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North West Business 2017 edition

The 2017 edition of North West Business is the seventh issue of this highly successful publication that, since its launch in 2009, has established itself as the premier business and investment guide to the North West Province. North West Business includes news and analysis of the most important economic sectors, and interviews with some of the province’s active business leaders and investors.

The 2017 edition of North West Business is the seventh issue of this highly successful publication that, since its launch in 2009, has established itself as the premier business and investment guide to the North West Province.
North West Business includes news and analysis of the most important economic sectors, and interviews with some of the province’s active business leaders and investors.

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OVERVIEW<br />

20%. The total yield in 2014 was<br />

14.2 million tons, an exceptionally<br />

good return, but then the<br />

drought brought yields down.<br />

Fully 31% more maize was<br />

planted for the <strong>2017</strong> harvest than<br />

had been possible in 2016. This<br />

amounted to 2.54-million hectares<br />

and represents good news<br />

for consumers. The very bad<br />

national drought had resulted<br />

in maize having to be imported<br />

which caused food prices to<br />

rise; the better planting should<br />

improve things. However, at the<br />

time of going to print there were<br />

concerns about an armyworm<br />

which had been detected in several<br />

parts of South Africa. Early<br />

detection may head off threats to<br />

the crop. The South African market<br />

consumes about 10.5-million<br />

tons of maize.<br />

Other crops<br />

When it comes to sunflower seed,<br />

<strong>North</strong> <strong>West</strong> is responsible for 33%<br />

of South Africa’s stock, and 23% of<br />

the nation’s groundnuts.<br />

The <strong>North</strong> <strong>West</strong> supplies 5.4% of<br />

South Africa’s potatoes, but parts of<br />

the Kalahari are ideally suited to the<br />

cultivation of seed potatoes.<br />

The province produces about<br />

11% of South Africa’s cotton harvest,<br />

which has been getting<br />

smaller for many years. There are<br />

plans to grow the sector again,<br />

particularly in small-scale farming<br />

sector. There are cotton operations<br />

near Sun City in the north<br />

of the province and in the Taung<br />

district in the far south.<br />

The Taung Irrigation Scheme<br />

covers about 36 000 hectares, and<br />

companies like McCain (potatoes), South African Breweries (barley) and<br />

Cotton South Africa (cotton) have standing orders with small-scale<br />

farmers. This water supply will also allow for the cultivation of highyield<br />

crops such as pecan nuts, paprika and olives.<br />

Livestock<br />

The western reaches of the province are sometimes called “South<br />

Africa’s Texas” with extensive cattle herds roaming on big farms.<br />

The <strong>North</strong> <strong>West</strong> has approximately 1.6-million beef cattle, representing<br />

12% of South Africa’s herd. Major breeds include Simmental,<br />

Brahman, Bonsmara and Simbra, a cross between the Brahman and<br />

Simmental breeds.<br />

Auctioneers Proveld Bonsmara achieved an average price of<br />

R34 000 for bulls at its November 2016 auction. One prize bull was sold<br />

for R90 000. A national initiative is promoting Nguni cattle. Vryburg is<br />

the centre of the beef-cattle breeding industry.<br />

Kalahari Red and Boerbok goats are found in large numbers in the<br />

dry west. The goats numbers for the province is estimated at 701 587<br />

which is 12% of South Africa’s total goats. There are estimated to be<br />

318 843 pigs, which is 20% of South Africa’s total drove.<br />

Companies<br />

One of South Africa’s biggest agricultural companies is Senwes. The<br />

company specialises in the storage and handling of grains and oilseeds.<br />

Its extensive silo infrastructure extends across the interior. Its<br />

headquarters are in Klerksdorp. Despite very challenging conditions,<br />

the Senwes Group had a turnover for 2015/16 of R9.2-billion.<br />

Suidwes is based south of Klerksdorp in Leeudoringstad. More than<br />

90% of the shares in the company are held by farmers. Grain handling<br />

is the main business and there are divisions for retail (17 outlets and<br />

one animal-feed depot), mechanisation, finance and research and<br />

agricultural economics (Terratek).<br />

Brits is the location of the headquarters of the MGK Group, formerly<br />

Magaliesberg Graan Kooperasie. Tau company runs five divisions and a<br />

plant that makes fullfat soy, a component in animal feed.<br />

ONLINE RESOURCES<br />

Agricultural Research Council: www.arc.agric.za<br />

National Department of Agriculture and Forestry: www.daff.gov.za<br />

<strong>North</strong> <strong>West</strong> Department of Agriculture, Conservation, Environment<br />

and Rural Development: www.nwpg.gov.za/agriculture<br />

35 NORTH WEST BUSINESS <strong>2017</strong>

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