By Azwidohwi Mamphiswana
Nthakgwane Makuwa, a farmer from Dennilton in Limpopo, is hoping the recent announcement of a partnership between Heineken Beverages and Soufflet Malt will usher in a new dawn for small-scale wheat and barley farmers.
“This is a game-changer for us. Having a guaranteed buyer like Heineken
encourages us to invest more in our farms and improve the quality of our produce,” said Makuwa, a director of Makuwa JJ Farming, and the founder of Makuwa Latest Pty Ltd.
He farms wheat and barley.
Heineken Beverages has partnered with French grain company Soufflet Malt to invest €100 million (approximately R1.9 billion) in building a new malting plant in South Africa.
The facility will be constructed next to Heineken’s Sedibeng Brewery near Johannesburg and is scheduled to begin operations by mid-2027.
The investment is set to transform the local barley industry by ensuring that 100% of the plant’s raw materials are sourced from South African farmers.
Currently, Heineken imports all the barley for its operations in the country.
Heineken South Africa managing director Jordi Borrut highlighted the significance of this initiative.
“This partnership means replacing 4500 containers of barley coming from abroad for local barley from local farms; making sure that we got a shorter supply chain,” said Borrut.
“This partnership also forms part of our merger commitments with wine and cider maker Distell to procure key inputs from local suppliers, producers and farmers.”
As one of the world’s largest malt producers, Soufflet Malt will work with both commercial and small-scale farmers to supply malt for Heineken’s brewing operations.
Soufflet South Africa managing director Jeremy Antier said they were committed to sourcing all barley locally, a move that would support over 200 South African barley growers.
The new malting plant will have an annual production capacity of nearly 100,000 tonnes and is expected to create 55 full-time jobs. Beyond employment, the initiative is projected to provide a stable market for local barley farmers, many of whom struggle with inconsistent demand and fluctuating prices.
While the project presents significant opportunities, an industry expert cautions that farmers may face hurdles in meeting the strict quality and volume requirements of large brewers.
“Small-scale farmers must meet strict quality standards and scale up production to match the demands of large brewers like Heineken,” agricultural economist Xolani Mthembu said..
Azwi@vutivibusiness.co.za
