The Eastern Cape Development Corporation (ECDC) has invested R1.1-million of risk capital into a 50 ha trial, a potential catalyst for canola production in the Eastern Cape to rival that of the Western Cape.

The trial will aid the development of a 500 ha commercial canola oil production drive in Alexandria, outside Port Alfred.

“The project falls within ECDC's risk capital philosophy of supporting projects with a high economic impact with a sustainability and job creation element,” explained ECDC risk capital project manager Wendy Hempe in a statement this week, noting the oil shortage in South Africa and that the general population was seeking healthier alternatives.

Canola, she said, was an organic health crop that fell below olive oil but was more affordable, known for its health benefits, and was used in pharmaceutical products because it contained omega oil. After crushing the seed for oil, the protein-rich by-product could also be used as animal feed.

The Alexandria project currently employed 32 seasonal workers, but was expected to create a possible 600 seasonal jobs after moving into the commercialisation stage, following a harvest in October, next winter. The 500 ha commercial plantation would be cultivated in conjunction with communal farmers.

ECDC said the project would be funded on an 80/20 basis with its owner, Anathi Oils, which had concluded an offtake agreement with WUS Lloyds of London, which would become the global distributor of the unprocessed oil.

The Western Cape currently accounted for 99.69% of South Africa’s canola oil production. However, Anathi Oils CEO Weza Moss advised that weather conditions in the Eastern Cape were more conducive to the growth of the crop than the Western Cape.

“The rainfall in the Eastern Cape is good, and the swell is much better than the Western Cape. This should hopefully be the beginning of a vibrant canola oil industry in the Eastern Cape,” Moss adds.

Preliminary yield estimates by the Western Cape-based Elsenburg Canola Research Unit indicated that the project could realise potential yields of 2 t/ha to 3 t/ha of canola. This was higher than the national average of 1.6 t/ha.

This yield estimate confirmed the results of the ECDC-funded feasibility study and business plan, reiterating that the Eastern Cape was a better location for canola production than the Western Cape, said Moss.