Agriculture & Agri-processing
The Northern Cape’s rich agricultural bounty could support a strong agri-processing sector.
The Orange River region officially became South Africa’s 18th citrus-growing region in 2009, a major vote of confidence in the future of the area as an agricultural producer, and another indicator of just how important the river is to the economy of the Northern Cape.
The Orange River supports much more than citrus, with large-scale irrigation schemes along the river and in the upper reaches of the basin, such as along the Modder and Vaal rivers. The Vaalharts irrigation scheme is home to many farms producing wheat, peanuts, maize, cotton and fruit.
In addition, the Gariep and Vanderkloof dams provide water to a range of schemes which sustain agricultural schemes as far away as in the southern Eastern Cape. The Gariep Dam has a capacity of 5 000 million cubic metres and the Vanderkloof Dam, which is the main control of water flows, can store up to 3 200 million cubic metres.
The Northern Cape is a major exporter of table grapes, fruit and meat, and is responsible for much of the cattle, sheep and goat farming in the country. Many opportunities exist in the Northern Cape for expansion in the production and beneficiation of dates, fruit, vegetables and vine products.
Although agriculture’s contribution to gross regional domestic product (GRDP) was reported to be 9% in 2008 (Provincial Medium Term Budget Policy Statement), the province’s premier reported in 2009 that the effects of the global economic crisis had served to reduce this. With a large number of people employed in the sector and the number of people dependent on subsistence agriculture, this presented a major challenge, prompting the provincial government to intervene to help poor rural people.
Other major interventions include the Rooibos tea initiative in Niewoudtville and the Vaalharts irrigation-scheme rehabilitation project. Both of these are occurring through the Ilima/Letsema programme, which is located within the province’s overarching Comprehensive Agricultural Support Programme (CASP), a multi-year programme designed to alleviate poverty and build sustainable local economies. CASP was allocated R49-million in the 2010/11 budget of the provincial Department of Agriculture, Land Reform and Rural Development.
Most of the province’s rooibos tea is currently sent north to Limpopo province where it is transformed into a marketable product. The amount of money needed for making raw tea is very little as compared to the finished product. The amount of tea cultivated by the Niewoudtville group has risen from 70 tons in 2006 to 300 tons in 2008. A R54-million tea-making factory in the town will be finished by 2011, adding 217 jobs to the 40 already created by the project.
Co-operatives are seen as the best way of organizing rural workers: 130 have so far been developed with a further 30 due to be set up in 2010.
T h e N o r t h e r n C a p e E c o n o m i c D e v e l o p m e n t Agency (NCEDA) has agriculture as one of its core sectors for development in the province. Opportunities for potential investors identified by NCEDA include: reducing South Africa’s reliance on imported dry figs; the maintenance of fig and pomegranate orchards; grapefruit production, and establishing and improving market relations with the USA.
Crops
One of the biggest diversified agricultural companies in the Northern Cape is GWK Ltd. It operates 90 000 hectares of land along the Vaal, Orange, Riet and Harts rivers, cultivating maize, wheat, oilseeds, cotton and olives. It also operates abattoirs and runs agricultural auctions.
Cotton: In the year to July 2009, the Northern Cape produced more than half of South Africa’s cotton (20 821 200kg bales of cotton lint). With 12 555 hectares under irrigation, the province produces excellent yields. The two biggest areas for cotton cultivation are Vaalharts and the Lower Orange River.
Essential oils: Rose geranium essential oils are cultivated at Onseepkans, where the Council for Scientific and Industrial Research (CSIR) and the national Department of Science and Technology (DST) have established an essential-oils plant. Good sunlight, well-drained soils and irrigation water from the Orange River make the cultivation of oils an attractive option in the chosen area. It is a market with huge potential, with the industry growing by nearly 10% per annum.
Kraalbos and hoodia: The Northern Cape has several plants that have the potential to produce commercial products. The CSIR has developed a diet drug from the plant hoodia and a botanist is aiming to make an anti fungal spray for vegetables and fruit from the plant kraalbos (Galenia africana). According to the Sunday Times, the plant, which is regarded as a weed by farmers, can also be made into soap and an ointment to treat psoriasis.
Fruit
The provincial government intends boosting local economic development through various projects. These include:
• Citrus and pomegranate production – an experienced operator is sought to partner with emerging farmers in the Riemvasmaak region
• Pomegranate, black fig and citrus farming – an experienced partner is neeed to work with women farmers in the Onseepkans region
• Fruit for export – as part of the Majeakgoro project in Hartswater
Seventy percent of the sultana grapes grown in the Lower Orange River region are used for vine-fruit products. There are some 1 250 sultana-grape growers in the province producing three sultana-type grapes, which rank among the best in the world: the Sultana Clone H5; a new hybrid called Merbein Seedless, which has proved resistant to splitting after rain; and the most popular type, the 143B.
The following vine-fruit products are produced in the Northern Cape: Sundried Thompson Seedless Raisins; Dipped Orange River Sultanas; Golden Sultanas; Muscat Raisins; and Monuca Raisins.
An example of successful sultana-grape production in the province is SAD Vine Fruit (Pty) Ltd, which owns the largest dried-vine fruit processing and packaging plant in South Africa. Started as a small co-operative, the Upington-based firm now employs more than 350 people when in full production. As much as 80% of vine fruit grown in South Africa is exported, primarily to Europe but also to Japan, Taiwan, Korea, Canada and the USA.
The 2009 sultana crop did not match the record levels of 2008, but volumes were still good and prospects for growth encouraging. The province has more than 16 500 vines on 9 486 hectares. The Northern Cape produces 44% of South Africa’s table grapes.
Several billion rand went into preparing large areas along the banks of the Orange River for citrus cultivation. Costs were estimated at R200 000 per hectare but with the country’s citrus exports growing in 2009 to 90-million 14kg cartons, the potential for future earnings is obviously great. The region is particularly well suited for the cultivation of valencias, lemons and grapefruit and the dry, hot conditions mean that it is easy to control pests.
Livestock
Sheep: Upington is the main centre for karakul sheep farming in South Africa. The karakul pelt is valuable, although the market is nothing like as good as it was before the anti-fur campaigns of the 1990s. Altogether, the province has the secondhighest number of sheep after the Eastern Cape: 6.2 million of the nation’s total of 24.5 million.
Goats: The Kalahari Kid Corporation (KKC) is a joint venture between the Northern Cape Provincial Government, some private investors and emerging farmers. The intention of the KKC is to raise the standard of goats meat produced in the region and expand the export market. This project has the support of the provincial investment agencies, which are targeting the East and Islamic countries in particular, and the Industrial Development Corporation (IDC).
Wi t h a b o u t 7 0 0 0 0 0 goats in the province, the skills and experience in herding and slaughtering are already present. The IDC has put R15.4-million into the Goat Commercialisation Programme that seeks to expand the herd and the number of products emanating from the goats (leather in particular) and improve quality and standards within t h e i n d u s t r y . T h e L A W Abattoir, a European-Union approved facility, is a partner in the project. An average of R6-million per year has been spent by the national government on the commercialization of goat farming. The national Department of Agriculture, Forestry and Fisheries is promoting the Boer goat breed as an indigenous type that is hardy and has a good meat ratio.
Gameranching: T h e Northern Cape has many game ranches covering the Karoo and Kalahari regions, ranging from those supplying basic services to the ultra-luxurious ranches, which have their own airstrips. The South African ranching industry has been growing at a rate of 6% per annum since the early 1990s and provides employment for many people.
Horses: The Northern Cape is a premier horse-breeding destination. The area around Colesberg in particular has developed a fine reputation, with famous golfer Gary Player being among the many top breeders who have established facilities in the district.
Ostriches: Ostriches do well in the Northern Cape. The Siyanda District Municipality is looking for an investor to take over an existing ostrich farm south of Upington. The farm’s products are currently exported to Europe.
