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North West Business 2019 edition

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  • Africa
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  • Horticulture
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The 2019 edition of North West Business is the ninth issue of this highly successful publication that, since its launch in 2009, has established itself as the premier business and investment guide for the North West Province. North West Business includes news and analysis of the most important sectors, with a regional overview covering the strategic thinking behind plans to attract investment into the province. Best known for its platinum mines, grain and livestock farming and tourism, the province is making a concerted effort to bolster its manufacturing capacity. Updated information on the North West is also available through our monthly e-newsletter, which you can subscribe to at www.globalafricanetwork.com, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title.

OVERVIEW Agriculture

OVERVIEW Agriculture Horticulture is in the spotlight. SECTOR INSIGHT Agricultural company Senwes listed on the JSE in 2017. A maiden horticulture expo was held in the Bojanala District in 2018. The North West is sometimes called the "Texas of South Africa” because of its superb cattle herds but the province also produces good crops of onions and other vegetables. In September 2018 the North West Department of Rural, Environment and Agricultural Development (READ) teamed up with the Madibeng Local Municipality to host the event called “Horticulture growth through exposure”. Apart from displaying a range of flowers, fruits, vegetables and trees, the exhibition provided producers of indigenous herbs a showcase for their products. The Bojanala District, and particularly the Madibeng Local Municipality, was chosen as the site for the expo because of its good rainfall patterns and its location near to the large urban concentrations of Pretoria and Johannesburg. The expo is a part of a broader effort to help small-scale farmers get exposure to the market. Four district agri-parks will help to establish sustainable agri-processing, promote food security and bring black businesses into the mainstream economy. Each of the agri-parks has a specific focus: • Springbokpan, grain (Ngaka Modiri Molema District Municipality) • Vryburg: livestock, red meat (Dr Ruth Segomotsi Mompati District Municipality) • Moretele/Makapanstadt: red meat and horticulture (Bojanala District Municipality) • Maquassi Hills: pork and poultry (Dr Kenneth Kaunda District Municipality). Various agri-processing plants are under consideration for the city of Mahikeng: a feedlot and a meat processing plant, including an abattoir and packaging facilities. In Taung the plan is to establish an animal feed-manufacturing plant. A 10ha vineyard in Ventersdorp, which forms part of the Local Economic Development plan for the area, is to be expanded to 40ha and a black-owned logistics co-operative has been signed to distribute products from the farm. The Provincial Government of North West wants to expand an existing programme to promote farming across all districts in the province. The Kgora Agricultural Institute in Ramatlabama, some 25km north of Mahikeng, trains small-scale farmers in raising animals and crop farming, and works with young people. A weakness identified in the land claims process has been the absence of support for new farmers. For the beneficiaries of a successful 4 500ha land claim on the De Paarl farm near Lichtenburg, things have been different. They have received tractors and equipment worth R6-million from the National Department of Rural Development and Land Reform. NORTH WEST BUSINESS 2019 38

OVERVIEW Support has also been given by Omnia Fertilisers. In the early stages of the project, a group of commercial farmers leased the land from the De Paarl Communal Property Association (CPA) and passed on agricultural skills to the beneficiaries. The farm has created 20 permanent job opportunities while 40 locals are employed seasonally. Major agricultural companies When South Africa’s first alternative stock exchange in South Africa started trading in February 2017, the first listing was agricultural company Senwes and its holding company. Senwes has a strong grain division and it controls 68 silos. Its headquarters are in Klerksdorp. Suidwes is based south of Klerksdorp in Leeudoringstad. More than 90% of the shares in the company are held by farmers. Grain handling is the main business and there are divisions for retail (17 outlets and one animal-feed depot), mechanisation, finance and research and agricultural economics (Terratek). South Africa's largest agricultural company, Afgri, is active in the province. Brits is the location of the headquarters of the MGK Group. The company runs five divisions and a plant that makes fullfat soy, a component in animal feed. NWK is another company with manufacturing capacity. The Lichtenburg-based enterprise makes liquid fertiliser (up to 10 tons per month), animal feed (Opti Feeds), processes sunflower seeds (Epko), and runs three grain mills. Another subsidiary, Opti Chicks, has a capacity of 600 000 chicks per week. NWK also deals in grain, runs several retail outlets and has a halfshare (with Senwes) in CertiSure Brokers. The company has 37 silos with a capacity of 2.5-million tons. Variety The dry western region is home to large beef-cattle herds, and this is where the growing game-ranching and hunting industry has its base. The eastern and north-eastern parts of the province receive relatively good rainfall and are suitable for the cultivation of crops. The North West has approximately 1.6-million beef cattle, ONLINE RESOURCES Grain SA: www.grainsa.co.za North West Department of Agriculture, Conservation, Environment and Rural Development: www.nwpg.gov.za/agriculture Seedling Growers Association of South Africa: www.seedlinggrowers.co.za representing 12% of South Africa’s herd. Major breeds include Simmental, Brahman, Bonsmara and Simbra, pictured, a cross between the Brahman and Simmental breeds. Kalahari Red and Boerbok goats are found in large numbers in the dry west. The number of goats for the province is estimated at 701 587 which is 12% of South Africa’s total. There are estimated to be 318 843 pigs, which is 20% of South Africa’s total drove. Nearly two-million hectares is planted with summer cereals, with about 50 000 hectares given over to winter cereals. The North West produces about 20% of South Africa’s maize and about 15% of its wheat. The central and southern sections of the province are dominated by maize and wheat farming. When it comes to sunflower seed, North West is responsible for 33% of South Africa's stock, and 23% of the nation's groundnuts. The North West supplies 5.4% of South Africa’s potatoes, but parts of the Kalahari are ideally suited to the cultivation of seed potatoes. 39 NORTH WEST BUSINESS 2019

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