Agro-Processing
South Africa’s rich agro-processing history has led to the creation of a sophisticated and elaborate value chain ranging from agricultural inputs, equipment, packaging and specialized logistics to marketing and retail.
South Africa is well suited for the cultivation of a wide range of crops due to its diverse climatic and geological conditions. The key agricultural and related products include corn, wheat, sugarcane, fruits (e.g. apples, citrus fruits, table grapes, berries), vegetables, nuts (e.g. groundnuts, pecan nuts, macadamias), beef, poultry, mutton, wool, fish and seafood. KwaZulu-Natal, Limpopo, Mpumalanga and the Western Cape dominate South Africa’s fruit and vegetable. production. KwaZulu-Natal and Mpumalanga are key hubs for sugar production.
Agro-processing facility in the RBIDZ
The RBIDZ has earmarked land in Phase 1A on which the agro-processing infrastructure will be located. This is serviced land only two kilometres away from the Port of Richards Bay.
Agro-processing activities at the RBIDZ comprise of two major categories:
Primary – this involves activities such as crop-drying, shelling/threshing, cleaning, grading and packaging.
Secondary – this entails increasing the nutritional or market value of a commodity, and changing the physical form or appearance of the commodity. Examples include: milling grain into flour, grinding groundnuts into peanut butter and pressing juice out of fruit.
Advantages include:
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High growth in demand of agro processed products both locally and for export
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Government prioritisation of the sector as a key economic driver
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Supportive regulatory frameworks in place
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KZN has favourable climate conditions and a variety of bio-climatic regions and typography allow for virtually any crop to be grown, which makes the RBIDZ location a world-in-one.
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KZN has the advantage of high rainfall, moderate to subtropical temperatures, access to markets, export facilities, and a growing economy.
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High export growth potential in sub sectors
World-class solutions include:
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Serviced industrial land within Customs Control Area (CCA)
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Business facilitation (one stop shop)
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Technical assistance support
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Critical infrastructure and optimising supply chain efficiency by providing appropriate logistics support
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Comprehensive investor support services
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The RBIDZ facilitates easy accessibility to government incentives schemes offered by the Department of Trade and Industry available to RBIDZ investors
Specific services offered include:
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A dedicated warehouse for the export of fresh and value added products
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A manufacturing facility for various commodities
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A dedicated warehouse for processed products for export
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Logistics and strategic linkages with farmers
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Market intelligence to local producers
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Service to international investors
Trends
Agricultural production is most dominant in the KwaZulu-Natal Province (KZN) and includes amongst others sugar cane production, fresh produce production, field crop production, livestock production and forest plantations.
The following primary agricultural industry activities are taking place in KZN:
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Poultry
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Flowers
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Citrus
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Soya bean
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Maize
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Leather
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Fresh produce
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Beef
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Dairy
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Tropical fruits and nuts
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Forestry and timber
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Sugar cane
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Biofuels
The following agro processing industry activities are taking place in KZN:
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Biofuel
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Sugar cane
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Forestry
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Dairy and beef
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Frozen fresh produce
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Leather production
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Poultry
Areas with great potential that have not yet been explored include indigenous teas and aquaculture.
Key Opportunities
- Fruit and vegetable canning
- Sub-tropical and tropical fruit juice processing
- Oilseed production, edible oil processing, oilcake
- Processing of soya-based products
- Walnut farming and processing
- Meat processing, including ostrich meat
- Indigenous plant growing on a commercial scale
- Non-edible oil processing
- Commercial planting of indigenous flowers
- Production of crops for feedstock into biofuels production
- Artemisinin and respective ingredients for anti-malaria medicaments.
