For potato producers in South Africa, sustainability has moved beyond merely meeting environmental requirements; it is increasingly becoming a business strategy that helps boost profitability, improve access to financing, and prepare farms for future market demands.
These points were raised by speakers during a panel discussion on sustainable development held at the Potato South Africa Congress and the Seed Breeders Forum in Johannesburg last week. Industry leaders, bankers, retailers, and sustainability specialists explored how Environmental, Social, and Governance (ESG) principles are transforming the agricultural sector.
Brendan Jacobs, Head of Agribusiness at Standard Bank, noted that producers face growing challenges, including climate uncertainty and geopolitical events affecting fuel and fertilizer prices. He emphasized that when discussing sustainability, it is not just about ESG and eco-friendly practices, but about them being part of a profitable and financially sound business operation.
Jacobs explained that banks assess both industry risks and the management methods of individual farms. Lending decisions depend on factors such as production variability, labor resources, logistics, pricing, and climate risk. He added that proper management allows these risks to be mitigated even amid serious challenges, asserting that sustainability is a competitive advantage, not just a formality.
Furthermore, Jacobs stressed that farmers are custodians of both the land and South Africa's food security, making sustainable production necessary for coming generations.
According to Dr. Andrea Kamfer, a leader in sustainability and agribusiness at Standard Bank Group, reliable farm documentation is becoming increasingly valuable when applying for loans. She stated that data ultimately enhances creditworthiness by helping to build a compelling story of business and sustainable development.
Kamfer clarified that while agricultural land remains important collateral, banks primarily finance the farm's future ability to generate a stable cash flow. Production data, yield history, and management practices help demonstrate this capability. However, she cautioned that sustainability information alone does not guarantee funding; banks continue to assess markets, profitability, repayment capacity, collateral, and climate risks.
Nevertheless, she noted that improved sustainability data can support the development of innovative financial products in the future, as banks become better equipped to incorporate environmental information into lending decisions.
Michael Lille from Orizon believes that farmers should view sustainability as a long-term investment in their business, rather than an administrative burden. He stated that their primary focus should be on agriculture and soil health, not carbon credits. Lille noted that international markets are increasing pressure on producers to demonstrate sustainable farming methods, while new opportunities, such as carbon credit programs, are beginning to financially reward farmers.
He emphasized that the data collected on the farm represents a summary of that farm. Lille believes that sustainability and profitability complement each other in agriculture, unlike in many other industries. In the long term, he suggested that sustainability metrics could influence lending terms, allowing more successful farmers to secure more favorable financing.
Some farmers participating in carbon credit programs now spend less than an hour on administrative tasks thanks to automated reporting using satellite imagery, digital records, and farm management software.
Tom Murray, Technical Manager at Woolworths, advised producers to adopt a practical and gradual approach to sustainability. Instead of trying to overhaul the entire farming system at once, he recommended that farmers choose one area that will either yield the greatest return or be the easiest to improve. Murray warned that the quickest path to bankruptcy is trying to fix everything at once. Maintaining farm profitability must remain a priority throughout the transition to more sustainable production. He also added that farmers often learn from each other, and successful innovations quickly spread across the industry after early adopters demonstrate practical results.
Nampo Cape will host a specialized seminar dedicated to protected agriculture, also known as controlled environment agriculture, at Bredasdorp Park on Friday, September 11, 2026, as part of the Nampo Cape 2026 program.
According to Grain SA, the seminar will examine how the use of tunnel farming, hydroponics, climate control, and precise water management can strengthen the Western Cape's vegetable industry in the face of climate pressure, water scarcity, and growing market expectations.
Nampo Cape stated that the seminar positions controlled environment agriculture as a practical and commercially viable solution for meeting the increasing demand for consistent quality, improving resource efficiency, and ensuring a reliable annual supply of fresh produce to the market.
The seminar theme and program focus are set as 'Protected Agriculture as the Future of the Western Cape Vegetable Industry.' The two-hour program will integrate technical, economic, and market aspects. Presentations will cover climate resilience, protected production infrastructure, retail and market requirements, socio-economic opportunities, and the macroeconomic argument for investing in technology-based food security.
Economist Dawie Roodt is expected to present a concluding view on the economic future of technologically advanced agricultural production.
The seminar will also highlight Nampo Cape's potential role as more than just an annual exhibition. The organization noted that by creating a dedicated platform for innovations in hydroponics and controlled environment agriculture, Bredasdorp Park has the potential to become a permanent center for demonstration and knowledge transfer, where producers can learn about the latest tunnel construction technologies, automation systems, water-saving solutions, and production models suitable for the Cape conditions.
Protected agriculture offers producers a practical way to reduce production risks, use water more efficiently, and deliver stable, high-quality crops to the market. The seminar aims to give producers, investors, and industry stakeholders a clear understanding of the practical and economic value of controlled environment agriculture while reinforcing Nampo Cape's role as a platform for agricultural innovation in the Western Cape.
The event targets vegetable producers, emerging farmers, agribusinesses, technology suppliers, retailers, policymakers, investors, and other participants involved in food security, water management, and sustainable agricultural development.
The South African potato industry must move beyond mere production and focus on supply chain efficiency, data-driven decision-making, and meeting consumer needs to maintain its competitiveness. This was stated by delegates at the recent Potato SA Congress and the Seed Potato Producers Forum in Johannesburg.
Speakers from various parts of the production chain noted that while South African farmers produce quality products, greater value can be achieved by improving the process of moving potatoes from farms to buyers and responding more quickly to changing consumer habits.
Steven Fink, a potato producer from Limpopo, emphasized that farmers have achieved high efficiency in harvesting and quick delivery, but bottlenecks further down the value chain limit growth. He noted that optimizing this part of the chain can stimulate higher product turnover, increase flow, and ultimately demand.
Peter van Zyl, Head of Procurement at Freshmark, reported that retailers possess an unparalleled understanding of consumer behavior, and producers should use this information for more careful planning of harvests and deliveries. Van Zyl explained that most potato purchases occur before the weekend, so producers should plan deliveries to distribution centers on Thursday and Friday when demand is highest.
He also advised reducing harvest and marketing volumes mid-month when demand typically drops, and increasing them towards the end of the month to match peak needs. According to Van Zyl, efficient logistics allows potatoes to reach store shelves in less than 48 hours after harvest.
Louis van Zeuner, former head of Absa, urged producers to embrace technological changes rather than fear them. He stated that the threat lies not in the change itself, but in the unwillingness to move with it. He added that artificial intelligence (AI) provides the ability to process the growing volume of available data to support better business decisions.
Meanwhile, Dr. Carmen Müller, a researcher at the University of Pretoria specializing in nutrition and consumer research, pointed out that potatoes play a critical role in South Africa's food security due to their year-round availability, nutritional value, and wide consumption. However, she warned that price volatility remains a serious obstacle for low-income households, as they will not buy the product if the price is higher than expected or unaffordable.
Steven Wolfardt, Head of Sustainability at PepsiCo, noted that consumers are increasingly interested in the food production process. He stressed that basic practices, such as fair labor practices, responsible chemical management, and water efficiency, must be implemented. He predicts that soil health will become the foundation of sustainable potato production.
Louis de Kok, founder of Nile.ag, believes that digital technologies and e-commerce can provide a more direct link between farmers and consumers, provided the solutions are adapted to South African conditions. De Kok emphasized that quality production remains paramount, not a strong social media presence. He also noted that many farmers focus on reducing resource costs, ignoring potential profits from effective marketing and choosing the right sales channels, believing that this is where the biggest opportunities for increasing profitability lie.
