Agriculture

South Africa is the world leader in mohair.

While agriculture’s contribution to national GDP is variously given in the range of 2.0%-2.5%, the upstream and downstream links to agriculture through sectors such as processing and logistics mean that the real contribution is more like 15%.

More than one commentator has raised the idea that South Africa should be ramping up production of foods where the country is already a world leader in production: macadamia (number one), citrus (number two) and others such as avocados and pecan nuts. Hilary Joffe wrote in Business Times that existing turnover for superfoods (avocadoes, cherries, dates, blueberries, macadamias, pecans and almonds) is at R24-billion but this could triple with the correct support.

A good example of an existing special strength that belongs to South African agriculture is mohair, the fibre that comes from Angora goats. The Eastern Cape is the centre of the global mohair sector. South Africa produces about 55% of the world’s mohair.

Companies such as SAMIL have divisions covering farming, combing, trading, spinning and dyeing. The Angora Genetics Laboratory (ANGELA) was established in 2013 to improve yields.

Wandile Sihlobo of Agbiz believes that South Africa should focus on horticulture, partly because it is labour intensive. He gives an example of blueberries, which need 2.64 workers for every hectare planted. There are signs that his advice is being followed: gross value rose from R15.8-million in 2008 to R1.25-billion in 2018 with the total area planted expanding four times. More than 70% of the blueberry crop is exported.

AgriSA states that the amount of agricultural land in South Africa in 2016 stood at 93.5-million hectares. This represents 76.3% of South Africa’s total land mass of 122.5-million hectares and about 3% less than in 1994. Following on a research project done by Agri Development Solutions (jointly funded by AgriSA and the magazine Landbouweekblad), Agri SA predicted that 80-million South Africans would be fed by commercial farmers in the year 2035. They also gave these figures for the sector: • 34 000 full-time farmers • 40 000 tax-paying farmers • 100 000 emerging farmers • 670 000 semi-skilled and unskilled workers.

Agricultural firm Laeveld Agrochem has made the link between the need for high-quality soil and better returns if countries in Africa are going to produce larger quantities of produce and livestock. As a result, a subsidiary has been created to make soil health products. Called Agri Technovation,

SECTOR INSIGHT

Superfoods could boost agricultural exports.

the company formulates and manufactures specialised products that aim to meet crop-specific nutrient, stimulant and energy requirements.

In the context of new products such as these, the need for highly skilled people in the sector becomes obvious. The kinds of innovation and technology that are needed to improve agriculture need well-trained specialists.

The South African government has produced a list of critical skills in the agricultural sector. Each of these occupations (such as agricultural scientist) has additional areas of specialisation (for example, soil or pasture scientist) so the extended list is a long one. General occupations include technician, produce inspector, engineer technologist, mobile plant operator and veterinarian. Some specialities include seed research technicians, abattoir veterinarians and agri-chemical spray operators.

Black farmers are receiving loans from the Land Bank in an attempt to help transform the sector. The

Land Bank is also looking to create ways in which black entrepreneurs can invest in agricultural assets through some form

Land use in South Africa

of trust.

The Bureau for Food and Agricultural Policy reports that the fastest -growing category of new farmers is emerging farmers who are taking a “market-led, sustainable approach”. This group is the result of a new model of cooperation between black and white farmers, support from industry organ-

51.6% 32.8%

13.7%

0.4% 1.5%

Extensive pastures Extensive pastures

Intensive pastures Intensive pastures

Extensive eld crops Extensive field crop

Intensive eld crop Intensive field crop

Orchards Orchards

isations and new approaches to financing.

The drought in 2015 and 2016 had severe consequences in Southern Africa. StatsSA noted the following price increases in that period: vegetables (12.7%), bread and cereals (16%) while nearly 400 000ha less was planted in the country in 2017 than it was in 2014. Wine grape production was down 2% in 2019 but this followed a 14% dip the year before.

Exports of South African produce continue to grow. Sihlobo noted that 2018 exports were the highest in 17 years, reaching $10-billion. Africa was the biggest market, accounting for 39% of the total. South Africa’s biggest citrus shipment

Professors Johann Kirsten and Ferdi Meyer argue that a detailed analysis of what land is available and best suited to various uses should be undertaken as part of land policy in South Africa. They explain the different kinds of land shown in this chart as follows: • Extensive pastures/natural veld (more than half of all agricultural land): this land has marginal agricultural potential and farmers need a lot of land to carry stock (10ha for small livestock, 40ha per larger animals such as cattle).

The Karoo and large parts of the Northern Cape fall into this category. • Intensive pastures: 32.8% of all land where rainfall is good is suitable for activities such as dairy farming. Extensive (dryland) field crops: 13.7% of all land is suitable for crops such as sunflower seed and soybean. Intensive (irrigated) field crops: 1.5% of land suits all horticul ture and some field crops. Orchards: 0.4% of SA’s agricul tural land, which is expensive to maintain but the returns are good. They require a high degree of skill, are labourintensive and must be responsive to the export market.

SOURCE: Bureau for Economic Research at Stellenbosch University, Bureau for Food and Agricultural Policy.

company, Sundays River Citrus Company, regularly ships 500 000 cartons per week. Beef increased from 8 292 tons in 2001 to 31 888 tons. The largest areas of growth were Muslim countries.

KwaZulu-Natal and Mpumalanga produce sugar, but volumes are down. The Free State Province supplies significant proportions of the

South Africa imports 80% of its fertiliser and 98% of its agri-chemicals.

A total of 70% of South Africa’s grain production is maize, which covers 60% of the cropping area of the country. The South Africa feed industry has an annual turnover of about R50-billion with most of the raw material being soya and maize.

ONLINE RESOURCES

Agricultural Research Council: www.arc.agric.za Fresh Produce Exporters’ Forum: www.fpef.co.za Grain SA: www.grainsa.co.za National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za SA Table Grape Industry: www.satgi.co.za nation’s sorghum, sunflower, potatoes, groundnuts, dry beans, and almost all of its cherries.

South Africa is famous for its fruit, of which 35% is citrus, 23% subtropical and nuts, 26% pome fruit, 11% stone fruit and 9% table grapes. Export volumes, particularly in tropical fruits such as mangoes and avocados, have been growing rapidly. Most of South Africa’s citrus and subtropical fruit comes from the eastern part of Limpopo. There are about 3 500 wine producers in South Africa, with the large majority located in the Western Cape.

Livestock farming is the largest agricultural subsector in South Africa and the Eastern Cape is the largest livestock province. South Africa has a beef herd of 14-million.

Michael Brosnahan, CEO

BIOGRAPHY

Michael emigrated from the UK to KwaZulu-Natal in South Africa in 1981 in order to take up the position of Quality Assurance Manager with the Frame Group. A chartered member of the Textile Institute in South Africa, he has managed several large textile companies since then. Mooi River Textiles was awarded Cotton Spinner of the Year for three consecutive years under his leadership. He was appointed CEO of SAMIL Natural Fibres in Port Elizabeth in 2016.

Traceability is a key differentiator for major mohair producer

Michael Brosnahan, the CEO of SAMIL, explains why he is positive about the future of the mohair industry.

What is the state of the mohair sector in South Africa at the moment?

Despite all the challenges, we are extremely positive about the future. Mohair farmers are a hardy breed of individuals used to facing and overcoming adversity, including the recent drought. There are indications that the situation is improving. The South African mohair production for the last two seasons was 2.40-million kg in 2017, and 2.24-million kg in 2018. The prediction is that production will be in the region of 2.35-million kg this year. However, nature is a fickle entity.

What are the main countries to which Samil exports?

Italy and China are our two largest markets in terms of semi-processed tops. We redirect between 15-20% (and this figure is increasing) of tops produced at SAMIL Combing to SAMIL Spinning for conversion into magnificent yarns which are mainly sold on the international stage.

What are the advantages of having multiple divisions?

SAMIL has a team of professionals with long years of experience in both the mohair and textile industries. As traceability becomes more and more important to the final consumer, SAMIL has a distinct point of difference – we are involved from goat farming through all conversion processes to the finished yarn.

What headwinds has mohair experienced?

Mohair has faced some serious challenges in recent years, the first of which was PETA’s exposé on the South African mohair industry in May 2018. Though a negative attack, the positive spin-off is that it has helped the industry to fast-track the implementation of the Mohair Sustainability requirements. The industry has engaged with the Textile Exchange in drawing up a Responsible Mohair Standard. This is to satisfy consumers that mohair is a sustainable and ethically produced product.

Secondly, the Lesotho farmers’ conflict with their government over restrictive mohair export conditions. They have recently won a High Court battle to have these restrictive conditions repealed but there is still uncertainty as to when normal supply will resume.

What other plans do you have?

We are also investing in our combing and spinning operations to ensure we are equipped to deliver quality products timeously to our clients.

Sharing Africa’s beauty with the world

SAMIL produces and processes mohair, the noble fibre.

South African Mohair Industries Limited (SAMIL) is the link between mohair producers, processors and consumers. Our vision is to be an innovative South African company specialising in the production and processing of natural fibres, as well as speciality spun yarns.

Mohair, the fleece of the Angora goat, is: • the noble fibre, known as the diamond fibre • lustrous, resilient and offers exceptional colour reflection • one of the world’s most beautiful sustainable natural fibres • a symbol of luxury and exclusivity.

African Expressions Our local brand African Expressions was born of the desire to share Africa’s natural beauty with the rest of the world. Through our unique range of yarns, we express the essence of that which makes Africa magical. Our network of local farmers, who farm in optimal Angora goat conditions, breed stock which bear excellent fibres. This ensures that our yarns are naturally soft to the touch, easy to knit and luxuriously versatile.

SAMIL divisions Farming: SAMIL Farming, was established with the primary objective of stabilising and possibly increasing mohair supply to the processors. Combing: SAMIL Natural Fibres Combing is in Berlin, outside East London in the Eastern Cape. As mohair processing has decreased in other parts of the world, SAMIL Combing has become one of the world’s leading processors. Unlike many processing plants

SAMIL Combing focusses on and is committed to processing only mohair. Trading: Through a strong support base of affiliated companies, partners and agents, SAMIL has established strong connections throughout the world for the purchase and sale of raw materials and finished goods. South Africa processes in excess of 80% of the world’s mohair production. The advantage of having both topmaking and spinning operations in South Africa, as well as access to raw material produced within the company, is that SAMIL is able to offer lots guaranteed from origin, a rare luxury in today’s business environment. Spinning and dyeing: SAMIL Spinning is a global manufacturer of outstanding quality mohair yarns, producing a wide and exclusive range of mohair and mohair blended fancy and fine-spun yarns in both fine-count and coarser varieties. We are internationally renowned for our superior product range and cater for the hand knitting, machine knitting, weaving, hosiery and decor markets. Although we specialise in pure mohair, we also blend mohair with a range of other natural and man-made fibres. Yarns can be custom dyed to any shade at SAMIL’s state of the art dye house. Genetic research: The latest venture under the SAMIL umbrella is the research project called ANGELA which aims to enhance Angora goats and the mohair industry, from increasing kidding rates to the improvement of the different hair qualities. The project will make available its results to all in the mohair farming community.

Contact details

Tel: +27 41 486 2430 Email: yarns@samil.co.za Website: www.samil.co.za