What’s in a label? For the workers at Lebanon Fruit Farm Trust, an equity empowerment fruit and wine project in the Western Cape’s Elgin Valley, it means education, roads and street lights.
The Thandi project was established in 1996 when De Rust wine estate, owned by the family of winemaker Paul Cluever, and the parastatal South African Forestry Company Limited (Safcol) each provided 100ha of land as well as finance for a farming venture with the local community.
Then workers on the farm — some of them having been retrained after being retrenched by Safcol — invested their land settlement and acquisition grants, provided by the government to assist rural communities to buy land, as part of the land reform process.
Thandi Wines is a joint venture between the Lebanon Fruit Farm Trust (66,7%) and wine marketing and production company Vinfruco (33,3%). Thandi is the only South African wine label to be given Fairtrade accreditation. The Fairtrade Foundation encourages more equitable international trade and better trading conditions for small farmers and workers in developing countries.
Consumers in the United Kingdom and Europe are prepared to pay premium prices for products with Fairtrade endorsement. The proceeds from sales are repatriated to the project and may only be spent on social development programmes administered by a joint committee of workers and management.
Earlier this year Thandi Wines’ Chardonnay won a gold medal at the International Wine Challenge in London where 9 000 wines competed for top honours. One hundred and eighty thousand bottles have been sold each year since the first vintage was released in 1998.
The fruit produced by the project has also been endorsed by Fairtrade. Last year the project won the Kromco award for the best quality fruit in South Africa.
On Monday the first Fairtrade premiums for Thandi wines were paid to farm workers and shareholders. In February workers received premiums for the fruit produced by the project.
Monday also marked another important milestone, when workers and shareholders received their first dividends. The payment of R280 each is not high in rand value, but its symbolic value is priceless.
“I’m very proud because of what we have achieved,” says Shirley Smith, who has worked on the farm for the past 10 years. “Yes, I pruned my hands sore,” chips in another worker standing in line to collect the little brown envelopes containing the dividends.
Money from the dividends has been used to establish two higher education bursaries and to pay the annual school fees for the 350 pupils whose parents are working for the Thandi project.
“Education is very important for us,” says Eveline Jonkers, chairperson of the committee that administers the repatriated Fairtrade premiums. “We have big plans!”
Another substantial payment is expected for the fruit later this year. Sewerage, street lights and roads are under consideration for the two villages, Lebanon and De Rust, which are at the heart of the farm.
In addition to the dividends paid out, the workers have increased their ownership share to 70% by buying out Safcol for R2,25-million.
Safcol board chairperson Charles Ntuli says the sale of its 41% majority share was strictly a business transaction, but one tempered by considerations that it would “empower the right people”.
The remaining third of shares are held by De Rust Estate — at least for the present. Rumour has it that the workers will eventually buy out these shares and gain 100% control.
“We will make this work. I can feel proud I am working for myself,” says vineyard worker and trustee John Skippers.
The farm is on a sound financial footing, having survived the roller-coaster ride that has left many Western Cape fruit farms in financial crisis in recent years. It comprises 13ha of vineyards and 33ha of deciduous fruit orchards. The Thandi farm stall, which is 80% worker-owned, is doing well, as is an arts and crafts store.
“I’m born here and I’m still here. It’s been a lot of work,” proudly smiles 63-year-old Oom Samuel Linders.