Citrus packers hoop shares

One of South Africa’s best-known citrus packers, Goede Hoop Citrus (Pty) Ltd, has concluded an empowerment deal with its staff which has seen employees acquire a 21 per cent stake in the company. This means that 15 per cent of the company’s shares are now held by workers who were previously disadvantaged.

The company, which is a leading marketer of South African citrus fruit globally, has an annual turnover of R230 million (£16.5m).

“We are excited that as grower-owners of this proud company, we can now share this ownership with a large number of people who play such an important part of our success,” said Dirk Visser, chairman. The deal also gives workers main board representation for the first time. One of the six trustees of the Goede Hoop Citrus Ltd Empowerment Trust, Daan Pieterse, pictured on right, has also been nominated a director of the company.

Pieterse says the members of the trust are eager to embark on the new venture. “It is an historic moment for all of us and reflects the trust that has been built up over time between all of us involved in Goede Hoop Citrus. Our challenge is now to help keep the production, packaging and marketing of citrus as profitable as possible because then all shareholders will derive most benefits.”

Goede Hoop Citrus is located in the heartland of the Western Cape citrus growing region. The company has three packhouses with a capacity to pack 100,000 tonnes of fruit annually.

The establishment of the firm 80 years ago is credited with providing impetus for the development of the modern citrus industry in the Western Cape which since has developed strong links with the international trade.

Ceo Gabrie van Eeden said the philosophy of the invigorated company is to bring the market back to the farm. He says shareholders are not obliged to pack and market their fruit through Goede Hoop Citrus and its performance determines how much fruit it is able to contract. “I believe we are doing a lot of things right,” he said.