TRUST IN PRACTICE

By Michael Cordes
Last month I wrote about ‘Ethics in the Fresh Produce Trade’ so this month’s title seems to be a natural extension of the previous article.
I had the privilege recently to be invited to the ZZ2 / RSA Review workshop held at the ZZ2 head office in Mooketsi, Limpopo Province. To put this in perspective one should understand that ZZ2 is one of the world’s largest producers of tomatoes and also no slouch when supplying avocadoes, onions, apples and pears. This farming conglomerate has a long, rich history in South African agriculture and is, I’m told, the largest employer in Limpopo Province with around 7000 people earning a living through the company.
On the flip side of the coin is RSA Market Agents, the largest and most progressive market agency in South Africa with independent trading units on five main fresh produce markets. With their other complimentary business interests they are able to offer a supplier of fresh produce a comprehensive and professional marketing service.
The Review had senior managers and sales staff from all the RSA businesses as well as all the senior management of ZZ2 not only interacting but taking an in-depth look at the marketing strategies of both parties for the whole range of ZZ2 products.
What impressed me most was the genuinely open discussions which took place. They were genuine because the way everybody made their respective points were clearly not part of the ‘smoke and mirrors brigade’. This was real, open discussion which included the good with the not-so-good. Nobody was trying to cover anything in a fog of innuendo and verbal garbage. Problems were identified, discussions ensued and solutions found.
It was enlightening to see the depth and detail they “drilled down to” in assessing the performance of the products. One might have expected an element of complacency given the strong market leadership of those products, especially tomatoes, but no, it was clear that everybody took their roles seriously and not for granted.
Tommie van Zyl, Managing Director of ZZ2, in his welcoming address explained the relationship of the two organisations in the following way, “We are in a synergistic and symbiotic relationship and not in a zero sum or parasitic relationship (to use our Natuurboerdery terminology!) in our quest to be 'agents' for customer (the consumer) value. ZZ2 is the customer of RSA and RSA is an important stakeholder of ZZ2. More importantly, our two great teams each play a focused role in the value channel to ultimately bring utility to our customer, the consumer.”
Within the context of our commission markets in South Africa this relationship between supplier and market agent is not only highly significant but is in reality the ‘oil that lubricates the engine.’ This is a relationship of trust which takes a long time to build and requires constant effort from both parties to make it work successfully. And one of those ‘efforts’ would be an event like this Review which not only analyses past achievements but looks at current practices while also setting the direction and objectives for future performance.
I appreciate that not every producer can go to the extent and cost of holding a Review like this one but certainly there are items which could be taken out of it that any farmer could do with his market agent. The question is, “How many farmers take the trouble to really involve their market agents in a comprehensive marketing strategy?” Is it not more a case of sending the products to market and expecting the agent to get the best price? Yet, the point many miss is that the farmer is supposed to be the production expert and the market agent the marketing and sales expert. 
If this were the case then producer and agent would work together to build a marketing strategy for those products around the principles of marketing. I can think of a few examples where this is being done and every one of those brands is recognised as a leader. This is not the exclusive domain of the very large producers only. It can also be done by smaller producers – in line with their particular circumstances - who understand the importance of that trust relationship.
It’s one thing to talk about trust between producer and market agent. It is another thing entirely to make it work in practice.
Ends