Letshabo Sons Agricultural Products Primary Cooperative Limited
| Business Location: | Rural area - Villages |
| Province | North West |
| Branch: | Dr Ruth Mompati |
| Business Start Date: | 2011-01-26 |
| Busniess Type: | Co-operative |
Business Dynamics and Challenges
Business Activities:
The cooperative owns 30 hectares of land in Matolong area of Taung and currently leasing about 90 hectares of land from different farmers in Taung. The plots are located within 10Km radius from Taung Central Business District. The Farms have the potential to produce a variety of vegetables including Cabbage, Onion, Beetroots, Tomatoes, Spinach, Carrots, and Pumpkins. These products are categorised and grouped into summer and winter products as per their seasonal production cycles. Letshabo Sons Agricultural Products Primary Co-Operative Limited is currently supplying local markets like stock farmers, Boxer Supermarket, Overland Supermarket, local businesses, and local hawkers. The recent lucrative market reached by the cooperative is both the Johannesburg Market and the Fresh Produce Markets in Kimberley and Klerksdorp.
Challenges/Needs:
Letshabo Brothers does not have modern technology in their business, which negatively impacts on their capability to increase production. According to the owner attempts have been made to modernize production, however, lack of machinery has led to mediocre production outputs. The company approached Seda to benefit from overall business development services and support. Their goal is to acquire modern machinery and move away from renting or hiring equipment from other farmers. The business also wishes to develop a business plan that will be used in the future to attract investments and partnerships.
Intervention Insights and Results
Intervention Details:
The cooperative was assisted with an application for Cooperative Support and Development Programme (CDSP), which was approved to assist them with a tractor and disc harrow farm implement. They are currently being assisted with the development of a bankable business plan.
Outcome Details:
The cooperative received funding of R2,458,000.50 through CDSP to purchase a 98KW tractor and a 24-Disc disc harrow. Their revenue increased from R4,969,259.00 to 5,431,763.00. The employees increased from 33 to 40 employees.
Client Feedback
Client Comments:
“Thanks for helping our business receive the equipment, this will surely be used to increase employment in the district”. Mr Letshabo indicated.
