Agriculture and agro-processing

Barberton has a new and unusual blueberry farm.

Mining company Pan African Resources is getting into the blueberry business in an effort to help uplift the community in which it operates near Barberton. The 15ha farm (pictured) has created 80 jobs with a further 400 seasonal jobs expected for a five-month period. In the second phase of the project, which is being run by Primocane Capital, about 1 000 jobs are expected. The first harvest is expected in 2022. According to a report in Business Times, the miner’s investment into the first phase has so far amounted to R40-million.

A provincial government assistance programme called Phezukomkhono Mlimi is providing mechanisation and input support to small-scale and new farmers. Those who receive help are also offered training courses offered by the AgriSETA.

An agro-processing facility is planned for the area near the Kruger Mpumalanga International Airport (KMIA) and private investors are being approached. Progress has been made in the construction of the Mpumalanga International Fresh Produce Market and the main market is expected to be ready in the course of 2021.

With several coal mines reaching the end of their lives, steps are being taken to convert the land to useful agricultural land. Safety and health concerns will have to be addressed, but there is potential to improve food security for poorer families in the province.

The Fortune 40 programme has a specific focus on developing young entrepreneurs in farming. Twelve of the Fortune 40 farms have been linked to retailers such as Spar, Shoprite and Boxer and with wholesalers and agro-hubs.

The goal is to have an agrohub in each of the province’s three districts. Small-scale farmers and co-operatives are being given a chance to connect to the formal economy via the hubs which will also provide advice and equipment. The Mkhuhlu agro-hub in Bushbuckridge, which forms part of the Provincial Government Nutrition Programme, is operational. The Mkhondo agro-hub in Gert Sibande District is completed and partially operational. A feasibility study is underway relating to the establishment of a hub in the Nkomazi Municipality. A budget of R15-million has been agreed for the first phase and the creation of a pack-house. Other interventions

Credit: Primocane Capital

SECTOR INSIGHT Subsistence farmers are getting assistance.

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.

Agriculture is responsible for about 3.4% of Mpumalanga’s Gross Domestic Product (GDP).

Crops

Mpumalanga accounts for about 21% of South Africa’s citrus production and a third of its export volumes, with Valencias being the province’s most popular varietal and Nelspruit being the centre of the sector.

Avocados, litchis, mangoes and bananas thrive in the province. Hazyview is an important source of bananas, with 20% of South Africa’s production originating there.

Deciduous fruits are cultivated in smaller quantities. About 15 000 tons of table grapes are produced in the province annually and Mpumalanga produces its own wine.

A specialist fruit that does well in the province is the marula. The marula fruit makes a popular beer and is used in the production of an internationally-known liqueur.

Macadamia nuts have grown in popularity. About 4 000 hectares of new trees is added each year across South Africa, with most of that in Mpumalanga and neighbouring Limpopo. The vast majority of the nuts are exported, with about 40% going to China.

There are about 450 farmers growing the nuts and there are 14 cracking factories in South Africa. The sector employs about 4 500 people, of which 1 500 are permanent employees. Barberton and Hazyview are two prime areas for the nut.

Mpumalanga produces one-million tons of maize from 291 788ha. About 53 000 tons of wheat and 33 000 tons of sorghum are produced annually. Soya bean is another major crop: more than half of South Africa’s soya bean crop is produced in Mpumalanga’s Highveld areas.

Cotton is grown mostly under dryland conditions in Marble Hall. The province has 1 500ha of dryland under cotton. Much of South Africa’s total annual production of about 34-million kilograms of tobacco, especially Virginia tobacco, takes place in the north-western parts of Mpumalanga, and in neighbouring Limpopo. Other crops produced for export in Mpumalanga include cut flowers, pot plants and nursery plants.

Mpumalanga has the second-biggest sugar industry in South Africa, after KwaZuluNatal. TSB Sugar runs three mills in the Lowveld region, two of which have refining capacity, and employs about 4 700 people. More than 1 400 farmers (commercial and smallscale) deliver sugar cane to the company. TSB brands are Selati (sugar) and Molatek (animal feed).

ONLINE RESOURCES

Citrus Growers Association: www.cga.co.za Macadamias South Africa: www.samac.org.za South African Cane Growers’ Association: www.sacanegrowers.co.za South African Subtropical Growers’ Association: www.subtrop.net Companies

Astral Foods runs a poultry processing plant in Standerton which has 2 425 employees.

Fresh fruit and nut supplier Halls cultivates 375ha of its own land and has another 1 400ha under management. Its crops include avocados and litchis.

Westfalia is a diversified agricultural group which runs extensive operations in the province. Umbhaba Estates is one of the biggest banana growers in the province.

The drier Highveld region with its cold winters supports crops such as cereals, legumes and nuts. There is extensive irrigation in the Loskop Dam area. Ermelo is one of South Africa’s main centres of sheep farming and wool production.

Subtropical fruit flourishes in the Lowveld with the town of Nelspruit being a major citrus producer. Mixed farming and potatoes, sweet potatoes and beans are mostly found in the southern and western parts of the province. ■

Agriculture and mining drive growth in Mpumalanga

Standard Bank offers specific banking solutions in specialised sectors.

Standard Bank Mpumalanga has invested deeply in expertise, knowledge and infrastructure in various sectors within the province.

Mining is a significant contributor to the growth of Mpumalanga. There are 127 mining projects owned by 47 mining companies in the region, and both international and local mining houses have an established footprint here.

We understand that mining is a specialised sector that needs specific banking solutions. We have the expertise to cater for banking needs across the mining value chain, whether your business is a producer, minerals processor or service provider to the mining industry.

Our Johannesburg-based team of sector specialists provides support and in-depth mining sector insight to our dedicated Relationship Managers across the country, including Mpumalanga.

From securing asset finance for mine development to managing your daily working capital needs – with us as your financial partner, you are assured that you are engaging with experts who have insight into what matters most.

Food production As one of the most productive agricultural regions in South Africa, Mpumalanga plays a key role in food production for consumption and in the country’s agricultural export industry. We deliver financial solutions for the varied needs of individuals and businesses along the agribusiness supply chain through the experience and deeprooted expertise of our teams.

Agriculture is a specialised sector with more than 30 sub-sectors requiring vast knowledge, skill and experience for in depth understanding of its complexities and integrated cycles. The industry is highly dependent on us understanding the agribusiness value chain and providing appropriate solutions to ensure the success of our clients.

The funding required in agribusiness includes property finance to fund land acquisition, production finance for planting and growing annual and longterm crops and working capital for financing vehicles and equipment, irrigation systems and packing facilities for fruit.

Many agri sub-sectors, like the nut industry, export products overseas and require the correct Foreign Exchange and International Payment solutions. This includes the ability to guarantee payments and hedge foreign exchange variances.

We don’t believe in simply selling a product to our clients. What is important for us is to understand the unique business needs and match the appropriate solution so as to create value for our clients. ■