The Limpopo province is the country’s breadbasket and one of South Africa’s most important agricultural regions, producing livestock, fruit, and vegetables from the confluence of the huge Shashe and Limpopo rivers in the north to the silver mists of Tzaneen, hometown of the Rain Queen.
Despite the fact that the agriculture sector has been hit by severe drought and flooding, stakeholders believe it can still contribute to the province’s economy.
Limpopo also has a growing agro-processing industry, which has the potential to boost value addition, employment, income, and export opportunities, as well as improve food security while reducing reliance on imports. However, the sector is constrained by a number of factors. Droughts are common, soil fertility is low, and ambient temperatures are high, putting pressure on the upstream business in particular. High production input costs — seed, fertilizer, and chemicals — as well as a dearth of capital and commercial agricultural abilities — all limit the sector.
The Industrial Development Corporation (IDC) says it is concentrating on the growth of the agro-processing business in order to increase demand for primary agricultural products, which will help to create jobs and add value to those items.
Limpopo’s Agro-Processing Strategy was finished in 2012, according to Dr Judex Oberholzer of Urban-Econ Development Economists, and its purpose is to “help to the development of vital areas of the province economy.” According to Oberholzer, agro-processing businesses integrate various sectors across the value chain, including primary and secondary operations.
Limpopo covers 12.46 million hectares, accounting for 10.2 percent of South Africa’s total land area. The province has extensive agricultural resources and is known for its fruits and vegetables, grains, tea, and sugar production. Mangoes, pawpaw, citrus fruit, tomatoes, macadamia nuts, and avocadoes are the main horticultural crops in the province’s percentage of national output, according to information from the Limpopo department of agriculture.
According to Marci Pather, business development director at All Joy PLC, tomato production has been consistent over 400 000 tonnes per year for the past decade. He attributed the decrease in production in 2006, 2007 and 2011 was as a ressult of unfavorable weather and expensive production expenses.
“While the current rise of 600,000 tonnes is encouraging, it is still insufficient to meet the industry’s needs,” Pather added. He believes that the southern African tomato market’s import duties on imported tomato paste will help and strengthen the local tomato processing business over the next five years.
“Additional capacity [built] at strategically situated processing companies can help emerging producers benefit from the increased demand for tomatoes,” Pather said. “The government is collaborating closely with growers and business to design a program to promote the production of industrial/factory tomatoes. Emerging farmers are likely to benefit from out growers programs, which will provide organized assistance.”
The promotion of local avocadoes, according to Oberholzer, has been successful, particularly in the United Kingdom. “The avocado sector in South Africa has a good international reputation,” says the company.
While this is positive, Oberholzer points out that transportation and port capabilities, as well as shipping cycles, remain a concern, since delays can easily lower shelf life by five to ten days.
The South African Macadamia Growers’ Association has 78 smallholder black farmers among its 518 members, the majority of whom farm community land in the former Venda homeland in the country’s northeast.
Over the last few years, the IDC has played a significant role in the growth of South Africa’s high-value berry business. Tzaneen Blueberries spent their own money to plant 17.5 hectares of blueberry farms in Limpopo. The corporation needed more money to finish the project, which entailed bringing the existing crops to fruition, erecting the pack-house, and buying farming equipment. The initiative will create 62 employment thanks to R13.5 million in funding from the IDC.
Indigo Fruit Farming is a vertically integrated soft citrus farmer with farms and packaging facilities in Limpopo, Mpumalanga, and the Western Cape, focusing mostly on the Nadorcott mandarin.
Indigo’s nursery extension, orchard development, pack-house enlargement, hail netting installation, and plant and equipment procurement are all being funded by the IDC, which is helping to foster community ownership.
