Packing major gets empowered

New facility to be managed by workforce
RAY SMUTS
ONE OF the four large deciduous fruit packing facilities in the Cape, Kromco, is taking the first steps toward broad-based black economic empowerment in the packing industry by opening a new, dedicated packing line to be managed and operated primarily by its work force.
Dave Price, managing director of Kromco, says the company purchased the new packing line at an installed cost of R1.25 million from Saratoga Farms at Robertson, where it had been used to pack stone fruit and citrus. (The line went operational at Kromco on May 12).
“The new line will handle 80% of Kromco’s fruit packaging for the local market, introducing further cost efficiencies by taking over a large part of the local market packaging done on the four main packaging lines which focus primarily on the export market.”
In terms of the agreement, the new line will be operated as a completely separate entity, managed by the Kromco Worker’s Trust. Staff will be encouraged to purchase shares in the company - yet to be named – at a minimal cost.
Price says this first step toward empowering Kromco staff will form the nucleus of future BEE initiatives. “There is huge scope to convert other areas of our business and then expand these into profitable, separately run ventures.
At the present time, Kromco packs for Capespan, Colors Fruit, Cape Five and True-Cape but it must be conceded the current apple season is proving disappointing compared with previous years, given that fruit quality has been adversely affected by drought and heat.