The 2016/17 edition of Limpopo Business is the eighth issue of this highly successful publication that, since its launch in 2007, has established itself as the premier business and investment guide to the Limpopo province.
Limpopo is unique in terms of its abundant natural and human resources, and is also one of the key drivers behind the South African economy.
This edition of Limpopo Business is officially endorsed by the Office of the Premier of Limpopo.
OVERVIEW The Industrial
OVERVIEW The Industrial Development Corporation (IDC) is getting behind citrus farming in Limpopo. Falling under the IDC’s Agro-Industries Strategic Business Unit, a funding agreement has been signed with Naranja Packers that will see new farms established, established farms converted to different cultivars and the packing house expanded. The brands Clemengold and Sweet C are marketed under Indigo Fruit Farming, which is wholly owned by ANB Investments. The packing house in Burgersfort processes up to 600 large crates of fruit a day in season, with each crate containing about 350kg of fruit – or slightly more than 2 000 tons. Despite concerns about trade from within the EU about the socalled “black spot” on some fruit (which the South African farming community has explained is a purely aesthetic problem) citrus exports from South Africa to the EU grew 22% in 2015. South Africa’s citrus industry is valued at R10-billion. So valuable is the EU as a client (accounting for about 40% of citrus exports) that South Africa has, according to Business Day, spent close to R1-billion to solve the “black spot” issue. Citrus exports to the EU had grown at a rate of 22% from January to November 2015. In volume, exports to the EU accounted for 40% of total citrus exports (30% oranges, 66% mandarins, 24% lemons), up from 36% in the prior season. A new entrant to the export market is the GOGO Group, located in the Loskop Valley, where intensive citrus cultivation takes place. Exports will be sent to the USA through the parent company EKM Exports. The Zebediela Citrus Estate has been bought by the Bjatlhadi community with the support of the Limpopo Local Economic Development Programme, and the focus has shifted from bulk supply to producing smaller, consumer-friendly quantities. Livestock Government planning at provincial level includes the promotion of meat “clusters” along all the development corridors identified in the province. This includes the promotion of hygienic practices, the establishment of small-scale abattoirs and assistance in the marketing of products. The province has about one-million beef cattle, about 7.5% of the national herd. A new indigenous breed of cattle has been developed called the Pinz²yl, from breeding Pinzgauer and Nguni stock. This is an initiative of the same farming group that grows the ZZ2 tomato, with the name derived from the famous European breed and the name of the farmer who started it all, Bertie van Zyl. International demand for venison is in the region of 50 000 tons per year and South Africa only supplies about 2 000 tons of it – a clear opportunity for Limpopo entrepreneurs to grow their share of the market. Water Although parts of Limpopo are well-watered, many areas are dry, which means that irrigation projects take on enormous importance. Four irrigation schemes below the Flag Boshielo Dam have prospered (542 hectares in extent). All four schemes have potato crops with Krokodil also having a maize component. The long drought that has affected many parts of South Africa has had a big impact in Limpopo. The provincial government declared a disaster in November 2015 and released funds to supply feed for livestock in areas where it is scarce. Amazingly, the demand for fish in Iran may mean that small water bodies in the Sekhukhune District will be devoted to cultivating fish. The Phethwane Integrated Aquaculture Project stalled after a bright start in 2011, but a Fishery Imbizo held at the Tompi Seleka College of Agriculture in Marble Hall aimed to resuscitate the project. The goal is to supply 500 tons of fish. The Tompi Seleka College is itself in the spotlight, having been reopened in 2015. Together with the Madzivhandila College (in the Thula-Thula Municipality in the Vhembe District), enrolment has increased from 140 in 2015 to 222 in 2016. Limpopo is trying to skill its own farmers. Irrigation technology is at the heart of a project in Strydkraal in Sekhukhune, where MBB Consulting Engineers has designed a 300-hectare scheme LIMPOPO BUSINESS 2016/17 48
OVERVIEW to produce maize and potatoes. An experienced commercial farmer will oversee the management of the scheme, which is funded by the Limpopo Department of Agriculture and Rural Development and is intended to benefit the community of Ikageng. Food security A national rural development strategy has been established by the National Department of Agriculture, Forestry and Fisheries (DAFF), the key component of which is food security. The entire value chain of agriculture is under scrutiny, with the aim to help small-scale farmers by improving infrastructure, creating new markets and assisting them to gain access to the big buyers such as supermarkets. In many areas, private companies such as South African Breweries, Woolworths and Pick n Pay are already active. Massmart has committed to creating opportunities for emerging farmers through its Direct Farm Programme. DAFF aims to increase the number of smallholder producers in the country. As the DAFF strategic plan says, “there is a need to coordinate and integrate all the support provided to smallholder and subsistence producers”. Memorandums of understanding have been signed with three Chinese provinces (Anhui, Jilin and Henan), and the province is in talks with the National Department of Agriculture about putting mangoes and avocadoes (two of Limpopo’s biggest products) on the priority list of exports to China. The Limpopo Economic Development Agency has identified specific investment opportunities: private partnerships to resuscitate state irrigation schemes, cut flowers, baby vegetables, almonds, table grapes and pork. Sunflowers, soya beans and maize are other crops, all of which hold great potential for growth. A R2.2-million project near Tzaneen aims to improve food security. The Limani Project is a joint undertaking of Pioneer Foods, Trees for Africa and the Dreamfields Foundation. Schools receive seeds, tools and lessons in how to grow organic gardens. TechnoServe, an NGO, and food-supply company Qutom are helping three emerging Limpopo farmers produce 700 tons of tomatoes for Woolworths and other markets. TechnoServe is handling the loan and has found an experienced farmer to mentor the three new farmers: the mentor’s remuneration will depend on the production levels of his charges. The Eskom Development Foundation acknowledges hard work in the agricultural sector through its Business Entrepreneurship Investment Competition Awards. The winners in 2015 was Greenland Landscaping (Thohoyandou) with first runner-up’s position going to Livhuki General Trading (Pty) Ltd (Makhado). ONLINE RESOURCES Agro-Food Technology Station, Limpopo University: www.ul.ac.za ARC-Institute for Tropical and Subtropical Crops: www.arc.agric.co.za Citrus Growers Association: www.cga.co.za Deciduous Fruit Producers Trust: www.dfpt.co.za Food & Trees For Africa: www.trees.co.za Limpopo Department of Agriculture: www.lda.gov.za Limpopo Economic Development Agency: www.lieda.co.za Limpopo Local Economic Development Programme: www.limpopoled.com National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za South African Fruit Farms: www.safruitfarms.com South African Macadamia Growers’ Association: www.samac.org.za South African Subtropical Growers’ Association: www.subtrop.net 49 LIMPOPO BUSINESS 2016/17
