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Soufflet Malt’s vote of confidence in SA’s beer market

French multinational maltster Soufflet Malt is constructing a new R2-billion malting facility – adjacent to Heineken’s Sedibeng Brewery in the Midvaal municipality.


With a production capacity of 100 000 t/y of malt, the new factory will source 100% of its barley from local growers, even aiming at 30% from emerging and small-scale commercial farmers, said Soufflet Malt Europe, Middle East and Africa president Guillaume Couture.

The project will replace about 4 500 containers of barley that are imported by Heineken and that will now be grown locally.

This guarantees a stable growing market for barley producers in Gauteng, Limpopo, North West and the Western Cape. The benefits of this new facility extend beyond the province and the addition of malting capacity creates more demand for barley under irrigation from emerging and commercial farmers.

Construction of the facility is scheduled for completion next year.

The new facility, which is Soufflet Malt’s second investment in a malting facility in Africa, following an investment in Ethiopia, is the company’s largest investment in Africa to date.

Further, the new facility will be the most technologically advanced malthouse in South Africa and will produce 50% less emissions than the industry average by using trigeneration. The malt will be transferred via conveyors to the brewery, which will also help to reduce emissions and costs.

“This project is a strong vote of confidence in South Africa’s agricultural sector and will strengthen its brewing value chain.
“By investing in local industrial capacity and working closely with farmers, we are building a resilient, sustainable, locally integrated malt supply chain that will support long-term agricultural and industrial development in the region.”
Soufflet Malt CEO Jorge Solis

The investment was also underpinned by agronomy programmes supporting emerging and commercial farmers. Through training, mentoring and commercial support, Soufflet Malt was helping South African farmers adopt best-practice agronomy to produce high-quality, premium barley at scale, he added.

Additionally, the partnership between Heineken Beverages and national development financier the Industrial Development Corporation of South Africa (IDC) ensures that emerging farmers have access to funding for agricultural equipment.

“This malthouse is a clear demonstration of Heineken’s Brew a Better World ambitions in action. By sourcing barley locally and producing malt alongside our brewery, we reduce imports, lower transport emissions and build a more resilient, lower-carbon supply chain,” said Heineken Beverages MD Jordi Borrut.

The facility’s demand for barley would help to contribute about R750-million a year to local agricultural GDP, which would support between 200 and 250 farms with expected land under barley cultivation estimated to be about 30 000 ha to 35 000 ha.

Further, once completed, the facility will provide 55 direct new jobs and will create about 200 to 300 indirect jobs in agriculture, logistics and related sectors.

Millicent Maroga – Corporate Affairs Director at HEINEKEN Beverages; Jeremy Antier – MD Soufflet Malt South Africa; Al Bukhari Fournier – CFO of Soufflet Malt; Thierry Blandinieres – Invivo Group CEO; Johan Van Zyl – Supply Chain Director at HEINEKEN Beverages, Senior Manager, Programme & Strategic Projects at HEINEKEN Beverages, Guillaume Couture – President of EMEA.

Source: BizCommunity; Engineering News