OVERVIEWAgricultureNewly
OVERVIEWAgricultureNewly merged group records R608-million profit.KLK is a wholesale distributor of BP fuel and runs 11 forecourts.Mergers continue to create powerful new companies withinthe agricultural sector. The small co-operatives of a centuryago live on only in the letter K embedded in the namesof the groups that now span several provinces and have asectoral spread covering horticulture, animal rearing and processing,not to mention financial services, building materials outlets andautomotive services.The integration process of VKB and GWK, formerly GriqualandWest Cooperative and one of the Northern Cape’s biggest entities,is proceeding well. The new VKB Group recorded a normalised profitbefore tax of R608-million in its 2024 financial year (ending 31 March2024). Investment in solar energy at some of the company’s facilitiesis planned.The inclusion of GWK gives the group an extensive presence in thethree Cape provinces while the NTK brand covers Limpopo and thenorthern parts of Mpumalanga. The historical home of VKB, namelythe eastern Free State, is still a strong region for the company whoseheadquarters are located in Reitz, and the VKB brand covers thebalance of the provinces. GWK continues to trade as a separate entityand the headquarters are in the Northern Cape town of Douglas,which is on the Vaal River and very close to the confluence with theOrange River.GWK Pecans owns three processing facilities. The Upington facilitywas the first cracking facility in South Africa, and it has a crackingcapacity of 200 metric tons and processing capacity of 480 metrictons per month. Douglas and Magogong, which is in the Vaalhartsarea, are the other sites of pecan-processing plants. The VaalhartsSECTOR INSIGHTCannabis is to be commercialised.Irrigation Scheme ensures thatthe area is the country’s premierregion for producing pecans.The other recent significantmerger was the purchase of amajority shareholding in KLK bySenwes, a giant company mostclosely associated with grain andgrain-handling. A co-operative ofkarakul-sheep farmers called SAKKwas formed in 1941. It underwenta series of mergers, including withBKB, when it became KLK in 1985.KLK has a significant presence inthe province with an auctiondivision, abattoirs in Carnarvon andUpington, the Build-it franchiseand several petrol stations. KLKPetworld operates in Kathu. Thisreach was further enhancedwhen KLK acquired 100% of theshares of Carpe Diem Raisins in2023. KLK has its headquartersin Upington whereas the SenwesHQ is just over the provincial borderin North West, at Klerksdorp.OVK controls the large Gariepabattoir at Strydenburg, which hasa daily capacity of 1 300 sheep,100 cattle and either 250 ostrichesor 750 small game animals. OVKalso has trade branches, vehicledealerships, a finance division andmanufacturing facilities for maizemeal and wheat meal. Kaap Agri,a Western Cape company, has apresence in the Northern Capeand Namibia.The Northern Cape ProvincialGovernment is promoting a HempProduction Project as part of anational plan to commercialisethe cannabis sector. The NorthernNORTHERN CAPE BUSINESS 2025/2626PHOTO: KLK
OVERVIEWPecan nuts are processed and packed in Douglas.Cape has budgeted R12.8-million to establish a Hemp nursery andConing Centre, establishing and supporting 159 farmers on 318 hectares.In 2024/25, the province spent R256-million on 26 projectsdesigned to support emerging black farmers, part of R924-millionspent on that goal over the last five years.In October 2023 Karoo lamb was officially registered as a SouthAfrican Geographical Indication (GI) in law.Agricultural assetsOccupying 36-million hectares, the Northern Cape is the largestprovince in the country, almost a third of South Africa’s total landarea. Although the province is a predominantly semi-arid region,agriculture is a major component of the regional economy and theprovince’s farmers contribute 6.8% to South African agriculture.In 2024, the sector contributed R11-billion (7%) to provincial GDP.The agricultural sector also plays a vital role in the broader economy ofthe Northern Cape, employing about 45 000 people. This representsabout 16% of employment, a much higher figure than the nationalfigure of 5.5%.Agricultural development takes place along defined corridorswithin the province. In the Orange River Valley, especially at Upington,ONLINE RESOURCESAgricultural Research Council: www.arc.agric.zaDepartment of Agriculture, Environmental Affairs,Rural Development and Land Reform: www.daerl.ncpg.gov.zaSouth African Rooibos Council: www.sarooibos.co.zaKakamas and Keimoes, grapesand fruit are cultivated intensively.High-value horticulturalproducts such as table grapes,sultanas and wine grapes, dates,nuts, cotton, fodder and cerealcrops are grown along the OrangeRiver. Wheat, fruit, groundnuts,maize and cotton are grown inthe Vaalharts Irrigation Schemein the vicinity of Hartswater andJan Kempdorp. The VaalhartsIrrigation Scheme is one of thebiggest systems of its kind in theworld. Ranging over more than30 000ha, it has transformeda semi-desert zone into aproductive area that sustainscotton, wheat, maize, lucerne,citrus, peanuts, fruit, grapes, olivesand pecan nuts.Vegetables and cereal crops arefarmed at the confluence of theVaal River and the Orange Riverin the vicinity of Douglas. Of thenearly 40-million 10kg bags ofonions produced in South Africa(outside of linked productionchains set up by supermarkets),about 10-million 10kg bags comefrom the Northern Cape.Wool, mohair, karakul, Karoolamb, venison, ostrich meat andleather are farmed throughoutmost of the province. Theprovince is second only to theEastern Cape in terms of thenumber of sheep farmed andit is the fourth-largest woolproducingprovince based onannual sale of producer lots.The Beefmaster abattoir inKimberley is one of three abattoirsin South Africa to export frozenbeef to China. ■PHOTO: GWK
