Limpopo has the largest cotton fields in South Africa

Limpopo agriculture facts
The gross income from all agricultural products in South Africa in 2005 amounted to R68 298-million constituted as follows: animal products – R31 286-million; horticultural products – R20 824-million and field crops – R16 188-million.

Agriculture in Limpopo contributes R1.8-billion to the provincial gross geographic product (GGP) – about 2.5% of the total GGP (2002 figures). Livestock (beef, pork, chicken and eggs) contribute a significant portion of agriculture’s portion of the GGP.

The total land area in Limpopo is 11 960 600ha with farmland making up 88.2%. Potential arable land constitutes 14% of the total area. Limpopo’s climate is suitable for agricultural production. There are two parts of the province with rainfall in excess of 1 000mm per annum. The province is a summer rainfall area that receives its rain between October and March.

Agricultural overview
Agriculturally speaking, Limpopo is the food basket of South Africa. Limpopo produces 75% of South Africa’s mangoes, 65% of its pawpaws, 25% of its citrus, 25% of its litchis, 75% of its tomatoes, 54% of its macadamia nuts and about 60% of its avocados.

Limpopo is the second-largest producer of potatoes in the country, accounting for 19% of South Africa’s total production. The province is also one of the largest producers in the country of guavas, bananas, papayas and tea. Limpopo is home to the largest cotton fields and biggest ginnery, producing the highest quality in South Africa.

Agriculture has also stimulated the ancillary development of a growing range of processed products, such as fruit juice and concentrates.

Considerable opportunity exists in the areas of processing and packaging, as well as the export of beef, pork, chicken and eggs, as well as fruit and vegetables. The province therefore offers opportunities in the processing and packaging of fruit and vegetables.

There is also potential for additional production of sunflowers, soya beans and maize under dry-land conditions. Soya beans represent a particularly profitable investment opportunity with substantial quantities currently being imported.

Pre-feasibility studies indicate that peach and almond production is viable, and investigations into the viability of cassava and bamboo production have also been conducted. The Limpopo Provincial Government is facilitating development of new types of farming and further value-added processing of products as diverse as sugar, essential oils, catfish and goats.

Limpopo has a viable forestry sector with commercial plantations covering 63 000ha and annual round wood production of about 680 000m³. About 90 000m³ goes to the mining sector (as mining timber). The growth of the mining sector in this province is expected to increase the demand for mining timber.

Nature lovers will find their niche in the province that offers great opportunities for game farming. Game farming has become a lucrative business and has surpassed cattle farming in several areas.

Investment in agriculture in Limpopo

Organic farming
Large and small farmers in Limpopo are joining the movement to eliminate or reduce chemical fertilisers and pesticides in the cultivation of their crops through the introduction of organic farming in the province. Organic farming is emerging as a potentially lucrative new industry in Limpopo, spurred by buoyant demand for chemical-free products and strong support from TIL.

Through the Limpopo Export Advisory Committee (LEAC), TIL is placing special emphasis on promoting organic products, and has already sponsored local farmers to attend major exhibitions in South Africa and Germany as observers.

The market for organic goods has grown considerably. Woolworths, for example, says that since it introduced organic produce in 2001, sales of these products have on average increased by 75% each year.

Restitution of land
The Limpopo Provincial Government is moving to halt the sharp decline in productivity on many agricultural estates awarded to communities under South Africa’s post-apartheid land reform and restitution laws. With many communities lacking the skills and resources to sustain large-scale enterprises, Limpopo Premier Sello Moloto has noted that ‘vast tracts of land are lying fallow’.

The Provincial Government’s response has been to pioneer what has become known as the ‘strategic partnership model’. This enables communities with restituted land and workers on farms to form partnerships with commercial farmers who are given 10- to 15-year concessions to operate estates.

Strategic partners, who in many cases have turned out to be previous landowners, are obliged to transfer business, management and farming skills to the new owners.

Making the world greener
Limpopo is becoming a major exporter of exotic trees and shrubs. Foreign investors, in partnership with a community in Vhembe District, have revived a rundown, 250ha tree and shrub cultivation estate near Thohoyandou with a view to serving landscaping markets in the Middle East, which is experiencing a boom in property development.

The partners will also serve the South African market and hope to meet much of the demand for landscaping in and around 2010 Soccer World Cup sites. In addition, they are establishing a training centre on the estate, which they also plan to develop as an agritourism attraction.

Tea resuscitation
In 2006, Limpopo started a programme of resuscitating the province’s tea estates. The Kenyans are masters of the tea trade among African countries, which is why the Limpopo Department of Agriculture has linked up with the Kenyans who are assisting in terms of revitalising tea estates in the province.

At the core of this programme are two tea estates, namely Magwa, in the Eastern Cape, and Sapikoe in Limpopo which takes the form of four separate estates.

Sapikoe Tea Plantation outside Tzaneen is South Africa’s biggest. In 2004, it was forced to cease production and lay off its workers because of an ongoing land claims process. More than 4 000 workers lost their jobs.

The Magwa and Sapikoe estates were responsible for about 76% of the black tea produced in South Africa. Revival of Magwa would create some 2 000 full-time jobs, while resuscitating Sapikoe would establish 5 000 permanent posts.

Information provided by Trade & Investment Limpopo.

First published in Limpopo Business 2008. To order your FREE copy of Limpopo Business 2008, email sales@gan.co.za