OVERVIEW Agriculture and
OVERVIEW Agriculture and agri-processing Agri-parks and an International Fresh Produce Market – helping farmers get to market. SECTOR INSIGHT The Land Bank aims to loan R1-billion to black investors in agriculture. • Farmer Production Support Units are up and running in two districts. • Agriculture students will study in Belarussia. Mpumalanga is one of South Africa’s most productive and important agricultural regions and contributes significantly to the nation’s export basket, with a strong suite in fruit and nuts. Big companies cultivate maize, sugar, timber, vegetables, fruit and tea on a large scale and are active in the raising of poultry and cattle. Large commercial farmers account for the bulk of crop and livestock production. The agricultural sector accounts for 3.3% of the gross domestic product (GDP) of Mpumalanga and for nearly 12% of employment (89 000 people). A separate overview of the forestry sector appears elsewhere in this publication. Concerted efforts are being made to help emerging farmers grow their holdings and their output, and to connect them to domestic and international markets. The Provincial Government of Mpumalanga has several programmes such as the Masibuyele Emasimini and Masibuyele Esibayeni (which support subsistence farmers) and the Mpumalanga Fortune 40 Young Farmer Incubator Programme, which plans to commercialise 20 farms. When complete, 20 SME and 20 youth-owned co-operatives will be actively tilling land and making a business of agriculture. Fifteen farms have been acquired, and infrastructure has been provided on eight so far. Infrastructure in the form of irrigation, broilers, tractors, packhouses and fencing is being provided in the 2017/18 year to the value of R81.9-million. Seven of these farms have started production and are selling their produce to the market. Agri-parks will be established in each of Mpumalanga’s three MPUMALANGA BUSINESS 2017/18 30
OVERVIEW districts, as part of the R2-billion plan of the National Department of Rural Development and Land Reform to roll out services that will help farmers get better access to market and storage facilities. Support in terms of equipment hire and information will be available. Markets where farmers can sell their produce and processing plants such as abattoirs will form part of the parks and farmers will gain access to market information and bigger markets through the Rural Urban Marketing Centre. Training will also be on offer at the parks and the aim is to get local farmers owning 70% of the facility. Two Farmer Production Support Units have already been developed by the Mpumalanga Department of Rural Development in Bushbuckridge and Nkomazi municipalities. The Feedlot in Mzinti is complete while the R20-million packhouse in Bushbuckridge is almost ready for use by farmers. A new concept for the province is the creation of the Mpumalanga Fresh Produce Market, for which there are high hopes. As Premier David Mabuza says, “The Mpumalanga Fresh Produce Market remains a critical platform to stimulate agricultural production, downstream beneficiation and investment opportunities across the agro-processing value chain. At the heart of this initiative is the empowerment of emerging black farmers to access domestic and international markets for their produce.” The Land and Agricultural Development Bank of South Africa (Land Bank) has set a target of R1-billion which it wants to loan to black investors in agriculture in the 2017/18 financial year. It is targeting big investments which can lead to commercialisation of farming operations, as it aims to help transform the sector. A land rehabilitation project is under way, with the provincial government in partnership with mining company South32 (formerly BHP Billiton). This will release more land for agricultural use. Another public-private partnership will allow easier access to market for the chickens produced at the eight poultry houses which the provincial government is to construct for R11-million. An agreement has been signed for distribution to Early Bird Chicken, AFGRI and Super Grand Distribution. This scheme forms part of a larger effort to integrate the poultry value chain, which is being led by the Agricultural Research Council (ARC) in partnership with the Mpumalanga Department of Rural Development and Land Reform. Crops Mpumalanga produces one-million tons of maize from 291 788ha. About 53 000 tons of wheat and 33 000 tons of sorghum are produced annually. Soya bean is another major crop: more than half of South Africa’s soya bean crop is produced in Mpumalanga’s Highveld 31 MPUMALANGA BUSINESS 2017/18
