The Mataffin farm on the outskirts of Mbombela in Mpumalanga was one of the first in the area to be transferred back to the original owners in 2003 as part of South Africa’s land restitution program. By the time the farm was bought by government and returned to the Mdluli clan, many decades of farming had completely transformed the landscape.
Thriving avocado, litchi and pecan nut orchards now covered the land, delivering an export crop with significant value. The family made the decision that has eased doing business: creating an operating company responsible for running the farms independently of the trust. The company has a board of directors comprising some Mdluli clan members and a few independent outsiders.
Avocado production costs are high across the industry, with Hamilton-Foule estimating annual expenditure at R80 000/ha to R200 000/ ha. Moreover, recent challenges experienced across the agriculture sector are compounding the issues faced by the Mdlulis in their effort to achieve greater profitability.
One of the main contributors to escalating production costs is load-shedding. This has had far-reaching consequences for the business, as its irrigation systems require electricity to pump water.
The farm’s avocado yield averages 12t/ha, with some orchards going as high as 22t/ha, while others not yet in full production dip to 5t/ha. Hamilton-Foule adds that the farm also faces decreased prices as the global economic downturn and rising avocado volumes from Peru affect demand and supply.
Source: farmersweekly.co.za