KwaZulu-Natal Business 2016-17 edition
The 2016-17 edition of KwaZulu-Natal Business is the eighth issue of this highly successful publication that, since its launch in 2008, has established itself as the premier business and investment guide to the KwaZulu-Natal province in South Africa. The province is unique in terms of its abundant natural and human resources, and is also one of the key drivers behind the South African economy. To complement the extensive local, national and international distribution of the print edition of the magazine (15 000 copies), the full content can also be viewed online at www.kwazulunatalbusiness.co.za. Updated information on KwaZulu-Natal is also available through our monthly e-newsletter, which you can subscribe to online at www.globalafricanetwork.com, in addition to our other business-to-business titles that cover all nine provinces, complemented by our flagship publication, South African Business.
The 2016-17 edition of KwaZulu-Natal Business is the eighth issue of this highly successful publication that, since its launch in 2008, has established itself as the premier business and investment guide to the KwaZulu-Natal province in South Africa.
The province is unique in terms of its abundant natural and human resources, and is also one of the key drivers behind the South African economy.
To complement the extensive local, national and international distribution of the print edition of the magazine (15 000 copies), the full content can also be viewed online at www.kwazulunatalbusiness.co.za.
Updated information on KwaZulu-Natal is also available through our monthly e-newsletter, which you can subscribe to online at www.globalafricanetwork.com, in addition to our other business-to-business titles that cover all nine provinces, complemented by our flagship publication, South African Business.
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OVERVIEW<br />
Agriculture<br />
The diversity of <strong>KwaZulu</strong>-<strong>Natal</strong>'s agricultural sector is providing new sources of income.<br />
SECTOR HIGHLIGHTS<br />
• RCL Foods Ltd has become<br />
a major player in the<br />
food sector<br />
• A new marula processing<br />
plant promises increased<br />
incomes for farmers<br />
• An ethanol from sugar<br />
project could create jobs<br />
near Jozin<br />
What used to be Rainbow Chickens is now the rapidly<br />
expanding 'RCL Foods Ltd', but the base of the new<br />
company is still in Westville, about 12km west of Durban.<br />
Having purchased Vector Logistics in 2004, RCL made<br />
two large investments in 2013, a majority share of Foodcorp and a 49%<br />
stake in Zam Chick of Zambia. The Remgro Group is a 75.9% shareholder<br />
in RCL Foods, which for the six months ended 31 December 2015 had<br />
revenue of R12.9-billion, which was 7% down on the previous year.<br />
The diversification that came with the purchase of Foodcorp means<br />
that a large number of brands are now housed in the company – Nola,<br />
Yum Yum, Sunbake bread, Farmer Brown, Ouma rusks, A1 Maize Meal,<br />
for example – and this spread helped to counter events such as the<br />
national drought and the importation of 65 000 tons of poultry from<br />
the United States of America. The special trade deal between the USA<br />
and South Africa (AGOA) was a cause of tension recently, and poultry<br />
by-products were one of the key issues. The trade agreement has<br />
since been renewed.<br />
<strong>KwaZulu</strong>-<strong>Natal</strong> is also home to Clover, one of South Africa's most<br />
important agri-processing firms in the dairy sector. In Pinetown<br />
Clover has a long-life UHT milk processing and packaging facility;<br />
a Queensburgh factory makes<br />
fresh pasteurised milk, juice,<br />
dairy mix and fermented products;<br />
Escourt manufactures milk<br />
powder. Revenue for the six<br />
months to 31 December 2015<br />
was up nearly 8% to R5-billion<br />
but the lack of feed caused by<br />
the drought will affect all milk<br />
producers in South Africa. Clover<br />
buys nearly 30% of all milk produced<br />
by South Africa's farmers.<br />
<strong>KwaZulu</strong>-<strong>Natal</strong> has a large<br />
number of food and beverage<br />
producers, but there are countless<br />
opportunities that still remain<br />
in the agri-processing<br />
sector. Agri-processing will no<br />
longer be the preserve of big<br />
companies, thanks to a provincial<br />
government initiative in<br />
Ngwanase in the uMkhanyakude<br />
District Municipality. R30-million<br />
has been invested in a marula<br />
processing plant, designed to<br />
KWAZULU-NATAL BUSINESS <strong>2016</strong>/<strong>17</strong><br />
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