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25 November 2005 Xerox. The OriginalXerox. The Original

COVER STORY

TIMBALI GROWS A CROP OF NEW AGRI-BUSINESSES



By Artwell Dlamini

Social innovation

The sight of stunted plants, scrawny animals and dilapidated farm buildings is always distressing. But it is even more so when the land belongs to an emerging farmer who once worked the land with hope.

Commercial farming in SA is demanding and competitive at the best of times and the number of commercial farmers drops every year. Farming has become more knowledge-intensive and less labour-intensive as farmers battle with poor soil, limited water and heavily subsidised competitors.

These realities and the absence of subsidies and technical support make it extremely difficult for new and emerging farmers to succeed.

The Timbali Technology Incubator in Nelspruit has developed a model that provides emerging black farmers with the skills to compete in the competitive world of floriculture.

What's different is that these are not run-of-the-mill skills. To give them an edge, the farmers are being taught how to grow technologically difficult crops. "In today's world, the best barrier to entry is the technology barrier," says Timbali CEO Louise de Klerk.

Scientists from the Agricultural Research Council and the University of KwaZulu Natal have been seconded to the incubator, which is a section 21 company funded through government's Godisa programme.

The scientists have developed agriculturally intensive production systems that result in cut flowers of superior quality. These systems are largely based on hydroponics, where the plants are grown without soil, using only water enhanced with nutrients. Capital and running costs are lower than for conventional farming methods, and less water is used.

Timbali has packaged this technology - which includes equipment and processes - in such a way that it is accessible to nontechnical and even uneducated farmers.

Each farmer is able to handle the technical production of a particular type of flower and the management of a unit within the incubator.

Skills taught include cultivating, growing and maintaining flowers, as well as management skills.

"Farmers are trained to make sound business decisions through management by data rather than by instinct and hunches," De Klerk says.

Also in the technology package, which is licensed to the farmer in return for a small levy, is access to onsite R&D services, laboratory facilities, infrastructure and mentoring.

The model is similar to a franchise operation, which uses a tried and tested model and uniform quality management systems to bring out the best in each farmer.

There are 29 small businesses, most of them run by women, operating within the incubator. Farmers will work their own unit for two or three years, after which they should have the skills to manage independently.

But even after they have graduated, farmers are not cut off. They will be able to sell their produce under the AmaBlom brand if they continue to use the techniques they have learnt. They have access to support services and, with a good business track record within the incubator they should also have easier access to credit.

Timbali has built 30 state-of-the-art tunnels that house gerberas, commonly known as the Barberton daisy, delicate lisianthus and other hydroponic crops. The land is leased from the Agricultural Research Council in Nelspruit.

Flowers produced by Timbali's clients are marketed under the AmaBlom banner, which enables the farmers to be part of a collective marketing, branding and bulk selling initiative.

Timbali is the largest gerbera cut-flower project in Africa. In Gauteng, one in two cut flowers last year came from Timbali and more than 1m flowers are produced annually. AmaBlom flowers are also achieving higher than average prices at Gauteng's daily flower auctions.

For now the incubator has shied away from the export market. "It is not currently viable," says De Klerk.

So far, 73 permanent jobs and 208 indirect jobs have been created since the first funding was received in 2003. Over the next five years, an estimated 220 direct and 660 indirect employment opportunities are expected.

  • Finalists: Khanya Project; Alternative Energy Development Corp







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