5 years ago

Eastern Cape Business 2018 edition

  • Text
  • Mandela
  • Water
  • Electrical
  • Services
  • Financial
  • Municipal
  • Infrastructure
  • Water
  • Manufacturing
  • Sectors
  • Tourism
  • Energy
  • Development
  • Industrial
  • Business
  • Investment
  • Nedbank
  • Provincial
A unique guide to business and investment in the Eastern Cape. The 2018 edition of Eastern Cape Business is the 11th issue of this highly successful publication that, since its launch in 2006, has established itself as the premier business and investment guide for the Eastern Cape. The Eastern Cape’s investment and business opportunities are highlighted in this publication. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on the role of the renewable energy sector on the region’s future and on the growth of tourism (spurred by the hosting of international events such as the 2018 IRONMAN 70.3 World Championship, the first-ever cricket Test match to be played at night at St George’s Park and Vodacom Origins of Golf events at St Francis Links). All of the major business chambers in the province have made contributions to the journal. To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at Updated information on the Eastern Cape is also available through our monthly e-newsletter, which you can subscribe to online at, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title.


OVERVIEW The province’s pineapple crop, grown in the same part of the Sunshine Coast that produces chicory, is similarly largely for domestic consumption. Approximately 80 000 tons are produced every year and processed in East London. One of the fastest-growing sectors in agriculture is macadamia nuts. The ECRDA has partnered with a community to plant the popular nut at Ncera in the Tyume Valley north of Alice. Sheep and goats The long-term drought which has afflicted all regions in South Africa is having an effect on all sectors, but wool-producing sheep farmers and mohair-producing Angora goat producers perhaps less so, partly because they are so well adapted to dry conditions but also because farmers can reduce their flocks. The dorper breed (which are mainly used for meat production) are 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 2015/16, the value of wool sold at auctions reached 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. A support programme 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. 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 subsector 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 free-range beef. These niche meat products are EASTERN CAPE BUSINESS 2018 44

OVERVIEW 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 population, as South Africans consume on average 13.7kg of beef every year, of which lamb or mutton makes up around 3.4kg. 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), Sundale Free Range Dairy (East London Industrial Development Zone). 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 milkproducing cows. The bigger dairies include Coega Dairy which was founded in 2011 and is situated in the Coega IDZ. Coega Dairy is one of South Africa’s 10 largest dairies with a turnover of more than R1.5-billion and produces milk under the Coastal label as well as under contract for various retailers. It supplies milk all over South Africa. It also manages the Famous Brands Cheese Company within the IDZ as part of a joint venture with Famous Brands. Other dairy operations 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; a wide ONLINE RESOURCES Agri Eastern Cape: Chicory Producers Association: Eastern Cape Department of Rural Development and Agrarian Reform: Eastern Cape Development Corporation: Eastern Cape Rural Development Agency: Milk Producers Organisation: Mohair South Africa: National Department of Agriculture, Forestry and Fisheries: National Woolgrowers’ Association of South Africa: South African Mohair Growers Association: 45 EASTERN CAPE BUSINESS 2018

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