South African Business 2016

Page 70

OVERVIEW

Agriculture South Africa is ploughing forward.

T

he past year has not been an easy one within the agricultural sector as South Africa was plagued by the worst water shortages in 23 years along with drought conditions yet, despite these challenges, exports continue to grow fast.

Mills, is to develop small-scale mills in rural areas all around South Africa.

Fruit, sugar and wine are the products that have performed best Rural development in the modern era. These commodities have helped ensure that agricultural products make up about 7% of the country’s total The Land and Agricultural Development Bank of South export basket. Within that total, more than 50% of agricultural export is made Africa (Land Bank) and the up of processed agricultural products, a promising development African Development Bank have for the future of agri-processing. National trade policy strate- committed to a R1-billion fund to gies are intended to enhance this development. Avocados and help emerging farmers get actomatoes are among other important export crops, while the cess to finance. The development macadamia nut industry has grown exponentially in recent years. of small-scale farming and co-operatives is also being promoted at the level of provincial government Transport and logistics and district municipality. In KwaZulu-Natal, partnerSouth Africa has about 200 silos, mostly concentrated in the ships with the private sector central grain-growing areas. Getting agricultural produce from are boosting the provincial these silos to market accounts for nearly 40% of the price that government’s One Village, the end-user pays. If a plan of the National Department of Trade One Product campaign. Beer and Industry comes off, many more silos will have to be built. producer SABMiller sources The plan, in conjunction with African Micro Mills and Kuvusa 5 000 tons of yellow maize SOUTH AFRICAN BUSINESS 2016

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