OPPORTUNITIES IN AGROPROCESSING SECTOR. Mlamli Nodada : 19TH November 2014

Transcription

1 OPPORTUNITIES IN AGROPROCESSING SECTOR Mlamli Nodada : 19TH November 2014

2 Agro-processing sector

3 Contents 1. Introducing the Sector 2. Industry Overview 3. Competitive Advantage / Opportunities 4. SMME Opportunities i. Crops / Horticulture ii. Livestock iii. Dairy Products iv. Leather Products v. Forestry & Timber vi. Furniture vii. Food Products 5. Conclusion

4 Overview of Sector Temperate climate All year round rainfall suitable for various agricultural programmes Main livestock province in South Africa 34% of South Africa s wool, 75% of its mohair 24% of South Africa s milk production 800km coastline for commercial mariculture, aquaculture, conventional harvesting

5 EC Competitive Advantage hectares available for plantations Well endowed with natural plants / Biodiversity Rich agricultural base with stable, growing food processing industry Smaller scale food processors: chillies, dried meat, speciality cheeses Centre of South Africa s pineapple industry Citrus, deciduous fruit support sophisticated juice industry Fruit jams Meat processing: prized Karoo lamb, specialty game meats

6 Agro Value Chain Agro-Processing Value-Chain focus Growing Primary Processing Storage& Distribution Secondary Processing Logistics & Distribution Marketing Livestock Products Grain Forest Products Fruit Products Bio-energy Supply

7 SMME OPPORTUNITIES

8 Crops & Horticulture Grain industry feed and bio-fuels Fresh Vegetable produce promoting emerging farmer participation Herbs, spices, medicinal plants, Essentail Oils: Small scale farming in irrigable areas. Strong management needed. Possible use of medicinal herbs in pharmaceuticals. Bee honey, beeswax and propolis: Low cost to establish community industries and outgrower production by smallholders. Potential branding. Pineapples: Extension of production, especially to black farmers in exhomelands. Farmworker equity schemes. Tomatoes: Extension of production, especially to black farmers in exhomelands. Farmworker equity schemes. Aloe Ferox: Homeland rural processing industries, including harvesting of leaves, cosmetics and health products and exports Flowers: Fresh and cut flowers, including local varieties (Proteas, Bulbs Chicory : potential for emerging farmers for Raw material supply, Etc

9 Livestock Red meat industry participation along value chain Feedlot beef: Feedlots close to urban and markets and ports to supply meat processing plant. Meat processing plant: Processed meat products and packaged meat, with longer run opportunities for meat canning Piggeries & Poultry: Establish businesses for urban supply, including possible 'Transkei Organic' based on open grazing Wool & Mohair beneficiation and transformation. Natural/synthetic fibre mixes: Opportunities to use wool and mohair in an integrated mixed fibre textile mill/ clothing cluster. Wool and mohair yarns: Increase the range of pure and mixed fibre yarns for knitted and woven garments. Livestock marketing: Development of cattle auctions and auction yards. Aquaculture & Fisheries : promoting industry participation by SMMEs

10 Leather and Products Increase supply & quality of hides: Training in hand skinning and hide preservation in the former homelands, targeted at livestock farmers. Small scale homeland tanneries: Training in tanning and credit for black entrepreneurs. ECDC, Triple Trust and ECTB are training small scale tanners in 'organic' leather production for crafts Expand existing tanneries: Several tanneries are interested in JVs to extend tanning from semi-processed to finished leather. Auto leather: Opportunities for further leather, seat panels and finished seats for export. Fashion footwear & leather goods: Link designs in indigenous leather with local manufacturers. Opportunities for links to international buying chains. Exotic leathers: High value finished leathers from local hides - ostrich, crocodile farms, game. Auto leather off-cuts: Plentiful supply that can be used for suede and cellphone pouches. Tanning Cluster: A leather cluster is planned for Coega IDZ, serviced by a dedicated effluent plant.

11 Milk and Dairy Products UHT 'long-life' milk production from the significant raw milk surpluses produced in the province. Milk powder similarly from raw milk surpluses, for use in the confectionery and food processing industries. Dairy extension: Focus extension services on small scale dairying, including animal care, farm gate sales and food security. Black dairy farmers: Establish individual dairy farmers on private and state land, through land purchase, training and mentoring. Pilot dairy marketing scheme: Once dairy farmers are established in an area, joint venture with local dairy company to collect surplus milk. Small scale dairy processing: Support black entrepreneurs to develop 'Transkei brand yoghurt, cheese, drinks, cream, etc.

12 Forestry and Wood Products Increase forestry area: Eastern Cape is the only province that can increase its forestry area. An estimated 120,000 ha can be planted, mostly in Transkei. Wood Chipping Plant: East London IDZ can host an export wood chipping plant, railing timber from Umtata. Paper and Pulp Mill: Long term potential for a paper and pulp mill at Umtata once forestry area has expanded. Building joinery: Black owned saw-millers can diversify into doors, frames, flooring, planks, mostly in pine. Export potential. Treated poles: Potential for a plant in Butterworth. Uses in agriculture & transmission poles. Charcoal: Small wattle plantations can be used to produce high quality charcoal. Can develop from the 'Working for Water' campaign.

13 Furniture Knock down furniture components: Manufacture of pine components (legs, surfaces) in East London IDZ from timber freighted from Transkei. Handcrafted furniture: Quality & well designed custom furniture, mostly hardwood. High level skills. Black furniture manufacturers: Promoting small furniture businesses through credit and training. Potential JVs with large forestry companies. Furniture cluster: Opportunity in the IDZs, especially East London to cluster small specialist furniture companies. Improved furniture design: Access to design trends & innovative use of mixed materials. JVs with international furniture manufacturers.

14 Food Products Citrus and deciduous fruit: Canning and juicing plants in and around Port Elizabeth.Canned fruit segments and slices. Vegetable canning: Strong demand for canned beans, potatoes, onions, peas, kidney beans. Need to expand production of fresh produce. Puree & Jams: Opportunities for deciduous and citrus fruit jams around Port Elizabeth. Dried tomatoes & paste: Tomato drying plant and paste factory in East London IDZ. Exotic fruits & vegetables: Canned & bottled products for delicatessens; chillies, peppers, asparagus, artichoke, guavas, mangoes, strawberries. Organic produce: Canning and bottling of produce grown with natural fertilisers. Rural food processing: Small credit and market information on rural opportunities. Hammer mills, market gardening, indigenous foods for tourists.

15 CONCLUSION Coordination government (incl. Munics), private and public Infrastructure Logistics & Distribution Development Incentives/subsidies Innovation and Technology Skills, Expertise, Capacity Industry Cluster approach to build critical mass Special Economic Zone (SEZ) initiative

16 THANK YOU