Western Cape Business 2017 edition

OVERVIEW The estimated

OVERVIEW The estimated cost of the drought to the wine and fruit industries is about R1.2-billion. Companies Drought A severe drought has had an effect on all agricultural enterprises throughout South Africa. For some time now, most regions have not received the rainfall they expected. Rainfall recorded in September 2016 in the Central Karoo ranged between 0mm and 2mm. This will affect grazing for animals in summer. Irrigation in most areas has been affected and in some places has had to be stopped. Although the Western Cape’s winter grain crop regions received some timely rain, a long-term “climate response action plan” has been introduced called Smart Agri. This is a partnership between the provincial government, the private sector and academic institutions. Among the recommendations for the way forward is conservation agriculture, which is being tested at the provincial research farm, Langgewens. Minimum tillage and crop rotation are among the strategies being adopted. Zeder Investments is the agricultural arm of investment holding company PSG Group (which has become well known to the general public through Capitec Bank and Curro schools). Zeder has been very active in increasing its stake in agricultural companies in recent years, most notably Capespan, where it is now the holder of 98.1%. Capespan has a turnover of R7.6-billion across three divisions: farms, logistics and fruit. Brands include Cape and Outspan, Capespan Logistics (known as FPT for Fresh Produce Terminals) and Groot Gariep Koelkamers. Zeder has a similarly large stake in the holding company that controls three seed companies, Zaad Holdings (turnover R1.2-billion), and it has further shareholdings in egg and grain companies. Zeder is a 39.6% shareholder in Kaap Agri Ltd. Kaap Agri has more than 200 operating points stretching from its headquarters in Malmesbury in the Swartland to Namaqualand and beyond. What started out as a farmers’ co-operative is now a large enterprise with eight business units covering everything from grain (Wesgraan), to packaging (Pakmark) and retail (Agrimark). Zeder also owns 27.2% of Pioneer Foods, which makes and distributes many big food and drink brands across Southern WESTERN CAPE BUSINESS 2017 76

OVERVIEW Africa, including Weet-Bix, Liqui- Fruit, Ceres, Sasko and White Star. The company has an annual turnover of R20-billion and it has two Bokomo facilities producing wheat biscuits, cereal and muesli in the United Kingdom. Overberg Agri is an unlisted company with a wide range of investments in several sectors, including mining, pet food and industrial fasteners. Promeal manufactures pet-food in Atlantis and Boltfast distributes nuts, fasteners and screws all over South Africa. Grain services, irrigation, financial services and retail form more traditional parts of the agricultural company’s profile, which had a turnover of R2.8-billion in 2015/16. Headquarters are located in Caledon and the group has 1 144 permanent employees. SSK (Sentraal Suid Ko-operasie) has outlets in the Overberg (headquarters are in Swellendam) and in the Southern Cape as far east as George. There are retail outlets at Swellendam, Heidelberg and Robertson, and grain depots at Swellendam, Heidelberg, Karringmelksrivier, Protem and Ashton. SSK has increased its reach with the acquisition of Tuinroete Agri, which has four grain silos and 19 retail outlets and depots stretching along the Garden Route from Riversdale to Jeffrey’s Bay. It also has a presence in the Langkloof and at Aberdeen in the Karoo. SSK either controls or has an interest in companies that engage in oil extraction, property, equipment, animal feed, abattoirs, investments and motor sales. The Klein Karoo group based in Oudtshoorn focusses on ostriches through Klein Karoo International. Separate units deal in fashion products, feathers, leather, skins and meat production. Other companies in the group cover seed sales, auctions and a retailer, Klein Karoo Agri, which has two petrol stations, six shops, a mechanisation business and an irrigation business. ONLINE RESOURCES Agricultural Research Council: www.arc.agric.za Bureau for Food and Agricultural Policy: www.bfap.co.za Cape Agency for Integrated Sustainable Development in Rural Areas: www.casidra.co.za Citrus Growers’ Association: www.cga.co.za Fresh Produce Exporters’ Forum: www.fpef.co.za Fruit SA: www.fruitsa.co.za HORTGRO: www.hortgro.co.za Klein Karoo: www.kleinkaroo.com National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za SA Grain Information Service: www.sagis.org.za SA Olive Industry Association: www.saolive.co.za SA Table Grape Industry: www.satgi.co.za SA Trade Directory of Indigenous Natural Products: www.cpwild.co.za South African Rooibos Council: www.sarooibos.org.za Western Cape Department of Agriculture: www.elsenburg.com 77 WESTERN CAPE BUSINESS 2017