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Gauteng Business 2017-18 edition

  • Text
  • Manufacturing
  • Mining
  • Infrastructure
  • Development
  • City
  • Smart
  • Business
  • Investment
  • Business
  • Invest
  • Regional
  • Gauteng
  • Johannesburg
  • African
  • Sector
  • Banking
  • Provincial
  • Economic
  • Tshwane
Gauteng Business 2017/18 is the ninth edition of this highly successful annual journal, that has established itself as the premier business and investment guide for the Gauteng province. Special features for 2017/18 include a focus on major new developments in the region’s metros, complemented by detailed overviews of the main economic sectors in South Africa’s most important provincial economy.

OVERVIEW Agriculture

OVERVIEW Agriculture Good rains bring good news for Gauteng farmers. The Fresh Produce Market in Johannesburg is South Africa’s biggest market. The region’s other two metropolitan areas, Tshwane and Ekurhuleni, also have large markets to cater for the region’s large population. The Springs Fresh Produce Market accounts for 3% of South African market share which it intends increasing as it expands its facilities. Gauteng has a small landmass but in the agricultural sector, as in many other sectors, it punches above its weight. The province is home to some of South Africa’s largest agricultural companies, including AFGRI, a listed agriculture services and foods company, which specialises in animal feed production. Africa’s largest feedlot for cattle is located in Heidelberg: Karan Beef’s facility can accommodate 120 000 cattle. The feedmill processes 1 400 tons per day and the associated abattoir in Balfour in neighbouring Mpumalanga sometimes deals with 1 800 head of cattle per day. The 2 330ha Karan estate also includes a game farm and an eco-development. The Kanhym Agrimill in Vereeniging is one of three in the company’s portfolio, which collectively processes 250 000 tons of animal feed annually. Kanhym Estates is the largest producer of pigs in the country and the company’s Middelburg farm in Mpumalanga is geared to supply the Gauteng market. Gauteng’s agricultural sector is largely concentrated on producing vegetables for the huge cities that dominate the region. There is commercial farming in the southern sector of the province (part of South Africa’s maize triangle) and the farming of cotton, groundnuts and sorghum is undertaken in areas near Bronkhorstspruit (east) and Heidelberg (in the south). Fruit, dairy products, eggs, maize and grain are also produced in large volumes within the province. As the most populous region of South Africa, Gauteng consumes huge quantities of food. And South Africans eat more chickens than anything else. Poultry farm and production facilities abound in Gauteng. Astral Foods, RCL Foods and Daybreak Farms are among the biggest companies in the province. The poultry industry in South Africa has been in the spotlight with a change in the arrangements relating to import duties from the US. Cheaper imports from other areas such as the EU and Brazil SECTOR INSIGHT Woolworths and Massmart have small-grower support programmes • Maize crops are expected to top 15-million tons. were already putting pressure on local producers, but the decision in 2016 to allow a potential 65 000 tons from the US into South Africa has led to several thousand workers being laid off. Good rains in the interior have decisively ended the drought in areas such as Gauteng. Farmers are expecting a bumper maize crop in 2017 of about 15-million tons, which will be enough to GAUTENG BUSINESS 2017/18 44

OVERVIEW create a surplus to export. This is the biggest crop in more than 25 years. Many agriculture-focused research institutions are based in the province. The Agricultural Research Council’s (ARC) national research facilities are in Pretoria, and include the Roodeplaat Vegetable and Ornamental Plant Institute and the Onderstepoort Veterinary Institute. In addition, the Forestry and Agricultural Biotechnology Institute (FABI) is located at the University of Pretoria. Provincial plans At the West Rand Economic Summit held in early 2017, plans to prioritise agriculture and agriprocessing (amongst other sectors) in the West Rand were laid out. These include: • establishment of the Westonaria hydroponic Agripark (including the latest technology) • Merafong Flora Agri-park is completed (products include tomato, cucumber and green pepper) • investment in Isigayo Milling Plant in Randfontein. A broader province-wide agro-processing summit was held earlier, bringing together small-holder and commercial farmers, food retail companies, finance institutions and researchers. The summit was organised by the Gauteng Department of Economic Development, Environment, Agriculture and Rural Development. The provincial government is supporting 178 small-holder farmers through farmer support and development initiatives. An information technology programme is to be implemented in 2017/18. This will focus on crop and livestock monitoring and is intended to increase productivity. The Gauteng City Region will roll out the deployment of information technology in the farming community in 2017/18. This will present huge opportunities for farmers to monitor their crops/livestock and increase productivity. The R50-million programme encompasses: • Gauteng Agriculture Information System • Farm Business Analysis (DNA) • Gauteng Agriculture Economy Analysis (including market monitoring) • Smart Agriculture Feasibility. Even the city centre of Johannesburg is getting in on the drive to provide food security. The Johannesburg Development Agency (JDA) is promoting roof-top garden initiatives in downtown Johannesburg. Together with the Johannesburg Housing Company (JHC) and its subsidiary, Makhulong A Matala, JDA has funded three such projects. Massmart, the retail group now owned by US giant Walmart, invested R15-million in the five years to 2017 to create opportunities in its food chain for emerging farmers. Techno-Serve, a non-governmental organisation, oversees the programme. The Massmart Supplier Development Fund has enabled small farmers to have the security of a confirmed buyer for their products and many of them have grown their businesses substantially. Woolworths’ Enterprise and Supplier Development Programme gave Sophiatown-born Jimmy Botha the chance to become a successful farmer of baby spinach, rocket and basil. With advice from a supportive neighbour farmer (who was already supplying to Woolworths), Botha grew his farming business to the point where he now has 42 full-time employees and 30 seasonal workers. CONTACT INFO Agricultural Economics Association of South Africa: www.aeasa.org.za Agricultural Research Council: www.arc.agric.za AgriSA: www.agriinfo.co.za Gauteng Department of Agriculture and Rural Development: www.gdard.gpg.gov.za Johannesburg Development Agency: www.jda.org.za National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za South African Poultry Association: www.sapoultry.co.za 45 GAUTENG BUSINESS 2017/18

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