In the 1920s, the Du Toit family did what many farming families still do today: Gys du Toit’s father, also Gys, and uncle, Charl, decided to go their separate ways and split the farm.
In the 1970s, however, a high-potential farm came up for sale. Neither one could afford it individually, so they bought it together.
Over time, they realised that farming together worked better than farming alone. That decision laid the foundation for DuToit Agri Group, now more than 130 years old, in its fifth generation, and with seven cousins in management.
Speaking during a panel discussion at Bergrivier Besproeiing’s ‘Passion for your Farming’ farmers’ day in Paarl, Gys du Toit, who has been part of the family business for 50 years, said his father and uncle learnt two important lessons when they started farming together: that two heads are better than one, and that you can move fast alone but further together.
These lessons shifted the family away from dividing assets and towards building a business collectively across generations.
For Du Toit, family business success comes down to a simple reality: it’s families, not balance sheets, that make or break family businesses.
This message was echoed on the panel he shared with Hendri Truter, group CEO of Deli-Co Meat Wholesalers, and Wilco Fourie, farmer at Lofdal Fourie Boerdery, both of whom also brought years of experience balancing family relationships with business demands.
Seven principles of success
Du Toit described a family business as a family that manages a farming business together, rather than a business with many family members, thereby emphasising that strength lies in shared commitment, not just shared ownership.
The Du Toits did extensive research and visited many family businesses to develop a business plan that suited their own circumstances. From these experiences, Du Toit said it became clear that there is no one-size-fits-all solution, and that each family needs a plan tailored to its own circumstances.
Nevertheless, the process revealed the following seven principles that Du Toit identified, and the other speakers touched on, as key contributors to the success of a family business:
- Shared vision: the family needs to agree on where the business is heading, and management and staff must understand and buy into that direction, too. Du Toit said the process of developing the vision is often more important than its execution, because it creates long-term alignment.
- A constitution: Du Toit said any family business with more than one family member needs a business constitution. Specialists can help draft it, and the process forces families to discuss difficult issues upfront.
He also pointed out that his family’s constitution spans 34 pages and covers everything from share trading and dividend policies to conflict management and succession.
- Custodianship: family members should see themselves not as owners but as custodians of the land and business for the next generation. Their responsibility is to leave it in a better state than when they received it.
- Personal well-being: mechanisms like salaries, bonuses, and benefits help members remain financially independent. Du Toit’s family put a compulsory pension fund in place 50 years ago.
“The real test of any family business usually occurs when one of the members has to retire, because inadequate planning at that stage can place enormous strain on both the business and family relationships,” he explained.
- Manage growth: families often grow faster in numbers than the business grows in capacity, leaving later generations financially constrained. Du Toit warned against relying on a future capital event to solve problems, as “these opportunities seldom materialise”.
- Diversify: diversification helps stabilise income. Over time, the Du Toits have diversified in and out of primary agriculture, with the group today generating about 40% of its income outside of primary agriculture.
- Good management: not all family members have the same talents or skills, and their strengths and weaknesses need to be recognised and managed objectively. Where necessary, family members should be willing to work under someone who is better suited to a particular role.
Du Toit pointed out that they use performance evaluations to measure contributions and identify skills gaps.
Communication is key
Du Toit’s comments resonated with Fourie, who said many of these challenges are still part of Lofdal Fourie Boerdery’s journey.
The Fourie family has been in the Groblershoop area for five generations. They’re now in their third generation on two farms and their second on their irrigation farm.
The business started with livestock, but Fourie’s grandfather planted lucerne during a drought to feed animals. That early adaptation laid the foundation for later diversification into irrigation.
Fourie said families often assume that farms should simply be split between heirs, especially when they doubt children can work together, but he disagrees.
“Working together is not optional; it is a decision you can make,” he explained, adding that collaboration allows family members to complement one another’s strengths and weaknesses.
Regarding family member participation, he said those who want to join their business should apply “like anybody else and work through the ranks”.
Provision should also be made for family members who choose different paths. “The business should still support them, but not through handouts. Interest-free loans, for instance, can help them establish themselves,” Fourie explained.
He agreed that formal governance documents are important but pointed out that they are useless without consistent communication.
When the family’s business was smaller, decisions usually happened “on the bikes or in the bakkie” when it was only Fourie and his father. However, as it grew, formal systems became necessary. Today they have a Monday check-in, a Thursday meeting, and an in-depth fourth-Friday session with managers.
“It’s about maintaining communication, humility, and recognition of others. Recognising that someone else might be better for a role is not weakness; it is what keeps the business strong,” Fourie said.
Resolving conflict
To manage conflict, the Fourie family follows a 48-hour rule: no one may speak about another person to someone else unless they are willing to address the issue directly with that person within 48 hours. The aim is to create space for constructive discussion rather than gossip.
“If you don’t deal with friction quickly, it builds up,” Fourie warned.
“Otherwise you end up with brothers who have not spoken to each other for 20 years and cannot even remember why.”
Truter agreed that the quicker differences are addressed, the better. His family follows a simple “eat the frog” approach, which means they tackle the most difficult issues or important tasks first rather than letting them linger.
“We usually talk it out over a coffee,” he said.
For him, the principle is simple: deal with the issue immediately, but not aggressively or emotionally.
Truter said ego often gets in the way, and that leaders need to keep the bigger picture in mind.
“You need to realise that opportunities often lie in difficulties. There will be many challenges, but they will ultimately strengthen you. If it was easy, everybody would be doing it.”
He also cautioned against rushing in with solutions.
“We often want to go in with a smart plan that fixes everything, but it is important to first listen and give everybody an equal opportunity to have their say before a decision is made. The most difficult conversations often result in the best and most unexpected outcomes.”
For Truter, strong family businesses tend to focus less on people’s weaknesses and more on what they do well.
“We can’t all be the same. You need different people to add value and cover one another’s blind spots.”
He added that while conflict management sits with leadership and management, the way they handle disagreements filters through the rest of the business, shaping how people speak to one another and how issues get resolved from day to day.
Although Deli-Co is a family business, Truter said external leaders also play an important role, bringing objectivity and skills that family members may not always have. And many of these people have become like family in the business.
Du Toit identified conflict as one of the biggest risks in any family business if not managed properly: “Many extraordinary family businesses have fallen because of conflict.”
He said he knew of a family of four brothers who used to “go to the tree”, referring to a specific tree on the farm, whenever they had issues. They would stay there and talk until the issue had been resolved rather than let it sit and spread throughout the business.
In the Du Toits’ case, he noted, decisions are taken on a consensus basis. In other words, nothing is decided unless everyone agrees.
“It works for us because my uncle and father were exceptional diplomats. The drawback is that it takes longer to reach agreement,” he said.
To keep things structured, the family uses formal meetings with agendas, minutes, and recorded outcomes, so everyone knows exactly where decisions stand. “It helps to prevent conflict,” Du Toit added.
Stay human
Across all three families, the message was consistent: there is no single formula for family business success.
Instead, what came through was something more practical and human. Whether it is Du Toit’s focus on putting structures in place and making sure everyone knows where they stand, Fourie’s emphasis on talking things through and dealing with conflict quickly, or Truter’s reminder that leadership sets the tone for how disagreements are handled, the common thread is how families deal with one another when pressure builds.
In the end, all three described different ways of dealing with the same reality: that family businesses are built and tested in the space between people; not just in spreadsheets or strategies but in everyday conversations, decisions, and disagreements.
And while the tools may differ – a constitution, a 48-hour rule, or a coffee table conversation – the goal is the same: to keep the business intact without losing the relationships that hold it together.
