RedHarvest Tomato Farms — Target Customers & Sales Channels
RedHarvest Tomato Farms will supply tomatoes through three primary sales channels, each requiring distinct quality specifications, packaging, logistics, and relationship management approaches.
Section 8 · Business Plan
Target Customers & Sales Channels
RedHarvest Tomato Farms will supply tomatoes through three primary sales channels, each requiring distinct quality specifications, packaging, logistics, and relationship management approaches.
RedHarvest Tomato Farms will supply tomatoes through three primary sales channels, each requiring distinct quality specifications, packaging, logistics, and relationship management approaches.
8.1 Fresh Produce Markets (50% of Revenue)
The Johannesburg Fresh Produce Market (JFPM) at City Deep is the largest fresh produce market in Africa, handling approximately 45% of all fresh produce traded in South Africa. RedHarvest will supply the JFPM as its primary sales channel, complemented by the Pretoria and Durban markets. Market agents act as intermediaries, selling product on consignment and earning a commission of approximately 5–7.5% of the sale price. This channel offers price transparency, daily price discovery, and access to a broad buyer base including independent retailers, hawkers, and food service operators.
8.2 Retail Supermarket Chains (30% of Revenue)
RedHarvest will pursue direct supply agreements with South Africa’s major retail chains, including Shoprite/Checkers, Pick n Pay, Woolworths, and SPAR Group. Retail supply requires GlobalG.A.P. certification, consistent quality and supply volumes, branded packaging, and compliance with each retailer’s supplier onboarding and audit requirements. Retail pricing is negotiated weekly or bi-weekly, typically at a premium of 10–20% above market floor prices, with payment terms of 30–45 days.
8.3 Food Processing Companies (20% of Revenue)
Processing offtake will be secured through seasonal contracts with established processors such as Tiger Brands (All Gold and KOO brands), Rhodes Food Group, and Pioneer Foods. Processing contracts are negotiated pre-season, providing price certainty and guaranteed volume uptake. Pricing is typically set at R2,500–R3,500 per tonne depending on Brix levels and delivery terms. While unit margins are lower than fresh market sales, processing contracts provide critical cash flow stability and absorb lower-grade product that does not meet fresh market specifications.
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