Agriculture & Agri-processing
Vast cattle herds and endless fields of maize and sunflowers characterise the North West landscape.
The North West’s three distinct climatic regions are home to three very different types of agriculture. The dry western region is where large beef-cattle herds are found and the growing game ranching and hunting industry has its base. The eastern and north-eastern parts of the province receive relatively good rainfall and are suitable for the cultivation of a wide variety of crops. The central and southern sections of the province are dominated by maize and wheat farming.
Three of South Africa’s major water catchment areas run through North West Province: Limpopo, Orange and Vaal. The rivers and irrigation schemes (particularly centred on the Crocodile, Harts and Vaal rivers) support extensive commercial agricultural enterprises, small-scale farming and game ranching.
The Taung Irrigation Scheme covers about 36 000 hectares and is intended to support small-scale farmers. Partnerships with major international companies have been entered into, whereby the likes of McCain (potatoes), South African Breweries (barley) and Cotton South Africa (cotton) will make standing orders to buy products from the farmers.
There are further opportunities that this water supply will bring, to cultivate high-yield crops such as pecan nuts, paprika and olives.
The Hartebeespoort Dam, a major asset of the province, is the subject of national efforts to combat the current hypertrophic nature of the water body. Too many nutrients have been allowed to clog up the natural functioning of the dam, and efforts are ongoing to correct this.
The agricultural sector contributes only 3.4% to the gross domestic product regionally, but more than a million people are employed in the sector and it still has enormous potential to expand, not only in terms of land covered with crops or livestock but in terms of exploiting the products of agriculture. As the province is one of the biggest
producers of livestock, it makes sense that the automotive industry should be looking to North West for hides for the seats of its cars. It is this sort of value-added tie-up that agencies such as Invest North West are exploring as they aim to get more value out of the agricultural sector.
Crops
Almost every type of crop can be found in the province, but the most significant economically are sunflower seeds, maize, wheat and groundnuts. Lichtenburg is regarded as the north-west edge of South Africa’s famous maize triangle. The North West produces about one third of the country’s maize. Nearly two million hectares is planted with summer cereals with about 50 000 hectares given over to winter cereals.
The other major crop is sunflower seeds, with the province providing about 40% of the nation’s crop.
The huge market represented by Johannesburg and Pretoria immediately to the east of North West Province means that the areas adjacent to Gauteng province concentrate on items such as vegetables.
Rustenburg is at the centre of one of the most varied crop production areas in the province, and it is in this area that the Bojanala Horticultural Cluster is being established. The intention is to provide support to farmers cultivating fruits, vegetables and ornamental garden plants. This should result in improved production and opportunities for wholesalers to purchase this surplus.
South-east of Rustenburg and even closer to Johannesburg is Carletonville. This is the area where an innovative community flower -growing scheme, Merafong Flora, has flourished. The 25-hectare project was initially funded by West Rand District Municipality (WRDM), the Gauteng Department of Economic Development and the Rand Water Foundation and has so far produced 56 permanent and 141 casual jobs. Kenneth Kaunda District Municipality has taken over from WRDM. The project produces more than 22 different types of flowers, which are sold through Multiflora in Johannesburg, the Pretoria Flower Market, Living Gold, and florists around Carletonville and Randfontein.
Livestock
North West has approximately 1.7 million beef cattle, representing
some 13% of South Africa’s herd. Hereford is the number one breed in the province, with Simmental, Brahman and Bonsmara also occurring in large numbers. Bonsmara dealers hold three auctions per year in Vryburg, the centre of the beefbreeding industry. An auction in late 2009 attracted a new record price for a prize Hereford bull, of R360 000. Volumes in the annual cattle sales in the town can reach up to a quarter of a million head of cattle.
The Vryburg Agricultural Show held in May every year is the third-biggest in South Africa and more than 1 000 head of cattle can be seen.
The North West Nguni Cattle Development Project is firmly established and gaining in scope every year. Since 2006, 65 people or projects have received 23 heifers and a bull on the understanding that 11 heifers and a bull will be returned to the project managers after five years. This strong indigenous breed is ideally suited to local conditions and can be raised to fit into current market demands for organic beef.
In 2009, a further 36 beneficiaries received their allotment of cattle from the project, a joint undertaking between the North West Department of Agriculture, Conservation and Rural Development, the Industrial Development Corporation (IDC) and the North West University (Mafikeng campus).
The province has about 11% of the country’s pigs and there are several investment opportunities to upgrade or establish new commercial piggeries in the province.
Game
The game-ranching industry has been growing at a rate of 6% in South Africa since the early 1990s, and the western regions of the province are particularly well suited to take advantage of this trend. Trophy hunting is increasingly becoming the primary source of income for game ranches.
Eighty percent of South Africa’s lion hunting happens in North West Province. In 2005, the amount of money paid in fees for lion hunting alone amounted to R42-million. A number of lodges and game ranches catering to different segments of the market have been established in the western and northern parts of the province. Hunters will pay between R7 000 and R14 000 for a male kudu, while the cost of bringing down a nyala might be anything up to R21 000. A game auction in Limpopo in 2009 brought in a turnover of R51-million, with a buffalo bull fetching a record price of R3.4-million.
While hunting is a lucrative side of game ranching, the sale of venison is a market that is still to be explored properly.
A new series of wildlife breeding protocols were introduced by the North West provincial government in 2009 and compliance levels were reported to be high. While lion breeding is one of the best-known sectors, the protocols also covered crocodile breeding.
Agri-processing
Meat processing and the packaging of vegetable oils are two areas on which the North West wants to focus. Already, commercial food processing is one of the larger manufacturing subsectors in the province but a great deal of opportunity for expansion exists.
The North West provincial government kick-started a beef beneficiation project in the province in 2008/09 by making R4-million and 20 000 hectares available to the project, as well as developing a strategic business plan.
As well as beef beneficiation, leather processing is another exciting opportunity for investors in the province, both for export and domestic consumption.
The Western Frontier Beef Beneficiation programme intends to develop the entire value chain, with value-added operations such as a feed mill, a meat-cutting plant, a milk plant, a rendering plant, a processing plant and a cold storage facility that has already been established.
The project to develop a R900-million meat-processing plant is a partnership between South African livestock producers, a black economic
empowerment consortium and German technology partners.
The plant intends handling 1 000 cattle and 500 pigs per day for slaughtering and is expected to fill a gap in the meat industry. Eighty percent of the output will be for export. There are five plants within the one project, which will include, among other things, an abattoir.
Forms of collaboration include a joint venture (equity), loan, market access and buyback arrangements, as well as management, technical and marketing expertise. Types of investment or cooperation sought from foreign sources include financial investment; equipment or technology contribution; and management or marketing expertise.
Education and research
The North West has two agricultural colleges, at Potchefstroom and Taung. The latter college was closed for a number of years as its infrastructure had deteriorated but classes were scheduled to begin again in January 2010, with an intake of at least 30 students. In 2009, Potchefstroom Agricultural College awarded 25 diplomas and 25 higher certificates in agriculture.
The ARC-Institute for Industrial Crops is a research body of the Agricultural Research Council in South Africa. Located in Rustenburg, the institute runs all research on cotton, tobacco, hemp, flax, sisal, kenaf and other indigenous fibre crops. It runs several experimental farms throughout South Africa (including one at nearby Brits) and has three operating divisions: plant protection, crop and soil science, and cultivar development.
Six experimental stations dealing with tobacco and cotton also fall under the institute’s ambit. The coordinator of the National Small-Scale Cotton Farmer initiative is based at the ARC-Institute.
Given the North West’s leading position as a grain-producing province, it is no surprise that the ARC’s Grain Crops Institute is situated in Potchefstroom. Research undertaken includes aspects of plant nutrition, water use, entomology and crop quality. Crops under the microscope are staple and high protein food and feeds such as dry beans, sorghum, groundnuts, soybeans and maize.
Vryburg is the location of the highly regarded Theiler Agricultural Museum and Cattle Research Centre.
