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Commercial opportunities in essential oils in KZN's iLembe
Fri, 25 May 2007 00:00

Region
South Africa
iLembe District Municipality

Sector
Agriculture & Agri-processing

Summary:
iLembe District Municipality has identified the essential oil industry as one which would suit the characteristics of its outgrower programme.
Contact
Enterprise iLembe

Email
mike@ilembe.org.za

Tel
+27 32 437 9300
Fax
+27 32 437 9589


Identifying crops for an outgrower programme is part of iLembe District Municipality's (IDM's) strategy of linking the poor rural hinterlands with the wealthy coastal strip of KwaZulu-Natal (KZN), and of creating opportunities for participants in the second economy to enter commercial agricultural markets.

Indications are that rose, geranium and lavender plants for essential oil production would grow particularly well in the iLembe area and would create commercial opportunities for local workers.

According to Municipal Manager Mr Bamba Ndwandwe, iLembe has investigated outgrower programmes and is presently trying to find a strategic position relative to Dube Trade Port and the King Shaka International Airport (which will be operational in 2009) for an agri-processing facility to allow for rural produce to be grown and processed for export.

This agri-processing hub, as part of a developmental strategy:

  • promotes sustainable BEE by means of SMME development and job creation
  • offers synergies not available to individuals operating separately
  • creates an environment in which growers and processors can operate profitably
  • provides an incubation environment for new producers entering the industry
  • offers economies of scale for purchase of inputs and benefit of greater sales volume
  • facilitates value-adding activities

IDM has received a number of applications after calling for proposals around the provision of an essential oil outgrower programme. Together with the KZN Department of Economic Development's Agri-Business Unit, a way forward has been determined and negotiations are presently underway with producers to expand the programme.

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

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