14th International Conference on Industrial Engineering and Operations Management

A Value Chain Approach Turning Ga-Lekgothoane Village into a Home of Sweet Potato Yoghurt

Sebonkile Thaba, Charles Mbohwa & Nelson Madonsela
Publisher: IEOM Society International
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Abstract

Most studies and organisations recommend the value chain approach as a tool for alleviating poverty within rural villages. The study argues that the lack of employment and infrastructure is caused by the unwillingness of firms, farmers and tertiary sectors to integrate. The study assesses the processes for integrating firms, agricultural cooperatives and retail cooperatives into a global supply chain using the value chain approach. Multiple case study strategies are conducted at Kgarose Kgaros Pty Ltd, agricultural cooperatives and the primary retail cooperatives. The study reveals that Kgarose Kgaros Pty Ltd, a manufacturer of sweet potato yoghurt in Limpopo Province, is currently limited to supplying only two small retail stores in Polokwane due to capacity constraints. The company missed significant opportunities to supply larger retailers like Shoprite and Woolworths, as it could not meet Shoprite's high-volume demand and lacked detailed nutrient information for Woolworths. For optimal operation, the study highlights that Kgarose Kgaros Pty Ltd requires a substantial investment of R115 million. The qualitative data was collected through interviews, company reports and online magazines. The study used in-depth case study analysis to analyse the three cases which have been included in the study due to the complexity of the study, as the three organisations are made up of an agro-processing sole trader, agro-processor smallholders and the primary cooperative.

Published in: 14th International Conference on Industrial Engineering and Operations Management, Dubai, UAE

Publisher: IEOM Society International
Date of Conference: February 12-14, 2024

ISBN: 979-8-3507-1734-1
ISSN/E-ISSN: 2169-8767