South Africa: African breweries tap into local barley

Agribusiness and agro-processing are increasingly being recognised as critical drivers of Africa’s economic future, with private-sector investment and government partnerships creating new opportunities for growth, trade and employment, says local beermaker South African Breweries (SAB), Engineering News reported on October 31.

The company notes that, the local beer industry contributes more than R2.2-billion to agricultural GDP and supports about 38 000 jobs in farming, while also supplying raw materials to breweries across the continent under the AB InBev group.

At the Cheers to Farmers event in Taung, in the North West province, last month, SAB highlighted how investment in small-scale farmers was reshaping both local economies and Africa’s wider brewing value chain.

Farmers in Taung delivered 17 400 t of malting barley this year, all procured by SAB, with some destined for local breweries and some, once malted, supplied to sister companies including Zambian Breweries, International Breweries in Nigeria and Kalahari Breweries in Namibia.

The company demonstrated how, in this way, local supply chains are feeding into continental markets, a development that is expected to grow under the African Continental Free Trade Area.

The Taung project is a tangible example of how partnerships between government, farmers and business can translate into long-term value, said North West Agriculture and Rural Development MEC Madoda Sambatha during the event.

The impact of SAB’s agricultural programmes in Taung has been underpinned by R70-million in loans and R16-million in mechanisation support, co-financed with the South African Cultivar and Technology Agency to help local farmers.

SAB reported that this financing enabled 80 farmers to plant and harvest more than 2 100 ha of barley, sustaining 292 direct and seasonal jobs and producing average yields of 4.9 t/ha.

SAB Africa Zone procurement and sustainability VP Kyle Day emphasised the company’s reliance on local sourcing and its role in supporting food security and economic growth.

“Ninety-five percent of the raw material inputs that SAB purchases are sourced locally in South Africa. Every year, SAB works with about 500 farmers, and we ensure that small-scale farmers receive direct hands-on support.”

Many participants in the programme were women and young people, “boldly shaping the future of agriculture in South Africa,” he added.

Day also highlighted SAB’s investment in research and development (R&D) centres in Caledon and Calitzdorp, in the Western Cape, where agronomists are trained to improve yields.

The company’s approach is “intentional and structured”, focusing on mechanisation, training and R&D to ensure that farmers can compete regionally and internationally.

“Between 2022 and 2024, about 50 farmers delivered a combined 8 000 t (about 4 000 t/y) of malting barley through SAB’s support programmes, while this year 62 farmers in Taung are already projected to deliver about 4 000 t, just nine months in,” he said.

Day described the company’s agricultural footprint as “integral to its 130-year history in South Africa”.