Transforming the Poultry Industry: Government Support for Black-Owned Businesses
Government support for black-owned poultry businesses is crucial for industry transformation and national food security. However, sustained success hinges on black enterprises integrating across the entire poultry value chain. This perspective is shared by 37-year-old North West industrialist, Mr. Ofentse Moloko.
Moloko is the CEO and Managing Director of Baramakama Poultry, a family-owned egg-laying business in Molote City, North West. The company received R50 million in funding from the Department of Trade, Industry and Competition (the dtic) and the Industrial Development Corporation (IDC) under the Black Industrialists Programme. This initiative aims to enhance black participation in South Africa's industrial sectors and value chains.
"We are a testament to what black-owned businesses can achieve with government support in the poultry industry. Our journey began in 2016 when my father invested his savings to uplift the Molote City community. We saw an opportunity in poultry farming, particularly in egg production, due to its potential for job creation and economic transformation. For nearly three years, we sought financing from private banks, but our applications were repeatedly declined, primarily because the land belongs to the community. When the dtic and IDC approved our funding after thorough due diligence, it was a breakthrough moment for us," Moloko explains.
The financial backing enabled Baramakama to expand its operations, adding five new automated chicken houses and a modern pack station. This infrastructure boost increased their capacity from 100,000 to 280,000 hens and led to the creation of 40 additional jobs, raising the number of permanent employees from 80 to 112. Notably, nearly 80% of employees are young people, and 44% are women.
"Today, our operation runs 24 hours a day, producing an average of 225,000 eggs daily at full capacity. The government's support has positioned us as a recognized and influential player in the industry," says Moloko.
Despite his gratitude for government assistance, Moloko strongly advocates for broader support across the poultry value chain to ensure sustainability and long-term success.
"For true industry transformation and greater food security, government support must extend across the entire poultry value chain. This includes feed production, hatcheries, abattoirs, chick rearing, processing, and market access. Although we have achieved significant progress, we remain dependent on our main competitors for feed and hens. This vulnerability can be exploited, as supply access is often manipulated to control market conditions," he adds.
Moloko remains cautious about the Poultry Sector Master Plan, a collaborative effort between the government and industry stakeholders, including producers, processors, exporters, importers, and organized labor. While the plan aims to increase black participation and ownership across the value chain, Moloko believes that strategic industry decisions remain heavily influenced by established major players who resist new black entrants in profitable sectors.
Nonetheless, he remains optimistic that increased black participation across the value chain will drive industry transformation, enhance competition, and ultimately benefit all stakeholders.