KwaZulu-Natal Business 2016-17 edition

SPECIAL FEATURE
to mitigate drought damage in
sites identified for Agri-park areas.
These identified sites or affected
areas are tabled for each district.
The Agro-Processing Unit
The second component of the
Agri-parks is referred to as the
Agro-processing Unit, where primary
products are processed to
add value and bring more revenue
into the area. These ‘agrihubs’ (as
they are also referred to) are defined
as production, equipment
hire, processing, packaging, logistics,
innovation and training units.
The agrihubs have received
funding approved by the DRDLR
to counter drought damage
across all districts, and this includes
R80 000 towards auction
sale facilities, R8.3-million for feedlots
and handling facilities, and
R1.1-million towards irrigation
schemes.
Efficient irrigation practices,
technical assistance to farmers
and increased investment in research
and development are all
proposed measures for enhancing
the resilience of the agricultural
sector against future losses.
Rural Urban Market
Centre (RUMC)
far end of the agro-processing value chain this would include the speed
that products go through port, decreased export tariffs through trade
agreements, advancing capital investment, and increasing market development.
This falls under the responsibility of the third component
arm of Agri-parks, namely the RUMC.
The RUMC has three main purposes:
• Linking and contracting rural, urban and international markets
through contracts.
• To act as a holding facility, releasing produce to urban markets
based on seasonal trends.
• Providing market intelligence and information feedback to the
agrihubs and the FPSU, using the latest information and communication
technologies.
Developing Agri-park management structures
Governance structures for Agri-parks have already been established,
and on 11 December 2015 the District Agri-parks Management Councils
(DAMC) and the National Agri-parks Management Councils (NAMC) were
launched. In their March 2016 meeting MEC Xaba met with the newly
appointed governing bodies for a workshop to address progress. The
MEC reminded the DAMCs that Agri-parks had been introduced to kickstart
rural economy development and that, should they fail, then they
would be failing the poor and the people of the province as a whole.
Production programmes
Production plans are currently being implemented, with some plans
having to be realigned to address prevailing drought conditions. Agripark
construction (Farmer Production Support Units and agri hubs) has
commenced in seven of 27 priority districts, although this does not
yet include KwaZulu-Natal. The districts are busy completing their own
business plans in order to show linkages between farmers, the FPSU,
agrihubs and the RUMC.
AGRIPARK
Developments in the province
around agri-business are effectively
incorporating measures to
buffer against future economic
losses sustained by drought and
are geared towards achieving the
agreed 0.5% additional contribution
to economic growth. At the
CF can use the Agripark
process established
as depicted.
However due to their
existing experience
and product volumes
they may choose to
enter the AP process
at the AH, RUMC or
even go directly to
the Market.
Commercail Farmer (CF)
Information
Small Product Support Unit
(SPFU)
Agri-Hub (AH)
Rural Urban Market Centre
(RUMC)
MARKET
Small Holder Farmer (SHF)
Co-operatives
SHF's will be encouraged to use
the Agri-park process established
as depicted. It is within this process
that SHF will be supported
over the next 10 years. SHF will
be able to move produce from
the FPSU to the RUMC without
going through the AH, if no further
value-added of packaging
is required. The efficiency of the
Agri-park process will determine
its use by farmers.
Produce
59 KWAZULU-NATAL BUSINESS 2016/17