Largest single maize contract in Southern Africa signed by Astral and Senwes
Astral, a leading South African integrated poultry producer, and TradeVantage, Senwes’ commodity trading company, have announced the conclusion of an 800 000 ton-per-year maize supply agreement, signed on 18 May 2016 at Nampo.
According to Francois Strydom, Group CEO of Senwes, this is the largest single maize supply contract in Southern Africa, involving the supply of maize to Meadow Feeds, the animal feed division of Astral Foods, over a period of two years. “We are delighted with the agreement, and it is a privilege to do a deal of this size with a company such as Astral,” stated Strydom.
CEO of Astral, Chris Schutte, echoed this sentiment, saying it is essential to have partners such as Senwes, which understand Astral’s business and the absolute requirement to supply feed to Astral’s poultry operations, as well as its other customers whose animals depend on Astral for feed.
“As maize is the main ingredient of our animal feed, it is imperative that we have a partner who can supply us consistently with 800 000 tons of maize a year. We are happy to have a local supplier on board for the first time, and we are confident that Senwes will both source and supply quality maize at the right time and place to enable us to feed 37 million chickens daily,” Schutte added.
This agreement covers the period May 2016 to April 2018, during which TradeVantage will supply 800 000 tons of maize per annum for feed production to Meadow Feeds locations in Paarl, Ladismith, Port Elizabeth, Pietermaritzburg, Standerton, Delmas and Randfontein.
Meadow Feeds is regarded as the market leader in the Southern African animal feed industry. “We produce 1, 5 million tons of feed per year and consume 800 000 tons of maize. The supply chain needs to be reliable and we required an established, experienced and capable partner. We went looking for a local supplier and in Senwes we have found that partner,” said Andy Crocker, Managing Director of Meadow Feeds Christo Booyens, Managing Director of TradeVantage, intimated that it is an honour to be associated with Astral, a partnership that they have been looking forward to concluding. “In spite of the drought, TradeVantage is confident that we will deliver to Meadow Feeds on time and in line with the agreement, and look forward to building on the partnership,” Booyens added.