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Agoa drives DC Foods’ U.S. export boom
Thanks to increased demand in the U.S. market, DC Foods is expanding its operations in Gqeberha’s Coega SEZ. With the help of Agoa, the company is now supplying all Costco stores, creating jobs and driving economic growth locally

The premises of DC Foods have become a hive of activity as the company finalises its expansion refurbishments. This is due largely to the massive growth of exports to the United States of America (USA).

The South African agro-processing company is housed at the Coega Special Economic Zone (SEZ) in Gqeberha in the Eastern Cape where it manufactures a range of frozen fruit and ice cream products exported mainly to the USA market, thanks to the African Growth and Opportunity Act (Agoa).

According to the company’s financial manager, Marc Larter, benefits derived from Agoa have put the company on a sharp upward trajectory.

Penetrating the market
Larter says although they export to other markets, it is in the US that their business has experienced the biggest growth.

“The Agoa agreement is a very important part of our business because it allows us to export our product into North America without duties. In essence, if it did not exist, that would have been a major hindrance to our operations. We are currently supplying our product to Costco chain stores.

“Initially we had access to 35% of their stores, and a social media marketing campaign led to a massive demand for our sorbets, and now we supply all Costco stores in the US,” he said.

Larter said the surge in demand, particularly for the company’s popular sorbet range, has necessitated an expansion of DC Foods’ manufacturing facilities. With increased sales, the company has had to adopt a double-shift production system and hire additional workers. As a result, DC Foods has grown its exports and created significant job opportunities within the surrounding community.