Agriculture

Agriculture and agro-processing

Training in agriculture is in the spotlight.

With more agricultural subjects being offered in schools and more spaces being created for students of agriculture, it comes as no surprise to learn that a large new agricultural farm school at is to be built at Rysmierbult, near Ventersdorp.

The idea behind the institution (a “mega farm school”) is that it will provide support to smaller farm schools and not only raise the numbers of young people educated in agriculture, but also raise the quality of tuition. Existing infrastructure is also receiving attention, by way of the construction of a 6km access road being built to serve the Kgora Farmer Training Centre in Mahikeng.

Although cattle and maize crops feature strongly in any discussion of North West agriculture, a black-owned company has succeeded on the back of hard work in the citrus market. Batlhako Temo Services, a former co-operative which started life cultivating sunflowers, is now a Brits-based company exporting to the Middle East and Taiwan. Over the years, the group of farmers has received support from the Department of Agriculture, Rural Development and Land Reform and from the Small Enterprise Development Agency (Seda) which has enabled them to invest in equipment and expand their workforce.

Another provincial government initiative will see 12 000ha of fallow land that around the Springbokpan grain silos infrastructure in Ditsobotla revived for the cultivation of grain.

For those who know the North West as a water-scarce region, it may be surprising to learn that a priority in 2021 has been the repair of earthen dams and fences damaged by flooding.

As part of a drive to help more farmers get connected to the more profitable end of the value chain, a beef beneficiation project is under consideration. To be located in the Dr Ruth Segomotsi Mompati District, a feasibility study is investigating whether a public-private partnership for constructing abattoirs and other relevant infrastructure would work.

Various agro-processing plants are under consideration for the city of Mahikeng: a feedlot and a meat-processing plant, including an abattoir and packaging facilities. In Taung the plan is to establish an animal

SECTOR INSIGHT More than 20% of South Africa’s maize crop is produced in the North West.

feed-manufacturing plant. A 10ha vineyard in Ventersdorp is to be expanded to 40ha and a black-owned logistics co-operative has been signed to distribute products from the farm.

Regional variety

The dry western region of the province is home to large beef-cattle herds, and this is where the growing game-ranching and hunting industry has its base. The eastern and north-eastern parts of the province receive relatively good rainfall and are suitable for the cultivation of crops.

The North West has approximately 1.6-million beef cattle, representing 12% of South Africa’s herd. Major breeds include Simmental, Brahman, Bonsmara and Simbra, a cross between the Brahman and Simmental breeds. Kalahari Red and Boerbok goats are found in large numbers in the dry west. The number of goats for the province is estimated at 701 587 which is 12% of South Africa’s total. There are estimated to be 318 843 pigs, which is 20% of South Africa’s total drove.

Nearly two-million hectares is planted with summer cereals, with about 50 000ha given over to winter cereals. The North West produces about 20% of South Africa’s maize and about 15% of its wheat. The central and southern sections of the province are dominated by maize and wheat farming. When it comes to sunflower seed, North West is responsible for 33% of South Africa’s stock, and 23% of the nation’s groundnuts. The North West supplies 5.4% of South Africa’s potatoes, but parts of the Kalahari are ideally suited to the cultivation of seed potatoes.

The North West is sometimes called “The Texas of South Africa” because of its superb cattle herds but the province also produces good crops of onions and other vegetables. Proximity to the large urban concentrations of Pretoria and Johannesburg are advantages for the horticulture subsector.

Companies

Senwes has a strong grain division and it controls 68 silos. Its headquarters are in Klerksdorp and in 2019 it increased its stake in KLK so that it now controls 57.44% of the company most strongly associated with the Northern Cape.

Suidwes is based south of Klerksdorp in Leeudoringstad. More than 90% of the shares in the company are held by farmers. Grain handling is the main business and there are divisions for retail (17 outlets and one animalfeed depot), mechanisation, finance and research and agricultural economics (Terratek).

Brits is the location of the headquarters of the MGK Group. The company runs five divisions and a plant that makes full fat soy, a component in animal feed. NWK is another company with manufacturing capacity. The Lichtenburgbased enterprise makes liquid fertiliser (up to 10 tons per month), animal feed (Opti Feeds), processes sunflower seeds (Epko), and runs three grain mills. Another subsidiary, Opti Chicks, has a capacity of 600 000 chicks per week.

NWK also deals in grain, runs several retail outlets and has a half-share (with Senwes) in CertiSure Brokers. The company has 37 silos with a capacity of 2.5-million tons.

AgriNW is the mouthpiece of its affiliated farmers and keeps an eye on policy and laws affecting the sector. It also acts as a supportive network to help its members achieve optimal results. ■

ONLINE RESOURCES

Agri NW: www.agrinw.co.za Grain SA: www.grainsa.co.za North West Department of Agriculture and Rural Development: www.dard.nwpg.gov.za Red Meat Producers Organisation: www.rpo.co.za

The future of smart farming in South Africa

Standard Bank is finding innovative ways of funding agriculture.

Technology has completely transformed agriculture. These days, farmers are integrating everything from drones and satellite sensing to genetic modification and Artificial Intelligence to reduce costs and enhance yield.

In the South African context, a dualistic agricultural economy exists with highly developed commercial players on the one side and those that practise farming for subsistence on the other.

Technology has already been successfully applied in the commercial sector. The implementation of smart-farming technologies has helped farmers and growers to achieve the highest potential. Take South African maize production. Back in the 1970s, the country was producing an average of two tons of maize per hectare. Fast forward to today and South Africa produces more than four tons per hectare.

South African farmers now apply everything from regenerative agriculture, which relates to the use of smart technologies to improve efficiency, right through to gene technology. Genetically-modified maize now makes up about 80% to 90% of the total.

Meanwhile, GPS technology is making an impact in livestock farming by making it possible to identify, track and trace an animal through the value chain.

Standard Bank recently financed a citrus producer that is now using robotics in its packhouse. There are also technologies being applied to make sure the quality and quantity of what is to be produced for a specific market is at the correct standards. Climate-monitoring technology is also being used to ensure that produce for export markets meets the relevant standards.

The application of technology across South Africa’s agriculture sector is at significant levels. The challenge is to extract the data and integrate it into other areas of the economy such as financial services.

Technology and data in finance Standard Bank is currently assessing the extent to which we can better track and trace the development of a crop. If treatment needs to be given, we then know about it and can finance it.

Affordability is a barrier for emerging farmers, but the cost factor could be addressed with greater collaboration. The bank could find value in data generated out of satellite technology. The same would be the case for an insurance provider or a pesticides provider. Joining forces can make those technologies more affordable.

Standard Bank is currently enabling financing for appropriate farming technologies while working with its enterprise development unit to make specialists available to small-scale farmers to prepare farmers for a digital future. ■