Western Cape Business 2017 edition

OVERVIEW
fied agri-processing as one of
the three key sectors that can
deliver high growth and lots of
jobs. Over a five-year period to
2014, the sector grew at nearly
5% and delivered jobs growth of
more than 7%.
Agri-processing holds potential
to increase employment
in rural areas. If it receives the
dedicated attention and support,
it could add up to 100 000
jobs and generate R26-billion
for the economy under a highgrowth
scenario.
Among the areas on the todo
list of Western Cape Minister
for Economic Opportunities Alan
Winde, whose ministry is responsible
for agriculture, is to bring
more irrigated land on-stream
to increase product into the
agri-processing chain; to keep
promoting wine sales to the
world; to expand African exports
(Angola is proving a good first
step); investigating whether the
Western Cape can tap into the
global halaal market said to be
worth $2.3-trillion; and to build
a testing centre for agricultural
products so they can be certified
for sale into the European Union
(EU).
Zoning laws also have to be
adopted to promote growth in
rural areas. He gives an example
of a fruit pulping and drying company
in the small town of Gouda,
which was restricted by zoning
laws when it wanted to expand
its factory space beyond 1 000m².
“They are growing at 65% and you
are telling them to pack up and
move to the city? Gouda loses
1 000 jobs!” Winde says that it
must be the objective of government
and planners to create an enabling environment for companies
to expand.
In presenting his 2016/17 budget, Minister Winde said that the number
of jobs in the agricultural sector had grown by 63% in a year, citing
StatsSA data. This figure included seasonal jobs.
Many more opportunities for employment may come about if the trend
reported on by City Press in August of 2016 grows bigger: experienced
citrus farmers moving to the Western Cape from other areas. Reporting
that five farmers from Limpopo and the Eastern Cape had bought farms in
Citrusdal, Robertson and Wellington, the newspaper noted that the variety
of new fruit types (apart from lemons and other citrus fruit) to be planted
by these new farmers would supply work all-year round for local people.
Mandarins, seedless watermelons and squash are among the other fruits.
There is also good news for agriculture in the Western Cape – out
of Gauteng. South African Breweries has built a new malting plant in
that province. To get to an annual production figure of 130 000 tons of
malted barley for the new facility, more barley will have to be grown.
The locally-sourced barley that SAB buys will rise from 65% to 95% of
total stock. The company’s only other malting facility is in the heart
of barley-growing country, at Caledon in the Overberg region, where
180 000 tons are processed every year.
The Western Cape is a major producer of fruit and vegetables and is by
far the biggest producer of peaches in South Africa. The country produces
about 60 000 tons per year.
Only 1% of South Africa’s fruit is dried, but that still represents 51 000
tons of product. The Western Cape is strong in dried fruit and nuts with
Montagu Dried Fruit and Nuts, Cape Dried Fruit Packers (also based in
the Boland town of Montagu), and Safari among the biggest producers
and distributors.
POSITION COMMODITY AMOUNT
1 Refined petroleum R18.2bn
2 Citrus R8.6bn
3 Wine R8.6bn
4 Apples and pears R6bn
5 Grapes R6bn
6 Iron and steel R3bn
7 Fruit juice R2.2bn
8 Fruit and nuts R2.1bn
9 Tobacco R1.8bn
10 Engine parts R1.6bn
Top 10 exports 2015
SOURCE: QUANTEC, 2015
75 WESTERN CAPE BUSINESS 2017