8 minute read
Agriculture
OVERVIEW Agriculture
Limpopo’s fruits and vegetables form an important part of South Africa’s export basket and more than 45% of the annual turnover of the Johannesburg Fresh Produce Market originates in the fertile province.
The percentage contribution of Limpopo agriculture to national agriculture is 7.6% although its contribution to provincial GDP is just 2.3%. Agri-processing has enormous potential to expand in every subsector. The establishment of agri-parks and co-operatives and support for youth in farming are key provincial government initiatives.
Cotton growing is experiencing a renewal in the province. Companies like ZZ2 are major contributors to the country’s annual production of 120 000 tons of avocadoes. Of the current crop, about half is produced in two Limpopo regions, Letaba and Tzaneen. Exports are rising exponentially. In response to this demand, and the potential of the Chinese market, almost 1 000ha per year of new land is being planted with avocadoes in South Africa.
The same amount of new macadamia planting is underway every year, according to the Macadamias South Africa (SAMAC), adding to the existing 19 000ha.
The other big sellers are mangoes and tomatoes. Limpopo grows three-quarters of South Africa’s mangoes and two-thirds of its tomatoes. The Waterberg District produces large quantities of red meat, Capricorn has potatoes in abundance, Vhembe in the north specialises in citrus and subtropical fruits, Mopani has those fruits too – and the Mopani worm. The Sekhukhune region in the south-east produces grain and the marula fruit that goes into Amarula cream liqueur.
SECTOR INSIGHTS
The IDC’s support of a blueberry operation created 62 new jobs.
The Limpopo Department of Agriculture and Rural Development has identified five Agricultural Development Zones (ADZs) where support will be given to farmers to promote production in the sector. More than 1 000 small-scale farmers are being trained annually to improve their skills and to improve production. Irrigation schemes have been revived in eight districts to assist farmers.
The Provincial Government of Limp op o’s nine - p oint e co n o mic p lan in clu d es RAAVC (the revitalisation of the agriculture and agri-processing value chain).
National government’s Industrial Policy Action Plan (IPAP) acknowledges agri-processing as one of the best sectors for labour-intensive growth. In that context, the decision by DursotsAll Joy to relaunch and upgrade the tomato processing plant in Modjadjiskloof, Tzaneen, is important for the larger economy. At least 15 commercial farmers now have a ready market for one of Limpopo’s chief products and there is potential for the factory to employ as many as 300 people. There is a shortage of tomato paste in South Africa.
More support for farmers comes in the allocation of R32-million by the provincial government of the construction of the Molemole Agricultural Office in the Capricorn District Municipality. In addition to tackling drought, the Limpopo Department of Agriculture and Rural Development has had to put a strategy in place to fight Fall Army Worm.
All of South Africa’s major retailers have enterprise development programmes which connect farmers to suppliers. In Limpopo Woolworths supports independent farmers by buying their produce and Spar channels produce from smallholders through its Fresh Assembly Point in Mopani.
Massmart’s five-year programme, which tailed off as the company focussed more on the manufacturing sector which is relevant to their main business, trained more than 700 farmers in logistics, food safety and financial management. At its peak, the programme was supporting 164 smallholder farmers.
Another example of an initiative to link farmers to markets was a Market Linkage Information Day, organised by the Limpopo Department of Agriculture and Rural Development (LDARD) in 2018 at Soekmekaar.
The Limpopo regional office of the Industrial Development Corporation (IDC) has helped expand the province’s agricultural sector by supporting the creation of two blueberry operations near Tzaneen. Tzaneen Blueberries used its own money to establish 17.5ha of blueberry plantations but approached the IDC to fund later stages of development. The IDC’s R13.5-million assisted in the building of a packhouse. The expansion created 62 jobs.
In terms of the Provincial Red Meat Cluster Development as
ONLINE RESOURCES
Agro-Food Technology Station, Limpopo University: www.ul.ac.za Citrus Growers Association: www.cga.co.za Deciduous Fruit Producers Trust: www.dfpt.co.za Limpopo Department of Agriculture and Rural Development: www.lda.gov.za Macadamias South Africa: www.samac.org.za South African Subtropical Growers’ Association: www.subtrop.net a catalyst towards sustainable rural livelihoods development through livestock farming, the Nguni cattle loan project saw a total of 350 livestock breeding animals distributed in 2017/18 to 16 farms. The scheme, a partnership between LDARD, the Industrial Development Corporation and the University of Limpopo, aims to improve the quality of breeding stock. It also forms part of the development of a provincial Red Meat Cluster.
Companies
ZZ2 is the major brand of Bertie van Zyl (Pty) Ltd, which produces 160 000 tons of tomatoes per year. Westfalia is another huge enterprise, part of the Hans Merensky Group, and it is the world’s largest avocado grower. It also produces significant quantities of mango, litchi, citrus and macadamia and has three agri-processing plants in the province. Greenway Farms supplies about 45% of the freshmarket carrots consumed in Southern Africa under the Rugani brand.
The t wo most ac tive agricultural companies in Limpopo are NTKLA (with its headquarters in Modimolle) and Afgri, South Africa’s biggest agricultural company, which has its headquarters in Centurion (Gauteng).
NTKLA is a shareholder in Venda Roller Mills in Thohoyandou and operates 10 grain silos, 23 retail outlets, 28 flour depots and one cold storage facility.
PROFILE Mahlolane Agricultural Projects
Creating sustainable employment.
Mahlolane Agricultural Projects is an agricultural production company cur rently operating at remotely located Lepelle Nkumpi Municipality.
The company was formed in 2014. Production capability is based on 30 hectares of land that is prepared for crops, which include tomatoes, green peppers, cabbage and spinach. There are 15 em ployees, with scope for at least 30 more people to be employed.
Underpinning the project is the idea that hard work promotes peace and happiness. This is cap tured in the Latin saying “Labor pacemque felicium”.
Mission statement To demonstrate crop farming as a sustainable commercial venture for young and seasoned farmers. Vision To create sustainable employment opportunities for young people and encourage them to look no further than farming.
How do we realise that goal? Seek partnerships with provincial government and agricultural schools to provide internships and create export markets.
Company objectives
The company’s short- to medium-term ambitions are to attract tourism through crop- and stock-farming activities. Our company to be used as an agricultural school for primary and secondary schools to visit and learn first-hand about farming. To provide local crèches and primary schools with crops and vegetables at affordable prices. To encourage retail stores and supermarkets at shopping malls to buy local, freshly produced products. To serve and aid strong and aggressive protection of food security in our province.
ONLINE RESOURCES
Mahlakoleng Village, Ga–Mphahlele 0736 Limpopo Province General Manager, Pontsho Gloria Mooa Tel: 076 296 8544 Non-executive Director, Richard Mooa Tel: 082 467 3049 Email: richardm@globeflight.com
Making farming a success story
Ambitious plans to grow Mahlolane Agricultural Projects into a sustainable model.
Non-executive Director, Richard Mooa
Richard Mooa is a man on a mission. As a man who has achieved success in more than one field, he set out in 2014 to plough back to the community and environment where he grew up. As he puts it, it was his way of saying, “Thank you for raising me, I now want to do something for you.”
The vehicle was Mahlolane Agricultural Projects (Pty) Ltd, which has continued to grow over the five years of its existence, and now stands ready to further expand, if sufficient support can be found and beneficial partnerships can be created.
Tackling problems
The project was designed as a sizeable, affordable and wellmanaged project to relieve the pain of hunger among povertystricken people, especially families without breadwinners, from nearby villages in the Lepelle Nkumpi Municipality area in the Capricorn District Municipality.
The other major goal was to address the question of jobless youth wandering the streets aimlessly and hopelessly. These are the youth without any formal education or any form of training that could help them to support themselves.
Farming was chosen as the solution, the way to bring hope and selfconfidence to these two target groups. The project faced many challenges, not least from people who did not believe that it could work.
But Mooa was driven. Remembering that time, he says, “Just because I did not know where I was at that time, did not mean that I did not know where I wanted to be.” He wanted to help people and make a difference in their lives.
Partnerships
Of the project’s current status Mooa is upbeat, “I am so delighted at the progress so far,” but he wants the project to achieve much more. He is looking for partnerships and the support of agricultural institutions and departments at local, provincial and national levels.
There are many reasons to support MAP, both social and economic. These include: • the creation of employment for local people • encouragement of youngsters to work and get to love farming as a career • the use of animal manure as a means of soil fertilisation • local pride in a special project of its own • employees being given a chance to be leaders in their own right.
Huge potential
The challenges faced by the project are real, not least the dryness and the heat of the area and the fact that movable assets require constant repairs and maintenance. Access to capital would make it possible to expand production, sink boreholes, install a pivot irrigation system, fence off areas and buy seed and equipment. A marketing strategy and a website would help the project achieve its full potential.
Potential partners – private and public – could provide the assistance to take this project a long way.
“We are blessed in that we work with young and highly ambitious people, determined to be role models in their own rights,” says Richard Mooa. “We believe we have a viable and highly profitable commodity here,” he says. Moving to the next level will depend on the quality and quantity of resources that are made available.
