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Eastern Cape Business 2017 edition

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The 2017 edition of Eastern Cape Business is the 10th issue of this highly successful publication that, since its launch in 2006, has established itself as the premier business and investment guide to the Eastern Cape Province. The Eastern Cape enjoys an abundance of natural and human resources, as well as established industrial infrastructure that drives the economy of the province. This includes three ports and two industrial development zones which are home to a wide range of manufacturers and exporters. The 2017 edition includes an in-depth look at the province’s two Industrial Development Zones, a focus on skills development and investment climate information from the Nelson Mandela Business Chamber and the Border-Kei Chamber of Business.

OVERVIEW The dorper

OVERVIEW The dorper breed (which are mainly used for meat production) is found in the dry Karoo, while the higher-lying areas are more conducive to the wool-producing sheep. South Africa produces about 50 000 tons of wool annually. In 2014/15, the value of wool sold at auctions reached R3.5-billion; in 2015/16 it was R3.7-billion, of which R815-million was generated in the Eastern Cape. The National Woolgrowers Association (NWGA) has helped 24 000 Eastern Cape communal wool farmers get organised into 1 224 wool growers associations. Now they have access to sheds with good equipment for shearing and classification. ( One of the support programmes aims to improve the genetic stock. This is funded by the national Department of Rural Development and Land Reform and involves communal farmers swopping an inferior ram for a good ram. So far, 42 000 good merino rams have been added to the communal flocks. Dugmore’s report highlights the achievements of a group of communal farmers from the Sterkspruit district, near the Lesotho border. The 66 farmers of the Upper Telle shearing shed were the 2015/16 season NWGA Grand Champions. Their 5 600 sheep produced an average of R92.03/kg against the national average for commercial wool farmers of R77.40/kg. The average for communal wool farmers is R52.35. The South African Mohair Growers Association is based in the heart of Angora goat country at Jansenville while the industry association, Mohair South Africa, has recently built smart new headquarters in Port Elizabeth, encompassing a shop and conference facilities. South Africa produces about half of the world’s mohair. Processing of mohair takes place in Uitenhage, Port Elizabeth and Berlin outside East London. The mohair value chain includes brokers, buyers, processors, spinners, manufacturers and retailers. The Stucken group controls Mohair Spinners South Africa, Hinterveld (a mill) and a processing company called Gubb & Inggs in Uitenhage. Several agricultural companies have mohair divisions: OVK (based in Ladybrand) has a 34% shareholding the Cape Mohair Wool (CMW), a mohair brokerage; BKB (Port Elizabeth headquarters) has a mohair division that includes auctions and brokering. Other livestock Livestock farming is the largest agricultural sub-sector in South Africa. The Eastern Cape holds 21% of the country’s cattle (about 3.2-million), 28% of its sheep (seven-million) and 46% of its goats, making it the largest livestock province by a large margin. The rich natural grasslands of the Eastern Cape have the potential to produce high-value organic meat, a product that is proving increasingly popular in health-conscious international markets. The Eastern Cape can offer a range that stretches from Karoo lamb to CAB-certified freerange beef. These niche meat products are leaner, healthier and often tastier than mass-produced alternatives. High-value meat cuts such as these will increase the value of exports from the Eastern Cape. The Border region is very strong in beef production. Stats confirm that South Africa has a large meat-eating EASTERN CAPE BUSINESS 2017 34

OVERVIEW population, as South Africans consume on average 13.7kg of beef every year, of which lamb or mutton makes up around 3.4kg per annum. Dairy About a quarter of South Africa’s milk comes from the Eastern Cape. Although conditions vary greatly from the luscious green grasses of the Lower Tsitsikamma to the drier conditions of the Karoo, they all seem to suit milk-producing cows. The bigger dairies include Dawson Dairy (just outside Port Elizabeth), Crickley Dairy (Queenstown), Clover Dairy (Port Elizabeth; packaging and fresh pasteurised milk processing, long-life UHT milk), Parmalat (Port Elizabeth; wide range of flavoured milks, cheeses, custards, butter, fruit drinks and ice cream under many brand labels), Dairybelle (Cookhouse near Somerset East; cheeses), Woodlands Dairy (Humansdorp; UHT milk, First Choice Brand), and Sundale Free Range Dairy (East London Industrial Development Zone). A young farmer who turned a very small operation into a sizable dairy herd has earned himself a top prize along the way. Tshilidze “Chilli” Matshidzula turned a failing land redistribution project with a herd of fewer than 50 cows into a successful dairy operation with 549 cows that produces 11 000 litres of milk per day. For this achievement he received the Mangold Cup from the Bathurst Conservation Committee in 2016, the first time the award has been won by a black farmer. Walter Biggs, an established farmer in the Alexandria District, mentored Matshidzula over a period of nine years. ONLINE RESOURCES Arid Areas Research Programme: Agri Eastern Cape: Eastern Cape Department of Rural Development and Agrarian Reform: Eastern Cape Development Corporation: Eastern Cape Rural Development Agency: Chicory Producers Association: Milk Producers Organisation: Mohair South Africa: National Department of Agriculture, Forestry and Fisheries: National Woolgrowers’ Association of South Africa: South African Mohair Growers Association: 35 EASTERN CAPE BUSINESS 2017

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