6 years ago

Mpumalanga Business 2017 edition

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Mpumalanga Business 2017 is the seventh edition of this highly successful publication that has since its launch in 2008 established itself as the premier business and investment guide to Mpumalanga Province. Supported and utilised by the Mpumalanga Economic Growth Agency (MEGA), Mpumalanga Business is unique as a business journal that focuses exclusively on Mpumalanga.

OVERVIEW Livestock

OVERVIEW Livestock mostly under dryland conditions in Marble Hall. The province has 1 500 hectares of dryland under cotton. Much of South Africa’s total annual production of about 34-million kilograms of tobacco, especially Virginia tobacco, takes place in the north-western parts of Mpumalanga as well as in neighbouring Limpopo. Several of Mpumalanga’s tobacco farmers have switched to table grapes or citrus in recent years. Crops produced for export in Mpumalanga include cut flowers, pot plants and nursery plants. ONLINE RESOURCES Agricultural Economics Association of South Africa: ARC-Institute for Tropical and Subtropical Crops: Citrus Growers Association: Deciduous Fruit Producers Trust: Department of Agriculture, Forestry and Fisheries: Fresh Produce Exporters’ Forum: Mpumalanga Department of Agriculture, Rural Development and Land Administration: Perishable Products Export Control Board: South African Cactus Pear Association: South African Macadamia Growers’ Association: South African Subtropical Growers’ Association: About 14% of the province’s land area is natural grazing land. Products include beef, mutton, poultry, dairy and wool. Dairy and poultry do well in the southern parts of the province. A number of poultryproduction companies have large facilities in the Standerton- Volksrust area. The town of Ermelo is the centre of one of the country’s most important sheepfarming districts, with the export of wool greatly benefitting the province and country. The province is home to one of South Africa’s largest pig farms, Kanhym, near Middelburg. Karan Beef has recently built a large abattoir in Balfour to service its massive feedlot in neighbouring Gauteng. Up to 1 800 head of cattle can be processed every day at the facility. Goats are an important source of protein and milk for many of the rural population and the raising of goats is widespread, especially in traditional areas. MPUMALANGA BUSINESS 2017 38

Sugar OVERVIEW Irrigation schemes have helped sugar cane producers avoid the worst of the drought. RCL Foods’ continuing growth strategy saw the diversified food group acquire TSB Sugar in 2014. TSB Sugar runs three mills in the Lowveld region (two of which have refining capacity) and employs about 4 700 people. More than 1 400 commercial and small-scale farmers deliver sugar cane to the company. TSB brands are Selati (sugar) and Molatek (animal feed). Formerly a wholly-owned subsidiary of Remgro, TSB Sugar contributed R505-million to RCL earnings in 2015 (or 23%). RCL used to be called Rainbow Chickens. Mpumalanga has the second-biggest sugar industry in South Africa, after KwaZulu-Natal, but only TSB has mills in the province. TSB Sugar has been increasing the amount of cane it takes from community trusts and small-scale growers. The proportion of land used to harvest cane from small-scale growers on community land has grown to 15%, with 64% coming from commercial farmers and community trusts and 21% from TSB’s own land. About 12 000 hectares of agricultural land has been sold to communities at Tenbosch and Matsamo to settle land claims. TSB’s three mills (including Pongola in northern KwaZulu-Natal) have been able to maintain volumes because of extensive irrigation schemes. The provincial government of Mpumalanga has set aside R7.4- million to provide irrigation for small-scale farmers in Malelane in the Nkomazi Municipality. TSB milled a record 702 000 tons of raw sugar in 2014/15. The Selati retail sugar brand is one of the most popular in the country. The expenditure of R6.5-billion in Mozambique will greatly increase TSB’s land holdings and its refining capacity. About 44 000 hectares in the province is under sugar cane. Commercial farmers account for 27 000 hectares, emerging farmers for ONLINE RESOURCES South African Cane Growers: South African Sugar Association: South African Sugar Industry and Sustainable Development: Sugar Milling Research Institute: SECTOR INSIGHT TSB Sugar is now part of RCL Foods. • Dry weather can also improve crop quality. • The provincial government will spend R7.4-million on irrigation for small-scale farmers in Malelane. 9 500 hectares and TSB Sugar has 7 800 hectares of its own. Saleable sugar production in South Africa decreased by 10% in 2014/15 to a total of 2.1-million tons, but this still represents something of a recovery from 2011 and 2012, when total saleable sugar production dropped below two-million tons. The Akwandze Fund, an initiative of the Liguguletfu Cooperative and TSB Sugar, makes loans for small-scale farmers. Liguguletfu came into existence with small investments from each of the co-op’s 889 members, which eventually amounted to R5-million in share equity. TSB Sugar matched this rand-for-rand. Farmers must join a savings scheme to belong, and Akwandze has more than 1 200 customers. 39 MPUMALANGA BUSINESS 2017

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