South African Business 2017 edition

OVERVIEW huge fresh

OVERVIEW huge fresh tomato enterprise. Halls has an international reputation for avocados and litchis. Companies such as Capespan and Dole SA move huge quantities of fruit around the world. South Africa exports about 650 000 metric tons to the EU (about 40% of the total). This brings in total earnings of R9-billion, of which R4-billion is from the EU. A new development in the citrus sector is the establishment for small growers of the Growers' Development Corporation. The ban on black spot, which the EU introduced in 2013, was lifted in January 2014. The South African producers always claimed that the spot was not harmful in any way, but just a cosmetic blemish. The Orange River supports the cultivation of citrus and grapes of many kinds. The region is particularly well suited for the cultivation of Valencia oranges, lemons and grapefruit and the dry, hot conditions mean that it is easy to control pests. Wine Export volumes have been steadily rising for South African wines. There are about 3 500 wine producers in South Africa, with the large majority located in the Western Cape. There are 54 producer cellars. The industry is located, for the most part, in the Western Cape, but Orange River Cellars in the Northern Cape is growing production volumes. Europe remains the main export market but India and the Far East are growing in importance as destinations. The Distell group produces about a third of the country’s natural and sparkling wine and is ranked 12th in the world in global wine volumes sold. Livestock Livestock farming is the largest agricultural sub-sector in South Africa. The Eastern Cape is the largest livestock province. South Africa has a beef herd of 14-million. Clover, Africa’s largest milk processor, has a turnover of R6-billion and a staff of more than 6 500. The Eastern Cape provides approximately a quarter of South Africa’s milk. Parmalat has two plants in Port Elizabeth. ONLINE RESOURCES Agricultural Research Council: www.arc.agric.za Forestry South Africa: www.forestry.co.za National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za There are 6.4-million goats in South Africa. The Kalahari Kid Corporation (KKC) intends to raise the standard of goat meat and expand the export market. South Africa produces about 55% of the world’s mohair, the high-quality speciality fibre taken from Angora goats. Almost all mohair farming is done in the Eastern Cape. Forestry and paper The forest product export sector in South Africa is made up of paper (45.2%), solid wood (23.3%) and pulp (28.9%). Imports, weighted towards paper products, cost the country R9.8-billion annually, clearly indicating scope for increased domestic production. The sector employs approximately 462 000 people with some two-million dependants. Mondi and Sappi are both large international companies. The pulp and paper sector makes a direct contribution to South Africa’s balance of payments of R4.5-billion, largely due to Sappi’s dissolving wood pulp operations. Mpumalanga has South Africa’s biggest sawmill and its largest panel and board plant, together with the biggest integrated pulp and paper mill in Africa. There are sophisticated plants at several locations around the country: the country’s largest hardboard plant is at Estcourt. SOUTH AFRICAN BUSINESS 2017 52

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