ETG is a vertically-integrated infrastructure business with operations and infrastructure across the agribusiness supply chain. This starts at origination of agricultural products and stretches across the supply chain to distribution, predominately in sub-Saharan Africa. ETG has built significant infrastructure across the continent which enables the company to control each stage of its operations post-acquisition of produce from mostly smallholder farmers, thus creating significant cost efficiencies and allowing it to exercise choice in terms of commodity movement and transaction timing.
By strategically placing its network of warehouses and other infrastructure in both rural and main agricultural-producing areas, ETG is able to bring the market directly to the farmer at farm-gate level. In turn, their network of small rural centres is used to sell imported fertiliser and other products such as rice to the farmers.
Having built extensive infrastructure across the continent, ETG is a market leader in Africa’s maize, pulses, sesame seeds, cashew nuts and fertiliser sectors. Other commodities traded include coffee, tea, wheat, sugar and rice.
Added value is created through the establishment of processing plants, where commodities are transformed into higher-margin marketable products for regional and international distribution. Processing plants are large capital expenditure items and this is seen as an investment in future higher-margin products and increased processing volumes. For instance, ETG has recently completed construction of the largest pulses processing plant in the world. The company also owns various successful brands under which distribution takes place.