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Small-scale local farm develops relationship with Nigerian food market

PITSO SEKHOTO Makolobane farm is in communication with Nigerian business people about building feed factories in Nigeria

MAKOLOBANE FARMERS ENTEPRISES The farm comprises about 240 head of beef cattle, 230 dairy cows and an apple orchard

7th March 2014

By: Pimani Baloyi

Creamer Media Writer

  

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Free State-based cattle, maize and orchard farm Makolobane Farmers Enterprises founder Pitso Sekhoto tells Engineering News that a four-day Department of Trade and Industry (DTI) business trip to Nigeria from December 2 to 6, has provided an opportunity for South African farmers to help develop food production and processing factories in the West African country.

He notes that, as a result of this trip, Makolobane Farmers Enterprises is communicating with Nigerian business people and agriculture officials to further formulate plans on this development.

“We are discussing plans to build feed factories for cattle, goats and sheep in Nigeria. The idea is to develop feedlots, abattoirs and factory space where meat will be processed, which Nigeria currently does not have,” he explains.

Sekhoto says being part of the 40-member business delegation, led by DTI Deputy Minister Elizabeth Thabethe, exposed him to the ample business opportunities in the country, which the food production sector is at an early stage and a net importer of food products.

Thabethe and the delegation met with Nigerian business people and the authorities as part of the DTI’s export promotion drive, which falls within the DTI’s mission of ensuring that the department reaches its 2013/14 financial year targets for developing small and medium scale businesses and ensuring that they expand beyond South Africa’s borders.

The DTI sponsored the trip to Abuja and Lagos, in Nigeria, and facilitated an environment where local businesses could develop business relationships with their South African counterparts.

The multisectoral trip included business people from the agriculture and agro-processing, mining and capital equipment, engineering, chemicals, renewable energy, and information and communication technology sectors.

During the trip, Sekhoto visited several meat production sites to determine ways in which the country’s food production sector could be developed.

“Nigeria is interested in establishing partnerships with South Africa that would involve South African business people providing consultation services and overseeing projects on how to develop food production and processing capabilities, as well as transferring the skills through training and education,” he details.

To develop Nigeria’s economy and self-reliance, the country has a product import prohibition list, which can be accessed on the country’s Ministry of Finance’s website.

Sekhoto notes that although meat, vegetables, fruit and other food products top this list, Nigerian government officials made it clear that exceptions could be made for certain items, provided that South African business people are willing to help develop the country’s production capabilities.

“Nigeria needs value exchange in meat production. In exchange for our benefiting from the business opportunity of exporting some products that are on the prohibition list – such as poultry, beef and pork, and possibly, in future, fisheries – Nigeria will benefit from our skills and expertise on how to develop capabilities to commercially produce their own food.

“There is a need for Nigerians and South Africans to collaborate because the South African food production sector has come a long way and much information can be transferred to the Nigerian sector from the lessons learnt. What is most interesting about Nigeria is that its business people have the capital to fund such projects, while we have the technical skills and experience,” elaborates Sekhoto.

He adds that he received a proposal from a potential buyer during the trip, which would see Makolobane Farmers Enterprises source 200 t of apples for export to Nigeria.

The 2 300 ha Makolobane farm com-prises about 240 head of beef cattle and 230 Ayrshire dairy cows. The dairy has an offtake agreement with Nkuzi Milkway, which processes the milk and sells it to local retail outlet Woolworths.

The farm also produces maize and sunflowers and supplies apples to the local fruit and vegetable outlet Fresh Produce Market.

Export Challenges

Sekhoto advises local food manufacturers to ensure that they are working with legitimate and reputable business people when engaging in export transactions, as it is easy to send food to a company that does not hold the credentials it claims to hold.

He concludes that the DTI should be lauded for its efforts to facilitate interaction between South Africa-based bus- inesses and their legitimate counterparts in other countries and for offering these bus-inesses an opportunity to have face-to-face communication with potential business partners.

Edited by Megan van Wyngaardt
Creamer Media Contributing Editor Online

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