http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 16.18Change: 0.02
R/$ = 14.21Change: 0.09
Au 1275.79 $/ozChange: 11.52
Pt 1061.50 $/ozChange: 15.50
 
 
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 About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jun 27, 2008

R24m packhouse seen as crucial to formalisation of emerging KZN farmers

Back
Agriculture|Construction|Africa|Business|Eskom|PROJECT|Storage|Training|Africa|Services
Agriculture|Construction|Africa|Business|Eskom|PROJECT|Storage|Training|Africa|Services
agriculture|construction|africa-company|business|eskom|project|storage|training|africa|services
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

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other News This Week News
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
More
 
 
Latest News
Updated 1 hour 18 minutes ago The Department of Environmental Affairs on Thursday handed over a three-year R40 million agreement to the Walter Sisulu University for a water research programme. University spokesperson, Yonela Tukwayo, said in a statement that the programme was aimed at curbing...
Updated 2 hours 12 minutes ago One of the key messages to emerge ahead of the review of South Africa’s sovereign credit rating is that the country needs to outline the practical actions it will take to reignite growth, which has more or less petered out in recent years, with few expecting the...
More
 
 
Recent Research Reports
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
 
 
 
 
 
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers 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 $149 Close
Subscribe Now for $149