Mantusini Dairy Farm faces collapse after years of mismanagement, financial struggles

SOUTH AFRICA – Mantusini Dairy Farm in South Africa has faced abandonment and financial ruin, despite its potential to become a thriving commercial dairy operation. 

Established nearly two decades ago by the Mantusini community near Port St Johns, Eastern Cape, the farm was initially positioned as a significant contributor to the local economy, with plans to produce millions of litres of milk annually. 

However, years of mismanagement, insufficient planning, and unexpected challenges have left the once-promising venture in disarray.

Initially supported by over 450 members of the community, the Mantusini Dairy Trust was created to oversee the farm’s operations. 

Significant investments were made in its infrastructure, starting in 2007 when Uvimba Bank provided R2 million for essential equipment, including a milking system, irrigation, and a backup generator. 

Additionally, the Eastern Cape Department of Rural Development and Agrarian Reform (DRDAR) funded a 13 km fence, worth R1 million, to protect the farm’s assets.

Despite these efforts, the farm struggled to generate profits. In an attempt to turn around its fortunes, the DALRRD appointed Amadlelo Agri between 2014 and 2017, investing R28.3 million to manage the operation and provide support to the local farmers. 

Amadlelo Agri, a private company specializing in empowering emerging black dairy farmers, cited poor planning as a primary reason for the farm’s continued financial losses.

In 2019, catastrophic floods severely damaged the farm, leading to a complete collapse of operations. 

By 2020, Amadlelo Agri had exited, and a new private investor, Cream Top, was introduced to the community by then-MEC for Rural Development and Agrarian Reform, Nomakhosazana Meth. 

Cream Top’s involvement, however, was short-lived. Six months after forming a partnership with the Mantusini Dairy Trust, the investor abandoned the project, leaving the farm deeply in debt, with its electricity cut off and no cows remaining.

Without a clear management plan or contractual agreement, the farm’s infrastructure deteriorated further. 

Expensive equipment and facilities that were once government-funded have since been vandalized, adding to the financial burden. 

Cream Top’s exit, coupled with a lack of proper documentation and the absence of a sustainable business model, has left the community in a precarious situation.

An audit was announced by the DRDAR following Cream Top’s exit, yet no public findings have been shared to date. 

Industry experts and community members continue to call for improved oversight and due diligence in rural agricultural investments. 

Ensuring transparent agreements and long-term planning will be crucial for the sustainability of similar projects, especially those involving public-private partnerships. 

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