Trusted supplier of agricultural equipment:
VKB Polokwane is a
member of the VKB Group focused on accomplishing solutions for the changing and
diverse needs of agricultural producers and related stakeholders.
Established in 1919, the Group employs approximately 6 000
people and is a cornerstone of the rural economy in Polokwane. Jaco Els saw the
local benefit of partnering with UTAL Asset Rental in offering equipment backed
rental to solve local requirements.
Scenario:
Mareli
Snyman, a dedicated and passionate vegetable farmer, has been making remarkable
strides in her agricultural venture on a 40-hectare portion of a farm in
Polokwane. Focused on producing high-quality vegetables, Mareli has built a
solid reputation for her farming expertise and commitment to excellence. Her
primary crops initially included lettuce, butternut, and carrots, but she has
recently expanded her operations to include green beans, beetroot, and spinach
to meet increasing market demand.
Mareli’s
business took a significant leap forward when she secured a 12-month trial
supply agreement with Fresh Pack, a deal that is expected to evolve into a
long-term partnership. Additionally, she supplies fresh produce to key markets
in Pretoria, Johannesburg, Springs, and Vereeniging, further cementing her
presence in the fresh produce industry.
Requirement:
As her
farming operations grew, Mareli faced challenges related to high external hire
costs for essential farming equipment. She recognised the urgent need to reduce
expenses and improve efficiency by operating her own machinery. To achieve
this, she approached VKB for assistance in renting to own a Case JXM ROPS
Tractor and a Boki 2.5m High-Speed Disc Harrow.
Action:
When Jaco Els
of VKB looked at how to better serve their customers, he saw an opportunity
beyond just selling machinery. By partnering with UTAL Asset Rental, VKB
developed a tailor-made full maintenance asset rental package
Mareli, being
an ambitious and driven farmer with a growing operation, welcomed the benefits
of this collaboration. VKB and UTAL facilitated the acquisition of a CASE
Tractor and Boki Disc Harrow, backed by a comprehensive three-year, 3,600-hour
maintenance service plan—at no additional cost to Mareli. This plan included
nine minor and three major services, guaranteeing that her equipment would
remain in peak condition, thus minimising downtime and maximising productivity.
Planned
maintenance also meant that VKB’s workshop resources could be allocated more
efficiently, improving operational flow and support.
Outcome:
VKB has
recognised that offering full maintenance rental not only provides a solution
to customer need but also serves as a strategic growth tool for the entire
Polokwane operation.
Longer term
involvement on a regular basis will have significant impact on VKB’s own
strategic growth as rural development is seen as vital to the sustainability of
the region and the country.
Mareli has already
set her sights on acquiring a carrot harvesting implement in the near future,
further reducing dependency on external hiring and boosting her farm’s
independence.
Conclusion:
Mareli’s
journey is a perfect example of the role the VKB Group can play in the future of
rural agriculture in South Africa. By acquiring her own tractor and disc
harrow, Mareli has successfully eliminated the burden of high hiring costs.
This improves a farm’s profitability and also positions it for sustainable
growth
By
recognising Mareli’s potential Jaco Els proactively supported her with a UTAL
full maintenance rental solution, VKB not only helped ensure the success of her
business but also secured a meaningful role in her future growth.
Long-term
customer involvement is strategically beneficial to VKB because the total
earnings from a term-based annuity stream increase company revenue while allowing
participation in Mareli’s future growth needs.