Agri-processing sector holds massive economic opportunity

The Western Cape’s
Project Khulisa
plans to double the
size of the province's
agricultural sector – and has
put in place a detailed and
practical plan to increase
exports in selected markets.
This, says Alan Winde,
minister of economic
opportunities, will see the
province double the value
of its wine exports to China
and Angola and increase the
value of the halal market
from less than 1% to 2% by
2025.
“Through the Project
Khulisa growth strategy,
we are seeking to add up to
100 000 jobs to the agriprocessing
sector,” he told
FTW. “Under a high growth
scenario, the agri-processing
sector’s Gross Value Add
(GVA) could grow from R12
billion to R26 billion in the
next five years. The agriprocessing
sector has the
potential to offer significant
economic opportunities to
residents of all skill levels in
urban and rural areas.”
It’s not a plan on which
the province has embarked
alone. “We have really
engaged with the private
sector and come up with a
set of clear strategies that
will help us reach these
goals.”
Funds from the local
budget have been allocated
to improve local agriprocessing
capacity – all
aimed at ensuring producers
increase exports. At the
same time the province
is investing heavily in
agricultural production to
develop more product for
processing.
“We have also invested in
a R9-million
testing facility
for dairy
products
at the
Helderfontein
Veterinary
Laboratory.”
He said
this residue
testing lab
just outside
Stellenbosch
would go
a long way
in boosting
Western Cape dairy export
volumes. “South Africa
has Duty Free Quota Free
(DFQF) market access for
dairy products into the
European Union, but cannot
export a single block of
butter due to the fact that
the EU does
not recognise
South Africa’s
residue
testing
regime,” said
Winde. “The
establishment
of this facility
will unlock
exports to the
EU.”
Another
project that
was cause for
optimism was
the Brandvlei dam project,
said Winde.
“Plans are in place to
increase the wall of the canal
by 30cm to increase storage
in the Brandvlei Dam by 33
million cubic metres. This
expansion is expected to
bring under irrigation an
additional 4 400 hectares
of land, and is projected
to attract R2.2 billion in
investment, creating 6 200
on farm jobs and 2 900 off
farm jobs.”
He said the Greater
Brandvlei Irrigation project
would go a long way towards
creating extra irrigation
capacity for vineyards,
which is tied to the goal to
increase exports of wine to
China and Angola.
“China is the world’s
fastest growing emerging
market for wine, with 57%
year-on-year import growth.
Angola is South Africa’s
fastest growing export
market for wine in Africa.
INSERT AND CAPTION
The establishment
of a residue testing
facility for dairy
products will unlock
exports to the EU.
– Alan Winde.