In his 11 years at the helm of an Alexandria dairy farm, Tshilidzi Matshidzula has grown a herd of 49 cows into a thriving business supplying milk to national brands – and his work is far from done.
Matshidzula, manager of the company Matshibele, which supplies milk to Shoprite through the Coega Dairy, said he planned to grow the company by 30 to 40% over the next two years.
Matshibele already aims to produce 15 000 to 16 000 litres of milk a day at peak production, from nearly 800 cows.
“We are constantly expanding the business,” Matshidzula said.
“We are currently constructing a massive dam and developing an irrigation [system] that would enable us to add another 250 to 300 cows, as it is very dry land and [dairy farming] is pasture-based.”
Matshidzula, who owns 40% of the business, joined the farm in 2007 when it was still a beef farm run by the Longvale Trust.
At the time, aged 19, he moved from Limpopo to complete the in-service year required to complete his diploma in animal science.
“I was still very much a product of university when I started working as a farm manager. We decided the beef venture was not taking the business anywhere.
“Part of the plan was to sell milk in the local communities of Alexandria township, but the market is unpredictable. You don’t know many litres you would sell in a day, [which makes it] unsustainable.”
He and his mentor on the farm, Walter Biggs of the Oakleaf Business Trust, decided to produce milk for the commercial market instead and started supplying milk to Clover, but the business grew slowly.
A turning point came for the business in 2009, when Longvale Trust founder Thembile Bethe was murdered while in the process of buying out the farm’s beneficiaries.
“[Later], Walter was offered the opportunity to keep buying out the beneficiaries. Most of them were older and had no interest in farming.”
The farm was eventually converted to one business under the name of Matshibele.“At the time we had between 250 and 300 cows, and we had the choice to either stay a small player or look at ways to grow the business.”
The business began supplying milk to the Coega Dairy in 2011.
“The milk is used for Shoprite’s [Ritebrand] UHT milk and some goes to Famous Brands to make cheese.”
Matshidzula said he had learnt one important lesson.
“We ticked all the right boxes for government funding, but it didn’t happen. That taught me you can’t rely on other people to reach your destination – though without a successful mentor, the farm wouldn’t have worked.
“For anything related to land reform to be successful, you need a willing learner and a successful mentor.”
Coega Dairy chief executive Victor Korsten said the company was proud to be associated with Matshidzula.
“We have experienced an unbelievably positive outlook from a young milk producer with a passion for dairy farming that is contagious,” Korsten said.
“One can feel the energy and enthusiasm among the personnel and staff when visiting the dairy parlour at Matshibele.”
Korsten said Matshibele was expected to deliver just more than 13 000 litres a day on average.
In a statement, the Shoprite Group said: “[We are] proud to partner with suppliers like Tshilidzi.
“While job creation and economic growth rely on the development of entrepreneurs and small and medium businesses, poor economic conditions and regulatory obstacles stand in the way of entrepreneurial growth.
“The group has been active for some years in establishing a support ecosystem for small businesses and entrepreneurs among its suppliers.”