Drienfontein Agricultural Co-Op
Business Location: | Rural & Township |
Province | Eastern Cape |
Branch: | Nelson Mandela Bay |
Business Start Date: | |
Busniess Type: | Co-operative |
Business Dynamics and Challenges
Business Activities:
Agriculture
Challenges/Needs:
Despite its strong agricultural potential, Driefontein has faced several challenges:
• Drought conditions: The area has been severely affected by recurring droughts, impacting grazing conditions and feed availability.
• Stock build-up phase: The Co-op only received livestock in June 2024, placing them at an early stage of herd development and income generation.
• Infrastructure needs: Fencing, water infrastructure, and feed production facilities require upgrading to meet production targets.
• Working capital constraints: Limited resources have slowed the pace of expanding livestock numbers and investing in sustainable fodder production.
Intervention Insights and Results
Intervention Details:
Through partnerships, training, and funding support, the Co-operative has taken decisive steps to strengthen its operations:
• Capacity building: The Chairperson and management team have received mentorship and training from BKB and Mohair SA, improving governance and production management.
• Practical training opportunities: The farm now hosts 6 agricultural internship students from universities, ensuring skills transfer and knowledge sharing while reducing labour shortages.
• Financial support: The Co-op has been referred to Sedfa Finance Division to access additional funding for infrastructure upgrades and working capital.
• Sustainable production planning: Plans are underway to establish 16 hectares of kikuyu, lucerne, and green feed, supported by borehole water and expert agricultural advice. This will improve fodder security and resilience against drought.
• Capacity building: The Chairperson and management team have received mentorship and training from BKB and Mohair SA, improving governance and production management.
• Practical training opportunities: The farm now hosts 6 agricultural internship students from universities, ensuring skills transfer and knowledge sharing while reducing labour shortages.
• Financial support: The Co-op has been referred to Sedfa Finance Division to access additional funding for infrastructure upgrades and working capital.
• Sustainable production planning: Plans are underway to establish 16 hectares of kikuyu, lucerne, and green feed, supported by borehole water and expert agricultural advice. This will improve fodder security and resilience against drought.
Outcome Details:
The interventions have already started showing results:
• Business growth: Turnover increased from R695,700 to R787,890, reflecting a 13.25% growth rate despite drought pressures and being in an early stock-building phase.
• Employment creation: Permanent employees increased from 11 to 13, while an additional 6 agricultural interns are benefiting from hands-on training.
• Enhanced expertise: Ongoing mentorship from industry leaders has positioned the Co-op to align with best practices in livestock farming and market access.
• Community impact: The farm is becoming a skills hub for young agricultural students while generating meaningful employment for the local community.
• Business growth: Turnover increased from R695,700 to R787,890, reflecting a 13.25% growth rate despite drought pressures and being in an early stock-building phase.
• Employment creation: Permanent employees increased from 11 to 13, while an additional 6 agricultural interns are benefiting from hands-on training.
• Enhanced expertise: Ongoing mentorship from industry leaders has positioned the Co-op to align with best practices in livestock farming and market access.
• Community impact: The farm is becoming a skills hub for young agricultural students while generating meaningful employment for the local community.
Client Feedback
Client Comments:
“Driefontein Co-operative is committed to building a sustainable livestock enterprise that not only creates jobs but also positions our members as active contributors to South Africa’s mohair, wool, and meat industries. With the training and support we have received, we are confident that Driefontein will grow into a model of successful co-operative farming in our district.” — Lloyd James, Chairperson, Driefontein Agricultural Co-operative