I was looking at food producers in Mpumalanga and ended up looking at companies that get/got food related government tenders. Here is something I picked up. I am going to look further into this. It should be interesting 1004 bidders as 23 October 2014 for a tender issued by the Department of Education and it was eventually awarded to 17 different bidders. 1.6932% of the total pool of bidders actually got the contract. Type of service: Manage and operate a warehouse, and supply bulk dried foodstuff, vegetables and fruits to schools participating in the National School Nutrition Program. It is a R1.4 billion tender over 3 years thats R466,666,666.67 per annum but thats R27,450,980.39 per company per annum if it is distributed evenly. These are majority black - owned companies and most of these companies do not actually produce the products that they will be supply.The question is how many of them will be producers instead of distributors post the duration of the tender? Government actually supports black - owned companies to a certain extent but they cannot dictate how the companies use their income from their contracts in order to own a greater share of the Dried foodstuff, fresh vegetables and fruits market in this case for example.
Posted on: Mon, 29 Dec 2014 15:07:46 +0000