Region
KwaZulu-Natal
South Africa
iLembe District Municipality

Sector
Agriculture & Agri-processing

Summary:

While prices of generic agricultural commodities continue to decline, those of niche products are on the increase.

Contact
Enterprise iLembe

Email
mike@ilembe.org.za

The agricultural commodities that will be the focus of the agri-processing hub in iLembe are:

• aromatic plants for the production of essential oil (tertiary crop)
• fruits and vegetables already grown in the district
• medicinal plants (secondary crop)
• subtropical herbs and spices

The need for an agri-processing plant
Successful pilot projects have emphasised the need for an integrated agri-processing facility. In a development driven by IDM, emerging farmers from Maphumulo, Ndwedwe and eNdondakasuka delivered their chilli crops to the African Farms agri-processing plant in Glen Anil where they sold for R8 per kilogram. There the chillies were processed, turned into products and have found their way onto supermarket shelves all over the country. Emerging paprika farmers have found similar success for their produce.

The integrated processing hub will encourage the further emergence of local farmers, allowing them opportunities in the commercial sector. Outgrowers, such as the chilli and paprika farmers, tap into the agri-processing facility, creating a demand pull factor for products by creating a market for the produce of these rural farmers. This in turn allows more outgrowers to be set up.

R160-million required for Phase 1
Approximately R160-million is required to set up phase 1 of the hub, that is:

• the hub complex, including a cooperative packhouse and various processing and value-adding units – a storage and ripening facility, a cold processing and pre-packing unit, a hot processing unit and composting unit (R53.4-m)
• a 60-hectare subtropical fruit training and production unit for emerging farmers (R18-m)
• an intensive 45-hectare vegetable and herb training and production unit for emerging farmers (R29-m)
• markets at Stanger and Ballito as outlets for fresh produce (R34-m)
• four collection depots, one per local authority (R6-m)
• debulking and dry goods unit (R3-m)
• bridging finance, management contract and start stock for the hub, over four years (R14-m)

The hub will be managed by a body corporate, which will attend to the renting out and maintenance of the complex. When participating beneficiaries' units become sustainable, the units will be transferred to the new owners to continue business.

Enterprise iLembe contact details:

Physical address:
Shop 27/28
Balvista Centre
22 Sandra Road
Ballito

Postal address:
PO Box 1788
Kwadukuza
4450

Tel.: (+27 32) 437 9300
Fax: (+27 32) 437 9589

Email
Website
Enterprise iLembe