SAB highlights the beer sector’s contribution to the agricultural economy
3 October 2024, Caledon, South Africa. At today’s annual State of the Beer Economy event, held at the Caledon Farm Research & Development Facility in the Western Cape, South African Breweries (SAB) showcased its significant contribution to the agricultural economy. The event, attended by the Minister of Agriculture, offered an in-depth exploration of the beer sector’s shared value and its inclusive role in growing the economy.
SAB’s CEO, Richard Rivett-Carnac, underscored the importance of beer to the agricultural economy, stating, “At SAB, we pride ourselves on making beer that is local, natural, and inclusive, relying on a thriving agricultural sector.” He emphasized that SAB’s commitment to local sourcing has resulted in 95% of the company’s raw materials being sourced locally.
“Beer is not just a beverage of moderation; it’s a critical driver of economic growth. By empowering our value chain, including commercial and small-scale farmers, we are not only strengthening our supply chain but also investing in South Africa’s future through our agricultural impact.”
Minister of Agriculture, John Steenhuisen, commended SAB for its strong partnership with the farming community and its commitment to inclusivity in agriculture. He remarked, “SAB plays a vital role in agricultural development, given how essential crops are to brewing beer. SAB’s investment in local farmers, particularly emerging farmers, directly influences our ability to deliver impressive harvests year after year. Beyond crops, this investment has been crucial in job creation, economic growth, and building a more sustainable future for our nation.”
The beer sector supports 38,000 households within the agricultural industry. Large beer producers, like SAB, are key enablers in localizing production and growing the agricultural sector.
SAB’s prioritization of local sourcing for brewing ingredients has led to:
- A 60% increase since 2017 in local barley production with 324,000 tonnes produced in 2023, with barley farming now contributing R1.4 billion to the GDP across four provinces (Western Cape, Northern Cape, North-West and Limpopo).
- The development and agro processing of nine hop varieties for local and international markets, with 409 hectares cultivated in the George region of the Western Cape.
The sourcing of 230,000 tonnes of non-GMO maize farmed locally for local beer production, contributing R754 million to the national GDP.
SAB has invested in building and expanding its two commercial barley malting facilities in Alrode and Caledon and its hop processing facility in George. These agro-processing facilities serve local and regional markets. SAB has also invested in and developed an agriculture research and development centre in Caledon, piloting new farming techniques, technologies, and crop varieties to accelerate agricultural development and supporting farmers across South Africa.
Aron Kole, Managing Director of FarmSol Holdings, highlighted the importance of SAB’s partnerships within the agricultural sector. “Partnering with major beer producers like SAB is essential to driving transformation in South Africa’s agriculture. Through these collaborations, we help developing farmers supply high-quality raw materials to the industry and assist in developing these farmers into sustainable, future-ready enterprises. This partnership improves farmers’ yields and access to commercial supply chains, while enabling the food and beverage sectors to source premium-quality materials from a diverse network of local farmers.”
The event concluded with an immersive tour of SAB’s Caledon research and development facility, showing attendees the innovative processes driving SAB’s agricultural innovation.
