Sunday Times

Old roosters hold key for new black importers

- NOMPUMELEL­O MAGWAZA

ACCESS to funding, cold storage facilities, a distributi­on network, customers and compliance with health regulation­s are some of the hurdles facing the first black importers to be awarded quotas to sell about 8 000 tons of US chicken.

First-time importer Evodia Motsepe, the chairwoman of Mega Food Supplies, said her checklist was almost complete.

Motsepe is one of eight black importers in the queue to take delivery of 1 000 tons each of imported US poultry.

Before the renewal of the African Growth and Opportunit­y Act agreement earlier this year, which stipulated that half of the imports of US chicken be handled by black businesses, there were none.

Under the Agoa poultry imports agreement with the US, South Africa will import about 65 000 tons of chicken a year.

The 16 500-ton quota for the first quarter was on the shelves of retailers and in the cold storage facilities of caterers on Tuesday. The second consignmen­t of US chicken is expected in the country in mid-April and will be shared among existing importers and new black importers.

Motsepe, the only black woman importer, said she was determined to be in compliance with all the requiremen­ts for a successful import enterprise when her first quota allocation of 1 025 tons of chicken, stored in 40 containers, arrives in South Africa in mid-April.

For the next 10 years she may apply every three months for her quota to be increased or decreased.

“The sky is the limit,” she said.

After being sidelined by local producers for years, I got my break

With the help of her husband, Sol Motsepe, she has entered into a partnershi­p with Merlog Foods.

“After being sidelined by local producers for years, I finally got my break in the poultry industry,” she said.

The partnershi­p deal included use of cold storage and distributi­on facilities owned by Merlog Foods.

Georg Southey, a director at Merlog Foods, told importers at a training seminar in Pretoria this month that one container of imported quarter leg chicken cost about R510 200. A container holds about 25 tons of frozen poultry products.

The seminar was hosted by the US embassy, the Department of Trade and Industry, the Department of Agricultur­e, Forestry and Fisheries, and the USA Poultry and Egg Export Council.

To thrive, Southey said, new importers required a substantia­l cash pile, experience and a market for the imported chicken. “This is a cashhungry business. This business is very specific. You need to know who the customers are and who the suppliers are. Matching the right product at the a right price with a right customer is very important. That is something you cannot read in a textbook, you can only learn it through experience.”

That there had until now been no black importers of chicken could be attributed to a lack of exposure to that market and that it was an import business “that needs a lot of working capital for a very low return”.

“The attention might have been given to other industries which might be perceived more lucrative,” said Southey

Bomikazi Molapo, spokeswoma­n for the Department of Agricultur­e, Forestry and Fisheries, said the department had received eight applicatio­ns from black importers. Successful applicants would not receive financial backing.

“The department does not get involved in funding models, only in allocating the quota,” said Molapo.

Motsepe said set-up costs were high and new entrants needed substantia­l support. “The best route for us is to partner with old guys in the industry.”

 ?? Picture: SIMON MATHEBULA ?? PARTNERSHI­PS: Evodia Motsepe, one of the beneficiar­ies of the Agoa US poultry deal, has secured access to cold storage and distributi­on facilities
Picture: SIMON MATHEBULA PARTNERSHI­PS: Evodia Motsepe, one of the beneficiar­ies of the Agoa US poultry deal, has secured access to cold storage and distributi­on facilities

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