A significant number of previously disadvantaged farmers now participate in the commercial cultivation of wine grapes. Many of these new farmers purchased farms from existing commercial farmers. Although these farms are situated in high potential viticultural regions, hardly any noteworthy progress has been made since the farms were acquired.
A survey to identify these farms was subsequently conducted by ARC Infruitec-Nietvoorbij in collaboration with the Provincial Departments of Agriculture of the Northern and Western Cape respectively. The purpose of the investigation was furthermore to point out and address possible limitations and shortcomings likely to restrict the development of these farms, so that they might develop into successful businesses.
Thirteen farms were identified and surveyed. The findings showed that certain factors such as a lack of bridging capital, healthy cash flow, business management skills, viticultural knowledge and management skills, as well as the participation of the trustees in the management of these farms, hampered the success of these farms.
Between 35 and 40 and more families joined forces to apply for funding by the Land Reform Programme (LRAD programme) in order to purchase the farms. Business plans drawn up by private consultants served as the basis for the purchase of these farms. Although some of the beneficiaries were familiar with certain aspects of agriculture, the survey showed that a large percentage of the beneficiaries had little knowledge of the cultivation of wine grapes. The farms were purchased in good faith in the belief that they would generate sufficient income to improve the beneficiaries’ financial position. However, most of these parties were unaware of the need to make provision for operational capital to manage these farms once the purchase had gone through. Consequently there was a lack of funds for the necessary operational expenses and many of the farms were doomed right from the start.

Photo 1. Odette Beukes and Dr Johan van Zyl (research and technology manager of ARC Infruitec-Nietvoorbij) with personnel of Gelukshoop and Nooitgedacht Kleinboere at the diploma ceremony.
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Researchers from ARC Infruitec-Nietvoorbij decided to assist two of these farms, namely Gelukshoop and Nooitgedacht Kleinboere, both of which are situated in the Bonnievale/Swellendam area.
Gelukshoop is situated in the Bonnievale area, directly alongside the Gelukshoop road to Drew. It is a commercial farm that produces wine grapes and was purchased by a group of 40 families (with 160 potential beneficiaries), with funding by LRAD. The farm is managed by two of these trustees, Henrik Fortuin and Monde Xanywa, assisted by six shareholders (as permanent labourers). Additional labour is hired at peak times. The farm has 16,8 ha of vines and the grapes are delivered to Bonnievale Cellar.

Photo 2. Personnel at Gelukshoop Kleinboere busy pruning a vineyard in the course of the training.
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The farm Nooitgedacht Kleinboere is situated directly alongside the road from Ashton to Swellendam, at the foot of the Langeberg. The farming activities focus on viticulture and milk production. Vines have been established on 6,5 ha and the remaining portions of the farm consist of both irrigated and natural grazing for the dairy stud. Altogether 35 families (approximately 175 potential beneficiaries) are shareholders in the trust. Of the initial five persons who were permanently resident on the farm, only two remain. Seasonal labour has to be hired regularly for essential viticultural actions such as pruning and suckering.
In the course of 2004 researchers from ARC Infruitec-Nietvoorbij, with financial assistance from Winetech, launched a project to enable the beneficiaries to manage the farms efficiently and profitably through technology transfer of viticultural knowledge and research results as well as practical training. In order to ascertain which viticultural practices had to be addressed, the current condition of the vineyards had to be investigated.
The first step was to conduct a survey among all parties concerned so as to determine their socio-economic circumstances as well as to survey the workers’ levels of expertise in order to determine which information had to be conveyed and which skills had to be learnt. Results obtained from the surveys indicated that a large percentage of the beneficiaries did have experience of farming and to a certain extent they also had a limited background knowledge of viticulture. Knowledge of financial management was lacking. This problem was addressed by Odette Beukes of ARC Infruitec-Nietvoorbij, who presented a training course in basic business skills in 2006. All personnel on both farms underwent the training and diplomas were issued on completion of the course (Photo 1). These skills thus learnt are now being implemented with great success by the farm manager of Gelukshoop.

Photo 3. Personnel at Nooitgedacht Kleinboere busy pruning a Sauvignon blanc vineyard during training.
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As a further step towards the success of these two farms, a meeting was held with all interested parties in 2006 to sensibly coordinate technology transfer and training. Johan Carstens (ARC Institute for Soil, Climate and Water), Prof Daan Louw (Optimal Agriculture Business Solutions) and Gert van Wyk (VinPro) were co-opted to evaluate and adapt the initial business plans, on the basis of which the LRAD funding for the purchase of the farms had been approved. To draw up more realistic business plans for each farm, complete surveys of farm costs and income were conducted and the data fed into a farm planning model. The results with regard to the effectiveness of the farming business plans, together with recommendations regarding the necessary adjustments, are provided annually to participating farm managements. The implementation and monitoring of affirmative action in each of the farming operations also receive attention.
The project leader, Danie van Schalkwyk, initiated the transfer of vineyard technology and training in the course of 2005. It was quite clear that pruning practices and canopy management on both farms were some of the biggest reasons for the farms’ low production volumes and that these aspects had to be addressed urgently. To improve this situation, theoretical as well as practical training in pruning and canopy management have been offered on both farms since 2005 and the personnel’s knowledge and skills in this regard have improved considerably (Photo 2 & 3).
After the purchase of Gelukshoop the vines’ production initially decreased due to incorrect vineyard management practices and ineffective management. This situation has been reversed since the involvement of ARC Infruitec-Nietvoorbij, in collaboration with the Western Cape Department of Agriculture, VinPro, Bonnievale Cellar and OABS and a dramatic increase in production has taken place. This may be ascribed to the fact that pruning practices have improved and both canopy management and weed control have been implemented. Since 2004 production has increased by 66 tons with a considerable improvement in grape quality, which contributed to improved grading and remuneration. Gelukshoop works closely with the cellar and the VinPro’s viticultural consultant to ensure that they implement the correct viticultural practices with a view to producing high quality grapes. As a result the grapes from one of their blocks were used to make a winemaker’s class wine in 2007.

Photo 4a (top) & b. Cover crops were sown in two blocks on Gelukshoop to demonstrate the effect of cover crop cultivation.
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Weed control was one of the biggest problems that impacted negatively on both LRAD farms. The weed control expert from ARC Infruitec-Nietvoorbij, Dr Johan Fourie, was enlisted to address this problem. In the 2006/2007 production year he gave a lecture and practical demonstration on the identification of the various weeds and chemical control thereof. The influence of cover crop cultivation to control weeds, inter alia, was also covered in depth. Since the Trustee management of Gelukshoop opposed the use of cover crops, the project manager saw fit to have various cover crops established in two vineyards for demonstration purposes. Excellent growth was obtained and the effectiveness as cover crop was very obvious (Photo 4). As a result of this demonstration cover crops will probably be established in all the vineyards on Gelukshoop in 2008.
The managers of Gelukshoop Boerdery regularly attend information sessions presented by the cellar and other agricultural bodies and the manager, Mr Fortuin, stays abreast of the latest IPW guidelines. Thanks to good bookkeeping and improved viticultural practices, the farm’s financial status and production compared very well with the 2006 average of the vineyard study group for the Robertson/Bonnievale area which is run by Gert van Wyk of VinPro. They have drawn up a long-term cultivar replacement programme in collaboration with their cellar and it is clear that this LRAD farm under the present management has the potential to compete with other commercial farms in the area.

Photo 5. Nooitgedacht busy establishing a block of Chardonnay aided by a group of contractors from Bredasdorp.
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The Rural Development Division of the Western Cape Department of Agriculture supports these LRAD farms by means of financial aid from CASP funds and also assisted Nooitgedacht to establish an additional 1 ha of Chardonnay (Photo 5). Although Nooitgedacht has the potential to manage their vineyards profitably, financial decision-making remains a problem. At this stage there is good collaboration with Gelukshoop, whose people helped to prune the vineyards on Nooitgedacht last season and also assisted with spraying of weeds in the vine row. Aid is mutual, in fact, since Nooitgedacht made one of their tractors and a trailer with a harvesting bin, as well as their truck, available to Gelukshoop during the pressing season. This enabled Gelukshoop to deliver all their grapes to their cellar on time. It is heartening to see this kind of collaboration among LRAD farms and goes to show that the owners of these farms are committed to making a success of these projects.
At this stage it is clear that the success of these LRAD farms depends largely on the Trust management’s understanding of farming and the realisation that financial investment in vital viticultural actions (also in other branches of farming) is absolutely essential to improve production, quality and income.
For more information contact Danie van Schalkwyk at ARC Infruitec-Nietvoorbij, tel (021) 809-3156, fax (021) 809-3261 or email vschalkwykd@arc.agric.za.