Read the summary below and answer the questions that follow: The Orange Girl – all the juice and nutrition you can ask for Growing up on a citrus farm in Mpumalanga, Yoliswa always wanted to escape to the city. In her little mind, she saw the farm life as the hardest endurance test any individual can be subjected to. She qualified with a mechanical engineering degree and started working in food manufacturing facilities in the city of Jo’burg. The conventional rat race in the city wore Yoliswa down a lot, she started escaping to the farm whenever she got a chance. One day, five years ago, on one of these visits, she found herself wandering on the farm, carried away in childhood memories of how she used to eat oranges directly from trees when they were in season. The farm owner had allowed Yoliswa’s parents to use a section of the farm to grow their own oranges for themselves. Her father decided to follow indigenous ways of growing oranges – his oranges always tasted sweeter, juicier and more filling than the oranges on the bigger portion of the farm. Yoliswa’s father had an orange juice recipe – every season, he would pick oranges and make juice for the family. His orange juice became quite famous with the locals, therefore, he started selling bottled orange juice every season – he called it The Orange Girl, as a tease for Yoliswa, who was very proud of her father. Her old father had handed the business over to her younger brother Bert who mentioned to Yoliswa that he wanted to take this on a large scale but he did not have the resources. On that day, Yoliswa decided to engage her brother in discussion around taking this production large scale. The idea was an instant hit, the siblings decided to register a business, trademark the brand, bought an adjacent farm and started manufacturing orange on a large scale. Five years later, the business has grown by leaps and bounds and the siblings want to start exporting their organic orange juice across the border to Botswana, Namibia and to China. Research conducted has indicated that these three markets present a significant opportunity for The Orange Girl. They have already set up contracts with distribution partners in all these three countries and they are now busy upgrading their production facilities to accommodate the increased volumes, as well as the packaging facility to handle the legal packaging requirements for each country. South Africa citrus production, exports, continue strong growth The production of South African citrus, mainly soft citrus, new orange varieties, lemons and limes is estimated to continue its strong growth in the 2020-21 marketing year, according to a new report from the U.S. Department of Agriculture’s Foreign Agricultural Service. The expected growth, the USDA report said, is based on the increase in area planted, improved yields, high level of new-plantings coming into full production, and the minimal impact of COVID-19 on labor and input supply. The increase is expected to be partially offset by drought conditions in some production areas of the Eastern Cape, and hail damage in some production areas of Mpumalanga, according to the report. Duty free exports of all citrus types to the United States under the African Growth Opportunity Act reached a peak of 91,402 metric tons in 2020 and are expected to continue their strong annual growth in 2021, as the U.S. is still considered a premium market. The value of U.S. imports of South Africa citrus totalled $94.9 million, up 72% from $55.3 million in 2019 and up 45% from $65.5 million in 2018. Background Citrus in South Africa is grown across the country mainly in the Limpopo, Eastern Cape, Western Cape, Mpumalanga, Kwa Zulu Natal, Northern Cape and Northwest provinces, according to the report. A total of 233,092 acres was planted to citrus in South Africa in 2020, a 9% increase from 214,507 acres in 2019. This growth trend is estimated to continue in 2021, based on the significant investments and aggressive new plantings of soft citrus, lemons, and new varieties of oranges. While oranges are the biggest citrus type produced in South Africa and account for 48% of the total citrus area planted, the report said there has been notable growth in the area planted to soft citrus (25%) and lemons/limes (19%). This growth is driven by the attractive investment returns, profit margins from soft citrus and lemon production, and a spike in global demand Q.1.Dicuss below five areas in which purchasing and supply management can provide important input for The Orange Girl business in the procurement of capital equipment. Use practical examples and facts from the preceding report to substantiate your answer. 1. Information about supplier of capital 2. Evaluation and selection of suppliers 3 Negotiations with suppliers 4. Contractual agreements with supplies 5. Specific purchases
Read the summary below and answer the questions that follow:
The Orange Girl – all the juice and nutrition you can ask for
Growing up on a citrus farm in Mpumalanga, Yoliswa always wanted to escape to the city. In her little mind, she saw the farm life as the hardest endurance test any individual can be subjected to. She qualified with a mechanical engineering degree and started working in food manufacturing facilities in the city of Jo’burg.
The conventional rat race in the city wore Yoliswa down a lot, she started escaping to the farm whenever she got a chance. One day, five years ago, on one of these visits, she found herself wandering on the farm, carried away in childhood memories of how she used to eat oranges directly from trees when they were in season. The farm owner had allowed Yoliswa’s parents to use a section of the farm to grow their own oranges for themselves. Her father decided to follow indigenous ways of growing oranges – his oranges always tasted sweeter, juicier and more filling than the oranges on the bigger portion of the farm.
Yoliswa’s father had an orange juice recipe – every season, he would pick oranges and make juice for the family. His orange juice became quite famous with the locals, therefore, he started selling bottled orange juice every season – he called it The Orange Girl, as a tease for Yoliswa, who was very proud of her father. Her old father had handed the business over to her younger brother Bert who mentioned to Yoliswa that he wanted to take this on a large scale but he did not have the resources.
On that day, Yoliswa decided to engage her brother in discussion around taking this production large scale. The idea was an instant hit, the siblings decided to register a business, trademark the brand, bought an adjacent farm and started manufacturing orange on a large scale.
Five years later, the business has grown by leaps and bounds and the siblings want to start exporting their organic orange juice across the border to Botswana, Namibia and to China. Research conducted has indicated that these three markets present a significant opportunity for The Orange Girl. They have already set up contracts with distribution partners in all these three countries and they are now busy upgrading their production facilities to accommodate the increased volumes, as well as the packaging facility to handle the legal packaging requirements for each country.
South Africa citrus production, exports, continue strong growth
The production of South African citrus, mainly soft citrus, new orange varieties, lemons and limes is estimated
to continue its strong growth in the 2020-21 marketing year, according to a new report from the U.S.
Department of Agriculture’s Foreign Agricultural Service.
The expected growth, the USDA report said, is based on the increase in area planted, improved yields, high level
of new-plantings coming into full production, and the minimal impact of COVID-19 on labor and input supply.
The increase is expected to be partially offset by drought conditions in some production areas of the Eastern
Cape, and hail damage in some production areas of Mpumalanga, according to the report.
Duty free exports of all citrus types to the United States under the African Growth Opportunity Act reached a
peak of 91,402 metric tons in 2020 and are expected to continue their strong annual growth in 2021, as the U.S.
is still considered a premium market. The value of U.S. imports of South Africa citrus totalled $94.9 million, up
72% from $55.3 million in 2019 and up 45% from $65.5 million in 2018.
Background
Citrus in South Africa is grown across the country mainly in the Limpopo, Eastern Cape, Western Cape,
Mpumalanga, Kwa Zulu Natal, Northern Cape and Northwest provinces, according to the report. A total of
233,092 acres was planted to citrus in South Africa in 2020, a 9% increase from 214,507 acres in 2019. This
growth trend is estimated to continue in 2021, based on the significant investments and aggressive new
plantings of soft citrus, lemons, and new varieties of oranges.
While oranges are the biggest citrus type produced in South Africa and account for 48% of the total citrus area
planted, the report said there has been notable growth in the area planted to soft citrus (25%) and
lemons/limes (19%). This growth is driven by the attractive investment returns, profit margins from soft citrus
and lemon production, and a spike in global demand
Q.1.Dicuss below five areas in which purchasing and supply management can provide important
input for The Orange Girl business in the procurement of capital equipment. Use practical
examples and facts from the preceding report to substantiate your answer.
1. Information about supplier of capital
2. Evaluation and selection of suppliers
3 Negotiations with suppliers
4. Contractual agreements with supplies
5. Specific purchases
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