NAMBoard spends E16 million annually in returns to farmers

THE National Agricultural Marketing Board (NAMBoard) spends an excess of E16 million per year buying from local farmers through its produce purchasing initiatives.

This vast milestone was revealed during a tour of the NAMBoard Encabeni Fresh Produce Facilities recently, which saw the participation of key stakeholders, including NAMBoard’s Chief Executive Officer, Bhekizwe Maziya, and Shoprite Eswatini General Manager, Pamela Nkomonde.

NAMBoard Chief Operations Officer Sydney Dladla expressed that the company spends the said amount to buy produce from farmers which they then sell in their various markets. Dladla expressed such after the stakeholders toured the Packhouse in the Encabeni Fresh Produce compound. Shoprite was touring the facility to gather insights on their operations as the retail company is one of NAMBoard’s major buyers, contributing a staggering 30 per cent market.

NAMBoard is an entity under the Ministry of Agriculture which is enabled by Act No. 13 of 1985 and mandated with various roles which include assisting farmers with the production, processing, storage, transportation, and sale of scheduled products, facilitating access to local and international markets for locally produced scheduled products, registering wholesale distributors, importers, and exporters of scheduled products and advising Government on the availability and demand of scheduled products.

After the tour, CEO Bhekizwe Maziya lauded Shoprite for its impeccable partnership and commitment to sourcing produce from local farmers through NAMBoard., Maziya highlighted Shoprite’s pivotal role as one of NAMBoard’s largest customers and he disclosed that approximately 30 per cent of NAMBoard’s produce is sold to Shoprite.

Impressive

The tour also shed light on the impressive growth trajectory witnessed in NAMBoard’s produce sales to Shoprite. In 2024 alone, Shoprite’s Freshmark Company purchased a staggering 492 tonnes of produce from NAMBoard, representing a substantial increase from the 430 tonnes procured in 2023. This marked growth reflects a commendable 14% year-on-year increase in volume, indicating the robust demand for locally sourced agricultural products.

Notably, the value of the produce sold in 2024 amounted to an impressive E4.5 million, compared to E3.5 million in the preceding year, signalling a remarkable 28% growth in value. This significant increase underscores the competitive pricing offered by Freshmark, Shoprite’s procurement arm, and further solidifies the mutually beneficial relationship between NAMBoard and Shoprite.

Among the top eight most traded commodities highlighted during the tour were butternut, tomato, beetroot, green pepper, baby marrow, cabbage, green beans, and onion.

Procurement

Freshmark is the Shoprite Group’s fruit and vegetable procurement and distribution arm and is a significant business. It supplies fresh fruit and vegetables to Group stores across South Africa, as well as in other parts of the African continent. Freshmark was established as a company in 1989 and became a division of the Group in 2000.

The brand is responsible for the procurement, buying and distribution of the fresh produce sold at the Group stores across South Africa and other parts of the continent.

According to Shoprite, Freshmark operates via its network of distribution centres across South Africa and has distribution centres

across the African continent. It is attributed as one of the largest buyers and distributors of fresh fruit and vegetables in Africa, Freshmark works with thousands of fruit and vegetable growers on the continent including Eswatini where the company trades with NAMBoard. Shoprite asserts that up to ninety-five per cent of the fresh produce requirements are sourced directly from local producers, with a fresh promise to the customer. This also reduces transport and packaging costs.

Compliance

Shoprite added that management stays up to date with the latest innovations regarding new and improved varietals and products and these are introduced to the Group’s markets. All packaging standards are continuously reviewed to ensure compliance.

The retail store further says through this initiative, speciality fruit and vegetables are sourced on local and international markets and play a key role in equipping emerging farmers with the skills required to produce and meet international GLOBALG.A.P. standards. Freshmark’s food safety team has put a quality assurance programme into place and these principles are enforced throughout all operations. International food safety auditors regularly audit all suppliers on GLOBALG.A.P. and GMP standards and Freshmark’s distribution facilities on HACCP standards to ensure compliance.