Northern Cape Business 2019-20

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OVERVIEW

Diversified agri-company KLK recently purchased a half share in Carpe Diem Raisins, an exporter of high-quality raisins. The raisin factory has a production capacity of 12 000 tons and the company packages and sells about 22% of South African raisin production. All of the products in the Carpe Diem Group, including table grapes and pecan nuts, are certified organic. With about 135ha under production, the farm lies 10km east of Upington.

Wine According to SA Wine Industry Statistics, the Orange River region has about 5% of the total hectares under wine grapes in South Africa, and just over 3% of the total number of vines. New vineyards are being planted. Warm to hot conditions, coupled with the nutrient-rich land on the banks of the Orange River and sharply contrasting temperatures at times, combine to produce consistently excellent wines. Average annual rainfall in the area is 150mm, but the eastern part of the region from Kanoneiland to Groblershoop have been receiving more than their due in recent seasons. The Northern Cape’s Orange River wine region accounts for 25.6% of South Africa’s Colombard vines and 10% of Chenin Blanc. The focus is on Colombard and Hanepoot grapes. Orange River Wine Cellars (ORC) is a large co-operative with six wineries. Grapes are collected from 749 farmers. OWC has a winery at its head office in Upington and at Keimoes, Groblershoop, Kakamas and Grootdrink.

ONLINE RESOURCES Northern Cape Department of Agriculture, Land Reform and Rural Development: www.agrinc.gov.za Orange River Wine Cellars: www.orangeriverwines.com SA Wine Industry Information & Systems: www.sawis.co.za South African Table Grape Industry: www.satgi.co.za South African Wine and Brandy Company: www.sawb.co.za

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Orange River Concentrate Producers (part of the ORC group) produces about 7.5-million litres of white grape juice concentrate, a percentage of which is exported to Japan where the Itochu Corporation uses it in soft drinks and food. ORC supplies wine to Tops at Spar which has more than 700 stores across the country and makes Tops’ private label “Carnival”. ORC has also been selling wine in China, the USA and Europe for a number of years through its Norweco division. Unique labelling aims to capture local markets, so ORC wines are called “Star Tree” in the US and “Goddess” in Denmark. The Douglas Wine Cellar produces about 6 000 cases per year. Together with the Landzicht cellar (just over the border in the Free State), the Douglas Wine Cellars is a GWK company. The Douglas cellar crushes 7 000 tons of grapes ever y year and produces 5.6-million litres of wine. Hartswater Wine Cellar is a part of the region’s other big agricultural company, Senwes. Two wine brands (Overvaal and Elements) are produced in the Hartswater irrigation area north of Kimberley. NORTHERN CAPE BUSINESS 2019/20


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