South African Business 2018 edition

OVERVIEW
Wine
Large volumes of exports are achieved in deciduous fruits such as
apples, table grapes, pears, peaches, plums and apricots. Avocadoes
thrive in Mpumalanga and Limpopo and production volumes above
110 000 tons per year have been achieved. About 45% of production
is exported.
Most of South Africa’s citrus and subtropical fruit comes from the
eastern part of Limpopo. Some of the world’s biggest farming enterprises
operate in Limpopo Province. Westfalia, part of the Hans
Merensky Group, is an avocado grower of note while ZZ2 is a huge
fresh tomato enterprise. Halls has an international reputation for
avocadoes and litchis.
Companies such as Capespan and DoleSA move huge quantities
of fruit around the world. South Africa exports about 650 000 metric
tons to the EU (about 40% of the total). A new development in the
citrus sector is the establishment for small growers of the Growers’
Development Corporation.
The Orange River supports the cultivation of citrus and grapes of
many kinds. The region is particularly well suited for the cultivation of
Valencia oranges, lemons and grapefruit and the dry, hot conditions
mean that it is easy to control pests.
ONLINE RESOURCES
Agricultural Research Council: www.arc.agric.za
Fresh Produce Exporters’ Forum: www.fpef.co.za
Grain SA: www.grainsa.co.za
Land Bank: www.landbank.co.za
National Department of Agriculture, Forestry and Fisheries:
www.daff.gov.za
SA Table Grape Industry: www.satgi.co.za
Export volumes have been steadily
rising for South African wines.
There are about 3 500 wine
producers in South Africa, with
the large majority located in the
Western Cape. There are 54 producer
cellars. The industry earned
R17.5-billion in exports in 2016.
Europe is the main market but
exports to China and Russia are
growing as South Africa seeks to
exploit its membership of BRICS.
The industry is located for
the most part in the Western
Cape but Orange River Cellars
in the Northern Cape is growing
production volumes. The Distell
group produces about a third of
the country’s natural and sparkling
wine, and is ranked 12th in the
world in global wine volumes sold.
Livestock
Livestock farming is the largest agricultural
subsector in South Africa.
The Eastern Cape is the largest livestock
province. South Africa has a
beef-herd of 14-million. There are
6.4-million goats in South Africa.
The Kalahari Kid Corporation (KKC)
intends to raise the standard of goat
meat and expand the export market.
South Africa produces about
55% of the world’s mohair, the
high-quality speciality fibre taken
from Angora goats. Almost all mohair
farming is done in the Eastern
Cape. Clover is Africa’s largest milk
processor. The Eastern Cape provides
approximately a quarter of
South Africa’s milk. Parmalat has
two plants in Port Elizabeth.
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