USE PACKAGING CORRECTLY
By Michael Cordes
Whenever I “walk the floor” on a market I always take particular note of the packaging being used by fruit and vegetable farmers. The variety can be mind-boggling at times as one can see everything from the best to the worst in a short space of time. In some cases farmers have completely misread the role of packaging in fresh produce marketing, in others they have used it brilliantly to promote their products and maximize their returns.
Why this difference between producers when markets are open for all to see for themselves? I don’t have the answer except to say that we are all different. Some take note and learn others simply remain “blind”. I have always maintained that a market is the best learning place any farmer can experience. On a market a farmer will see what the opposition – other farmers – are doing and should learn from them. The smart farmer visits a market regularly; takes note of what he sees; asks questions and then goes back to the farm to see how he can improve and make better money.
The old refrain that packaging is so expensive has been covered in this column before. Suffice to say, if you use it badly it will be expensive. Use it correctly and you’ll have a powerful marketing tool to boost your products – and your prices!
Observe what the top producers do when it comes to packaging. They match the product, the container and the market segment they are aiming at. The well-known ZZ2 tomato brand is an excellent example of using packaging to maximum effect. Of course, there are other leading producers who also come to mind – Wilderklawer onions, Du Toit Vrugte, Lebombo Bananas, to mention only three – who have learnt the value of doing it right with packaging. All these producers start with top quality products which they pack according to the market segment they are targeting. This can range from attractive 1kg packets, smaller containers for easy handling, wooden boxes for some customers, strong attractive corrugated cartons for others and plastic crates for bulk sales. They will also differentiate the grades with packaging by packing the top quality, class 1 products in a different pack from the class 2 products.
These growers do have the benefit of very large production which also gives them continuity and the capacity to differentiate their products according to their customer’s requirements. But, the principle remains the same regardless of the size of your farming operation – you must pack according to the product quality.
I saw this recently on the Tshwane Market where a tomato farmer had a very good product but the packaging was not up to standard. The result? That farmer was fetching prices up to R5 per unit lower than the best, yet he had a comparable quality product. His packaging was not strong enough so cartons were bending and damaging the tomatoes; while the colour scheme and design on the outside was insipid and ineffective. Assuming he sent 1000 boxes of tomatoes then he effectively would have thrown away R5000.00!
Pity he was too busy saving money on packaging!
A FARMER’S CONFIRMATION
By Michael Cordes
I recently attended a seminar on market access for emerging black farmers in Bloemfontein. There must have been 50 or more farmers from various parts of the Free State in attendance. The seminar was hosted by the Small Enterprise Development Agency (seda) of the DTI, Free State D of A and the Mangaung (Bloemfontein) Fresh Produce Market.
One of the speakers was a black farmer – Mr Ralu Nematesoni – from Matesoni Farming Ventures in the Nigel area who heads up a successful 45 ha vegetable production operation. Although they have not been farming vegetables for very long, it is abundantly clear they have grasped the essentials for successful vegetable production and marketing.
Their marketing plan is what I enjoyed. Based on their own market research they are growing a range of staple vegetable crops. No fancy stuff, just plain down to earth vegetables that everybody eats. And judging from the photographs they have their quality standards under control.
They have wisely chosen to spread their marketing risk; some to local shops and retailers, some to informal traders and the majority (+- 85%) to three selected markets – Johannesburg, Tshwane and Springs. Before embarking on this marketing plan they visited the markets, met the market agents and made their decision as to whom they would support. Likewise, they visited the businesses in town to establish local demand, quality requirements and other relevant information. They put the word out to the Hawker community that fresh veggies would soon be available.
I don’t recall the exact volumes for the different crops that they were producing but the figures were well within accepted production norms. Their funding came via existing channels although Nematesoni made one significant remark; the three partners had saved the equivalent of three months running costs before they approached anybody for funding. That shows commitment and sound business sense.
Mr Nematesoni made it clear that supplying the fresh produce markets was their first and preferred choice. He emphasised the vital importance of that trust relationship between farmer and market agent. He talked about producing quality crops and supplying consistently. He highlighted the importance of good packaging. He urged farmers to visit their market/s regularly so as to stay in touch with developments.
It is always good to hear a farmer speak out positively about the markets and he can do so because he has grasped very quickly the fundamentals of good fresh produce marketing. He does not exclude other marketing channels in the future but he knows the basics must be right first before a farmer “spreads his wings”.
I have heard so many well intentioned speakers urging new farmers to export, for example, without anyone seemingly taking into account that you have to build a solid foundation before you put the walls up. Exports are fine but a farmer needs to have “paid his school fees” or have very solid backing before taking on the world.
I wish we could see many more of our emerging farmers following the Metasoni Farming Ventures example – because it works!