The Dutoit Group is a leading South African producer and distributor of fruit and vegetables. Pieter du Toit, Managing Director of Marketing, talks to Ian Armitage.

The name Dutoit is synonymous with quality – just ask its customers, which include the likes of UK supermarket group Asda. The company exports about 60 percent of all its produce and 15 percent of that - around 10,000 tonnes of apples and pears - goes directly to the Walmart-owned firm. It has been supplying Asda for more than a decade.

Business Leader of the Year in the 22nd Business Leader of the Year awards run by Die Burger and the Cape Town Chamber of Commerce, Dutoit Group is without doubt a leading South African player in the production and distribution of fruit and vegetables.

“We feel very honoured to be recognised,” says Pieter du Toit, Managing Director of Marketing at Western Cape business Dutoit Group, which employs 8,000 people in high season. “The previous winners have typically been from the corporate world – this was the first time, as far as we are aware, that it has gone to an agricultural business.”

As South Africa’s leading fruit and vegetable producer, Dutoit Group, has, over a period of time, taken steps to position this family-owned business for full commercialisation. This included the appointment of core people to assist the Du Toit Family and the Dutoit Group’s management during the continual process of transformation.

“We have three divisions – Dutoit International, Dutoit Agri and Dutoit Invest,” Du Toit says.

“We are built by people who have an unwavering faith in the future.”

According to Du Toit, who grew up on the family farm in the Ceres region, the company was established in 1893.

Over the years it has introduced cutting-edge technology, innovation and high levels of client services, which fully integrates client needs in the production and packaging process.

Dutoit Group produces, packs and markets more than 15 million units of fruit and vegetables annually in both the local and international market.

“We have extensive fruit and vegetable growing divisions, cold storage and packing facilities,” says Du Toit. “Our farms and business units are managed on a decentralised basis and we specialise in integrating the production process with the needs of our customers.

“We grow, pack, market and distribute quality agricultural products - apples, pears, , nectarines, onions, potatoes, sweet potato, ,” he adds.

The key to Dutoit’s success is its supply chain and partnership model.

“We actively seek investment partners to join with us in building a superior supply chain,” says Du Toit says.

The main criteria for prospective partners are a deep passion for fresh produce and “a specific field of expertise and interest”.

“The Dutoit Group offers market access through its Dutoit and Gydo brands and marketing and distribution team. We offer technical support through a team of experts in the respective disciplines of fruit production and handling. We aid with business development. We mentor to drive entrepreneurship and create wealth. We also offer BEE initiatives through the Crispy Group,” says Du Toit. “We have an integrated development model in the sense that we go from the seed through to planting, picking, production, pack-houses, shipping, etc. We don’t own shipping, but we try to negotiate and establish partners with knowledge to deliver to the customer a good business opportunity in our products.

“It is all about keeping costs down and making it simple – the process of delivery simple.”

A great example of this partnership model in practice is Cape Fruit Coolers, which Du Toit is chairman of. It is a joint venture between Maersk Group, Goede Hoop Sitrus, Ceres Koelkamers and Dutoit Group, which offers a pallet cooling service for the fruit exporters that make use of the Cape Town harbour. “Cape Fruit Coolers prides itself in perfect protocol handling coupled with personal service levels unheard of in this very important part of the cold chain,” says DuToit.

The Dutoit Group has a 37.5 percent share in Cape Fruit Coolers, which recently increased its plant in the Killarney Yarns Industrial area by 30 percent. “It is to meet the growing needs of fruit growers to meet the shipment of their products,” Du Toit explains. "In a highly competitive market environment, Cape Fruit Coolers team is positive that this expansion will make export more competitive. The expansion includes new inspection facilities.

“Cape Fruit Coolers plays an important role in the value chain from farm to store shelves. They help to keep product fresh and enable it to enjoy a longer shelf life.”

Cape Fruit Coolers is an independent organisation with the sole aim of servicing the fruit export industry. It is a world-class cold storage facility, making use of cutting edge technology and state-of-the-art refrigeration facilities.

Dutoit’s growth target is to “double” the company every five years. It has been successful in that over the last 50 years, according to Du Toit. “Obviously it gets more complicated the bigger you get. That is still our target and we believe we have got policy and strategy in place to do that.

“We will look to maximise our existing resources, while seeking out new partners. I think this partnership approach is unique in the industry – it certainly isn’t common. Agricultural land all over the world, but especially SA is a big investment. We can help partners maximise their investment.

“Of course the big uncertainties in SA these days are about land reform policy from Government. But you have to accept policy change as the rules of the game; we concentrate on what we can control and that is that we need to be internationally competitive and our customers want us bigger – and we will give them that. We are looking to grow. We want to be run as a commercial, internationally competitive company.”

The rand's strength had made the past year difficult for the group - the currency's 15 percent growth in the past year, with a five percent growth in operational costs, had resulted in a 20 percent hit on the com¬pany's income. Du Toit says labour makes up 40 percent of the company's operational costs, and water and electricity made up another substantial contribution.

“But in spite of tougher times, the company has remained profitable - the operation is slick,” he says. “And we have a wealth of expertise and knowledge to draw on.

“Prices are set according to a seasonal programme and then reconfirmed on a three-week basis,” Du Toit adds. “If price agreement can not be reached with a retailer for instance, the volumes are readjusted and the fruit redirected elsewhere.”

Up next is growth on the African continent. Dutoit is the apple of Walmart’s eye (through it’s work with Asda, which it has been supplying with fruit and vegetables since 1997 when the South African agricultural market was deregulated).

“Our long-standing relationship with Asda has given us stability in tough times and, also, it means that where Walmart goes, our fresh produce could follow.

“We are looking to expand in Africa, the Middle East and the Far East. These are markets that are very interesting to us.

“We are very positive about our position. We are in a good production area and are in a position to capitalise on new opportunities,” Du Toit concludes.