Madiba’s Lessons For Business

The children were always close to Madiba's heart. We try to perpetuate this love - showing it through the Fairhills learner nutrition programme, amongst others.

The children were always close to Madiba’s heart. We try to perpetuate this love – showing it through the Fairhills learner nutrition programme, amongst others.

The father of modern South Africa passed away peacefully on the 5th of December at 20:40 SAST. This marked the end of an era for our nation, an era of transformation, reconciliation and selfless leadership lead by the moral compass of our greatest son. This great southern nation has just concluded ten days of mourning in what has been, an emotional roller-coaster for most. Obviously, he too is only mortal, and all mortals have their detractors. Minority negativity aside, no man has done more to unite differing opinion, ethnicities, ideologies and religions than Nelson Rolihlahla Mandela.

Does this mean South Africa’s work is over? No, furthest from it. Mandela merely built a multi-racial and democratic foundation on which the hopes and dreams of all South Africans must be built. He could never have fixed decades of legislated segregation and centuries of ethnic bigotry in his five year presidency and near twenty-four years of post-imprisonment. His work is up to us now; the torch of his legacy has been passed to the fifty-million children of the south.

South African businesses have their role to play. Madiba has also taught the private-sector valuable lessons about becoming part of positive change. It has been said by some that he was a socialist, even a communist, at heart. There is truth in this. However, Mandela was foremost a pragmatist, a learned man and a listener; he realised the world had changed, he realised all sectors were needed to build a nation, non-governmental, governmental and private. Rather than being a rigid idealist, he adapted his vision to a changing world, just as he expected far-Right-and-Left South Africans to adapt theirs. Instead of nationalising every strategic industry, he chose to teach industry something more valuable.

Ubuntu: Encompassing all noble human virtues, I am me because of you. So it must be with business in South Africa. Business will always need to pursue a profit, for without profit, small businesses, entrepreneurs and corporations cease to exist. Without it, job-creation will unsustainably fall completely upon the shoulders of the State and entrepreneurship and private-innovation will perish. However, we must do so responsibly, sustainably and inclusively. We must do so in the spirit of Ubuntu, where no cog within the machine of humanity and indeed, business, can exist without the other; the hands that pick, the hands that transport, the hands that vinify, the hands that market and those that manage; neither can work if the other does not.

With our troubled past, the need for corporate social responsibility in no stronger than in South Africa. Madiba had influenced our company, as we awoke early to the needs of our community. Thus, we did not hesitate to join Origin Wines in starting our FairTrade, Fairhills project. He opened our eyes to our responsibility as not only being to our clientèle, but also to our people.

We pledge as a company to live his ideals, we promise to perpetuate his legacy in our own small way. We are all responsible: labour, business, individuals, government, irrespective of dark or light complexion. It may sound opportunistic for a company to hop on the Mabida bandwagon. However, his call for change, his call for compassion and his call for Pan-African-betterment knew no bounds. We will continue to do what we can to fulfil his dreams. For his dreams weren’t his own, they were the dreams of a nation.

By Andres de Wet

Age Time Bomb

In numerous developed countries, particularly places like Italy and Japan, an ageing demographic is becoming problematic. The recent financial crisis was a contributing factor to short term economic contraction, but gone are the days of long-term rapid growth for these nations, as the population shrinks and the workforce ages.

It may be somewhat shocking to our colleagues in the developed world, but farm employers are responsible for housing their employees and immediate families from birth to death. No other sector in South Africa works in this way, and probably few economic sectors anywhere in the world. Whatever the argument may be for and against, this is the status quo that has been entrenched in our labour legislation and secure of tenure.

This creates a plural problem; agriculture is heavily burdened by additional responsibility and financial burden, as rural employees are burdened by their work and domicile being inextricably linked. It creates a level of insecurity amongst both parties: employer and employee. As aforementioned, it is the standard arrangement from the distant past. Creating more independence will be difficult and may take a generation or two. As for now, farm-owner and farmer-worker remain linked by land, law and legacy.

One issue threatens employer and employee: an ageing workforce. Just as the introductory analogy places strain on developed nations, the swelling population of rural retirees is causing logistical stress and infrastructural shortages. By law, retirees must be accommodated on the farms where previously employed; but there are just so many homes.

When a family home is occupied by an unproductive retiree, it means that a productive young family cannot be accommodated and more jobs cannot be created. This is a cruel truism, not to insinuate our elderly do not require our care and affection, but rather to find a workable solution that sees the elderly, the productive youthful and agri-business owner benefit. This too, is important for a country with chronic unemployment and farms that are generally understaffed and financially overburdened.

Looking for a holistic solution, we would like to embark on the same mutually beneficial journey we have taken with Lorraine Primary School, our early-childhood development programme and the FairExchange Healthcare Post. The long-term solution is not working farm-by-farm, but by looking after the needs of the aged as an entire Fairhills community. The retirees have similar needs and similar issues, these might include lack-of-mobility, need for additional healthcare, easily managed and maintained housing etc.

The darker side lurks beneath; where as any young family could become aggrieved by elderly parents resisting their moving into the limelight, so a similar specter can lurk in farming communities. This happens when retirees become belligerent when asked to move to smaller staff-homes for a couple, allowing working families with children to move into the larger family staff-homes. This downsizing with age is a natural progression, but this logic is often conflated with being relegated. This could be remedied if the elderly have a life-path that provides late-in-life dignity and services, but allows farms to get on with what they’re supposed to do, produce. Effective production can only occur if the infrastructure is used at optimum and the workforce is productive.

We need to work steadily towards a revolutionary retirement policy and plan for the Fairhills community. As we have pioneered healthcare and education through our stellar Fairtrade project, so we can pioneer a new vision for the rural aged; one of dignity, care and mutual benefit, thereby giving the old, young and business peace-of-mind.

Changing Face of Wine Patrons

Long gone are the days when wine-drinking was the pursuit of a certain demographic, a certain age group and a certain culture. Some traditionalists may lament the manoeuvres of a romantic-industry becoming approachable and accessible. However, we find it heart-warming to see the spectrum of wine consumers broadening.

This shift has been evident in the changing demographics of festival-goers in the Western Cape, with the latest Soetes & Soup Festival in Breedekloof being no exception. Change is in the air, or shall we say, in the nose, and it’s not the vintages adding a different flavour to South Africa’s wine industry. The broad tapestry that is South Africa’s diverse populous is coming out in force more readily; it is adding a richer dynamic to wine appellations that were previously perceived to be overtly conservative and monocultural.

This diversification is excellent for the wine regions in question; it diversifies the tourism offering as customers become broader in their amenity needs, it adds multiculturalism to lesser-known districts and forces wine producers to think broadly, creatively and become more innovative.

It doesn’t help only empowering the staff associated with the production of wine, as is the case with FairTrade; consumers of all backgrounds need to feel welcome if a brand is to be perceived as “progressive.” Du Toitskloof has always prided itself on being “progressive.” Thus, our utter joy in seeing the tapestry of whom we welcome into our cellar doors and at our tasting-stands becoming more varied. Slowly but surely, we are becoming a universal brand with universal appeal.

The most successful tourism brands in the world are those that are known as “diverse and welcoming destinations.” It is not the exclusive, aloof and single-minded destinations that warm the hearts of potential visitors. It’s this reason why a city like Riyadh does not attract the same numbers as Dubai does.

This is what we’re aiming to achieve be diversifying our offering, including enlarging our deli, improving our landscaping and tasting room, adding adventure-tourism options and broadening our wine offering with the likes of Quest and Cape Beach Club. We want you to feel welcome in our ‘home’ and we want you to enjoy our fruits-of-the-vine whilst building fond memories. No matter your origin, hue or language, we want you to become part of the Du Toitskloof family. The more the merrier!

FacesofDTK-Jul2013Blog copy

 

By: Andres de Wet

Community Clinic Launched for DuToitskloof Labour

Fair Exchange rural clinic on opening day

Fair Exchange rural clinic on opening day

On 13 May 2013, Fairhills Project, DuToitskloof Wines’ Fairtrade empowerment project, opened the new community clinic adjacent to the improved Lorraine Primary School. This project will complete a consolidated community service node, in this proximal location for associated farm labour. 

Together with a generous R720,000 grant from WM Morrisons and cooperation with our cellar, Fair Exchange and Origin, The mobile healthcare unit and Fair Exchange clinic was launched to much fanfare this Monday. The grant was handed over to the Fairhills Project by representatives from WM Morrisons United Kingdom.

Not only will Lorraine Primary now cater to all learners from grades one through seven, quality primary medical services will be available to all Fairhills’ farm employees, free of charge. This development expands the services on offer within this innovative empowerment project, which already includes psychological services, day-care facilities, above-standard housing, green-energy for heating and quality primary education services.

The community library will be moving to the new facility, to make way for an expanded and heavily-utilised community computer centre. This state-of-the-art facility is not only available to all learners, but provides the community with access to information technology and doubles as an adult-learning centre. The new infrastructure is fully air-conditioned, with the Western Cape Dept. of Health assisting with equipment, maintenance and logistics at the new clinic.

The clinic boasts a sick-bay with television and all primary medical equipment, a consultation room, a waiting room, administrative office and full bathroom facilities. The clinic sports a unique mobile healthcare centre; fully equipped and on wheels, this innovative concept brings healthcare to each producer farm within the Fairhills’ family.

The relocated library provides the same quality services the project members’ have become accustomed to, including up-to-date computer technology, multi-media tools and even, two PlayStation ports for the young-ones.

Landscape improvements are also being implemented to address the secondary, but important aspect, of an attractive and livable community, building pride-of-place. Outdoor play-spaces for the learners are being improved, with miniature sports courts being constructed and lush lawns lined with trees, being planted.

DuToitskloof Wines, with the continued hard work of their Fairtrade project, Fairhills, continues to improve the lives of rural people each year.  We trust the new facilities will assist in addressing social ills, provide improved healthcare, foster skills development and ensure quality education for the community. All this, to build a brighter, empowered future.

By: Andres de Wet

Security improvements and signage for the Library and Medical Centre

Security improvements and signage for the Library and Medical Centre

Our computer centre, undergoing duplication.

Our computer centre, undergoing duplication.

New developments, courtesy to some great partnerships.

New developments, courtesy to some great partnerships.

Our relocated library

Our relocated library

Corridor to the Waiting Room (foreground) and Consultation and Sick-Bays (background)

Corridor to the Waiting Room (foreground) and Consultation and Sick-Bays (background)

Yes, a PlayStation (one of two) for the young ones.

Yes, a PlayStation (one of two) for the young ones.

Installing a unit for our fully air-conditioned clinic and library

Installing a unit for our fully air-conditioned clinic and library

WM Morrisons, Origin and FairTrade opening the new clinic for the Fairhills DuToitskloof empowerment project

WM Morrisons, Origin and FairTrade opening the new clinic for the Fairhills DuToitskloof empowerment project

The generous grant from WM Morrisons being handed over.

The generous grant from WM Morrisons being handed over.

The mobile healthcare unit, bringing care to rural communities, when and where they need it.

The mobile healthcare unit, bringing care to rural communities, when and where they need it.

Some of our little beneficiaries (Fairhills Creche) welcoming the guests in a way only they can!

Some of our little beneficiaries (Fairhills Creche) welcoming the guests in a way only they can!

 

Winelands Toll Trap

The proposed tolling of the N1 and N2 in the Winelands has raised the ire of most residents and local government entities in the province. The City of Cape Town and SANRAL (South African National Roads Agency) seem set for another court showdown. The demand for clarity on toll-costs and socio-economic implications is not only fair; all citizens in this province should demand this information, as this project could have significant impacts on the economy and thus, the prosperity of affected areas in the Western Cape, particularly the eastern Winelands and Overberg.

The N1 (proposed to be tolled) in the Rawsonville district

The N1 (proposed to be tolled) in the Rawsonville district

PROJECT SCOPE: SANRAL has declared the N1 as a toll-road from Old Oak Interchange to Sandhills in the Hex River Valley and the N2 from the R300 Interchange to Bot River. Three tolls along each route are proposed. On the N1, these proposed toll plazas are at Joostenbergvlakte, the existing Huguenot Toll Plaza (where fees are proposed to be significantly raised) and Glen Heatlie between Worcester and De Doorns. On the N2, one plaza is proposed near Khayelitsha, one at Sir Lowry’s Pass and the other, at Bot River. Don’t think you’ll be able to get around the tolls, where viable alternative routes exists, like the R101 Du Toitskloof Pass, SANRAL will construct ramp-toll plazas on these exits.

They are planning some significant upgrades to the roads, so why is the Western Cape populace vexed? The anger in Gauteng over the controversial eTolls is still boiling over, yet SANRAL sees fit to set another pot to high-heat in our province. The Auditor General reports on countless billions being misspent per annum, yet SANRAL, a government parastatal, pleads poverty. Furthermore, the stark contrast in this province, where most roads are (Provincial Government – Western Cape) PGWC maintained, from the fiscus. Our infrastructure is generally well maintained, unlike numerous other provinces. The N1 and N2 westwards form the aforementioned points, where SANRAL jurisdiction ends, is in a better condition. In recent years these PGWC sections have seen resurfacing, highway lighting and the significant upgrading of numerous interchanges take place. Thus the resident logically asks, “Why can the PGWC maintain and upgrade our roads with our tax-money whilst SANRAL is unable to do so?”

Admittedly, there are bottlenecks in our infrastructure in these proposed tolled-areas: one being the N1 at the Huguenot Tunnel and two, the N2 through Somerset West and Strand. I am not against greenfields tolling. Thus, the Helderberg Bypass could be constructed without entrapping the Elgin Valley. The opening of the second Huguenot Tunnel (already bored – requires lining and equipping) is not up for debate. This sector is already user-pays and has been so since 1989; road improvements go without saying.

The economic impacts could be serious indeed. SANRAL commissions studies that investigate the economic impact of the “do nothing” or “if they toll” scenarios. This creates a bias in the analysis. No roads agency or governmental entity is entitled to “do nothing” to the infrastructure, as population, road-usage and by inference, revenue increases. Even under this potentially biased analysis, undertaken by UCT Graduate Business School, it is admitted that communities north-east of Paarl would see little cost-benefit in the short to medium-term, as traffic volumes are too light. Even under their analysis, agriculture could experience hardship, the lifeblood of these communities. Even under their analysis, the Hex River and Elgin Valleys would become entrapped to tolls, cut off from their service centre towns, major markets and neighbouring engines of economic growth. Even with this information, SANRAL has to date, made no attempt to move toll plazas to locations that would not hold these communities hostage. They have admittedly, offered Hex River Valley residents the option of toll discounts.

Furthermore, rural tolling is an even crueler pursuit, as public-transit or non-motorised transit options simply don’t exist and probably never will. This seriously disadvantages rural communities and the workforce, such as those under FairTrade’s umbrella. It restricts their freedom of movement and access to economic and service centres in the province, as mobility is made unaffordable.

Grabouw and De Doorns, communities plagued by recent civil upheaval, will be the worst affected. Whatever the reason for the recent unrest, the obvious catalysts remain lack of employment and poor local economic conditions. With spiraling fuel and transport costs, additional tolling has only one outcome for these communities on an economic and social knife-edge. Communities like Rawsonville, where we are located, have had a perennial struggle to attract tourist numbers. The toll tunnel has acted as a psychological barrier for years. Additional toll gates and fees on these routes will only exacerbate the issue. Tourists and Capetonian wine-drinkers will not only think twice before venturing out along the N1 and N2, they’ll think thrice.

Where possible, tourists and residents alike will look to the free-to-use provincial roads to escape the toll; this will severely burden these secondary routes and the provincial transport department. For areas such as the Breede River Valley, no viable alternative exists and businesses and communities will be kept entrapped and tourists, out. For a wine company constantly aiming for value-for-money, this could seriously impact on our business model of bringing products to the consumer at affordable prices.

SANRAL’s public participation process has lacked reach and transparency, where the bare legal minimum is done in consulting with communities. There’s a universal awareness of the intense public opposition to the inequitable user-pays policy. We already pay through hefty fuel-levies which rise annually, along with the spiraling cost of fuel in South Africa. Ring-fence the levy, make them provincially imposed according to local need. It’s the cheapest and most equitable form of roads funding there is, with the least risk of graft or corruption.

My suggestion if SANRAL is unable to fund their infrastructure: cede control of the roads west of Bloukrans River and Three Sisters to the Provincial Government of the Western Cape. Allow the national treasury to grant them that equitable share of SANRAL’s allocated budget for these road-sectors. It is clear our provincial administration is able to maintain the infrastructure under their jurisdiction.

By: Andres de Wet (DuToitskloof Online Content Manager)

The State of the Wines Address

Our winemakers unwinding at End of Year function, Chris Geldenhuys, Shawn Thomson & Willie Stofberg

Our winemakers unwinding at End of Year function: Chris Geldenhuys, Shawn Thomson & Willie Stofberg

I have found it particularly tough to write in recent weeks; the writer’s block was due to mutually exclusive reasons. One, the preoccupation with the redesign of our website and two, the spate of rural unrest that swept through the Western Cape in recent weeks.

Our website is a very positive development. It has taken a number of months to come to fruition, as we attempted to communicate “Du Toitskloof’s personality” on a computer screen. Quantifying it and putting personality to design is more complex a process than we had anticipated. However, with much collaboration, numerous marketing meetings and working with wine.co.za, we managed to work within their web-design template and come up with something more visually-stimulating, fresh and streamlined.

We have firmly jumped on the social media bandwagon in 2012 and this is reflected on our improved website, with a “Social Media Toolbox” located at the bottom of the page. With the plethora of platforms that appeal to different people, from Pinterest to Twitter, from Facebook to WordPress, we needed to speak to everyone without creating a cluttered appearance. We’re hoping our clients have found our increasing diversity useful and tailor-made to their needs.

On the slightly unpleasant side, the rural unrest in certain Western Cape farming communities has had us quite alarmed; the gross generalisation of public utterances have been extremely disheartening. As one of the largest FairTrade (Fairhills project) flag-bearers in Africa, with empowerment and best- in-industry labour credentials, it was heartbreaking and disappointing to have the entire industry painted with one broad brush by political opportunists.

Public anger was stirred in certain towns amongst the seasonal rural workforce or unemployed living in informal settlements. So much of the so-called “farm worker strike” was peppered more with rural-town service-delivery issues, structural societal unemployment and political posturing than it was for its media moniker: farm protest. This is evident in our valley, where seasonal work is rare, our community is part of the Fairhills project and where sound labour practices and rural empowerment is priority. You cannot mobilise content people working for mutual benefit, so we escaped the contagion. Through the hard work of farm employees and our accredited producers and their constant, collective engagement, we have escaped unscathed as a community and stronger than ever.

In better news, 2012 has been the year of the accolade. We have been completely humbled by the slew of awards that our wines have accumulated. Just late last week, three of DuToitskloof box-wine offerings made it to the Top10 in South Africa, with our Chenin Blanc taking poll position. This came on the back of a very successful Michelangelo Awards ceremony, awarding numerous of our wines, including an auspicious double gold for our Dimension red-blend. The FNB Sauvignon Blanc Top10 awards named us as one of the best in the nation and the only larger producer to win such a stamp of high-quality approval.  Even our brand new, naturally sparkling range, Cape Beach Club, was awarded as Best Value for Money wine in its category for 2013.

With the last couple of years being the time of austerity, we are pleased to offer wines of distinction at excellent prices. Stressed consumers don’t have to sacrifice their inner sommelier in lieu of their wallet. We will happily oblige no matter what the packaging may be; we do not compromise on excellence between the bottle or box, cork or screw-cap.

We are also getting close to announcing our premier red-blend range. At an exclusive tasting, prominent wine commentators were invited to the cellar to taste Willie Stofberg’s latest and greatest straight from the barrels. Once Quest is launched, we will have all bases covered and we will offer a wine for any occasion.

In the vineyards, things are looking good for 2013. Most vines look particularly healthy and although we had some pretty vicious wind over the last week or two, the damage appears to be minimal. The best Christmas present we can receive is if the weather continues to play ball; we could be in for a good harvest if current estimates are anything to go by. With a good winter behind us, our water reserves are also looking healthy for the latter part of summer.

Finally, but by no means least important, is the role that you, the loyal Du Toitskloof consumer, has played in making 2012 great. Thank you for continually believing in us, our producers, our winemakers, our workforce and other contributing parties. Thank you for rewarding our continued efforts to produce value-of-money wines in a socially responsible manner. Thank you for always arriving at the store and saying, “When in doubt, go with Du Toitskloof.” This vote of confidence in our unwavering commitment to consistent quality, is what keeps us successful and means we too, can look forward to an even better 2013 with your support.

Du Toitskloof & Fairtrade

Press Release: 19 November 2012

Du Toitskloof Wines (DTKW) is very proud of the fact that in terms of the accreditation by Fairtrade of the cellar and the farms of all its members almost eight years ago, it presently operates and sells Fairtrade certified wines, either in bulk or bottle, supporting one of the biggest Fairtrade projects anywhere in the world.

To receive Fairtrade accreditation, DTKW and its members had to achieve and has maintained a high standard of ethical and sustainable farming and winemaking practices, particularly in the treatment and remuneration of workers. Every farm and the cellar, undergoes a stringent auditing process each year for the renewal of their Fairtrade certification.

All cellar staff members are paid substantially more than the minimum wages prescribed by government. However, the ethical treatment of staff involves much more than the monthly or weekly wages they earn; it also involves their overall level of well-

Fairhills kids playing at the newly renovated Tierstel Daycare Centre – Now sports veggie tunnel

being and quality of life. For this reason, accommodation is made available to them free of charge or at very low monthly rentals. Early in 2012, DTKW upgraded all its staff accommodation. Houses were gutted on a rotation basis and completely refurbished: new ceilings, new floors, kitchen cupboards, bathrooms, new plumbing and new electrification were installed.

The Fairhills project that has resulted from our Fairtrade accreditation, has contributed enormously in recent years to the enrichment of the lives of not only the workers, but of their families, in particular the children. Everyone is involved in this project: all our 13 producer-members, their 19 grape farms, approximately 400 farm workers and their 1 200 dependents.

The project is managed independently by a committee of 34 farm workers, who decide how the premium income will be allocated and to which projects. The premium of €0.70 in the case of red wine and €0.80 in the case of white, is paid by socially-conscious consumers, who buy Fairtrade wines such as those produced by DTKW, thus contributing to the upliftment of workers in participating emerging countries.

In addition to the premium paid by consumers, the Fairhills project also receives funding from certain overseas retailers, local non-governmental organisations, South African government departments with DTKW itself, a substantial contributor.

One of the first projects initiated by Fairhills, was the establishment of day-care centres for the children of working parents, staffed by trained caregivers. Three have been in operation since 2006. Today they provide care for 170 children between the ages of three months and five years. The children are transported to and from the centres in buses bought for this purpose, receive two nourishing meals a day, and are checked once a week by a qualified medical nurse. All activities are selected to stimulate development while the older children, those between four and five years old, are taught computer literacy.

These centres, where children from non-Fairtrade farms are also welcome, are run by an ex-farm worker and a management committee of farm workers. They provide employment for 23 women from the surrounding farms, who all receive ongoing training in early-childhood development.

The Fairhills Project is also deeply involved in the running of the Lorraine Primary School, situated on one of our member farms. The school has approximately 100 learners, of which almost 90% are from member farms. It originally only consisted of three classrooms. The first addition was a kitchen, where meals could be prepared for learners as well as for the little ones in day-care centres.

In the last few years separate classrooms were added for grades 3 and 4, while a new classroom for Grade 5 is proposed for 2013. When completed, every grade will have its own classroom, where specific learners can be taught for longer periods in a familiar environment.

A community library opened its doors two years ago, which serves both learners and adults. In the same year the school completed construction of a computer centre, which today, has a bank of 28 computers. Those receiving training in addition to the older children at the day-care centres, are learners at the primary school, as well as Fairhills learners in Grades 11 and 12.

Attached to the school is an after-care centre available to learners up to and including Grade 4. These learners are assisted with their homework and also receive an after-school lunch. At the same time, it provides employment for four adults who manage the programme.

Over the years a community centre was built which plays an important role as a focal point of social activities and a meeting place for members of the community.

 —Ends—