http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.86Change: 0.02
R/$ = 12.53Change: 0.03
Au 1096.45 $/ozChange: 1.10
Pt 983.00 $/ozChange: 0.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jun 26, 2008

R24m packhouse seen as crucial to formalisation of emerging KZN farmers

Back
Agriculture|Construction|Africa|Eskom|PROJECT|Storage|Training|Africa|Services
Agriculture|Construction|Africa|Eskom|PROJECT|Storage|Training|Africa|Services
agriculture|construction|africa-company|eskom|project|storage|training|africa|services
© Reuse this The Ugu district municipality, on KwaZulu-Natal’s South Coast, is establishing a R24-million packhouse and processing unit to add value to emerging farmers’ produce and help merge them into the mainstream economy.



Durban-based black economic-empowerment company DGS Contractors has been awarded the contract to build the packhouse and processing unit. It currently employs 36 people on site.

The area, which comprises six local municipalities, has been given a budget to construct earthworks, bulk services, a whole- salers’ complex, retailer cubicles, a taxi rank, ripening and cold storage rooms, a composting plant, offices, ablution facilities and a training centre.

The market is the first of its kind in South Africa to develop, package and implement such an integrated business model.

Construction on the packhouse started a month ago. It is expected to be completed by the end of August and to be commissioned by October. The cold storage facilities are already fully functional.

Ugu Fresh Market marketing manager Thamsanqa Khwela says that fresh fruit and vegetables will be washed, sorted, graded and packed according to customer needs, helping emerging farmers compete with commercial growers. The agriprocessing plant will be operated as a value recovery facility.

“This means that produce that is not suitable to be sold fresh on the floor in terms of market standards will be considered for processing,” he says. “Emerging farmers will, therefore, still be paid for all the effort they put into growing the produce, thus helping to alleviate poverty and to address some of the food secur- ity issues.”

The project has been funded by various parties, including the Department of Agriculture (R8-million), the Ugu district municipality (R6-million), the Eskom Foundation (R5-mil- lion), the European Union-funded Gijima KwaZulu-Natal Fund (R2,9-million) and the Development Bank of Southern Africa (DBSA, R840 000). In addition, the Hibiscus Coast municipality has donated a plot of land valued at a R2,7-million and the DBSA has granted a soft loan of R5-million.

The Ugu district municipality council has committed a further R9,5-million over the next five years to ensure the market’s sustainability.

“Further funds are available from the Land Redistribution for Agricultural Development Programme, the Comprehensive Agricultural Support Programme, the Local Economic Development Programme and Gijima,” says Khwela.

“Other funding has been secured and more will be sought to fund the development of the supply base, the on-site activities and the downstream trading opportunities that the Ugu agricultural market will kick-start.”

Negotiations are under way to secure the second tranche of funding for the establishment of the agriprocessing plant, together with collection depots at strategic points.

Farmers in the largely rural area will be mentored in a coordinated effort between the Department of Agriculture, the Department of Land Affairs and the House of Traditional Authorities.

“The Ugu district municipality has also secured the services of two highly reputable agents who are among the biggest in South Africa and who also have vast experience in the marketing and distribution of fresh produce,” says Khwela. “This was done because we strongly believe that, for a project of this nature to [achieve] its objective, it has to be able to create a demand for produce. This, we believe, is only possible through coalitions and partnerships of this nature.”

Khwela says an intensive survey has been conducted as part of the business plan review.

“One of its key specific aims was to establish the entire status quo in terms of fresh produce that is turned over within our own district and surrounding towns. The rationale behind choosing a wider marketing area was that we want to position the market as a regional facility, as opposed to just a district project.”

As a result, the survey did not only cover chain stores but also bed-and-breakfast facilities, hotels, informal traders, green grocers, wholesalers, mini markets and spec buyers.

Edited by: Martin Zhuwakinyu
Creamer Media Senior Deputy Editor
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other News This Week News
Updated 4 hours ago Meyerton-based steel tank manufacturer Structa Technology is currently rolling out a water infrastructure build programme that supports local municipalities, water utilities, schools, hospitals and clinics.
Alternative funding models could be expected to begin coming to the fore in South Africa’s renewable-energy sector as the market becomes more competitive and domestic development finance institutions (DFIs) begin scaling back their direct involvement in projects....
DIMITRI MARKOULIDES An innovation champion must involve employees in innovation projects and keep them updated to enable them to support and drive innovation and create the future of the business
An innovation champion course that trains executives to manage innovation in their organisations aims to help companies grow revenue streams and tap new markets, says business change management consultancy BMGI South Africa innovation practice lead Dimitri...
More
 
 
Latest News
Updated 1 minute ago The South African Chamber of Commerce and Industry (Sacci) has appointed former Land and Agricultural Bank head Alan Mukoki as its new CEO, effective August 1. Mukoki offered several years’ experience at the senior executive level, having occupied directorship...
Updated 19 minutes ago US President Barack Obama flew out of Kenya leaving behind a confident administration of President Uhuru Kenyatta, a deflated opposition, and a group of loaded businessmen, firms and venture capitalists following the signing of multi-billion-shilling contracts....
Updated 22 minutes ago Eskom will implement Stage 1 load-shedding on Wednesday between 17:00 to 22:00, the power utility said. “The power system is currently constrained and under pressure because of a shortage of generating capacity as some of our power stations’ units are currently on...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Updated 4 hours ago Meyerton-based steel tank manufacturer Structa Technology is currently rolling out a water infrastructure build programme that supports local municipalities, water utilities, schools, hospitals and clinics.
Alternative funding models could be expected to begin coming to the fore in South Africa’s renewable-energy sector as the market becomes more competitive and domestic development finance institutions (DFIs) begin scaling back their direct involvement in projects....
DIMITRI MARKOULIDES An innovation champion must involve employees in innovation projects and keep them updated to enable them to support and drive innovation and create the future of the business
An innovation champion course that trains executives to manage innovation in their organisations aims to help companies grow revenue streams and tap new markets, says business change management consultancy BMGI South Africa innovation practice lead Dimitri...
Future digital workplaces will require employees to continuously learn new “literacies”, including new media, information and technical skills, to help their company thrive and spur personal growth. Information technology (IT) research firm Gartner, thus, suggests...
Only 25% of large construction projects surveyed in KPMG’s Global Construction Project Owner’s Survey, released in June, were concluded on time and within budget over the last three years. “Every project owner wants predictability when it comes to large projects, and...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96