Renewed focus on agro-processing

The Department of Trade and Industry
(dti) is tightening up its collaboration
with the Department of Agriculture,
Forestry and Fisheries so that the
biggest part of the agricultural value
chain – the agro-processing sector –
can be developed.
This was revealed by the trade and
industry minister, Dr Rob Davies, on
the sidelines of a networking breakfast
held by the American Chamber of
Commerce in Johannesburg recently.
He said there were “huge
opportunities” in the processing of
raw agricultural products, noting
that with the slump in commodities
pricing, there was renewed focus on
the agriculture and agro-processing
sectors as the key to job creation.
Citing a recent KPMG report, Davies
said that in 2014 Africa had exported
about US$6 billion worth of coffee
beans, which had been processed,
packaged and branded outside the
continent, to be resold for US$100bn.
“That huge disconnect in value needs
to be retained in Africa. We have the
raw materials, now we need to develop
the skills and the capabilities to turn
them into a much greater value,” he
said.
Davies noted that as part of the
African Growth and Opportunity Act
(Agoa) deal with the United States for
65 000 tonnes of imported chicken, the
dti had made sure that black-owned
companies participated in the import
process.
“To ensure that they succeed,
we have been facilitating skills
development and training in the US,”
he added.
He believes agro-processing is an
area where small farmers and local
producers could take advantage of
diversified opportunities. He told
FTW that with growth in Africa’s
fast-moving consumer goods (FMCG)
sector, a number of
international investors
had seen the gap to
set up agro-processing
plants in South Africa.