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News Article - Food Processing
ECDC, DEAET help establish Butterworth bakery
Posted on: Friday, 09 June 2006. Article source: Eastern Cape Business News
The Eastern Cape Development Corporation, together with the Department of Economic Affairs, Environment and Tourism (DEAET), has helped establish a commercial bakery in Butterworth.
Tanda Community Bakery, which received financial assistance from DEAET which is administered by ECDC, was due to begin operations in early May and will be the first in the province to be 50 per cent owned by women.
The shareholding of the bakery is equally made up of Thabile Marketing which is headed by Chris Ncede and the Mnquma Farmers’ Trading Cooperative, which is led by chairperson Vivienne Jali.
The cooperative consists of a group of various farmer-related associations from the Mnquma and Mbashe districts, which is the area of former Transkei, south of the Bashee River. Membership of the cooperative is expected to be as high as 800.
Thabile Marketing chairman and Thando Bakery sales manager Chris Ncede says that while the cooperative consists largely of women, it does have male members. It also has several young farmers.
The project, which has been three years in the making, has created a rare opportunity for these farmers, largely subsistence, to be involved in a commercial venture.
“One of our objectives for this project was to get farmers aware of opportunities in the processing part of agriculture. But it wasn’t an overnight process. After much talking, translating and finally, celebratory singing, we have got very important groups involved in this project,” says Ncebe.
A core part of the bakery’s daily business is a school feeding contract with the department of education. The bakery will supply 12 000 loaves of bread which will feed up to 84 000 children daily as far as Elliottdale, an area about 120km from Butterworth.
“The daily bread delivery to this area will be making a significant difference in many children’s lives,” says Ncebe.
“In the past, schools have experienced an erratic schools feeding programme for their pupils. This has also affected the ladies who prepare the sandwiches whose income, consequently, has also been erratic,” explains Ncebe.
ECDC project manager Ken Bern says that the project has met with all the criteria of qualifying project. It is viable and sustainable, has a market, the management team is sound and a strong black economic empowerment component. Importantly, it also has the support of the municipality and the local community.
In addition, a further 5 000 loaves will be for general sales. Other lines such as range of confectionary, biscuits and nic-nack-type chips, will also be available.
The bakery is housed in a 1200 square metre ECDC building in Zithulele which is the industrial district of the town.
The management of the bakery business such as administration and sales is to be handled by Thabile, which will be assisted by Kula Development facilitators and financial advisors IDEC over the first 12 months. An experienced baker has also been appointed.
In the short term, about 50 jobs are to be created by the bread-making side of the bakery and these positions will be filled by Butterworth residents. The number of jobs will grow to about 80 once the lines are fully up-and-running in about six months time.
Thabile has ambitious plans to expand the project beyond the bakery to include a maize and wheat mill.
Although Thabile wants to retain a small shareholding in the bakery, the team is determined to pass on enough skills and training for others to be come involved in its efficient management of the bakery.
Tanda Community Bakery, which received financial assistance from DEAET which is administered by ECDC, was due to begin operations in early May and will be the first in the province to be 50 per cent owned by women.
The shareholding of the bakery is equally made up of Thabile Marketing which is headed by Chris Ncede and the Mnquma Farmers’ Trading Cooperative, which is led by chairperson Vivienne Jali.
The cooperative consists of a group of various farmer-related associations from the Mnquma and Mbashe districts, which is the area of former Transkei, south of the Bashee River. Membership of the cooperative is expected to be as high as 800.
Thabile Marketing chairman and Thando Bakery sales manager Chris Ncede says that while the cooperative consists largely of women, it does have male members. It also has several young farmers.
The project, which has been three years in the making, has created a rare opportunity for these farmers, largely subsistence, to be involved in a commercial venture.
“One of our objectives for this project was to get farmers aware of opportunities in the processing part of agriculture. But it wasn’t an overnight process. After much talking, translating and finally, celebratory singing, we have got very important groups involved in this project,” says Ncebe.
A core part of the bakery’s daily business is a school feeding contract with the department of education. The bakery will supply 12 000 loaves of bread which will feed up to 84 000 children daily as far as Elliottdale, an area about 120km from Butterworth.
“The daily bread delivery to this area will be making a significant difference in many children’s lives,” says Ncebe.
“In the past, schools have experienced an erratic schools feeding programme for their pupils. This has also affected the ladies who prepare the sandwiches whose income, consequently, has also been erratic,” explains Ncebe.
ECDC project manager Ken Bern says that the project has met with all the criteria of qualifying project. It is viable and sustainable, has a market, the management team is sound and a strong black economic empowerment component. Importantly, it also has the support of the municipality and the local community.
In addition, a further 5 000 loaves will be for general sales. Other lines such as range of confectionary, biscuits and nic-nack-type chips, will also be available.
The bakery is housed in a 1200 square metre ECDC building in Zithulele which is the industrial district of the town.
The management of the bakery business such as administration and sales is to be handled by Thabile, which will be assisted by Kula Development facilitators and financial advisors IDEC over the first 12 months. An experienced baker has also been appointed.
In the short term, about 50 jobs are to be created by the bread-making side of the bakery and these positions will be filled by Butterworth residents. The number of jobs will grow to about 80 once the lines are fully up-and-running in about six months time.
Thabile has ambitious plans to expand the project beyond the bakery to include a maize and wheat mill.
Although Thabile wants to retain a small shareholding in the bakery, the team is determined to pass on enough skills and training for others to be come involved in its efficient management of the bakery.
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