DW FRESH PRODUCE: The Value of Produce Fresh from the Farm

The Tshwane Market and Johannesburg Fresh Produce Market is a unique commerce centre, where prices are formed and fresh produce is traded to the mutual benefit of suppliers, buyers and consumers. Produce is procured from producers country-wide, while on the supply side the market is supported by buyers from all walks of life not only from South Africa, but neighbouring countries, too. Prices are formulated on the basis of supply and demand which then set the trend for costs nationally.

Markets are often referred to as ‘the stock exchange’ of the fresh produce industry, and today the Tshwane Fresh Product Market is South Africa’s second largest, enjoying a national and international client-base. In October 2006 DW Fresh made its trading debut as one of eight market agencies at this renowned world leader in the provision of fresh produce, finding a home in its recently developed wholesale facility which afforded the ideal, one-stop location for the nascent agent to grow into South Africa’s choice in fresh goods.

“We remain a major agency stakeholder in the Tshwane Fresh Products Market,” MD Theresa Fredericks opens, “offering the best service in the field to all suppliers and buyers to make an indelible mark on the South African fresh production industry.” DW Fresh is present today in South Africa’s two biggest markets, with its Tshwane presence having been significantly bolstered by its later installation in Johannesburg.

“We pride ourselves on having fresh products of unrivalled quality available year-round, with a satisfied end consumer guaranteed,” summarises Fredericks. “At DW Fresh we are driven by the end goals of stimulating supply and demand, and providing the best possible product to the end consumers.”

FRESHNESS FOR ALL COMERS

More than 15 years in, Fredericks runs us through the inner workings of a more than 100-strong operation, which has been able to retain a gloriously rustic, down-to-earth aspect even as it has burgeoned to take in growers spanning the entire country. “At its root, our business entails DW Fresh’s selling of fresh produce on behalf of farmers, which comes to us from across South Africa,” she explains. “Ranging from fruit to vegetable, potatoes and onion, this wide range of wares is brought to what is essentially a vast open wall, subdivided into different agencies on the platform.

“The farmer then decides to whom they wish to sell their produce, and offloads it onto our floor to allow us to begin the process of selling it on their behalf, for which we in turn receive a commission.” The growers are then regularly remunerated, Fredericks furthers, with the financial side watertight in its security and a key example of DW Fresh combining age-old procedures with inescapable modernisation. “The processing of funds is actually almost identical to what happens when a house is sold,” she explains. “The money that is made through the sales of this produce is held within and tightly regulated by a trust fund, to make this vital undertaking as secure as possible.

“We consider our producers the most important link in the valuable chain of fresh produce,” Fredericks asserts, a commitment which engenders a whole host of value-added services and support. “We keep the farmers fully updated throughout the course of our selling their products, providing peace of mind through daily faxes and communications regarding sales and stock movements, and make electronic payments twice weekly as sales are made.

“We also deal with the processing of fees and service costs to third parties, such as transporters, for example, and employ CHEP’s Material Handling Systems Optimisation to optimise our supply chain and packing processes. It means that we operate with greater efficiency, more throughput and overall better productivity.”

Started by Fredericks as a husband-and-wife outfit, DW Fresh experienced year after year of solid growth and forged relationships with the country’s best growers, rapidly gaining an enviable reputation for the care and expertise on which producers could count to secure healthy sales. In 2017, this culminated in its joining the famous Subtropico Group, with its focus on investing in key service sectors in South Africa such as agri-tech, livestock and, of course, fresh produce market agencies.

“Joining the Subtropico group was crucial to our gaining greater exposure,” Fredericks stresses, “but what was also vital was that even in joining forces with it, the DW Fresh entity and identity, and everything that goes along with that, was able to remain as strong as ever.” This exposure caused reverberations far and wide, she goes on. “Today, our buyers are not limited to within South Africa,” she reveals. “People come from every corner of the SADC – from Botswana, Angola and Zimbabwe, for example – to make their purchases from us, simply because our range of fresh produce eclipses that which is normally available to them.”

FRESH AND HEALTHY FOCUS

Contrary to so many, fresh produce was one of a very fortunate very few sectors left relatively unscathed by the pandemic’s shockwaves. Already accounting for almost a quarter of total farming revenue in South Africa, demand was intensified for a broad range of fresh fruit and vegetables as consumers actively sought fresher choices more conducive to their overall health and wellness.

The agricultural sector was exempt from lockdown restrictions, while growth in the fresh produce sector was underpinned by this surge in demand and by the higher export prices provided by the weak exchange rate. DW Fresh saw first-hand the evidence of this sustained spike, Fredericks explains, as a countrywide renewed focus on wellbeing sustained an increase in consumption by health-conscious consumers and sales boomed. “For us, the main challenges were essentially twofold: bringing our operation in line with the new protocols, and ensuring that both clients and colleagues stringently adhered to them,” she elaborates. “With this assured and everyone on board, against all the odds 2020 actually gave us our best ever year to date.

“We saw a huge increase in sales during the peak lockdown period, as people preferred to stay at home to prepare and cook meals, either without the option or choosing not to eat out. It was a time when nutritional aspects became even more important, too, which was key to supporting pricing on our side.

“From a business perspective, we have certainly had two more than positive years in spite of the pandemic.”

There are many widely reported additional benefits to eating fruits and vegetables sourced locally. Eating in season means exclusive access to produce with a higher nutritional value, as foods grown out of season are not able to follow natural ripening rhythms, and goes a long way toward ensuring a varied, nutritional diet. “For us, procurement does not extend beyond the borders of South Africa,” Fredericks confirms. “Everything is sourced locally and that also serves to make us unique.

“For example, in Johannesburg one of our most important growers is Richard Myburgh, 100% BEE owner of Cortina Farms, who supplies us with apples, pears and peaches and brings nearly three decades of experience in the marketing and distribution of deciduous fruit in the domestic and export industry.”

Standing out and reinventing has been part of the DW Fresh culture throughout, as it heads towards two decades of dominance in this most crowded of South African markets. “When I came to the business it was as a female owner in what was a very white, male-dominated industry,” Fredericks reveals. “I applied for a space on the trading floor and that is how I started, through the advancement of economic transformation in South Africa.

“Today, DW Fresh continues to set itself apart through ensuring excellence in everything we do,” she concludes, “in our bid to provide quality, cost-effective fresh produce and strategic competitive service to each and every one of our customers in the fresh produce sector. Put simply, our success has always lain in doing things smarter, better, simpler and faster than the opposition, and we don’t plan to change that anytime soon.”