From artisan cheese to solar power: Third-generation farm’s green revolution with Nedbank

For three generations, La Montanara – a private dairy farm in the Western Cape – has crafted premium artisanal cheeses. Nestled in Ashton in the Breede Valley, the farm produces a range of cheeses from Danish Feta to Parmesan and has become a respected and award-winning brand.

However, rising electricity costs and an unreliable national grid threatened to disrupt the temperature-sensitive production process that has defined the family business since 1983.

The solution? A solar installation financed through an innovative partnership with Nedbank that is now powering both the farm’s future and South Africa’s renewable energy revolution.

The La Montanara dairy operation’s 300 kVA solar installation demonstrates how innovative financing can make sustainability investments cash-flow neutral from day one, addressing two of agriculture’s biggest challenges: rising electricity costs and grid instability.

"We can’t afford any downtime at the cheese factory, especially because cheese is so vulnerable to temperatures. So after quite a few years and months of research, we decided that the best way forward is to invest in solar," says Rohan Steyl, Development & Procurement manager at La Montanara Dairy.

The solar installation has delivered on its promise of improved reliability and cost control. The farm now operates with a consistent electricity supply throughout production hours.

Nedbank structures 10-year deal

Nedbank’s Agribusiness division developed a tailored financing solution that extended the typical loan term from six to 10 years, making the renewable energy investment economically viable.

"We looked at the long-term cash flow projections of this business to determine the break-even point, and that meant we had to extend our terms to ten years and not six years, as the standard product is. We had to make it as cash-flow neutral as possible for this business to grow and still be financially sustainable," says Daneel Rossouw, Head of Sales: Nedbank Agriculture.

The rooftop solar system is integrated across all farm buildings and supplies the majority of electricity to both the dairy operation and cheese production facility.

Growing demand for renewable energy finance

Nedbank is seeing increased interest from agricultural clients seeking renewable energy solutions as Eskom tariffs continue to rise annually.
"We are seeing a lot more interest from our clients in terms of renewable energy solutions. From a costing perspective, we do see annual increases by Eskom, which makes renewable energy projects increasingly attractive," Rossouw says.

Alignment with UN sustainability goals

The partnership with La Montanara aligns with Nedbank’s commitment to the United Nations Sustainable Development Goals, particularly those focused on clean energy, water efficiency and sustainable food production.
"What attracted Nedbank to this family business was its values, in terms of growth. As well as the vision in terms of sustainability, especially renewable energy. That aligns 100% to Nedbank’s values and what’s important for us as a green bank," Rossouw says.

Long-term banking relationship key to success

For La Montanara, selecting a bank that could structure a long-term financing solution while appreciating the operational complexities of a dairy and cheese production business was crucial.

“Nedbank was our finest choice to finance the whole solar system, because of the relationship we have had with them over the past 20 years. They are always willing to help, and they understand our systems and finances. There’s actually no other option than Nedbank,” Steyl explains.

The success of the La Montanara project positions it as a template for other agricultural operations seeking to balance environmental responsibility with financial viability.