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Good prospects at Goedemoed
"It is an ideal combination of sharing the natural resources with your fellow humans and good business sense which benefits everyone."
The building of a catchment dam on the grape farm Goedemoed near Vredendal ensures more than sufficient water for new vineyard expansion there - and entails fellow ownership for 56 farm workers who can now look forward to a constant "stream" of dividend income.
This significant empowerment project represents the fruits of co-operation between the Departments of Land Affairs and Waterworks and Forestry, Absa, Goedemoed Boerdery, the Olifants River Workers Trust and the Land Reform Credit Facility.
Goedemoed is a prominent grape farm in the Olifants River region, between Vredendal and Lutzville, and for generations the owner, Abrie Botha, and his family have been committed to ensuring a decent existence for their worker community.
By means of the Olifants River Workers Trust, the 56 workers in question, known as the Melkboomsdrift Community, will become 30% shareholders in the 50 ha grape farm on a previously uncultivated section of the Goedemoed farm. This will bring the total area on the farm that is planted to vines to 140 ha.
This development follows on the building of the Melkboomsdrift dam of 550 000 cubic litres, which makes it possible to irrigate the new section of the farm, as well as the acquisition of the right to pump additional water from the Olifants River, which is nearby.
In addition to a dividend income, the workers will also draw salaries from the new 50 ha grape farming enterprise. The participants in the project will be able to negotiate a permanent job or a term contract and will be able to choose between their own home, which will be registered in the name of the project participant, or a cash payment. The new farming enterprise also creates work for 40 - 140 seasonal workers, depending on the time of the year.
According to Christo Viljoen of Absa Business Banking Services Western Cape, the viability of the project has been thoroughly tested in the light of cash flow which confirms the profit potential.
The Department of Land Affairs and Goedemoed Boerdery shared the financial expenses incurred with the building of the Melkboomsdrift dam to the amount of R1,42 million. To supply the dam with water, the Department of Waterworks and Forestry awarded the right for extra water to be pumped out of the Olifants River to the Olifants River Workers Trust. Vehicles such as tractors, trucks, bakkies and implements for the 50 ha grape farm are supplied free of charge by Goedemoed Boerdery.
The wine grapes will be sold to Vredendal Cellar and the table grapes will go to Woolworths, who has been Goedemoed's biggest client for the past 16 years.
Some of the wine grapes were harvested for the first time this year, but the biggest part will come into bearing in 2003. Another 20 ha will be planted to wine and table grapes. Since this part will only come into full production in 2006, which means that the first dividends will only be payable at that time, the Land Reform Credit Facility was approached to obtain cheaper working capital so as to generate profit more quickly. The Facility made available a loan of R2,2 million, in conjunction with Absa, with payment deferred for five years. Absa will carry the risk. (The Facility was founded in 1999 by the Department of Land Affairs with funding from the EU and offers loans with deferred payments to banks or investors.)
According to Mr Viljoen of Absa, the R2,2 million that has been made available for the project is the bank's contribution to the empowerment of formerly disadvantaged communities to be able to participate financially in the flourishing farming activities of the Western Cape.
Mr Abrie Botha of Goedemoed said this empowerment project is an "ideal combination of sharing the natural resources with your fellow humans and good business sense which benefits everyone. The disadvantaged community is being empowered financially, which cultivates good spirit and loyal dedication."
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Right: The Melkboomsdrift dam of 550 000 cubic litres that will supply water to the new grape farm of Goedemoed Boerdery in Vredendal.
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