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MCLI Members
TSB SugarMCLI MemberBackgroundTsb Sugar is a wholly owned subsidiary of Remgro – a diversified company, listed on the Johannesburg Securities Exchange, South Africa. Tsb Sugar's core business activity is the production of refined and raw sugar that is marketed either nationally, by Quality Sugars under the Selati brand name, or exported through the South African Sugar Association (SASA). Tsb Sugar's subsidiaries include Molatek, which produces animal feeds as well as Golden Frontiers Citrus and Komati Fruits, which cultivate and export quality citrus fruit. To add to its subsidiaries, in 2004, Tsb Sugar entered international territory with the purchase of Booker Tate, a UK-based company whose main activity is the management of sugar producing companies around the world. In 2005, Tsb Sugar and Royal Swaziland Sugar Corporation (RSSC) formed an equal partnership marketing company, Mananga Sugar Packers. Tsb Sugar is situated in the picturesque Nkomazi region of the South-Eastern Lowveld of Mpumalanga, South Africa, approximately 60 kilometres east of Nelspruit. Production takes place in close proximity to the head office at its two mills, Malelane Mill and Komati Mill. SugarQuality Sugars, Tsb Sugar's marketing division, operates the complete marketing function from its head office in Johannesburg. The sugar is packed and stored in Malelane and dispatched to its customers nationally on a 24-hour basis. Currently, the Selati Brand of sugar has 23% of the Retail Market. The Selati Brand is very strong in wholesale, and the top national retail chains continually promote the Selati Brand as a key product in their "armoury" to attract more customers to their stores.
Animal FeedTsb Sugar entered the stock feed market in 1985. The animal feed plant operation, Molatek, is adjacent to the Malelane Sugar Factory from which it receives the bulk of its raw materials. Molatek started with an elementary process through which molasses and bagasse were mixed to form a basic animal feed. Today an extensive range of advanced concentrates, licks and energy rations are manufactured and marketed for, amongst others, beef and dairy cattle, sheep, goats, horses and ostriches. Meticulous control in Molatek's laboratory ensures that a product of outstanding quality is produced. These quality products are fed with tremendous success to livestock by farmers throughout South Africa. Molatek's primary marketing strategy is the comprehensive distribution of its products throughout the target market area with the assistance of a network of co-operatives and other dealers. After sales service is in the hands of well trained technical sales staff International operationsIn 1988, Booker Plc and Tate & Lyle Plc, two major international food production and trading companies with a combined history of over 400 years, merged their agro-industrial and project management businesses to create Booker Tate Limited. Booker Tate's mainstream business is the provision of operational and corporate management, and technical support for both new and established agricultural and agro-industrial businesses around the world. In October 2004, Booker Tate was acquired by Tsb Sugar International, the expansion arm of Tsb Sugar Holdings. Booker Tate has extensive experience in planning, implementing and managing agro-industrial enterprises and projects in diverse and challenging environments. Over the past 50 years it has carried out over 1 500 assignments in more than 120 countries ranging from policy formulation at national level to provision of services to small farmers. Although specialising in providing technical and managerial expertise to the sugar industry, the company has also gained experience in the cocoa, coffee and poultry industries. CitrusTsb Sugar co-owns (with the IDC) a citrus production company known as Golden Frontier Citrus. The fruits are marketed internationally by Komati Fruits (Pty) Ltd, which was established six years ago as a joint venture (50:50) between Tsb Sugar and the Bosveld Group of companies. GFC supplies fruit to Komati Fruits via three packhouses:
The Bosveld group supplies fruit to Komati Fruits via four packhouses:
In addition, Komati Fruits owns a chemical-free pack house at Hectorspruit which is financed by a fruit importer in Japan and operated by Tsb Sugar. The company has succeeded in establishing preferential supply agreements with many importers and receivers and also has equity (20 %) in one of the leading fruit distribution companies in Japan (Regal Farms (Pty) Ltd). Komati Fruits' strategy is to continue to develop preferential and long-term relationships with receivers who can earn premium sales prices in differentiating market segments. This will obviously only be achieved through the supply of high quality product by its shareholding suppliers. In the rare instances where Komati Fruits cannot cost-effectively develop the required direct relationships, it will continue using South African agents to service important customers. This is currently achieved in the UK through Cape Citrus and in the Middle and Far East through Outspan and Intertrading. Contact TSB Sugar
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