KwaZulu-Natal Business 2017/18 is the ninth edition of this highly successful publication that has, since its launch in 2008, established itself as the premier business and investment guide to the KwaZulu-Natal Province.
The 2017/18 edition includes special features on the Richards Bay area and its increasingly important Industrial Development Zone, the investment appeal of Durban and the growing maritime economy. Up-to-date overviews on the province’s economic sectors provide unique insights.
Global Africa Network Media (www.gan.co.za), the publisher of KwaZulu-Natal Business, specialises in business-to-business print and electronic publications, producing a series of region-specific, annual print journals. Every province in South Africa is covered by this unique range of journals and websites, complemented by a national business guidebook, South African Business.
OVERVIEW Agriculture
OVERVIEW Agriculture Heavy rains have returned to boost agricultural production. The long-term drought which came to a very wet end in KwaZulu- Natal nevertheless had very serious effects on the agricultural sector. The provincial government reported that 6.3% fewer households were directly involved in agriculture in 2016 compared to 2011, and this was largely attributed to drought conditions. Despite this setback, the KwaZulu-Natal’s agricultural sector is very strong, taking advantage as it does of the province’s fertile and varied soils. Eighteen percent of KwaZulu-Natal’s 6.5-million hectares of agricultural land is arable and the balance is suitable for the rearing of livestock. Vegetables grow well in most areas, and some maize is grown in the north-west. Nuts such as pecan and macadamia thrive. The province’s forests occur mostly in the southern and northern edges of the province. The sugar sector is dealt with separately in this publication. TWK is a R6-billion operation that originated in forestry (as Transvaal Wattlegrowers Co-operative) but which is now a diverse agricultural company with seven operating divisions. It has 19 trade outlets in the province and 21 in Swaziland and Mpumalanga. The coastal areas lend themselves to sugar production and fruit growing, with subtropical fruits doing particularly well in the north. KwaZulu-Natal produces 7% of South Africa’s citrus fruit. The Coastal Farmers Co-operative represents 1 400 farmers. Beef originates mainly in the Highveld and Midlands areas, with dairy production being undertaken in the Midlands and south. The province produces 18% of South Africa’s milk. The Orange Grove Dairy SECTOR INSIGHT Agri-villages and agri-parks are planned to boost rural economies. • 18% of South Africa’s milk comes from KwaZulu- Natal. Farm near Dundee has one of the biggest pedigree Jersey herds in the country. KwaZulu-Natal’s subsistence farmers hold 1.5-million cattle, which represents 55% of the provincial beef herd, and their goat herds account for 74% of the province’s stock. The Midlands is also home to some of the country’s finest racehorse stud farms. The area around Camperdown is one of the country’s most important areas for pig farming. Enterprise iLembe, the development arm of the iLembe KWAZULU-NATAL BUSINESS 2017/18 62
OVERVIEW District Municipality, is looking for investors to further develop an agri-processing hub near the King Shaka International Airport and Dube TradePort. KwaZulu-Natal has two colleges offering higher qualifications in agriculture, Cedara in the Midlands and the Owen Sitole College of Agriculture near Empangeni. Plans to grow Five co-operatives in the Mzimkhulu area have received R34-million to help them plant and work soya beans on 1 500ha. The money was made available by the Masisizane Fund and the KZN Department of Agriculture and Rural Development. There are plans to double the size of the land to be planted. Masisizane has an agribusiness development unit that not only loans money to small farmers but also provides research and sets up agricultural clusters so that farmers, processors and traders can benefit from being in proximity to one another. The national Department of Rural Development and Land Reform (DRDLR) has launched an Agri-parks programme to support small-scale farmers and to boost other businesses related to agriculture such as abattoirs and transport operators. KwaZulu-Natal is one of four provinces where pilot projects have been carried out. The plan is to have an agri-park in each of South Africa’s 44 district municipalities with ownership vesting at least 70% with farmers. There are three components to the fully realised agri-park concept: • The Farmer Production Support Unit: links farmers with markets, collection and short-term storage, local processing, mechanisation • The Agri-hub: equipment hire, processing, packaging, logistics, training • The Rural Urban Market Centre: contract-based links to local and international markets, long-term storage, market intelligence. The Kwa-Zulu-Natal Provincial Government allocated R1.2-billion to its Agri-villages programme in 2016/17 which has resulted in some investment into previously ignored areas. Good news on the land claims front came in the form of a 50/50 voluntary land share programme between the Muden community and the local farmer. Delays in the implementation of the Upgrade of Land Tenure Programme have been the cause of some frustration. Without title deeds it is very difficult, if not impossible, to get loans, and without loans it is very difficult for farmers to buy the sort of machinery or storage facilities that would allow them to expand and enter the formal economy. A KwaZulu-Natal Department of Agriculture and Rural Development (KDARD) initiative to help small farmers become commercial farmers has 3 483 participants and 122 communal estates have been registered as legal entities. Another upliftment project will see R14-million spent on assisting five small-grower collectives to become effective sugar-cane farmers at Qoloqolo (uMzumbe Local Municipality). Massmart, the retail group that has been bought by US giant Walmart, will invest R15-million to 2017 in creating opportunities in its food chain for emerging farmers. TechnoServe, a non-governmental organisation, will oversee the programme. The Premier of KwaZulu-Natal, Willies Mchunu, has committed his government to Operation Vula which aims to create economic opportunities for social enterprises and co-operatives, led by African people in particular. They are to benefit from state-led infrastructure programmes, as well as from the buying power of the state through the supply chain. CONTACT INFO Coastal Farmers Co-operative: www.coastals.co.za Fresh Produce Exporters Forum: www.fpef.co.za KwaZulu-Natal Agricultural Union: www.kwanalu.co.za KwaZulu-Natal Department of Agriculture and Rural Development: www.kzndard.gov.za Milk Producers Organisation: www.mpo.co.za National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za Royal Agricultural Society of Natal: www.royalshow.co.za TWK: www.twkagri.com 63 KWAZULU-NATAL BUSINESS 2017/18
