OVERVIEWAgricultureThe
OVERVIEWAgricultureThe newly expanded VKB Group covers all provinces.An injection of R10-million by the Free State ProvincialGovernment is intended to revitalise the deciduous fruitsector. The Remmoho Agri-Investment Project will constructa juice-manufacturing plant that will export its product.Approximately 400 jobs are expected to be created over a threeyearperiod.The Entrepreneurial Development Programme has employed 120graduates for a two-year period within the agricultural sector whilesteps are being taken to involve youth, women, people with disabilitiesand military veterans in agricultural activities by allocating provincial ormunicipal land to them.In the five-period period between 2019 and 2024, the Free StateDepartment of Agriculture and Rural Development (DARD) facilitated19 023 export certificates and rehabilitated 29 419ha of land. Thecultivation of 987ha using conservation practices is intended toincrease the production of organic products.The Integrated Vrede Dairy Project, which was in the news for all thewrong reasons during the period of State Capture, has been handedover to a trust representing the rightful owners. The trust has a majorityshare in the project, which has received 583 dairy animals from theprovincial government to help them get started.The provincial government is also taking the initiative in promotingcannabis as an agricultural product of the future. Six sites havebeen identified at Bethlehem, Ficksburg, Kroonstad, Viljoenskroon,Wesselsbron and the Glen Agricultural Training Institute, which willbe used as a research site. The Glen Agricultural Training Institute is apublic institution of the DARD and specialises in the higher and furthereducation training band.The campus comprises nearly 4 600ha. The Modder River runs to thesouth of the site, with the Renosterspruit as tributary.Five agri-parks are being constructed in each of the FreeState’s district municipalities. The concept brings togetherfarmers, traders and agro-processors at convenient sites.Support for rural smallholders will be available in terms of equipmenthire from a central source, storage facilities, packaging of produce andgetting products to market.SECTOR INSIGHTGraduates are beingexposed to the sector.As part of the agri-parksprogramme a warehouse is underconstruction at Springfonteinand the Thaba Nchu abattoiris being upgraded. In Sediba,Farmer Production SupportUnits supplied a tractor andimplements to participants.Private companiesThe consolidation of agriculturalservices took a further step in2023 with the creation of the VKBGroup, whose silos are pictured.The merger with GWK has giventhe group an extensive presencein the three Cape provinces whileNTK covers Limpopo and thenorthern parts of Mpumalanga.The historical home of VKB,namely the eastern Free State,is still a strong region for thecompany whose headquartersare located in Reitz, and the VKBbrand covers the balance of theprovinces.The new companyannounced a R608-millionnormalised profit in 2024 (pretax)and reported that most ofFREE STATE BUSINESS 202530PHOTO: alexandarlittlewolf/Freepik
OVERVIEWthe procedures for bedding in new systems for the merged entity hadbeen completed. Investment in solar energy at some of the company’sfacilities is planned. Before the merger, VKB was already a diversegroup, with the capacity to produce soybean meal and soybean cakeand flour from its plants, mills and factories. Grain Field Chickens, alarge abattoir in Reitz, is one of the company’s biggest facilities in theprovince. The Industrial Development Corporation (IDC), which has a23% stake in the project, aims to help develop the Free State as thepoultry hub of South Africa. VKB has six agro-processing companiesincluding VKB Flour Mills and Free State Oil and is active in auctioning,storage, packaging and fuel sales, among other activities.The SASKO Bethlehem Mill has a total of 96 employees and mills144 000 tons of wheat every year. Bethlehem was chosen because ofits proximity to excellent wheat-producing areas and for its strategiclocation in terms of logistics: the busy N3 freeway is just 90km away.Transnet Freight Rail (TFR) has plans to double volumes of graintransported out of its Bethlehem facility.The Imbani Homsek Group is an integrated dairy-products producerwith one of the biggest Ayrshire herds in the world. The head officeof Country Bird Holdings is in Bloemfontein: its brands are SupremeChicken, Nutri Feeds and Ross (breeding). Country Bird Logisticscontrols 45 chilled and frozen vans. Dairy producer Clover has threefactories in the Free State: Frankfort, Heilbron and Bloemfontein, whereyoghurt is made. The provincial capital is also a distribution hub forClover, as is Welkom.Bothaville hosts the country’s largest agricultural festival, NAMPOHarvest Day. Bothaville falls under the North West in the organisationalONLINE RESOURCESAgricultural Research Council: www.arc.agri.zaBothaville: www.bothaville.infoFree State Department of Agriculture and Rural Development:www.ard.fs.gov.zaGrain SA: www.grainsa.co.zachart of giant agriculturalcompany Senwes, which hasits headquarters in Klerksdorp.The rest of the Free State isdivided into three regionsby Senwes, which deals withabout 20% of the country’soilseeds and grain through its68 silos.The province suppliessignificant proportions ofthe nation’s sorghum (53%),sunflowers (45%), potatoes (33%),groundnuts (32%), dry beans(26%), wool (24%) and almostall of its cherries (90%). Red meatand dairy are other importantproducts. Game hunting is asignificant sector, and severallarge Free State farms havebeen converted from stock togame farms. Crop productionrepresents about two-thirdsof the province’s grossagricultural income. The maincrops are maize and wheat.Sunflowers, sunflower seeds,sorghum and soy beans are othermajor crops. The MangaungFresh Produce Market plays avital role in the sector, cateringas it does to householders, bulkbuyers, informal traders, agentsand farmers. ■PHOTO: VKB Group31FREE STATE BUSINESS 2025
