Sandstone and Afgri announce major developments at Sandstone Estates.
First load to bunker
An historical moment occurred at Sandstone Estates on 5th June when thefirst load of maize arrived at the new Vrystaat Mielies bunker managed byCMI.
Sandstone Estates (Pty) Ltd cooperates with Free State Maize and Afgri group to establish major grain handling facility in the Eastern Free State.
As a result of an agreement concluded Sandstone Estates (Pty) Ltd, a well-established arable farm on the Lesotho border between Fouriesburg and Ficksburg, will be leasing facilities and land to Collateral Management International “CMI” (100% AFGRI subsidiary), for Afgri to establish and manage an extensive grain storage facility with total storage capacity of 50 000 metric tons in the heart of this highly productive agricultural region on behalf of Free State Maize.
Sandstone has its own silo complex with the capacity of over 12,000 tons, together with associated weighbridge, laboratory, and other facilities. This will all be incorporated into the new arrangement
with Afgri.
CMI will deploy their own staff on site and will commence operations in January 2013 focussing on the management of the silo and building of a new bunker. Free State Maize will be the trader at the bunker, supported by AFGRI procurement staff. The AFGRI contract administration system will manage all trading activities on site between producers and Free State Maize.
The facility will have a material financial benefit to producers in rates and commodity prices offered, together with various storage options.
A spokesman for Sandstone Estates, Mike Myers, said that this was a major development not only for Sandstone but for the entire area. Local farmers can now deliver their crops to more convenient facility. They would obviously be able to take advantage of the huge expertise that Free State Maize and Afgri is able to offer in terms of input finance, advice on hedging and all aspects of grain trading, together with the purchase and storage of crops from the entire Eastern Free State region.
Mr Myers added that having a SAFEX registered silo near to a number of large commercial farmers provides a huge competitive advantage and he expressed hope that local farmers would carefully review their options in this regard.
Sandstone’s advanced agricultural infrastructure has been well established for years and the arrangement will further expand its influence in the highly strategic grain production industry.
Caption: Aerial photographs taken at Sandstone Estates in the last few days clearly showing the
extent of the ground preparation works near the silos soon to be erected.
For further queries please contact Pieter Steenkamp, Afgri, at