Pride Milling

MAXIMISING MAIZE ACROSS CONSUMER AND COMMERCIAL MARKETS

PRIDE MILLING

2 | Africa Outlook issue 76

AGRICULTURE

Counting on

Consistency Pride Milling has emerged as a go-to, reliable supplier of milled maize products thanks to its bold investment in technology and continuous improvement Writer: Tom Wadlow | Project Manager: Lewis Bush

Africa Outlook issue 76 | 3

PRIDE MILLING

E

ach year on average between 2.5 and 2.75 million hectares, some two thirds of South African commercial farming land, is utilised for maize.

In the 2017/2018 season, approximately 12.9 million tonnes were produced, a far cry from the 328,000 tonnes farmed in 1904.

Converting maize into value-added products is therefore big business in South Africa, something that Centurion-based Pride Milling knows all too well under the leadership of CEO

Jorrie Jordaan, who acquired a controlling share in the company in 2001.

“We took our chance to create a brand and it has been going from strength to strength ever since, thanks to our focus on continuous improvement through innovation and investing in new processes and technology,” he explains.

“Today we are not the small company that we were in 2004 – we are one of the biggest maize millers in the country looking at a turnover of R2.8 billion once we complete our expansion work.”

A PROUD PORTFOLIO Pride Milling is a manufacturer, marketer and distributor of basic essential staple food and industrial products in South Africa.

Since the establishment of the company in 2001, it has enjoyed strong growth both locally and internationally through its core values of continued innovation, the pursuit of consistently supplying absolute product quality and a strong focus on exceptional service.

Its portfolio of products covers three major categories: MAIZE: White and yellow GMO and GMO-free products for industrial and consumer use. Brands include Pride Super Maize Meal, Pride Braaipap, Pride Samp, and Pride Maize Rice.

OTHER FOOD PRODUCTS: Includes fine and coarse sorghum meal, lentils, peanuts, popcorn, sugar beans, soup mix, split and whole peas, and kidney beans.

FEED PRODUCTS: Includes, among others, bird seed mixes, pet foods, laying pellets for poultry, and hominy chop.

Jordaan is a seasoned industry professional, much of his early career being spent working in a one-channel marketing system operated through government-owned boards, the industry moving to a free market setup in 1995.

Today the sector is, by Jordaan’s own admission, a competitive one with numerous small and large players.

However, he is quick to explain what he sees as Pride Milling’s point of difference.

“Pride Milling differentiates itself, I believe, because we see maize milling beyond simply making maize meal for consumers,” he says.

“Yes, there is the consumer market, but there is also industrial, export, and catering and contracts. We have opened up five or six different distribution channels with maize milling, and we are one of the only companies to really focus on the industrial segment.

In previous times these clients were mostly supplied by commercial millers.

However, maize products were seen more as a secondary product.

“The industrial market is a more complicated one – the brand counts for less than intellectual capital like sustainability and food safety and security. We supply big companies like AB InBev, Nestle and Unilever with products made specifically for them, and they have become loyal customers and stuck with us as we continue to innovate.”

Not only does the company pride itself on consistently supplying products that conform to their customers’ specifications, but it is committed to producing food that meet the requirements of international food safety standards. All of the company’s production units are FSSC22000 certified.

COUNTING ON CONSISTENCY Pride Milling’s clients are served by four processing plants which can currently produce 500,000 tonnes of maize and other food products per annum.

4 | Africa Outlook issue 76

AGRICULTURE

Africa Outlook issue 76 | 5

African Sugar Logistics (ASL) , a level one BBB-EE contributor, prides itself on delivering solutions crafted by some of the most talented staff within the logistics industry, specifically focused on the food industry. Since 2008, ASL has enabled supply chain success with door to door import, export & cross trade solutions through the in house services of Clearing & Freight Forwarding, Warehousing, Transport & Food Accredited Packaging Plants.

We are one of the fastest growing logistics companies in value supply chain management both in the local and global markets. Our success is through our strategy of wholly owned services. ASL remains in direct control of service levels through this investment.

Our operational excellence provides the foundation for the integrated logistics solutions that we offer to our customers.

The team of skilled professionals constantly monitor operational performance by maintaining a PDCA (Plan / Do / Check / Action) cycle for continuous improvements.

We focus on the development of highly advanced logistics technology and the training of personnel. By providing in-depth analyses of the transportation environment and of various other technical services, our mission is to add critical value to our logistics solutions.

ASL’s exponential growth is attributable to our innovative thinking, adaptability to change

African Sugar Logistics management, effective risk management processes, cutting edge technology supporting our business operations and our dedicated workforce.

ASL operates distribution centres in South Africa and Mozambique with operations in Durban, Maputo & Beira. ASL is proud to be associated with Pride Milling as a logistics service provider in the export of bagged Head Office : Suite 302, 81 Richefond Circle, Ridgeside, Umhlanga, 4320 Kwa-Zulu Natal, South Africa Tel : +27 31 5621125

maize products to world markets. The just in time, door to door service offered by ASL, has increased the ability of Pride Milling to be competitive and reliable with reduced lead times between order acceptance and shipping.

Remaining true to ASL’s mission to provide flexible, tailored, innovative and affordable logistics services that cater for our clients evolving needs.

Distribution Centre: 45 Richard Carte Road, Mobeni, Durban, 4001 Kwa-Zulu Natal, South Africa Tel : +27 31 4627305

PRIDE MILLING

DBC Packaging DBC Packaging (Pty) Ltd have been proud and exclusive suppliers and partners to the Pride Milling Group for more than 40 years.

It is a true partnership that has, over many years, developed into an extremely healthy business arrangement, which has been established on complete trust and loyalty, and which has enabled Pride Milling – with its dynamic approach to innovation and expansion – to continue to aggressively compete in both the national and international marketplace.

As well as being able to cater to a wide variety of customers across several African nations in terms of quantity, Jordaan also points to Pride Milling’s ability to provide these quantities consistently and in compliance with responsible sourcing as set out by SMETA’s four pillars of Labour, Health and Safety, Environment and Business Ethics.

This is made possible by a number of factors, chiefly state-of-the-art machinery, a reliable network of suppliers and a cohort of employees, who are rewarded based on the company’s continuous improvement processes.

“Anybody can make a product conforming to a customer’s requirements,” says the CEO. “But the real question is, can you make it consistently? This is what we focus on. From day one you can trust us to supply a consistent product.”

In terms of machinery and technology, Jordaan highlights a significant investment of R300 million over the past two years, going against the grain in that many large corporations in South Africa are holding back on spending before the economy rebounds.

Much of the R300 million has gone 8 | Africa Outlook issue 76

DBC Packaging – formerly Durban Bag Company – was established in 1937, supplying mainly hessian and calico industrial bags to the sugar and maize/ flour milling industries. During the mid1960’s, hessian and cotton fabric was slowly replaced by the newly developed plastics polymers, resulting in the advent of woven polypropylene and flexible polyethylene packaging products. Today, DBC Wovens (Polypropylene) are one of South Africa’s premier suppliers of BOPP laminated woven polypropylene bags, supplying the milling, sugar, fertiliser, animal feeds and chemical industries.

into equipment, a move which is bringing with it a number of benefits.

“This is enabling us to operate at scale, meaning we can compete with both smaller millers with low overheads and larger millers on price and consistent quality of product,” Jordaan explains.

“We can also more easily handle different types of maize that comes in. Further, by investing in packing and packaging technology, which can be extremely expensive, we are ensuring that the brand has consistent visual quality as well.”

A reliable flow of maize itself is also critical to Jordaan’s message about quantity and quality, the CEO emphasising the importance of fruitful relationships with local farmers to ensure continuous supply of raw material maize.

In addition, DBC Plastics (Polyethylene), since its establishment in 2004, has shown tremendous growth with its wide range of high-quality printed flexible film products, which includes bags and pouches, as well as form fill and seal sheeting. Over the past three years, DBC Plastics has won numerous printing awards at the annual national awards ceremony, which bears testimony to the state-of-the-art Italian printing machines in which we are invested, as well as the dedicated and experienced operators that we have to run them.

DBC prides itself not just on the quality of its purpose-made products, but on the quality of its service levels, due mainly to our very flexible approach to production planning and programming, which does mean an extremely swift response to any crises, as and when they may arise.

DBC is indeed very fortunate to have forged such a wonderful partnership with Pride Milling, which has grown stronger and stronger with each passing year, and which has been highly beneficial to both parties. Long may it last.

www.dbcpackaging.co.za

manufactures a wide range of purpose-made printed polyethylene packaging products at its factory at Riverhorse Valley, Durban:

Manufacturers of a wide range of purposemade polyethylene packaging products • Bottom printed Seal & Side Seal Bags • Back Pouches at Riverhorse Valley, Durban: at it’sSealfactory • Form Fill & Seal Sheeting (FFS)

BOPP Film & Other Substrates ••• Printed Bottom seal and side seal bags Laminated Printed Bags Handle seal Bags pouches •• RigidBack & Loop Handle Bags •• Patch Form fill and seal sheeting (FFS) •For morePrinted BOPP film and other substrates information contact us: Tel 031 533 8500 •Email Laminated printed bags info@dbcplastics.co.za • Rigid handle bags www.dbcpackaging.co.za • Patch and loop handle bags • Quad seal bags

manufactures a wide range of purpose-made printed polyethylene packaging products at its factory at Riverhorse Valley, Durban:

Woven Polypropylene including laminated bags for the • Bottom Seal & Side BOPP Seal Bags • Back Seal Pouches following sectors: • Form Fill & Seal Sheeting (FFS) • • • •

Printed BOPP Film & Other Substrates Laminated Printed Bags Rigid Handle Bags Patch & Loop Handle Bags

• Maize and wheat • Sugar more information contact us: •For TelFertilizer 031 533 8500 Email info@dbcplastics.co.za • Animal Feeds www.dbcpackaging.co.za • Reusable shopping bags • Pet Food • Block bottom bags for cement

Tel: 031 533 8500 Email: info@dbcpackaging.co.za www.dbcpackaging.co.za

PRIDE MILLING

Bühler Pride Milling Company [PMC] and Bühler have a long standing relationship built on trust and mutual respect and the upgrade of the Nigel plant is testament to that. Bühler was tasked with the challenging upgrade of the A and B mill at Pride Nigel.

The two mills are integrated together for the intake, cleaning and finished product sections and need to be upgraded with absolutely minimal downtime due to the strong demand for PMC’s large variety of quality products.

The installation will take place in stages requiring extensive coordination from Bühler and all stakeholders involved to retain Pride’s high demand for food safety and quality standards.

www.buhlergroup.com

The company works closely with agricultural trader ETG, which purchases maize from farmers predominantly in the east of the country (where the climate is most conducive) on its behalf. “We have unbelievable people working for us right through the supply chain,” Jordaan adds.

This also rings true inside Pride Milling’s own operations, the company’s team of staff among the most skilled in the industry thanks to a series of continuous improvement and development initiatives.

“We drive what we call CIPs – continuous improvement processes,” Jordaan says. “We can’t stagnate, and this is something we manage every single day.

“For instance, when it comes to innovation, we actively encourage all our staff to contribute and suggest ideas, no matter how stupid they may sound, and dedicated individuals in the company will actively explore the viability of these ideas. If the idea real10 | Africa Outlook issue 76

ises benefits for all stakeholders, then there are prizes on offer as well.”

In order to align expectations between senior management and staff, Pride Milling works through a series of key tasks and regular assessments as part of a wider emphasis on career development. Jordaan is proud of the fact that the company challenges and supports its employees to become professionals, and thus serving as a big enhancement on anybody’s CV.

“We also share knowledge,” he continues. “At any one time we have around 45 learners on our payroll, people who we invite from the community and train up over a year to two years before giving them a role in the company or, if we cannot offer a position, ensuring they are well equipped to find employment.”

BIGGER AND BETTER Having explained how Pride Milling ensures quality on a consistent basis, Jordaan points towards 2020 as a key period for the company in terms of ramping up production volumes.

By November 2020 it will have completed a major expansion project, a development which will see annual capacity increase to 700,000 tonnes and help generate about R2.8 billion in yearly revenue.

Investment from Thebe Investment Corporation, which acquired a 30 percent shareholding in March 2019, represents important backing from

AGRICULTURE

There is a best solution for every one of your requirements.

Made by Bühler

Bühler solutions for the milling industry are used around the globe, allowing our customers to operate in varied markets with different requirements.

Contact us: milling@buhlergroup.com www.buhlergroup.com

arena having ensured the plant’s machinery and life expectancy have been addressed in its recent investments.

A growing pool of Southern African consumers with disposable income represents an opportunity to produce and market such products, and this an extremely reputable and well-established partner. Pride Milling is also, according to Jordaan, the only large private B-BBEE Level 1 miller in the country, the area of black economic empowerment a particularly important focus for the CEO. Pride Milling also works closely with the World Food Programme to supply other African nations with maize products, its reach expanding into the likes Angola, Zimbabwe, Botswana, Madagascar and Eswatini, formerly Swaziland.

It is very much Jordaan’s ambition to export into more countries across Africa, the CEO outlining additional plans to grow into the breakfast cereals

developing socioeconomic backdrop leaves Jordaan buoyant when looking ahead to the future.

He concludes: “We would never have spent R300 million on our plant if we were not positive about the future, and there are a number of reasons for being so.

“Number one, South Africa has better infrastructure than any other African country, and although the economy is flat and only growing very slowly, I think it will turnaround in a big way. We have sound financial institutions and legal systems. Lessons have been learned and there are far more checks and balances in place now. There is no doubt in my mind that South Africa will be back on its feet and growing strongly again.

“Don’t wait to achieve what you want to achieve. Do it now so you are ready to capitalise when the upswing comes around.”

PRIDE MILLING Tel:+27 11 814 8383 www.pridemillingco.co.za info@pridemilling.co.za

Africa Outlook issue 76 | 11

PRIDE MILLING Oxford Office Park Building 5 3 Bauhinia Street Centurion, 0167 South Africa Tel: +27 11 814 8383 www.pridemillingco.co.za

PRODUCED BY AFRICA OUTLOOK MAGAZINE