Small-holder farms remain trapped within the informal economy due to a lack of market infrastructure such as pack-houses, abattoirs, silos and processing plants. Most agriculture markets are impermeable to small producers. For example, processors and retail chains have stringent procurement policies such as international quality standards (GlobalGAP), labelling and exclusive contractual arrangements.
In this regard, five irrigation schemes will be set up in Amajuba, Harry Gwala and Umgungundlovu Districts at a total cost of R22,5 million. We have changed the policy on the support for irrigation development in that, irrigation schemes up to 55ha will now be funded through a 100% grant.
In addition, the Department will implement agro-processing projects to the value of R145 million across the province:
- Goat abattoirs (at Nongoma, Msinga, Uthukela)
- Cattle abattoir at Jozini, Bhambanana, which is 95% complete
- Tannery (Uthukela)
- Vegetable value addition (eThekwini and Stanger)
- Winery bottling facility (uThukela)
- Maize milling and silos in Zululand
- Industrial crops: Sweet sorghum biofuels (Ugu). EIA is a priority for the approval of the energy licence
- Essential Oils (Uthungulu, Harry Gwala and Umgungundlovu)
Implementation over 2 years starting in 16/17
- Dairies (2 in Harry Gwala District and 1 in Amajuba with a twenty four month implementation window)
- Marula processing plant in Umkhanyakude. The building of the plant has been completed and in this financial year, oil abstraction equipment will be installed