why are you, a farmer, always complaining that an extension officer is not coming to you? Why are you not calling the extension officer? Why are you not networking?
“You should ask yourself these questions and respond to them honestly. Sometimes, even if it’s a one-man show because it’s still a small business, you must have a meeting with yourself. A business is a legal entity, a legal person.
“You are the driver of your own agricultural destiny,” Mahlangu concluded, leaving farmers with perhaps the most important insight of all.
Also read:
Lessons from the ground: Building a livestock business on communal land
A farmer’s financial playbook: Wine farm owner, Berene Sauls
Second-generation farmer reveals 5 financial rules that saved his 950-hectare operation
