ZZ2
FoodHealth is our promise, healthy soil our passion www.zz2.co.za
ame Z Z 2
VA LU WORLD-LEADING PRACTICES FOR LONG -TERM
Committed to international standards of FoodHealth and sustainable operations, ZZ2 is staying true to its inspirations and missions in South Africa Writer: Matthew Staff • Project Manager: Josh Hyland
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Z2 is the brand name for a farming organisation which now supplies more than 40 percent of commercially traded tomatoes in South Africa. It is a fast growing player in the production, packaging and marketing of avocados (avos) while onions and deciduous fruit are also gaining importance in the fruit and vegetable basket offered to customers. Livestock has always been part of the ZZ2 value proposition and includes a Pinzgauer cattle herd from the Austrian Alps and the indigenous Nguni cattle. From these two breeds, a new breed has been developed at ZZ2, the PinZ²yl. Farming operations are spread across South Africa, the Group consisting of various independent companies managed under the ZZ2 umbrella with a turnover exceeding R1 billion per annum. ZZ2’s employees match this status by increasingly representing a multicultural African society within a multilingual environment. The company extended the services provided to the internal convertors of production, packaging and marketing value with carefully considered joint ventures. It has significant shareholding in an international commercial seedling nursery, an online fresh produce trading platform, a box manufacturing plant, a staging depot for fresh produce, and production facilities for biological inputs to compost, compost tea and fermented plant extracts. Joint ventures in primary production include a date farm in Namibia on the Orange River.
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“that’s it!” In the mid 1990s, ZZ2 implemented the “open system” or “living system” business philosophy, which demands a long-term view to create value for all stakeholders of the company rather than chasing short-term profits for shareholders. The company is therefore managed as an open and living system based on the following ethical norms (values) which are implemented as preconditions for any orderly and civilised society: • “Prudentia” (thoughtfullness, wisdom, vision, integrity) • “Justitia” (fairness, honesty, impartiality, humanity) • “Fortitudo” (fearless without wavering, with energy, perseverance, endurance, dauntlessness) • “Temperantia” (modesty, selfrestraint, selflessness, tolerance) ZZ2’s inspiration (vision) is to be the benchmark of success in agriculture, creating sustainable value for its stakeholders as a living, open system. The mission is to deliver high quality, primary agricultural products to clients looking for value and practices are in place to optimise resources and are based on principles that are ethical, environmentally friendly and economically sustainable.
Inspiration and missions
The ZZ2 trademark is a well known brand in South Africa. Originally a cattle brand it has become associated with the company and excellence. The Sepedi/Northern Sotho phrase “Ke Tswa Tsweo” was added to the trademark in 1994 and literally means
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World leader
ZZ2 is a world leader in extensive, nature-friendly agricultural practices, also known and registered as Natuurboerdery® or translated into English; nature-friendly farming. It is a break with the deleterious effects of industrial farming and includes some of the more sane concepts of organic farming. A centre was established to research (with the help of local and international experts) and mass produce compost, now universally apllied to all ZZ2 crops, and an array of biologically based pest and disease control agents. The concept and techniques of Natuurboerdery® are attracting much attention as an alternative to unsustainable industrial farming and unproductive organic farming.
In today’s times it is a fact that people are demanding healthier food. Therefore FoodHealth is ZZ2’s promise and healthy soil is its passion. By embracing nature and implementing Natuurboerdery® principles, healthy products are delivered.
Market trends
In line with this, ZZ2 decided more than 20 years’ ago to farm with avocados. Avocados have been identified as one of the superfoods of the world, being absolutely packed with heart-healthy nutrients, monounsaturated fats and essential omega-3 acids. In the past five years, ZZ2 started to aggresively expand it’s avo production. Avocado production surpassed 8,000 tonnes in 2012 and is growing exponentially with 70 percent exported mainly to Europe.
EQSTRA INDUSTRIAL EQUIPMENT TOYOTA FORKLIFT DELIVERS OPTIMAL LIFETIME VALUE TO OUR CUSTOMERS The latest supply of 10 new electric Toyota Forklift trucks to the South African farming conglomerate ZZ2, highlights the role Eqstra Industrial Equipment (EIE) plays as a partner of choice in the agricultural industry. The reliability, advanced technology and optimum performance of our range of forklifts is essential when it comes to meeting production demands at ZZ2. We are proud to be a supplier to ZZ2 - a leader in the farming industry. Toyota Forklift is the global market leader in materials handling equipment.
www.eiegroup.co.za
FIRST NATIONAL BANK
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t FNB Business, we understand that the agricultural industry is important to South Africa’s economic sustainability. Not only do we provide you with access to the latest information, trends and studies about the industry, but also offer you innovative solutions that can contribute to your farming decision-making. We understand the challenges and responsibilities that you, as a business owner, face every day. That’s why we provide all the financial solutions you need to ensure your farm’s growth and success. In addition to supplying innovative financial solutions that are customised for your unique farming needs, we also support you with a team of agricultural managers whose industry knowledge and experience can contribute to your decision making. T 0860 362 000
The avocado has been identified as one of the superfoods of the world
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Farmer of local produce. Business of global reach. ZZ2’s business is growing as quickly as the juicy tomatoes they have been farming for over a century. From a single farm in Limpopo, they have expanded into a countrywide farming conglomerate, with exports across the continent and the globe. FNB is proud to have been ZZ2’s banking partner from the very beginning, and we look forward to many more centuries of success and growth together. For more information, email agric@fnb.co.za or visit fnb.co.za First National Bank - a division of FirstRand Bank Limited. An Authorised Financial Services and Credit Provider (NCRCP20).
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RIJK ZWAAN
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ijk Zwaan is a breeding company from the Netherlands with 25 different vegetable crops in its assortment. In the worldwide market of vegetable seeds, they are at the fifth place with a turnover of over 300 million Euros. Rijk Zwaan is well known for its high service level and its personal approach. The seeds of Rijk Zwaan are sold in more than 100 different countries all over the world, via 25 local Rijk Zwaan sales subsidiaries and numerous (exclusive) distributors.
Avocado production line
Looking at the per capita consumption of avos worldwide you will find that Mexicans consume nine kilograms (kg) of avos a year; Chileans, four kg a year; Israelis, four kg a year; Americans, 2.5 kg a year, Europeans two kg a year; and South Africans, only 0.8 kg a year. ZZ2 therefore identified a huge growth potential in this market segment. In addition, South Africa is ideally situated to service the East (India, China, Indonesia, Malasya etc) where there is a huge untapped market. Taking all the above into account, ZZ2 has deemed it necessary to expand it’s packing facility at Boekenhoutbult Farm, Mooketsi. ZZ2’s own team of engineers tackled this project with great enthusiasm, from design to completion. The packhouse is presently being constructed and was completed at the end of March, 2015.
Marketing model
ZZ2 supplies fresh produce to consumers in a carefully considered value channel. Products are sold to retailers, wholesalers, hawkers, repackers and food processors via sales commission agents.
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ZZ2’s new avo packhouse: The new avo packhouse facility, Boekenhoutbult was the original/ founding packhouse of ZZ2 and has a history of more than 60 years. It was the main tomato packhouse up until 2014. As the tomato production centre of gravity shifted, more favourable locations were utilised to pack tomatoes. This created the opportunity to move the avos into Boekenhoutbult while the old avo facility was transformed into a successful lowcost regional market • The facility covers more than 7000m2 • It has a throughput of 15 tons an hour, and can handle all varieties of avocados • Cupsizers with a total of 14 lanes are used to upgrade the packline • The packaging area is isolated and can be air conditioned to 18°C • Waste heat recovery from the cooling is used to clean and dry the avos • The facility still accommodates specialised tomato packaging in a separate cooled area, with a throughput of up to 100 tonnes a day
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Rijk Zwaan recognizes the potential of the African continent. Next to its sales subsidiaries in Egypt and Morocco, the company made a long term investment with the establishment of Rijk Zwaan Afrisem in Tanzania. Besides the development of local varieties, a lot of effort is put into exchanging knowledge and ideas about cultivation as well as sales. In this way Rijk Zwaan helps its growing partners to get the best out of their varieties. On 1 July 2015 the new subsidiary Rijk Zwaan South Africa will take over the sales activities from the current distributors in South Africa. This strengthened presence is expected to be the start of a period of even stronger growth in the region. ZZ2 is one the long term partners of Rijk Zwaan in South Africa. Both are family companies with a strong company culture and together they are actively screening new tomato varieties to meet the challenges of the future. Rijk Zwaan Export B.V. De Lier The Netherlands T +31 174 532 300 E export@rijkzwaan.nl
www.rijkzwaan.com
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We share Johan’s ambition to surprise consumers time after time
Johan Solleveld comes from a tomato-growing family and has been involved in variety development at Rijk Zwaan for over 30 years. Thanks to his extensive experience, and to the fact that he really speaks the growers’ language, he knows exactly what to look out for when selecting new tomatoes. Over the years, Johan has gained an ever-greater appreciation of the tomato’s versatility and potential. He knows that nature can sometimes have surprises in store, and how important it is to remain open to the resulting opportunities. In close collaboration both with colleagues and customers, he strives to make a valuable contribution to creating tasty new products every day. It is Johan’s ambition to surprise consumers time after time. Rijk Zwaan - a global specialist in vegetable breeding - shares this ambition. We are working together towards a healthy future. Learn more at rijkzwaan.com
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The new avo packhouse facility, Boekenhoutbult, Mooketsi, Limpopo
The sales commission agents operate on a retail and wholesale level. Prices are discovered by balancing supply and demand. This process is supported by a comprehensive system called FGX (Farm Gate Exchange, an online trading platform) where the goal is to aggregate volumes supplied and demanded with prices paid, enabling an environment for an industry-wide functional market for efficient price discovery. The agency system of selling is employed with remuneration based on ad valorem commission for sales functions performed. These synergistic systems bring exceptional reach in terms of area covered to customers and ZZ2 alike. Special attention is given to different offered products; in terms of packaging, variety and taste, continuity, and reliability of supply and quality. ZZ2 markets its avos under the name Afrikado and all its fruit exports are done through Core Fruit; exporting around the world.
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ZZ2 produces the following varieties of avocados: Fuerte*
February-March and June-August
Ettinger February Maluma* February-March Pinkerton* April-May Hass* April-June Edranol June Ryan* July-September Queen October Lamb-Hass* November-December Reed November-December Itzamna January * = exported
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An exciting journey
At the same time as the construction of ZZ2’s packhouse, the company is also establishing ripening rooms at its staging facility, ZZFresh, near Lanseria Airport, Johannesburg. ZZ2 cooperates with Mission Produce, the biggest supplier of avos in the world, to understand how to ripen and market ripe and ready avocados. This will enable ZZ2 to supply its customers with ready-to-eat avos throughout the year.
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ZZ2 markets its avocados in the following packaging: EXPORT: • 8 kg box • 4 kg box LOCAL: • 4 kg box • 2 x fruit in a boattray • 4 x fruit in a boattray • 1 kg plastic bag
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The aims of environmentally sustainable and affirmative value creation for all its stakeholders through the open-system approach should safeguard its sensitivity and mobility in any conceivable environment
ZZ2 is of the opinion that providing consumers with ready-to-eat avos will boost the local consumption from 0.8 kg per capita to the level of other countries with the same per capita income, such as Mexico and Chile. The company is very excited about the journey it has embarked on and looks forward to promoting this wonderful fruit locally and internationally. ZZ2 is endowed with a sound and ethical corporate philosophy. The aims of environmentally sustainable and affirmative value creation for all its stakeholders through the open-system approach should safeguard its sensitivity and mobility in any conceivable environment. It should also ensure the relevance of ZZ2 as a sustainable value creator to all its stakeholders over the short, medium and long-term.
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ZZ2 Farm Boekenhoutbult Mooketsi Limpopo South Africa Tel: +27 15 395 2040 info@zz2.co.za
www.zz2.co.za