du toit feature
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SA Mag - Issue 20 - DU TOIT FEATURETRANSCRIPT
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D U T O I T G R O U P
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A N U N W A V E R I N G F A I T H I N T H E
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A N U N W A V E R I N G F A I T H I N T H EF A I T H I N T H E
The DuToit Group is a leading South African
producer and distributor of fruit and vegetables.
Pieter du Toit, Managing Director of the Dutoit
Group: Marketing, talks to Ian Armitage.
T he name Dutoit is synonymous with quality – just ask its customers, which include the likes of UK supermarket group Asda. The company exports
about 60 percent of all its produce and 15 percent of that - around 10,000 tonnes of apples and pears - goes directly to the Walmart-owned fi rm. It has been supplying Asda for more than a decade.
Business Leader of the Year in the 22nd Business Leader of the Year awards run by Die Burger and the Cape Town Chamber of Commerce, Dutoit Group is without doubt a leading South African player in the production and distribution of fruit and vegetables.
“We feel very honoured to be recognised,” says Pieter du Toit, Managing Director of the Dutoit Group: Marketing at Western Cape business Dutoit Group, which employs 8,000 people in high season. “The previous winners have typically been from the corporate world – this was the fi rst time, as far as we are aware, that it has gone to an agricultural business.”
As South Africa’s leading fruit and vegetable producer, Dutoit Group, has, over a period of time, taken steps to position this family-owned business for full commercialisation. This included the appointment of core people to assist the Du Toit Family and the Dutoit Group’s management during the continual process of transformation.
“We have three divisions – Dutoit International, Dutoit Agri and Dutoit Invest,” Du Toit says.
“We are built by people who have an unwavering faith in the future.”
According toDu Toit, who grew up on the family farm in the Ceres region, the company was established in 1893.
Over the years it has introduced cutting-edge technology, innovation and high levels of client services, which fully integrates client needs in the production and packaging process.
Dutoit Group produces, packs and markets more than 15 million units of fruit and vegetables annually in both the local and international market.
DuToit Group FEATURE
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“We have extensive fruit and vegetable growing divisions, cold storage and packing facilities,” says Du Toit. “Our farms and business units are managed on a decentralised basis and we specialise in integrating the production process with the needs of our customers.
“We grow, pack, market and distribute quality agricultural products - apples, pears, nectarines, onions, potatoes and sweet potato,” he adds.
The key to Dutoit’s success is its supply chain and partnership model.
“We actively seek investment partners to join with us in building a superior supply chain,” says Du Toit.
The main criteria for prospective partners are a deep passion for fresh produce and “a specific field of expertise and interest”.
“The Dutoit Group offers market access through its Dutoit and Gydo brands and marketing and distribution team. We offer technical support through a team of experts in the respective disciplines of fruit production and handling. We offer financial support through access to competitive financial instruments. We aid with business development. We mentor to drive entrepreneurship and create wealth. We also offer BEE initiatives through the Crispy Group,” says Du Toit. “We have an integrated development model in the sense that we go from the seed through to planting, picking, production, pack-houses, shipping, etc. We don’t own shipping, but we try to negotiate and establish partners with knowledge to deliver to the customer a good business opportunity in our products.
“It is all about keeping costs down and making it simple – the process of delivery simple.”
A great example of this partnership model in practice is Cape Fruit Coolers, which Du Toit is chairman of. It is a joint venture between Maersk Group, Goede Hoop Sitrus, Ceres Koelkamers and Dutoit Group, which offers a pallet cooling service for the fruit exporters that make use of the Cape Town harbour. “Cape Fruit Coolers prides itself in perfect protocol handling coupled with personal service levels unheard of in this very important part of the cold chain,” says DuToit.
The Dutoit Group has a 37.5 percent share in Cape Fruit Coolers, which recently increased its plant in the Killarney Yarns Industrial area by 30 percent. “It is to meet the growing needs of fruit growers to meet the shipment of their products,” Du Toit explains. “In a highly competitive market environment, Cape Fruit Coolers team is positive that this expansion will make export more competitive. The expansion includes new inspection facilities.
“Cape Fruit Coolers plays an important role in the value chain from farm to store shelves. They help to keep product fresh and enable it to enjoy a longer shelf life.”
Cape Fruit Coolers is an independent organisation with the sole aim of servicing the fruit export industry. It is a world-class cold
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DuToit Group FEATURE
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In Touoch
Efficiency in food and energy processes
Services offered:System design• Project management• Component manufacturing• System installation & supervision• Commissioning• Service and maintenance• Energy audits• System surveys• Utilities evaluation and • implementation
GEA Refrigeration TechnologiesGEA Refrigeration TechnologiesGEA Refrigeration Africa (Pty) Ltd
SouthAfricaMag 2011 Quarterf Page.indd 1 2011/11/04 12:51:51 PM
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Aweta, Netherlands: +31(0)886688000, Norman van der Gaag, [email protected] Somerset West: +27(0)82-5663249, D. Schoeman, [email protected]
Dormas Johannesburg: +27(0)11-4962800, [email protected]
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Huhtamaki is the world leader in environmentally friendly moulded fibre and pulp packaging, producing egg packaging, fruit packaging including apple, pear, stone fruit and melon trays, wine bottle dividers, cup carriers and yoghurt trays, from recycled recovered paper.
storage facility, making use of cutting edge technology and state-of-the-art refrigeration facilities.
Dutoit’s growth target is to “double” the company every fi ve years. It has been successful in that over the last 50 years, according to Du Toit. “Obviously it gets more complicated the bigger you get. That is still our target and we believe we have got policy and strategy in place to do that.
“We will look to maximise our existing resources, while seeking out new partners. I think this partnership approach is unique in the industry – it certainly isn’t common. Agricultural land all over the world, but especially SA is a big investment. We can help partners maximise their investment.
“Of course the big uncertainties in SA these days are about land reform policy from Government. But you have to accept policy change as the rules of the game; we concentrate on what we can control and that is that we need to be internationally competitive and our customers want us bigger – and we will give them that. We are looking to grow. We want to be run as a commercial, internationally competitive company.”
The rand’s strength had made the past year diffi cult for the group - the currency’s 15 percent growth in the past year, with a fi ve percent growth in operational costs, had resulted in a 20 percent hit on the com¬pany’s income. Du Toit says labour makes up 40 percent of the company’s operational costs, and water and electricity made up another substantial contribution.
“But in spite of tougher times, the company has remained profi table - the operation is slick,” he says. “And we have a wealth of expertise and knowledge to draw on.
“Prices are set according to a seasonal programme and then reconfi rmed on a three-week basis,” Du Toit adds. “If price agreement can not be reached with a retailer for instance, the volumes are readjusted and
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DuToit Group FEATURE
Cadiz Asset Management is a well established and recognized independent asset manager with R41 billion assets under its watchful care. With many industry awards, including the 2011 Morningstar award for Best Specialist Fund House, Cadiz Asset Management has the independent credentials and performance to satisfy all investors needs.
As a business we value partnerships and we believe that it is via partnerships that we unlock most of the value potential. The DuToit Group investments which we manage is testimony to this philosophy and we believe that this partnership will grow from strength to strength.
Cadiz Asset Management
RISK SERVICESAn authorised financial services provider
Tel: +27 21 809 5500 www.alexanderforbes.co.za|
Alexander Forbes Risk Services are extremely proud of the long and mutually beneficial relationship which we have had with the Du Toit Group over many years.
The personal relationships which we have developed and the understanding of the key risk issues surrounding the business are very important to our client service team.
We look forward to working together with the Du Toit Group in the years ahead.
To find out more, visit www.cadiz.co.zaemail: [email protected] or call +27 21 670 4600Cadiz Asset Management (Pty) Ltd is an Authorised Financial Services Provider. FSP 636.
Harvesting a successful crop is the result of careful planning, attention to detail and skill. Real growth from investments requires the same level of dedication. Both deliver that same sense of satisfaction.
The Cadiz Inflation Plus Fund, winner of a 2011 Morningstar Award, is testament to our ability to achieve real growth for our clients. Cadiz Asset Management is a proud partnerof the Du Toit Group - a real partnership formed on trust, delivered in results.
Voted “Best Specialist Fund House” in South Africa at the 2011 Morningstar Fund Awards, Cadiz Asset Management is a signatory to the United Nations Principles of Responsible Investment and a multiple award winner for SRI investing in South Africa.
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the fruit redirected elsewhere.”Up next is growth on the African
continent. Dutoit is the apple of Walmart’s eye (through it’s work with Asda, which it has been supplying with fruit and vegetables since 1997 when the South African agricultural market was deregulated).
“Our long-standing relationship with Asda has given us stability in tough times and, also, it means that where Walmart goes, our fresh produce could follow.
“We are looking to expand in Africa, the Middle East and the Far East. These are markets that are very interesting to us.
“We are very positive about our position. We are in a good production area and are in a position to capitalise on new opportunities,” Du Toit concludes. END
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Du Toit FarmKoue Bokkeveld, CeresCape Town, 6835South Africa
Postal Address: P.O.Box 244Ceres, 6835South Africa
Tel: +27 (0)23 3123136Fax: +27 (0)23 3161229Email: [email protected]
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