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FEATURE www.noordfed.co.za essential magazine ...essentially your business Not just run-of-the- mill Not just run-of-the- mill

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Not just run-of-the-mill

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Page 1: Noordfed

F E A T U R E

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Not just run-of-the-mill

Not just run-of-the-mill

Page 2: Noordfed

Not just run-of-the-mill

Not just run-of-the-mill

NoordfedEiendomsBeperk, a subsidiary of agricultural group NWK, has recently acquired a second milling company in KwaZulu-Natal. Essential Business looks at the company's decision and its plans for the future.

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As a leading provider of agricultural

services and inputs, NWK Group’s

activity is vast and varied —

spanning storage solutions, financing

packages, agri-economic advisory services

and more. The group has over 100 years’

experience serving the South African

agricultural market, with the bulk of its

activity and distribution taking place in the

North West Province.

One example of this activity is Noordfed Ltd,

a NWK subsidiary based in Lichtenburg. As a

milling company that specialises in maize

and wheat, Noordfed’s primary activities

include the production and distribution of

white maize milling products such as white

maize meal, white maize rice and white

maize samp for both human and animal

consumption. These products are distributed

to a number of established brands and long-

standing clients, including 10/10, Super

Goal, HayDay, and Fat Fowl chicken feed.

In February this year, Noordfedalso acquired

100% interest in Empangeni Milling, another

white maize milling company based in

KwaZulu-Natal.

A former subsidiary of holding company

Grindrod Ltd, Empangeni Milling is already

well established in the KwaZulu Natal maize

market. The merger remains safely within

Noordfed’s area of expertise, and is as a

consequence a relatively low risk endeavour

for NWK Group.

The venture will see NWK’s presence expand

geographically into the “garden province” of

South Africa. Prior to this acquisition,

Noordfed’s produce was primarily

distributed in the North West and Gauteng,

with only limited distribution in Limpopo

and KwaZulu Natal — but this is now set to

change.

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“Empangeni Milling/Noordfed has delivered

the same service as before to our client

base. We foresee a seamless integration

that will have no effect on orders, product

availability or deliveries,” said Hendrik

Roux, former CEO of Empangeni Milling.

Roux has since been appointed as

managerial head of Noordfed.

“A modern mill, the geographic location

close to the raw material, and our

established market share in KwaZulu-Natal

pave the way for the vision that Empangeni

Milling/Noordfed has of the future — to

ensure that we feed the people of South

Africa with passion and with the best-

quality product,” said Roux in a press

release.

Several months into the acquisition,

Noordfed is already set to embark on its

next project — the establishment of a

Broad Based Black Economic Empowerment

partner within the firm. The company is in

consultation with Intshona Holdings, a

black-women-owned company established

to empower rural women and farmworkers

in South Africa.

The transaction proposed by Noordfed

would be to the socio-economic benefit of

female workers in rural areas and farming

communities. Discussions are still

underway, but the project looks to be very

promising indeed.

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PHESA

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Noordfed(Pty) Ltd

Agricultural Service

85 Thabo Mbeki St,

Lichtenburg, 2740,

South Africa

Tel: +27 18 632 5037

Contact our office in South Africa

Contact Details

www.essent ia lbus iness.com

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