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EC farm workers trust takes ownership of thriving citrus farm


An Eastern Cape farmer workers trust has taken ownership of a farm in the Sarah Baartman District Municipality under government’s 50/50 programme.

The Minister of Rural Development and Land Reform, Gugile Nkwinti today handed over the Sun Orange Farm in the Kirkwoord area to 50 beneficiary farm workers.

This, as part of the implementation of government’s policy framework on strengthening the Relative Rights of People Working the Land.

The 50/50 programme allows government to acquire a stake in farming enterprise on behalf of the workers and to purchase the land in order to provide tenure security for the farmworkers.

According to a Department statement on Friday, Minister Nkwinti described the Sun Orange Farm agreement, which has three shareholders, including the workers trust, as a ground-breaking.

He said as a consequence of the 50/50 programme, farm workers and dwellers will no longer have reason to fear farm evictions because tenure security will be secured.

“The Sun Orange Farms (Pty) Ltd in the Kirkwood area is owned by 3 Shareholders namely; James Hannah owning 13.6%, Sontule Investments (Pty) Ltd represented by Dr Brummer with 6.4%, IDC (40% direct shareholding) and Industrial Development Corporation (IDC) - DFD (40% held to behalf of Workers Trust).”

The Workers Trust, comprising 50 beneficiaries was established in 2001. The company is involved in citrus farming and currently owns five (5) portions of land totalling 756 hectares, 300 hectares is under cultivation.

“The farm is a thriving enterprise with some of its produce exported to international markets. At present 35 permanent jobs have been created and 53 long-term contract workers are employed with a further 250 seasonal workers,” the Department said.

The farm secured a R38 000 000 Grant from National Empowerment Fund (NEF) to purchase the 40% Workers Trust portion of the IDC shareholding for R20 066 000.

According to the Departrment of Rural Development and Land Reform, the Minister urged the beneficiaries to treat this farm as a business not a project. He told the workers they are not typical workers but we are shareholders of the business therefore they must take good care of it to ensure its growth.

“In conclusion the Minister Nkwinti said the acquisition of equity by farm-workers brings fundamental change in the control mechanism of the farm must follow and that it introduces co-management of the farm based on relative equity-holdings and the capacity of each participant in production and management,’ the statement said.



(Photo supplied: Min Nkwinti with one of the beneficiaries)