OVERVIEW Sundale Dairy, as well as a regional depot of the Mediterranean Shipping Company. The Eastern Cape Rural Development Agency (ECRDA) is active in helping small-scale farmers get access to markets and to become part of the agriprocessing chain. The implementation of Rural Enterprise Development (RED) hubs is central to this strategy. RED hubs will supply tractors, harvesters and offer storage facilities and milling plants. There will also be opportunities for farmers to sell direct to members of their own community instead of shipping produce off to a distant location to be processed there. The first four hubs will be sited in the district municipalities of OR Tambo, Chris Hani and Alfred Nzo. Agri-parks will support the addition of value to primary products: these have been developed at Lambasi, Ncorha, Sundays River Valley, Butterworth, Matatiele and Sterkspruit-Senqu. The Eastern Cape Development Corporation (ECDC) also has a role in supporting agriprocessing through loans and equity arrangements: projects that have received financial support include aquaculture, the production of dietary fibre from pineapples and bamboo products. The Eastern Cape industry is further expanding as producers tend to favour high-rainfall coastal areas such as the Eastern Cape. The bigger dairies include Coega Dairy which was founded in 2011 and is situated in the Coega IDZ. The Coega Dairy in the Coega IDZ produces the brand Coastal and sells milk to all parts of South
Africa. It also manages the Famous Brands Cheese Company. which supplies product throughout the country. The province’s farmers mostly sell raw milk to two processors: Parmalat and Clover. Small-scale dairy farming presents an opportunity to develop the industry in the former homeland areas, especially in a range of previously untapped products such as milk powder, speciality cheeses and long-life milk. Clover makes UHT/fresh milk in Port Elizabeth and Dairybelle manufactures natural cheese, processed cheese and speciality cheeses at its factory in Cookhouse near Somerset East. Ouma Rusks are still made in the small rural town where they were invented, Molteno, and the current owner of the brand, Foodcorp, has increased production volumes. Cadbury Chocolates operates a big site across the lake from the football stadium in Port Elizabeth and Nestlé makes 11 kinds of chocolate at its factory in East London. The Sasko mill in Port Elizabeth is the province’s only big milling plant. Coca-Cola Sabco and SAB Limited’s Ibhayi brewery are the major beverage manufacturers in Port Elizabeth and Distell has a bottling plant in the city. Sovereign Foods in Uitenhage is the country’s fourth-biggest producer of poultry and has been the target of a take-over by Country Birds for some time, but the process has been dragged out because Sovereign management do not want to sell. South Africa is the second-largest producer of chicory in the world. Chicory is grown primarily in the coastal areas around Alexandria between Port Elizabeth and Port Alfred. A drying plant has been established there and the dried chicory produced is sold to coffee manufacturers nationwide for local consumption. Sugar is grown on the northern border of the province, in North Pondoland. An opportunity for diversification in crop production exists with the aloe ferox plant, which is indigenous to the Eastern Cape. Like aloe vera, which is in demand worldwide in cosmetic and health products, aloe ferox is used for a wide range of skin conditions and various medical ailments.
ONLINE RESOURCES Border Kei Chamber of Business: www.bkcob.co.za Coega IDZ: www.coega.co.za Eastern Cape Rural Development Agency: www.ecrda.co.za East London Industrial Development Zone: www.elidz.co.za Nelson Mandela Business Chamber: www.nmbbusinesschamber.co.za Organic Agricultural Association of South Africa: www.organicsouthafrica.co.za Perishable Products Export Control Board: www.ppecb.com
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EASTERN CAPE BUSINESS 2018