Agriculture & Agri-processing

• A new Tzaneen wood-processing concern will create 250 jobs.

Agriculture contributes 3.1% to the gross domestic product of Limpopo but is far more important than what that figure implies. A large number of people are dependent on subsistence farming and the sector contributes greatly to the national export effort.

The Provincial Department of Agriculture will spend R1.2-billion in 2009/10. Projects include a Comprehensive Agricultural Support Programme and a plan to rebuild smallholders’ irrigation schemes.

Cattle and game ranching occur in the higher-lying areas while the lower-lying areas are rich in fruit, tea, citrus and vegetables.

Of Limpopo’s 124 000 square kilometres, 88.2% consists of farmland. Investment agency Trade & Investment Limpopo 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 which hold great potential.

The University of Limpopo’s School of Agricultural and Environmental Sciences runs an outreach programme called the Centre for Rural Community Empowerment (CRCE) which does important research on sustainability and viability of projects. The Limpopo Agri-Food Technology Station was launched at the University in 2008. The Technology Station enables small operators to gain access to new technology.

Agri-processing
Several major processing companies are already established in the province, including Giant Foods, Golden Harvest, McCain and Willards. One of the best-known crops of the region is Amarula, which is made into Amarula cream liqueur.

The two sites of the Limpopo Agri-Business Academy (at Tompi Seleka and Madzivhandila) aim to equip farmers and entrepreneurs to make the agri-business sector more competitive and relevant in the fight against poverty, malnutrition and economic underdevelopment. The potential for processing and other downstream opportunities is enormous.

By opening up a new world of business opportunities, from product development to processing, communities are being given an economic advantage and a step-up from subsistence to commercial farming.

The academy combines classroom learning and practical training to ensure that farmers are educated in the business of providing quality produce and also in the management, marketing and general commercial side of agriculture.

The sector currently produces and exports value-added products such as marula juice, nut-oils, fruit juice, dried fruit and dairy products. Other products that are envisaged for agri-business ventures include sugar,
soya, essential oils, catfish and goats. Organic production of all sorts is being investigated.

Crops
Limpopo is well known for its vast and plentiful citrus and tea estates. The story of the revitalisation of the tea estates is told elsewhere in this journal. 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.

Most of South Africa’s citrus and subtropical fruit comes from the eastern part of Limpopo. In ZZ2 Tomatoes, Limpopo has one of the biggest producers of tomatoes anywhere. Total production in the province amounts to 228 000 tonnes.

In 2008/09 Limpopo produced about 65% of South Africa’s cotton and the province is home to the country’s largest ginnery. In addition, Limpopo is the country’s second-biggest supplier of potatoes.

Most of the province’s soft and time-sensitive fruits, like avocados, are exported out of the Port of Cape Town and transported to that city by truck. Citrus is taken to the ports of Durban or Maputo.

Livestock and hunting
Government planning at provincial level includes the promotion of red and white 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 marketing of products.

More than half of South Africa’s game hunting farms are in Limpopo and this multi-million-rand industry is growing fast. Growth rates of over 6% have been experienced in this sector since the early 1990s. There are some concerns that the reduction in the number of livestock such
as cows may have a detrimental effect on the ability of the province to provide enough food.

The Limpopo Local Economic Development Programme has forwarded R800 000 to the Waterberg District Municipality, Ecosystems and Afrivet Business Management to investigate ways for Limpopo to do better in this market. The fact that South Africa only supplies about 2 000 tonnes of venison to the international market (where demand is for 50 000 tonnes every year) is something that is seen as an opportunity for Limpopo entrepreneurs, given the perfect climatic and soil conditions in large parts of the province.

Timber
The timber industry is concentrated in the eastern regions. Tzaneen has a number of sawmills, which form an important part of the regional economy, providing a base to drive other sectors such as furniture making.

About 63 000 hectares of the province’s landmass is under forest, and approximately 680 000 cubic metres of round wood is produced annually. Nearly 100 000 of this wood is used by companies in the mining sector.

The Industrial Development Corporation extended a debt facility in 2009 to a company in Tzaneen which aims to employ 250 people in the creation of fencing and decking material from wood-plastic composites.

ONLINE RESOURCES
Agricultural Research Council: www.arc.agric.za
Agri South Africa: www.agriinfo.co.za
Citrus Growers Association: www.cga.co.za
Deciduous Fruit Producers Trust: www.dfpt.co.za
Forestry South Africa: www.saforestry.co.za
Limpopo Department of Agriculture: www.lda.gov.za
National Department of Agriculture, Forestry and Fisheries: www.doa.agric.za

















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