Avo farm's long journey to profitability

Land restitution farms in South Africa have a patchy success rate, with many going to ruins after the change in ownership. Failure is usually attributed to the sudden change in management from those with a farming background to those without, as well as a critical lack of operating capital. Lindi Botha spoke to Tom Mdluli of the Matsafeni Trust about surviving despite the challenges, and their plans to expand the operation.

- Lindi Botha

The Mataffin farm on the outskirts of Mbombela in Mpumalanga was one of the first in the area to be transferred back to the original owners in 2003 as part of South Africa's land restitution programme.

The Mdluli clan occupied the land around 1840, when their leader, Matsafeni Mdluli, a Swazi chief, conquered the area. After the Native Land Act was passed in 1913, the clan was removed from the land. Ownership thereafter changed several times before the land was bought by HL Halls & Sons, which is today synonymous with avocado production.

By the time the farm was bought by government and returned to the Mdluli clan, many decades of farming had completely transformed the landscape. Thriving avocado, litchi and pecan nut orchards now covered the land, delivering an export crop with significant value. While the clan rejoiced at their victory in claiming back their ancestral land, the challenges that lay before them were evident.

FAST FACTS

Land restitution farms face major obstacles to becoming going concerns.

Commercial banks are reluctant to offer credit to these farms.

Assisted by HL Halls & Sons, the Mdlulis have remained in production for 20 years.

Tom Mdluli, one of the members of the Mdluli clan, explains: "Initially, the workers who were living on the land and employed by Halls were included in the landownership trust. This brought the number of households in the trust to 1 500. We faced tremendous infighting and it was incredibly difficult to run the business." The sheer number of beneficiaries also means that the business has yet to declare dividends.

SMALLER IS BETTER