Eastern Cape Business 2018 edition

OVERVIEW
Sundale Dairy, as well as a regional
depot of the Mediterranean
Shipping Company.
The Eastern Cape Rural
Development Agency (ECRDA) is
active in helping small-scale farmers
get access to markets and to
become part of the agriprocessing
chain. The implementation
of Rural Enterprise Development
(RED) hubs is central to this strategy.
RED hubs will supply tractors,
harvesters and offer storage facilities
and milling plants. There will
also be opportunities for farmers
to sell direct to members of their
own community instead of shipping
produce off to a distant location
to be processed there. The first
four hubs will be sited in the district
municipalities of OR Tambo, Chris
Hani and Alfred Nzo.
Agri-parks will support the addition
of value to primary products:
these have been developed
at Lambasi, Ncorha, Sundays River
Valley, Butterworth, Matatiele and
Sterkspruit-Senqu.
The Eastern Cape Development
Corporation (ECDC) also has a
role in supporting agriprocessing
through loans and equity arrangements:
projects that have received
financial support include aquaculture,
the production of dietary
fibre from pineapples and bamboo
products.
The Eastern Cape industry is
further expanding as producers
tend to favour high-rainfall coastal
areas such as the Eastern Cape.
The bigger dairies include Coega
Dairy which was founded in 2011
and is situated in the Coega IDZ.
The Coega Dairy in the Coega
IDZ produces the brand Coastal
and sells milk to all parts of South
Africa. It also manages the Famous Brands Cheese Company. which
supplies product throughout the country.
The province’s farmers mostly sell raw milk to two processors: Parmalat
and Clover. Small-scale dairy farming presents an opportunity to develop
the industry in the former homeland areas, especially in a range of previously
untapped products such as milk powder, speciality cheeses and
long-life milk.
Clover makes UHT/fresh milk in Port Elizabeth and Dairybelle manufactures
natural cheese, processed cheese and speciality cheeses at its factory
in Cookhouse near Somerset East. Ouma Rusks are still made in the small
rural town where they were invented, Molteno, and the current owner of
the brand, Foodcorp, has increased production volumes.
Cadbury Chocolates operates a big site across the lake from the football
stadium in Port Elizabeth and Nestlé makes 11 kinds of chocolate at its
factory in East London. The Sasko mill in Port Elizabeth is the province’s
only big milling plant.
Coca-Cola Sabco and SAB Limited’s Ibhayi brewery are the major
beverage manufacturers in Port Elizabeth and Distell has a bottling plant
in the city.
Sovereign Foods in Uitenhage is the country’s fourth-biggest producer
of poultry and has been the target of a take-over by Country Birds for
some time, but the process has been dragged out because Sovereign
management do not want to sell.
South Africa is the second-largest producer of chicory in the world.
Chicory is grown primarily in the coastal areas around Alexandria between
Port Elizabeth and Port Alfred. A drying plant has been established there
and the dried chicory produced is sold to coffee manufacturers nationwide
for local consumption.
Sugar is grown on the northern border of the province, in North
Pondoland. An opportunity for diversification in crop production exists
with the aloe ferox plant, which is indigenous to the Eastern Cape. Like
aloe vera, which is in demand worldwide in cosmetic and health products,
aloe ferox is used for a wide range of skin conditions and various medical
ailments.
ONLINE RESOURCES
Border Kei Chamber of Business: www.bkcob.co.za
Coega IDZ: www.coega.co.za
Eastern Cape Rural Development Agency: www.ecrda.co.za
East London Industrial Development Zone: www.elidz.co.za
Nelson Mandela Business Chamber:
www.nmbbusinesschamber.co.za
Organic Agricultural Association of South Africa:
www.organicsouthafrica.co.za
Perishable Products Export Control Board: www.ppecb.com
49 EASTERN CAPE BUSINESS 2018