Nufarmer November / December 2017 NUF NOV.DEC 17 | Page 9

Nufarmer Africa
LOCAL SUGARCANE FARMERS HAUL
THEIR WAY TO SUCCESS
A
matikulu cane growers in northern KwaZulu-Natal
stood united to salvage their 2012/13 harvest after
longstanding haulier Unitrans’ ended its cane haulage
operations in their area, thus impacting the income of 50
commercial growers and more than 2 500 small-scale cane
growers in Felixton and Amatikulu.
The farmers rallied together and managed to raise suffi cient
capital to buy the Unitrans’ assets in the two operational areas
to ensure sustainability of their businesses and livelihood.
On 6 April 2013, with support from 95% of growers, the
farmers formed their own company, Zululand Agricultural
Holdings (ZAH). The change of ownership resulted in a deal
which included 15 rigid-drawbar truck combinations and
various moveable assets used at the depot to haul cane.
Both large and small-scale growers delivering cane to
the Amatikulu mill supply area became shareholders in the
company.
A long-term lease agreement was negotiated with Tongaat Hulett for the use of a
depot and offi ce complex.
“Tongaat Hulett played an infl uential role in providing guidance to ZAH; assisting
the company with the alignment of the administrative processes and brought on
board new clients who positively impacted the growth of the company,” said Nkonzo
Mhlongo, Tongaat Hulett Socio-economic Development Manager.
Dave Littley, Managing Director of ZAH, is a cane grower with experience in transport
logistics, project management and engineering.
“During 2013/14 and 2014/15, the company successfully managed to haul a total
of 859 000 tons of cane despite the tough drought stages that the agricultural sector
experienced,” said Littley.
“We took over Super Group Melmoth’s cane haulage business in 2016, and two
vehicles from Alternate Sure Haulage. Furthermore, we continue to upskill existing staff
and assist in the training of handicapped individuals.”
ZAH plans to expand their business operations in the next few years and are looking
at several opportunities that will further add value to the business.
Under the guidance of Alan Gordon, General Manager of ZAH, no stone was left
unturned to ensure the company achieved above budget results.
“Since its fi rst year of operation to date, ZAH has increased revenue by 400% and the
fl eet has grown from 15 to 42 trucks, three tractors and two Bell loaders,” said Gordon.
“ZAH experienced the challenge of having to establish a new company from scratch
in a short period of time which was overcome by handling all aspects of a medium-size
operation with a dedicated team.
“We currently have 120 employees and our client database grows annually by about
15%.”
Gordon said to date the company can report on some notable achievements - all
shareholders were paid back dividends on their ZAH shares and R2.7 million worth
of dividends were paid to the participating small scale growers and cooperatives
in 2016/17; operations have expanded into timber haulage; being awarded the
Tongaat Hulett Sugar Amatikulu Smuts contract in 2014 and ZAH’s purchase of their
own depot in Melmoth.
Discussions are already underway to expand the haulage company beyond the
sugarcane industry to add further value to local farmers.
Nufarmer Africa | November/December 2017
“ZAH experienced the challenge of having to
establish a new company from scratch in a short period
of time which was overcome by handling all aspects of
a medium-size operation with a dedicated team.”
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