/ 9 December 2016

Nature’s bounty: Agro-processing high on the agenda

Mapula Mokaba-Phukwana
Mapula Mokaba-Phukwana

That Limpopo is abundantly blessed in food is no matter of conjecture; vast quantities of fruit and vegetables are exported from the province. Almost every kind of subtropical fruit flourishes in the eastern half of the province, where verdant fields of avocados, mangos, paw-paws, litchis and tomatoes stretch as far as the eye can see.

Mapula Mokaba-Phukwana, MEC of Agriculture in Limpopo, told delegates at the Limpopo International Investment conference held in Hammanskraal, outside Pretoria, that food security is at the centre of National Development Plan. “Agriculture is one sector which is a catalyst for radical socioeconomic transformation, with the key indicators for transformation being the following: food security for all; demonstration of [the] sector’s ability to create decent jobs, and significantly increasing the contribution to the GDP,” said Mokaba-Phukwana.

“The right to food is enshrined in the Constitution and therefore universal food and nutritional security has been a priority policy objective on the National Development Agenda since the dawn of democracy.”

Limpopo province is known as the agricultural production hub for several high value agricultural commodities, with diverse agro-ecological regions, characterised by significant variation in natural endowments such as soil, rainfall and access to water. The total agricultural land area is 11 321 million hectares and the size of the area under irrigation is currently 163 080 hectares.

It is dominated by citrus and sub-tropical fruit such as bananas, litchis, pineapples, mangoes, paw-paws and the variety of nuts grown in Tzaneen and Makhado.

There are also tea estates and coffee plantations. The Midi Black Tea is farmed, handpicked, processed, blended and packaged at Tshivhase Tea Estate in Venda. The tea market continues to show consistent volume and value growth, with innovation, new brands and flavour extensions driving growth in the rooibos and the speciality sector.

The province also produces sunflower, wheat, soya beans and maize. Livestock farming includes cattle ranching and game, and about 80% of South Africa’s hunting industry is also found in Limpopo.

“Limpopo as a province is contributing 7% of national employment in the food and beverages industry. The province has competitive and comparative advantage in production of diverse agricultural commodities,” Mokaba-Phukwana told investors at the conference.

“However, it is important as well to note that Limpopo has an agro-processing industry that currently is not well developed. That competitiveness still needs to be exploited to its full capacity.”

Projects

The Limpopo Economic Development Agency has identified specific investment opportunities: private partnerships to resuscitate state irrigation schemes, cut flowers, baby vegetables, almonds and table grapes. Sunflowers, soya beans and maize are other crops that hold great potential for growth.

A R2.2-billion project near Tzaneen, the Limani project, aims to improve food security. A joint undertaking of Pioneer Foods, Food and Trees for Africa and the Dreamfields Foundation, it provides schools with seeds, tools and lessons on how to grow organic gardens.

Techno Serve, a nongovernmental organisation, and food supply company Qutom are helping three emerging Limpopo farmers produce 700 tonnes of tomatoes for Woolworths and other markets. TechnoServe is also handling loans and has found an experienced farmer to mentor three new farmers — the mentor’s remuneration will depend on the production levels of his charges.

The Eskom Development Foundation has also acknowledged the hard work in the agricultural sector through its Business Entrepreneurship Landscaping in Thohoyandou, with first runner-up position going to Livhuki General Trading in Makhado.

The Industrial Development Corporation (IDC) is also getting behind citrus farming in Limpopo. Under the IDC’s Agro-Industries Strategic Business Unit, a funding agreement has been signed with Naranja Packers that will see new farmers established, established farms converted to different cultivars and a planned expansion for Naranja’s packing house. The well-known citrus brands Clemengold and Sweet C are marketed under Indigo Fruit Farming, which is wholly owned by ANB Investments, and the packing house in Burgersfort processes up to 600 large crates of fruit a day in season, with each crate containing about 350kg of fruit — an output of slightly more than 2 000 tons.

The Mooketsi Market has used its very central position to boost trade in farming produce. Although the town itself is quite small, the market’s location north-east of Polokwane and north of Tzaneen with access to the northern reaches of the province via the R36 and R81 roads, has meant it has proven to be a winner since it opened in 2014. The market is owned by ZZ2, FGX (which facilitates transactions between buyers and sellers) and the RSA Group (which holds 30% representative market share of the fresh produce market in South Africa). The Limpopo growers from the Vhembe District in the far north and the Letaba Valley in the eastern Mopani District contribute 45% of the produce skid at the Johannesburg Fresh Produce Market. The market’s annual turnover of R2-billion makes it Africa’s biggest.

Agri-parks

Mokaba-Phukwana said to strategically position Limpopo’s agri-business within the global agriculture context and to make the province a breadbasket for the region, the department had adopted the Agri-Parks model.

She explains: “The Agri-parks model is a network innovation system of agro-production, processing, logistics, marketing, training and extension services that are located at district level. The model is aimed at actualising the revitalisation of agriculture and agro-processing value chain. It enables a market-driven combination and integration of various agricultural activities and rural transformation services.”

In 2013, the agricultural sector in Limpopo contributed approximately 7.3% to the GDP, but opportunities for growth in agro-processing are vast given the availability of large volumes of the province’s great variety of fruit and vegetables and the local market’s size.