RCL Foods Limited

  • The Boulevard Westway Office Park
  • Westville, Kwa Zulu Natal
  • 3629
  • +27 (0) 31 242 8600

RCL Foods Limited and BEE

Posted by Daniel Makhura on 12 October 2017 2:05 PM SAST
Daniel Makhura photo

Information about the above

Guided by our preferential procurement policy, RCL is committed to helping existing suppliers to improve their preferential procurement and
empowerment credentials, and has focused on the building of a sustainable procurement base with emphasis on long-term relationships.
The score for the preferential procurement element is 16,19 points, which improved significantly from the previous verification score of
12,48, due mainly to efforts to obtain the supplier BEE credentials and improved focus on internal procurement measurement systems for
application of the BEE codes and interpretive guidelines.
The Group continues to focus on all BEE procurement aspects, while encouraging further Qualifying Small Enterprises (QSE) and Exempted
Micro Enterprises (EME) participation, and further leveraging opportunities of sourcing from black owned suppliers and black women
owned suppliers.
Contract growers
The Group has achieved maximum points on enterprise development mainly due to Rainbow’s contract grower initiative which has proven
its significant potential to deliver true empowerment to previously disadvantaged persons in the poultry industry. A contract grower is a
farmer that rears chickens on behalf of Rainbow using the grower’s own farm and facilities, with Rainbow supplying the chicks, feed and in
some instance the transfer of skills.
The fundamental principle is that the farms must be owner managed ensuring that there is a true transfer of skills, knowledge, accountability
and responsibility from Rainbow to the grower. All growers are managed and mentored against the Rainbow standards and best operating
practices. Rainbow’s key performance indicators (KPIs) are used and best operating practices manuals (BOPs) are followed ensuring that
the strictest animal welfare and bio-security practices are enforced.
Growers or potential growers are given all the necessary guidance and support, including the development of the business plan, accessing
of finance and day-to-day management of their independent growing operation. Regular interactive workshops are held with Rainbow’s
local and international partners, suppliers and specialists to ensure that the necessary knowledge and skills are transferred and maintained
at the highest levels.
Rainbow is proud of its black growers and their continuing outstanding performances. The acquisition of Bushvalley in March 2012 has
added a further 21 BEE growers and two non-BEE growers. This increases the number of BEE growers to 27 (46% of our total growers of
58). For the reporting period Rainbow’s expenditure on contract growers was R172,7 million with 25,7% or R44,5 million of that amount
paid to BEE growers.

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