The Process

Managing Labour

Labour is an important component of any farming enterprise. Most of the labour that the partners use had been with them for over five years when they started farming grapes. To avoid complicated labour-tenant situations developing on the farm, the partners decided to develop an agri-village and approached the Department of Land Affairs. The department was willing to invest R2,7 million  for buildings and the partners donated 8,5ha of land close to in a nearby town. To date, they have not been able to get this agri- village off the ground. The main hurdles are the fact that the initiative was a first in the region, it was not the first choice of the farm workers to move to the town and it needed to be managed by local government who only support the expansion of existing settlements. As a result this initiative ground to a halt.

Shareholders agreement

From the start they have had shareholder agreements which protect all the parties involved. All beneficiaries have a will drawn up and they stipulate what is to happen to their “shares” when they die, ie. they can choose whom to leave their shares to. Those who leave the farm remain shareholders, but should a dividend be declared they are rated

on the lowest level of income derived from dividends (dividend policy). If someone new would like to join the project (and they meet the criteria set to be a member of the Trust) they simply need to have the necessary funds and then they can buy in at the share price set by the trust. Anyone who is already a shareholder in the trust can increase his/her shares within the Trust, so long as they have the funds to do so.

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