OVERVIEW
Agriculture and agri-processing A second agri-hub will be completed this year.
S
mall-scale farmers and co-operatives are being given a chance to connect to the formal economy via agri-hubs which will also provide advice and equipment. An agri-hub at Mkhuhlu, east of Hazyview, has been established and another is set to be completed in 2019 at Mkhondo (Piet Retief). An International Fresh Produce Market is planned as a means of stimulating agricultural production, but the project has stalled. The new premier of the province has pledged that the first phase of the market’s top structure will begin in the 2019/20 financial year. The intention is that this facility will lead to increased volumes supplying domestic and international markets. Each of the province’s districts will have agri-hubs. The Department of Agriculture, Rural Development, Land and Environmental Affairs has set up Farmer Production Support Units in two municipalities, Bushbuckridge and Nkomazi. A feedlot has been built at Mzinti and a R20-million packhouse at Bushbuckridge. Other interventions include the re-commissioning of the Bushbuckridge poultry abattoir and support for soya and maize farmers to supply the Lekwa Oilseed Crushing Plant in Standerton. Existing programmes such as the Fortune 40 young farmers programme is to be strengthened with the addition of 35 new incubation farms. Big companies cultivate maize, sugar, timber, vegetables, fruit and tea on a large scale in the province and are active in the raising of poultry and cattle. Large commercial farmers account MPUMALANGA BUSINESS 2019/20
28
SECTOR INSIGHT Astral Foods in Standerton has more than 2 400 employees. for the bulk of crop and livestock production. Astral Foods runs a poultry processing plant in Standerton which has 2 425 employees with a further 900 people further down the agricultural value chain dependent on the facility. Agriculture is responsible for about 3.4% of Mpumalanga’s Gross Domestic Product (GDP). Fruits, nuts and vegetables are major contributors to the provincial and national export basket and there is still scope for expansion in this sector, both in terms of lands planted and in terms of downstream beneficiation.