A leading Eastern Cape pet food manufacturer is poised to take a bigger bite of the lucrative dog food market after the completion of a R70m upgrade to its Graaff-Reinet production facility which has significantly increased the company’s production capacity.
In an unusual description of its new total manufacturing capacity, Montego Pet Nutrition said this week that its factory could now manufacture the equivalent of feeding “approximately 715,000 adult Jack Russells daily”.
The 30% increase in production capacity has also boosted job-creation in the region, with nearly 30 new jobs having been created as a result of the investment.
Montego marketing manager Wilfred Cawood said on Wednesday that a significant portion of the capital expenditure had been sunk into the company’s packaging division – which was critical in supporting the operation’s increased output.
Montego’s expansion also included a new 3,600m² depot at a cost of R15m.“As a result, the company has seen nearly 30 direct positions across various levels, including operational, managerial and supervision,” Cawood said.
He said the expansion project had been carried out to meet not only an increase in SA demand, but also demand in the company’s international markets,
Montego distributes its products – which include cat foods – to about 2,000 stores across 16 countries, including SA, Mozambique, Namibia, the Seychelles, Tanzania and the United Arab Emirates.
“We have certainly been growing our market share in the South African market,” Cawood said.
“There are a number of reasons for this, and they include our product range, pricing, marketing and sales strategies.
“We have invested in relationship-building and establishing trust with our retailers and consumers.
“These strategies have helped grow our market share, and against importers in particular,” he said. The aim of the developments was not just to grow its operations, but to do so sustainably and responsibly.
“We’ve made sure to include the people who are affected by our business in every way, and our environment, in our strategic growth plans.
“Montego prides itself on its minimum wage policy that is currently 67% higher than the proposed minimum wage amount in South Africa.
It is something that speaks to the core values of our company, and our efforts to help grow the local economy of our much-loved town,” Cawood said.
He said to save resources, an 8KW three-phase solar system to run its new office block – construction of which is under way – had been installed.
Montego was also building its own 500KVA solar panel plant, capable of powering 30% of the factory’s daytime electricity usage.
“We have been blessed to find ourselves in the position where demand for our products is continuously high, even in the more challenging economic times SA has faced,” Cawood said.
“We’ve experienced double-figure growth year on year since we first opened our doors in early 2000.”