Economic Opportunities
- Which black-owned companies are involved in the agricultural sector in the Winelands District, particularly at De Doorns;
- (a) why are more black and coloured people not participating in the value-added chain in this sector and (b) what is his Department doing to improve the situation?
- In the Cape Winelands district, the Western Cape Department of Agriculture is aware of 101 companies. In De Doorns, there is only one [1] that is registered under the agriculture commodity on the BEE level 1 to 4 on the Central Supplier Database [CSD].
There are also a number of other registered agricultural businesses in the Cape Winelands and mainly in fruit production. In the De Doorns area these are with varied shareholding from 40% to 100% Black ownership. The businesses include:
- Siyazama Klipland Boerdery
- Alpha Boerdery
- Osplaas/Uitkoms
- COC 8 Farming
- Nirwanda /Big 5 Farming
- Sanddrift Kleinboere
- KK Poultry
In addition to these, there are two other businesses, table grape farms with black shareholding also utilising packaging facilities in De Doorns i.e. Vergelegen Packaging and Buffelskraal Amapulazi, situated near Worcester in the Nonna area.
- [a] In the Cape Winelands there are black producers involved in packaging and storage of fruit, processing of wine, meat, honey, vegetables, herbs, grape seed oil etc. In the De Doorns area, given that the predominant enterprise is table grapes, value addition is mainly limited to packaging and cooling of table grapes. As these activities are only undertaken for 4-5 months of the year, it is difficult for businesses to focus on packing and cooling of table grapes only. As a result, most of these activities are either undertaken by farmers on farm level or at larger centralized facilities like Hex Koel or EXSA.
Furthermore, the cost of establishing these facilities are a challenge and hence for efficiency gains, the farmers will cross subsidise their farm facilities by moving skilled labourers and professionals from the vineyard into the packing facility rather than investing in the facilities. This is an attempt to decrease their overhead costs and increase labour efficiency. Increased participation is an ongoing challenge which has been complicated by the current drought.
[b] Businesses / companies who wish to transact with government are encouraged to register on the Central Supplier Database which will provide opportunities to bid / tender for work.
Six of the De Doorns businesses mentioned in question one except Nirwanda /Big 5 Farming have been assisted with inputs required in the production process through the CASP grant. Furthermore, the Western Cape Department of Agriculture has provided assistance for upgrades of packing facilities for Osplaas/Uitkoms, Alpha, Siyazama Klipland and recently also for Vergelegen Packaging situated in the Robertson area, but whom until recently utilised packaging facilities in the De Doorns area. Moreover, there are other value-add services like the Market Access Programme where some of these farmers have received comprehensive support including an overseas study tour and business management services like the financial record keeping.