Gauteng Business 2016 edition

OVERVIEW
Agriculture and Agro-processing
Gauteng is experiencing a boom in agriculture-related investment.
With mining starting to take a back seat as the main economic
driver of Gauteng, we’ve seen a shift in focus to
other areas to balance the books. Agriculture is one such
area that has received a lot of investment in recent years,
with food security being at the top of everybody’s list.
While Gauteng occupies the smallest land-mass at 1.4 percent, it has
a fairly big agro-processing industry, with over half of food processing
companies being based in Gauteng. The food and beverage sector
has experienced an 18 percent growth from 1996 to 2013 and now
employs well over 120 000 people in the province.
Gauteng is home to some of South Africa’s largest agricultural
companies, including AFGRI, a listed agriculture services and foods
company, which specialises in animal feed production. A significant
share of agricultural activity within the province is concentrated on
the production of vegetables.
Fruit, dairy products, eggs, maize and grain are also produced in
large volumes within the province. Agricultural activity is quite specialised
in certain areas of Gauteng. For instance, farming activity in
regions near Bronkhorstspruit (in
the east) and Heidelberg (in the
south) centres predominantly on
cotton, groundnuts and sorghum
production.
Heidelberg is also a home to
Africa’s largest feedlot for cattle.
More exotic agricultural products
are also farmed and produced in
certain areas. For example, crocodiles
are farmed at Izintaba farm
outside Pretoria. These are used
primarily for the production of
crocodile skins – South Africa
has three tanneries and produces
about 55 000 crocodile skins
every year.
The Gauteng Provincial
Government, together with the
Sedibeng and West Rand district
municipalities, are actively
promoting the development
of small-scale farming and
agricultural co-operatives within
the province with a view to
addressing food security concerns
and promoting sustainable
development.
There has also been a shift in
focus in government policies towards
the promotion of agro-processing
activities and the production
of value-added agricultural
products. This is seen as a key
mechanism to eradicate poverty
and inequality within the province.
Investment in agro- process-
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