TFC Holland, a Dutch affiliate of German trading and services group BayWa which supplies exotic fruit and vegetables, has formed a joint venture with South Africa’s Afrupro Exporters.
The plan is to grant loans to farmers to increase the cultivation volume of South African avocados.
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The companies, which have worked together in the past, said producers will receive a low-interest financing option to be used, for example, to invest in avocado trees and operating resources.
The producers are all located locally in Tzaneen in the north-eastern province of Limpopo and also in George, Western Cape, and Richmond Natal, KwaZulu-Natal.
Farmers will offer their harvest to Afrupro Exporters – described as a non-profit, avocado and lychee producer-oriented marketing company.
TFC will hold 60% of the new company.
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By GlobalDataKlaus Josef Lutz, chief executive officer of BayWa, said: “As part of the BayWa specialisation strategy, the joint venture is a further building block to ensure the availability of goods – in this case, of avocados.
“At the same time, we are strengthening our economic commitment in the growth market of Africa.”
Since 2015, BayWa has been cooperating with the multi-national group Barloworld in the agricultural engineering and logistics technology sectors in South Africa and Zambia.
