Thirty years ago, when Ilse Ras was the only woman working as an agent at the Tshwane fresh produce market, a vegetable farmer asked her to develop off-market opportunities for their carrots, and along the way Ilse added subtropical fruit and avocados from other growers to Direct Produce Marketing's portfolio.
She has been so successful that she made herself redundant at some of her erstwhile clients who set up their own inhouse teams to do what she started and in South Africa, direct contact between the farmer and the retailer has become the norm.
Today Direct Produce Marketing represents a handpicked group of producers who are able to supply good quality produce continuously to an array of clients outside of conventional retail: family-owned stores, independent pre-packers, buyers for restaurants and hospitals, buyers who can take a minimum of one or two pallets per product.
Antoinette Erasmus of Umfomothi Pineapples with Ilse Ras of Direct Produce Marketing in Hluhluwe, KwaZulu-Natal
Stratagems for riding with the variables
"Our focus is on privately owned farms or seasonal producers; farmers who don't have the time or capacity to make the hundreds of calls that you need to make," Ilse explains, "but the farmer retains 100% control over the prices they receive. Every decision is taken together."
Placing fruit that might have gone unsold or undervalued during previous seasons into new forms of packaging, for which Direct Produce Marketing then lays out a market, is a strategy that has always worked for them.
"You always have to be on your toes. There are so many variables: the weather is unpredictable, the economy is under pressure, and with loadshedding, product sometimes couldn't be cold-stored, or product that was earmarked for export is diverted to the local market."
She doesn't take decisions lightly, she says, she has too much respect for the work that goes into raising a crop.
Mango trees are now in flower but last week temperatures in Limpopo – before the official start of spring – already came close to 40°C. They expect the first mangoes to start in week 48.
"The mango and litchi seasons are really short. During that period you have to absolutely optimize the fruit and there's no time to waste."
Market decisions are taken on a day-by-day basis. "You could almost say it's crisis marketing, especially on unsulphured litchis: the fruit that is available on the day, has to be moved that day. Especially early in the season when prices drop every day as volumes come in. Then yesterday's lowest price is today's best price."
Cyclone Freddy impact on ginger, papaya & peppers
Ilse remarks that Cyclone Freddy, the longest-lived cyclone on record which remained over Mozambique and northeastern South Africa for five weeks from early February, has had a radical impact on the production of especially ginger, papaya and peppers.
Direct Produce Marketing represents Schulpad Boerdery, melon and sweetpepper producer in northern Limpopo Province
"It's been a difficult season. It's now supposed to be peak papaya season and we haven't had any for the past two months, while most ginger fields drowned in the floods," she says.
Papaya supply is now starting to pick up slowly.
"A buyer who receives good product, will make money"
She says they are often asked why they don't have their own warehouse. Her view is that would lengthen the supply chain, she explains, and add cost to the product.
Ilse is assisted by Anli van Wyk in Pretoria and Michelle Papayannis in the Cape.
"We're not driven by turnover, we're driven by relationships. Our goal is loyalty between ourselves and the producer whom we represent, and loyalty between the buyer and the producer based on high quality produce."
She continues: "A buyer who receives good product, will make money, and a farmer who knows there is a market, can confidently plan for the next season. Loyalty, honesty and transparency are our principles, not chasing profit margins."
For more information:
Ilse Ras
Direct Produce Marketing
Tel: +27 83 778 7451
Email: [email protected]
https://www.dpm-cc.
https://www.linkedin.com/in/ilse-ras
https://www.instagram.com/direct_produce_marketing
