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PANNAR SEED conducted market research in the last quarter of 2009 to asses farmers’ perceptions of agriculture in South Africa and PANNAR SEED’s perceived role therein.

One hundred and forty-five grain producers from across the summer rainfall region participated in the research which was undertaken by consultants Professor Stephanus Loubser and Ms Marietjie Wepener.

Loubser, who was a professor at the University of Stellenbosch Business School until 2007, today serves on the boards of directors of various national and international blue chip companies in an advisory capacity. He is the author of various books in his field of expertise. Wepener is currently Marketing Director at the University of Stellenbosch Business School, where she is responsible for marketing and corporate communication.

The research found that:

• It is essential for suppliers to the agricultural sector, to understand farmers’ value chains and to know how and where they can play a meaningful role. To help farmers to achieve sustainable success, the emphasis can no longer be only on supplying good products and basic services. Meaningful value needs to be added on the farm. Suppliers need to be real partners to farmers.
• Farmers in general are positive about their future and by investing in technology and more land, endeavour to equip themselves as well as possible to cope with any adverse conditions that may arise. There are two primary forces driving farmers’ decision making, namely:  1) highest yield for the specific farm conditions; and 2) stability and sustainability of all factors, and spreading risk. Farmers are faced with severe challenges which require business acumen, marketing and financial skills, and progressive farming practices. The majority of farmers want suppliers to play a more meaningful role in their businesses, rather than only providing a good product backed by basic services. Price will always be important, but there needs to be a healthy balance between price of seed and potential yield. Farmers want suppliers to back up their products and promises, rather than do hard-selling and not accepting accountability when something goes wrong (especially with cultivar performance).
• Farmers rated PANNAR superior to the opposition from an overall service perspective. This is indeed an enormous strength to build on in the future.
• PANNAR is a well respected and highly regarded company, by both customers and employees.
• Everyone sees PANNAR as a great company and everybody wants it to succeed.

Loubser and Wepener made various recommendations to PANNAR SEED and the management team is actively working towards further strengthening our relationship with our customers and enhancing the value that we can offer.