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Farmer-owned businesses have many advantages for producers


a translation from an article by Charles Smith in Landbou Volksblad

Farmer-owned bussinesses has become the new buzzword. These operations are seen as enterprises where farmers can have better access to markets, produce larger volumes, reduce costs and reduce risk.

Lize Terblanche from the department of agricultural economics at the University of the Free State, says that farmer controlled businesses and groups have a much greater chance of success. Such farmers can purchase equipment together, farm more efficiently, obtain outside finance, have access to better market info and can appoint their own veterinarian. Within the group they can share each others expertise and advice. The farmers must focus on quality, traceability and quantity.

Mr. Koos Pienaar of the Milk Producers Organisation in the Freestate says as a group of farmers can negotiate for better prices and deliver a better product to their clients quicker.

Konsortium-Merino from Victoria West in the Karoo is a company of Merino breeders which is making it’s top genetics available to an ever increasing number of members. They already have more than 100 members with 170 000 ewes. Their aim is to increase the number of ewes to 1,5 million by 2019. Konsortium-Merino sells the most merino rams in the country.

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