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North West Business 2018 edition

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  • Nedbank
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  • Business
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  • Rustenburg
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A unique guide to business, investment and Tourism in the North West, the 2018 edition of North West Business is the eighth issue of this highly successful publication that, since its launch in 2009, has established itself as the premier business and investment guide to the North West Province. North West Business includes news and analysis of the most important economic sectors and interviews with some of the province’s active business leaders and investors. To complement the extensive local, national and international distribution of the print edition of the journal, updated information on the North West is also available through our monthly e-newsletter, which you can subscribe to online at www.globalafricanetwork.com, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title.

OVERVIEW Agriculture A

OVERVIEW Agriculture A solar-powered vegetable project is showing a new way. The SUNfarming Food and Energy project at Ikakeng next to Potchefstroom cultivates vegetables in coco fibre housed in sun-powered tunnels. The innovative project is a partnership between the Engineering Faculty of North West University and a German photovoltaic developer and operator, SUNfarming. The project is supported financially by the German government. The Provincial Government of North West wants to expand an existing programme to promote farming across all districts in the province. The Kgora Agricultural Institute in Ramatlabama, some 25km north of Mahikeng, trains small-scale farmers in raising animals and crop farming and works with young people to interest them in the opportunities that the sector has to offer. The idea is to establish centres such as Kgora all over the province. A weakness identified in the land claims process has been the absence of support for new farmers. But for the beneficiaries of a successful 4 500ha land claim on the De Paarl farm near Lichtenburg, things have been different. They have received tractors and equipment worth R6-million from the National Department of Rural Development and Land Reform. Support has also been given by Omnia Fertilisers. In the early stages of the project, a group of commercial farmers leased the land from the De Paarl Communal Property Association (CPA) and Beneficiaries and workers of the NWU’s SUNfarming project busy nurturing their vegetables. SECTOR INSIGHT A successful land claim farm is doing well at Lichtenburg. passed on agricultural skills to the beneficiaries. The farm has maize, sunflowers, potatoes and a herd of cattle. The farm has created 20 permanent job opportunities while 40 locals are employed seasonally. Kokoana Farming Enterprise, the beneficiary-managed company which runs the farm, is in the process of devising a five-year plan for the future of the farm. Four district agri-parks are at the centre of a drive to establish sustainable agri-processing, to promote food security and to bring local black businesses into the mainstream economy. The provincial government set aside R75-million for the project in the 2017/18 budget. Each of the agri-parks will have a specific focus: • Springbokpan: grain (Ngaka Modiri Molema District Municipality). • Vryburg: livestock, red meat (Dr Ruth Segomotsi Mompati District Municipality) • Moretele/Makapanstadt: red meat and horticulture (Bojanala District Municipality) • Maquassi Hills: pork and poultry (Dr Kenneth Kaunda District Municipality) NORTH WEST BUSINESS 2018 36

OVERVIEW Various agri-processing plants are under consideration for the city of Mahikeng: a feedlot and a meat processing plant, including an abattoir and packaging facilities. In Taung the plan is to establish animal feed manufacturing plant. NWK also deals in grain, runs several retail outlets and has a half-share (with Senwes) in CertiSure Brokers. The company deals in short-term insurance, crop insurance, financial planning, medical funds and funeral policies. The company has 37 silos with a capacity of 2.5-million tons. There are several milling operations in North West Province. Masilo Mills is located in Hanneman (where Papa Super Maize is ground) and Tau Roller Mills is in Wolmeransstad. Companies One of South Africa’s biggest agricultural companies is Senwes. The company specialises in the storage and handling of grains and oilseeds. Its extensive silo infrastructure extends across the interior. Its headquarters are in Klerksdorp. Suidwes is based south of Klerksdorp in Leeudoringstad. More than 90% of the shares in the company are held by farmers. Grain handling is the main business and there are divisions for retail (17 outlets and one animal-feed depot), mechanisation, finance and research and agricultural economics (Terratek). Brits is the location of the headquarters of the MGK Group, formerly Magaliesberg Graan Kooperasie. The company runs five divisions and a plant that makes full fat soy, a component in animal feed. NWK is another company with manufacturing capacity. The Lichtenburg-based enterprise makes liquid fertiliser (up to 10 tons per month), animal feed (Opti Feeds), processes sunflower seeds (Epko), and runs three grain mills. Another subsidiary, Opti Chicks, has a capacity of 600 000 chicks per week. Variety North West’s distinct climatic regions are home to three very different types of agriculture. The dry western region is home to large beef-cattle herds, and this is where the growing game-ranching and hunting industry has its base. The eastern and north-eastern parts of the province receive relatively good rainfall and are suitable for the cultivation of crops. The North West has approximately 1.6-million beef cattle, representing 12% of South Africa’s herd. Major breeds include Simmental, Brahman, Bonsmara and Simbra, a cross between the Brahman and Simmental breeds. Kalahari Red and Boerbok goats are found in large numbers in the dry west. The number of goats for the province is estimated at 701 587, which is 12% of South Africa’s total. There are estimated to be 318 843 pigs, which is 20% of South Africa’s total drove. Nearly two-million hectares is planted with summer cereals, with about 50 000 hectares given over to winter cereals. The North West produces about 20% of South Africa’s maize and about 15% of its wheat. The central and southern sections of the province are dominated by maize and wheat farming. When it comes to sunflower seed, North West is responsible for 33% of South Africa’s stock, and 23% of the nation’s groundnuts. The North West supplies 5.4% of South Africa’s potatoes, but parts of the Kalahari are ideally suited to the cultivation of seed potatoes. ONLINE RESOURCES Agricultural Research Council: www.arc.agric.za Grain SA: www.grainsa.co.za National Department of Agriculture and Forestry: www.daff.gov.za North West Department of Agriculture, Conservation, Environment and Rural Development: www.nwpg.gov.za/agriculture Potatoes SA: www.potatoes.co.za SA Grain Information Service: www.sagis.org.za 37 NORTH WEST BUSINESS 2018

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