Eastern Cape
South Africa
Sector
Agriculture & Agri-processing
ECDC looks to create employment through agri-park upgrade
A three-month feasibility study, funded by the Eastern Cape Development Corporation (ECDC) and the Blue Crane Development Agency (BCDA), is set to combine three successful agricultural projects in Somerset East into a single entity.
Should the feasibility study results agree, then the Misty Mountains Flower, a fruit farm and a vegetable seed operation, will be combined into the Somerset East Agri-Park and once operational, the number of jobs will grow from 55 to include an estimated 320 part-time jobs.
ECDC regional head Ken Bern explains that while each of the individual projects is currently viable, a combined entity is likely to be far more attractive to an investor who can leverage the project by providing key inputs such as management skills and financial backing.
For more information contact Mlamli Nodada on +27 43 743 5600 or email mnodada@ecdc.co.za
Bern expects the study to be complete within three months and is positive that it will confirm his expectations that the project viability will be enhanced should it be able to secure the skills of management experienced in this sector.
'Right now, the project already has critical elements such as land, labour and capital equipment in place, so I don’t see any reason why we can’t successfully take the project into its commercial phase once we find the right partner,' he adds.
Currently, the Fish River fruit farm is a six-hectare farm with 4 000 fruit trees, growing plums, peaches and apricots. Plans to expand the fruit produce to include pomegranates are already underway with 14 000 pomegranate cuttings awaiting planting.
Bern is also excited that local commercial farmers have shown interest in this initiative and have allocated further 360 hectares for pomegranates trees. These local farmers will be involved in the farm’s outgrower’s project, one of the first projects in the area to include commercial farmers as outgrowers.
The second project, the vegetable seed project, has successfully completed its commercial trial, having already sold over four tons of seed locally and abroad.
The flower and fruit farms operate on seven hectares of a 28 hectare farm allowing for a major expansion. The vegetable seed operation is located on 40 hectares of neighbouring land, owned by the commercial farmers or outgrowers.
The vision for
this project is for commercial farmers in the area to become outgrowers to the agri-park which could become a BEE-majority-owned company.
Once in its commercialisation phase, the Somerset East Agri-park may expand by a further 600 hectares. Some of the expansion plans include a fruit packhouse and juicing facility as well as vegetable cleaning and packaging plant, and possibly in time to come, some processing capacity.
According to BCDA’s agriculture manager Nico Lombard, the projects continue to create valuable jobs for rural communities, and opportunities for small businesses, skills transfer and development.
'There is no problem with the quality of the products being produced in these projects. They are viable but need sustainility through effective management and skills transfer,' concluded Lombard.
For more information contact:
Mlamli Nodada
Tel.: +27 43 743 5600
Email: mnodada@ecdc.co.za
Website: www.ecdc.co.za
