French multinational maltster Soufflet Malt has officially started construction on its new malting facility that is adjacent to brewing multinational Heineken's Sedibeng Brewery, in the Midvaal municipality.

This new malting facility would have a production capacity of 100 000 t/y of malt, would source 100% of its barley from local growers and had a target of sourcing 30% of the barley it would process from emerging and small-scale commercial farmers, said Soufflet Malt Europe, Middle East and Africa president Guillaume Couture on February 5.

Construction of the facility is scheduled for completion next year.

The project would displace about 4 500 containers of barley that were imported by Heineken and that would now be grown locally, noted Gauteng Agriculture and Rural Development MEC Vuyiswa Ramokgopa.

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

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,” said 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.

The support included grant funding and interest-free finance, which helped to lower barriers to entry and enable their sustainable participation in South Africa's barley value chain, said IDC agro-industries and services sectors divisional executive Bongani Miya.

“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.

This investment supported South African farmers, strengthened local agriculture and contributed to long-term economic growth, thereby ensuring Heineken's success was rooted in the communities and countries it operated in, he added.

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.

“Soufflet Malt's investment in Midvaal stems from long-term partnerships with customers, farmers and local stakeholders. This facility is a tangible expression of our confidence in South Africa's agricultural and brewing sectors and our commitment to their continued development,” said Couture.