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Western Cape Business 2024

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The 2024 edition of Western Cape Business is the 17th issue of this highly successful publication that, since its launch in 2005, has established itself as the premier business and investment guide for the Western Cape. The Western Cape has several investment and business opportunities. In addition to the regular articles providing insight into each of the key economic sectors of the province, a special feature focuses on the meetings, incentives, conferences and exhibitions (MICE) sector in the Western Cape.

OVERVIEW Agriculture

OVERVIEW Agriculture Port logistics are hampering exports. SECTOR INSIGHT Citrus volumes reached a record 165-million cartons in 2023. Despite producing record volumes of fruit, Western Cape farmers are not able to export their product as fast as they want to because of problems at the Port of Cape Town. With some cranes having to stop working in high winds and a shortage of gantries to load and unload containers, turnaround times reached such low levels that fruit-farming associations threatened legal action against port operator Transnet. Wolfe Braude, manager of Agbiz’s Fruit Desk, told Business Day that the value of South Africa’s agricultural exports is higher than the country’s automotive exports and about double the value of iron ore, or iron and steel exports. National fruit exports are valued at about R72-billion and account for about 35% of total agriculture exports. The Western Cape in 2020 exported agricultural goods worth about R54-billion, making it the sixth-largest global exporter of such products in Africa. Berries are a growing subsector and two-thirds of production occurs in the Western Cape. More than 70% of the crop is exported and the major production companies are Berryworld South Africa, United Exports and Haygrove SA. Berries thrive between George and Swellendam and sales of chippers have grown because blueberries have to be vigorously pruned. There is plenty of scope for exports to grow. Current annual exports are 13 500t compared to over 200 000t for table grapes and about 300 000t for apples (South African Berry Producers’ Association). Hortgro, a deciduous fruit industry association, said that export volumes for six fruits including peaches and apples were 35% down in November and December 2023 compared to the previous year. Hortgro was one of the organisations considering legal action to deal with the situation. And yet citrus farmers packed a record number of cartons in 2023, 165-million. Away from the possible legal battles that the export of fruit might present, Hortgo has launched a new testing facility for deciduous fruits on the Welgevallen experimental farm of Stellenbosch University. The new phytosanitary facility will help improve access to new markets for deciduous fruit growers and marketers. Liquid kelp products is a growing subsector. Farmed kelp in Gansbaai is processed to create products that assist with root growth in crops. Afrikelp is a company that exports to more than 50 countries and claims that its products improve water and nutrient-use efficiency, together with equipping plants to better handle droughts. The South African Rooibos Council announced in 2022 that it would start paying a levy on the product to trusts for Khoi and San people. A payment of R12.2-million was paid in July and the future levy would amount to 1.5% of the farm gate price. This followed news that the long battle for protected status for rooibos in the EU finally reached an end. The WESTERN CAPE BUSINESS 2024 18 PHOTO: TNPA

OVERVIEW best-known products that are forever linked to their home regions are champagne and Port, and France and Portugal have fought hard for those rights. Now the Western Cape’s herbal tea product enjoys the same privileges, which is great news for the roughly 450 farmers working with rooibos (350 commercial plus 100 small-scale farmers). The sector produces about 20 000 tons of rooibos every year, about half of which is exported. Economic impact Agribusiness and agro-processing are vital parts of the provincial economy with about 45% of South Africa’s agricultural exports moving through the province. The value-add in the sector amounts to more than R14-billion per annum (Invest Cape Town). Seven of the top 10 exports from the province are agricultural or agro-processed products. As Wesgro notes, the Western Cape is responsible for • Almost half of South Africa’s agribusiness exports • About 70% of South Africa’s beverages exports • About 85% of South Africa’s fisheries exports Exporters were introduced to some digital innovation in 2020 in the form of the Cape Export Network. CEN, a joint initiative of the Western Cape Provincial Government, Wesgro and Wines of South Africa (WoSA), is a platform that connects wine producers, buyers and importers. Assessed independently from the country, the Western Cape is the world’s fifth-largest exporter of citrus fruits. Oranges are the province’s number one citrus export and soft citrus is growing. Europe remains the most important market but the Asia and Oceana markets are growing. The top five countries are the Netherlands, the UK, Russia, UAE and China. ONLINE RESOURCES Aquaculture Association of Southern Africa: www.aasa-aqua.co.za Citrus Growers’ Association: www.cga.co.za Fresh Produce Exporters Forum: www.fpef.co.za South African Rooibos Council: www.sarooibos.co.za Western Cape Department of Agriculture: www.elsenburg.com In addition, the region exports 70% of all South African beverages and spirits and 96% of its wine. The region produces 11 different commodities. Fruit, poultry, eggs, winter grains, viticulture and vegetables comprise more than 75% of total output. Tiger Brands announced in 2020 that it intended focussing on what it called “everyday branded food and beverages”. The result of that focus is that the company’s food-canning business is to be put up for sale. Fears were raised in the town of Ashton that up to 4 000 jobs would be lost and 300 farmers in the district would be wiped out if Langeberg & Ashton Foods canning facility were to close. Ashton is in the Langeberg Local Municipality within the Cape Winelands District Municipality. The company is a subsidiary of Tiger Brands, the country’s biggest producer of food. A local consortium of 160 fruit farmers was considering trying to buy the facility. Agri SA estimated they would need an amount approaching R300- million. This was proving difficult to raise but in July 2022, Tiger said it would keep the operation going for one more season. In June 2023, this announcement was essentially repeated, and operations would be extended for the 2023/24 season. ■ PHOTO: HORTGRO 19 WESTERN CAPE BUSINESS 2024

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