MPUMALANGA SUSTAINABLE AGRICULTURE MARKET INTELLIGENCE OPPORTUNITY BRIEF 2021 - GREENCAPE
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Mpumalanga
Sustainable Agriculture Market
Intelligence Opportunity Brief 2021
MPUMALANGA WATER: MIR 2021 1
CONTENTS Emerging opportunities,
drivers and barriers 24
3.1. Major drivers and opportunities 26
3.2. Sustainable agriculture trends 27
3.3. Investment opportunities in Mpumalanga 29
The Mpumalanga Green 3.3.1. Sustainable production 29
Cluster Agency 4 3.3.2. Circular economy and resource efficiency 31 References 44
1 2 3 4 5
Mpumalanga Green Cluster Agency
Acknowledgements
Disclaimer
While every attempt has been made to ensure that the information published
in this report is accurate, no responsibility is accepted for any loss or damage to any
person or entity relying on any of the information contained in this report.
Executive summary 1 Sector overview 6 Funding and Incentives 40
Copyright © Mpumalanga Green Cluster Agency 2021 2.1. Farming sector in South Africa 8
2.2. Natural resources in South Africa
This document may be downloaded at no charge from and Mpumalanga 9
http://www.mpumalangagreencluster.co.za/. All rights reserved. 2.3. Production trends in South Africa
and Mpumalanga 10
2.4. Economic overview 12
Subscribe to receive e-mail alerts or MGCA news, events, and publications by registering
2.4.1. Economic contribution of agriculture, agro
as a member on our website: http://www.mpumalangagreencluster.co.za/ processing and forestry in Mpumalanga
to the South African economy 12
Mbombela, 1200, South Africa 2.4.2. Mpumalanga’s contribution to
agricultural trade 13
2.5. Key players in the agricultural value chain 17
Authors: Tokelo Shai
2.6. Relevant legislation 17
Editorial and review: Claire Pengelly, Lauren Basson, Cilnette Pienaar and Nicholas Fordyce
2.6.1. National legislation and policies 17
Images: Supplied
2.6.2. Provincial legislation and policies 21
Layout and design: Tamlin Lockhart 2.6.3. International regulations 22
MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 i
LIST OF FIGURES LIST OF TABLES
Figure 1: Number of farming units in South Africa by size of commercial farm (2017) 8 Table 1: Summary of emerging sustainable agriculture opportunities in Mpumalanga 2
Figure 2: Mpumalanga land use classifications 9 Table 2: Top 10 agricultural products in Mpumalanga exported to Africa 15
Figure 3: Mean annual rainfall in Mpumalanga 10 Table 3: Key agricultural players in Mpumalanga 17
Figure 4: Major crops by area harvested in South Africa, 2019 11 Table 4: List of policies and legislation that govern sustainable agricultural production 18
Figure 5: Area planted under field crops in Mpumalanga in 2017 11 Table 5: List of policies and legislation that govern agricultural resource use 20
Figure 6: Area under horticultural production in Mpumalanga as a percentage of total area (2017) 12 Table 6: List of policies and regulations that govern Mpumalanga sustainable agriculture 21
Figure 7: Gross value added and employment of agriculture sector in Mpumalanga from 2010 to 2020 13 Table 7: Sustainable production opportunities 30
Figure 8: Total gross farm income in South Africa and Mpumalanga 13 Table 8: Investment opportunities in food-water-energy-waste nexus 32
Figure 9: Mpumalanga agricultural exports and imports (2010 – 2020) 14 Table 9: Percentage losses at each stage of the value chain 36
Figure 10: Mpumalanga import and export destinations (2020) 14
Figure 11: Mpumalanga import destinations (2020) 14
Figure 12: Agricultural innovation system 16
Figure 13: Opportunities along the agricultural value chain 26
Figure 14: Disruptive scalable agri-tech 27
Figure 15: Global agri-food tech investments in the years 2019 and 2020 28
Figure 16: Agricultural sector energy use in South Africa 33
Figure 17: Share of water sources used by farms in Mpumalanga from crop production (2017) 34
Figure 18: Contribution of commodity subsectors to total quantity of food wasted in South Africa 37
Figure 19: Types of irrigation systems on commercial farms used in Mpumalanga (2017) 38
Figure 20: Percentage of irrigation/water systems used on smallholder farms 38
Figure 21: Percentage of commercial farms in Mpumalanga and the type of fertilisers used (2017) 39
ii MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 iii
LIST OF ABBREVIATIONS AND ACRONYMS EXECUTIVE SUMMARY
This market opportunity brief is part of a series of first-of-its-kind reports that highlight green economy
Abbreviations & Acronyms Meaning
investment opportunities in Mpumalanga. It is written for investors who want to understand the
CLICK:
Celebrating green
AfCFTA African Continental Free Trade Agreement opportunities for investment and job creation in green economy sectors in the province. economy green
shoots in
BFAP Bureau for Food and Agricultural Policy Mpumalanga
CBAM Carbon Border Adjustment Mechanism This brief highlights emerging investment This shift is primarily driven by climate
opportunities in the sustainable change, population growth, scarce
CSIR Council for Scientific and Industrial Research
agriculture sector in Mpumalanga. natural resources (water and arable
DAT Disruptive Agricultural Technologies
The agriculture sector plays a crucial land), and international market pressure
role in the development of a green for environmentally friendly products,
DFFE Department of Forestry, Fisheries and the Environment economy in the province because of its technological advancement and growing
natural resource use (~56% of cropland, consumer preferences for healthier
EU European Union pastures and forests and 55% water products. The ongoing COVID-19
use), impact on well-being, and job pandemic has further demonstrated
FBT Food Beverage and Tobacco
creation. Mpumalanga contributed the susceptibility of the agriculture
GVA Gross Value Add
16% to total employment and a GVA of sector to the changing local and
13% in South Africa’s agricultural and global dynamics in the industry.
MTPA Mpumalanga Tourism and Parks Agency value-added activities in 2020.
Mpumalanga offers numerous
REIPPPP Renewable Energy Independent Power Producers Procurement Programme However, the sector is vulnerable to opportunities for investors, agricultural
various economic, environmental, social, and green technology manufacturers,
and regulatory factors that impact the service providers, distributors, and
industry’s productivity and investment others in the value chain to support
trends. In response, there is a shift away and enable the transition to a more
from conventional farming toward more sustainable agriculture sector. The
resource-efficient, sustainable and different opportunities emerging in
technology-driven farming methods. the province are highlighted in this
brief are shown in Table 1.
iv MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021
Table 1: Summary of emerging sustainable agriculture opportunities in Mpumalanga
Expected Expected
Opportunity Key drivers Barriers Size of opportunity Opportunity Key drivers Barriers Size of opportunity
timeframe timeframe
Improved soil health • Mine closure & land rehabilitation • Legal uncertainty and poor mine 5 – 10 years • Less than 30% adoption of Resource use efficiency (Food-water- • Increased interest in supply chain transparency and • High cost of technologies to improve 0 – 5 years • Improved efficiency on existing farm
• Stringent international regulations on use of chemical closure planning to effectively conservation agriculture in grain energy nexus) traceability efficiency land (~934 000 ha)
Key opportunities: rehabilitate mining land production
fertilisers • Certifications and regulatory standards that require data • Limited technical skills • 25% of commercial farms and 3% of
• Regenerative agriculture • High transition costs to soil health • 934 000 ha used for cultivated Key opportunities:
collection on farm smallholder farms use drip irrigation
• Soil remediation • Certification to increase access to premium markets • Protected farming (i.e. greenhouses • Limited access to efficient irrigation
improvement pastures & crops • Rising input costs systems esp. for smallholder farmers • Less than 1% of commercial farms use
& shade nets)
• Limited skills and expertise to • 40 000 ha state owned land released • Smart farming (ICT & remote • Poor irrigation scheduling resulting in a need for monitoring • Accessible internet connection and treated wastewater
effectively improve soil health in Mpumalanga to improve irrigation efficiency high cost of data • 807 ha under protected cover (less
sensing applications)
• Unaffordable organic and Global GAP • 93 632 ha (14%) of the province’s high • Water reuse for irrigation • Inconsistent land reform policies and than 1% of cultivated area)
(good agricultural practices) potential arable land is being mined, • Energy efficiency water use allocations
certification, especially and 40% is subject to prospecting
for small scale farmers activities. A draft Preservation and Agri-food waste management • Rapid urbanisation and growing food loss and waste along • Lack of education and awareness of 0 - 5 years • 1.4 million tons (MT) of sugarcane
Development of Agricultural Land bill
agri-food chain waste management produced in 2017, the bagasse
(2021) could protect the arable land Key opportunities:
• Industry masterplans to increase competitiveness (sugar & • Limited offtake of biogas projects by-product can be used to generate
from mining activities. • Waste to energy poultry) electricity
• Waste to feed • 12% of commercial farms use organic
Rangeland management • Increased awareness on the consequences of biosecurity • Limited financial resources for 5 – 10 years • 1.17 million ha of grazing land. The • Waste to fertiliser • Growing demand for alternative energy sources
fertilisers
risks to food supply chain and human health biosafety measures province is known for cattle, poultry • Chemical fertiliser bans
Key opportunities:
• Climate ambitions to reduce greenhouse gas (GHG) • Poor animal feed quality due to poor and pig production. • Ngondwana biomass plant (25MW)
• National Waste Management Strategy 2020
• Alternative protein feed
emissions in livestock sector storage facilities
fuelled using agricultural and forestry
• Sustainable livestock production waste (i.e. wood chips) from
• Feed storage • Stringent food safety standards and regulations • Limited skills and expertise in plantations in the province.
• Consumer demand for healthier products sustainable rangeland management
Controlled environment agriculture • Growing demand for locally grown and environmental • High investment costs 0 – 5 years • Emergence of aquaponic and
(soilless farming) friendly products hydroponic production systems
• Need for specialized skills for
• Mine closure & land rehabilitation – alternative land use & technology use • 807 ha under protected cover (less
Key opportunities:
infrastructure • High energy demand than 1% of cultivated area)
• Input supplies
• Niche farming • New local & international market access opportunities • Access to growing space
• Energy efficiency – increase demand for intensive production
2 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 3
This cluster will focus on unlocking and
Introducing the Green Economy Market
unblocking economic opportunities in the
Mpumalanga Green Opportunity Briefs
1.
green economy, with the aim of making a
Cluster Agency contribution to regional economic
diversification and job creation efforts. This market opportunity brief is part
Clusters can create the context to of a series of first-of-its-kind reports
build trust between sector players, and The Mpumalanga Green Cluster Agency’s that highlight green economy investment
work to unlock new mechanisms to mission is to stimulate a vibrant green opportunities in Mpumalanga. It is
enhance competitiveness and resilience. economy for communities in the written for investors who want to
The Green Economy, in particular, Mpumalanga province, underpinned by understand the opportunities for
lends itself to collaborative ecosystem a collaboration between government, investment and job creation in green
building approaches. Set in this system business and academia. The vision is a economy sectors the province.
of rapidly changing technology, and the vibrant, green and sustainable economy in
economics surrounding that technology, the Mpumalanga province, that leverages Each brief provides an overview of the
are commitments to social inclusion, the province’s rich natural resources and market within a sector, including key
and greater equality. heritage to create a legacy for South developments and achievements, the
Africa low carbon economic growth. key players, legislation and regulation,
The opportunity to use a cluster to build market opportunities and challenges,
trust, remove barriers and unlock jobs and Collaboration through clustering on a and funding opportunities.
investment has been recognised as an local scale to build competitiveness on a
opportunity to make a contribution to global scale will support the growth of the This brief focusses on the green economy
the regional economy in Mpumalanga. green economy in Mpumalanga, and investment opportunities in the
determine the green cluster in sustainable agriculture sector. To access
The Mpumalanga Department of Mpumalanga’s success. To become a the other sector briefs, please visit:
Economic Development and Tourism, member of the Mpumalanga Green http://www.mpumalangagreencluster.
working with GreenCape and with Cluster Agency, please sign up here. co.za/
support from the international
development finance community,
has set up the Mpumalanga Green
THE MPUMALANGA Cluster Agency.
GREEN CLUSTER
AGENCY
4 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 5
2.
SECTOR
OVERVIEW ©Unsplash
6 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 7
The agriculture sector plays a crucial Approximately 80% of the food produced This is primarily due to the inability of
role in the development and economy 2.1. in South Africa comes from large-scale small farms to achieve economies of 2.2. Land cover in the province is dominated Plantation lands are located mostly
of South Africa, and Mpumalanga commercial farms. Figure 1 illustrates the scale. Higher incomes may be achieved by forests and other plantations (38%), at the centre of the province
specifically. This section highlights the number of commercial farm units in 2017 on small farms if they are commercialised. followed by grasslands (35%) and farming stretching North to South, mainly
significance of the agriculture sector Farming sector in South Africa and the different farm types by turnover The commercialisation of small-scale Natural resources in South related land use (18%). Based on Figure along the escarpment.
in terms of the farming sector, natural (StatsSA, 2020). It indicates that small agriculture is envisaged in several Africa and Mpumalanga 2, dry land cultivation (16%) accounts for
resource use, production trends, Agriculture in South Africa is comprised farms dominate commercial agricultural policies at national and regional levels, the largest farming land use, followed by
38+35+18531L 90+5+L
economic contribution and relevant of a developed commercial sector that farming units in South Africa; however, particularly the National Development In South Africa, natural resources for irrigated and subsistence agriculture (1%).
legislation. It aims to provide context predominantly produces for export, as the farms do not generate a high annual Plan and Mpumalanga’s Economic agricultural production are limited. Dryland cultivation predominately takes Mpumalanga contains almost
for factors that promote investment in well as a small scale and a subsistence turnover relative to the larger farms. Growth and Development Path About 80% of the total land surface place in Nkangala and Gert Sibande half of the country’s high
sustainable agriculture in Mpumalanga. sector. There are about 2 million (further detailed in section 2.5). is classified as arid to semi-arid and districts, whereas irrigated cultivation potential arable land.
smallholder and household farmers and about 12% of the land is arable, with lands are in Ehlanzeni District.
~40 000 commercial growers. 3% regarded as high potential land1.
Mpumalanga contains almost half of the
country’s high potential arable land.
Figure 2: Mpumalanga land use classifications (DFFE, 2020)
Figure 1: Number of farming units in South Africa by size of commercial farm (2017) (StatsSA, 2020)
Micro
turnover < R2 250 000 24 929
38% FOREST, WOODLAND, PLANTATIONS & OTHER
35% GRASSLANDS
Small
R2 250 000 < turnover < R13 500 000 10 713
18% CULTIVATED COMMERCIAL & SUBSISTENCE LAND 16% DRYLAND CULTIVATION
5% WATER BODIES AND WETLANDS 1% IRRIGATED CULTIVATION
Medium
3% BUILDINGS 1% SUBSISTENCE CULTIVATION
R13 500 000 < turnover < R22 500 000 1 846
1% MINES
Large
turnover > R22 500 000 2 610
0 5 000 10 000 15 000 20 000 25 000 30 000
1
NUMBER OF FARM UNITS High potential agricultural land means land best suited to, and capable of, consistently producing acceptable levels of goods and services for a wide
range of agricultural enterprises in a sustainable manner, taking into consideration expenditure of energy and economic resources (Collett, 2014)
8 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 9
Agricultural land in the province is In terms of water resources, water Mpumalanga lies in the country’s The changing temperatures are Figure 4: Major crops by area harvested in South Africa, 2019 (FAOSTAT, 2021) Agricultural production in Mpumalanga
severely degraded as a result of poor availability is limited in South Africa, with summer rainfall area and has a diverse anticipated to result in increased drought is renowned for citrus and subtropical
soil management and mining activities. rain-fed agriculture suffering from low climate due to changes in altitude in the incidences and impact evapotranspiration 2 500 000 fruits in the Lowveld, while the Highveld
Degraded soils decrease land productivity, rainfall and erratic conditions, while the two topographic areas, the Highveld and rates. With the climate expected to produces summer grains and oilseeds.
requiring farms to apply more fertilisers relatively small irrigated agriculture (~1%) Lowveld2. The mean annual rainfall in become drier, with fewer cooler days and 2 000 000 Plantations of exotic trees and wattles
and chemicals for soil improvement. In consumes about 60% of the country’s the province ranges from 593 – 748mm more warm days, it is anticipated that cover much of the Escarpment. Figure 5
Area under production
addition, chemical applications increase surface water. With the increasing water in the Lowveld area and 748 – 971mm in climatic stresses and shocks will directly highlights the area planted under
1 500 000
soil acidity, causing further degradation demand for industry and domestic use, the Highveld area, as shown in Figure 3 impact the agricultural sector, and further field crops in Mpumalanga. Dryland
of the soil. This impacts the province’s and 98% of the available water resources (MTPA, 2018). The province is expected exacerbate natural resource scarcity. production of grains and oilseeds
agricultural productivity as well as the being allocated, there is pressure on to experience higher minimum, average 1 000 000 dominate the area planted, at 407 000
associated value chain activities. the agriculture sector to become more and maximum temperatures over the ha and 204 000 ha, respectively.
water-efficient. next few decades.
500 000
2.3. The area planted under horticultural
crops in 2017 is illustrated in Figure 6.
Figure 3: Mean annual rainfall in Mpumalanga (MTPA, 2018) 0 The main crops produced as a
Production trends in South ize ean
s eat see
d
can
e
rle
y
ap
es
see
d oe
s
s, d
ry percentage of total area planted were
Ma yb Wh r ar Ba Gr e tat n
Africa and Mpumalanga So flo
we S ug Rap Po
Be
a tree nuts (41%), followed by subtropical
Sun fruits (27%) and citrus fruit (20%).
South Africa has a diverse climate
that allows a variety of agricultural Figure 5: Area planted under field crops in Mpumalanga3 in 2017 (StatsSA, 2020)
commodities. In arid regions, cattle and
sheep farming dominate while intensive 400 000
crop production and mixed farming prevail
350 000
in high rainfall areas. The vast majority
of the country’s commercial agricultural 300 000
land is suitable for grazing, which involves
Area planted (ha)
250 000
livestock and game farming, whereas crop
production consists primarily of grains, 200 000
DRYLAND
cereals, and horticultural crops. The main
150 000 IRRIGATED
crops in South Africa in terms of area
harvested are maize, soybeans, wheat, 100 000
sunflower seed, and sugarcane (see
50 000
Figure 4)
0
s/ ed
s es de
r
he
r
ain s lse um d Ot
Gr ereal Oi Leg Fo
c
2 3
The Highveld comprises the most high-lying parts of South Africa’s plateau with an altitude between 1 500m but below 2 500, while lowveld refers to an area with an elevation between 150 and 600m. Note that data related to Mpumalanga production trends and technology trends are all based on data from the 2017 commercial census of agriculture in South Africa – (StatsSA, 2020)
10 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 11
41+27+20101L
Figure 6: Area under horticultural production in Mpumalanga as a percentage of total area (2017)
41%
27%
TREE NUTS
SUBTROPICAL FRUITS
2.4.
Economic overview
Figure 7: Gross value added (GVA) and employment of agriculture sector in Mpumalanga from 2010 to 2020 (Quantec, 2021)
16 000
14 000
120 000
100 000
In terms of gross farm income,
Mpumalanga agricultural production
contributed ~12% to total gross farm
income in South Africa. The main
contribution to total farm income
came from animal products (R 18 million),
R millions at constant 2010 prices
12 000
20% CITRUS FRUIT 2.4.1. Economic contribution of field crops (R 11 million) and horticultural
Total number employed
agriculture, agro processing and 80 000 products (R 5 million), as shown in
10 000
10% VEGETABLES forestry in Mpumalanga to the Figure 8.
1% OTHER HORTICULTURAL CROPS South African economy 8 000 60 000
The forestry sector is also vital to
1% DECIDUOUS FRUITS Mpumalanga contributed 8% to total 6 000 Mpumalanga’s economy. Approximately
40 000
South African primary agriculture in 2020, 41% of the total plantation area in South
4 000
measured in terms of GVA. Including Africa is located in Mpumalanga. In 2020,
downstream agricultural value added 20 000 the province contributed about 21% to
2 000
activities or the food, beverages and the total forestry GVA and contributed
tobacco (FBT) sector, this contribution 0 0 the most jobs in the sector (~33%).
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
increases to 13%. Despite the agricultural
sector’s relatively small share of the GROSS VALUE ADDED AT BASIC PRICES TOTAL NUMBER EMPLOYED 2.4.2. Mpumalanga’s contribution to
total GVA in South Africa (~3%), primary agricultural trade
agriculture is an important sector in the Figure 8: Total gross farm income in South Africa and Mpumalanga (StatsSA, 2020)
South African economy. The impact of South Africa is known as a net exporter
180
the two sectors on employment is quite of agricultural goods, exporting more
significant, accounting for approximately 160 154 than 30% of its goods. Mpumalanga
8.2% (primary agriculture ~6% and 2% for contributes about 7% to total agricultural
140
the FBT sector) to formal and informal exports. Figure 9 shows the trade
employment in South Africa in 2020 performance of agricultural and related
Gross farm income (R million)
120
(Quantec, 2021). Mpumalanga contributed products in Mpumalanga since 2010.
about 16% (primary agriculture ~10% and 100 Exports in the province have performed
6% for FBT sector) to total employment 80 71
well, growing from R884 million in 2010
69
in South Africa’s agricultural and value to more than R6 billion in 2020 (using
added activities.Further details on GVA 60 current prices) and the agricultural trade
and employment in the agriculture sector balance has also improved from R796
40
in Mpumalanga can be seen in Figure 7. million in 2010 to R5 billion in 2020,
18
20 11 despite imports of agricultural products
5 2 1 also expanding during the same period.
0
Animal products Field crops Horticultural products Other income
SOUTH AFRICA MPUMALANGA
12 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 13Figure 9: Mpumalanga agricultural exports and imports (2010 – 2020) (Quantec, 2021) Mpumalanga exported most of its Considering these trends, the African Due to Mpumalanga’s contribution to Table 2: Top 10 agricultural products in Mpumalanga exported to Africa
agricultural products to Asia (43%), Continental Free Trade Agreement citrus production in the country, similar Source: Quantec, 2021
7,00
followed by Europe (25%) and Africa (21%) (AfCFTA) and revised citrus4 protocol opportunities will exist for the province;
in 2020. At the same time, agricultural between South Africa and China however, further opportunities could
6,00 Export value
imports into the province were mainly present opportunities for increased emerge for the top agricultural products (R) in 2020
attained from the continent (90%) and agricultural trade. The AfCFTA intends exported into Africa, these are shown
5,00 some parts from Asia (5%) and Europe to remove tariffs on 90% of all goods in Table 2. In addition, the new market HST10: Cereals R867 831 660
R billions (current prices)
(3%), as shown in Figure 10 and Figure 11. traded between member states in equal provides an opportunity for increased
annual reductions toward a zero tariff. local production. HST02: Meat and edible meat offal R563 545 295
4,00
Given South Africa’s leading position in
HST04: Dairy produce; birds’ eggs; natural honey; edible products of animal R202 728 596
agricultural exports, the AfCFTA could
origin, not elsewhere specified or included
3,00 create new markets for products such
as oranges, bottled wine or apples HST07: Edible vegetables and certain roots and tubers R143 612 244
2,00 (Morokong et al., 2021).
HST15: Animal or vegetable fats and oils and their cleavage products; prepared R112 939 564
edible fats; animal or vegetable waxes
1,00
HST22: Beverages, spirits and vinegar R103 914 433
–
HST08: Edible fruit and nuts; peel of citrus fruit or melons R68 263 300
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
HST19: Preparations of cereals, flour, starch or milk; pastrycooks’ products R59 991 185
EXPORT IMPORT TRADE BALANCE
HST12: Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; R 53 977 197
industrial or medicinal plants; straw and fodder
+532L 90
43+25+2111L
Figure 10: Mpumalanga import and export destinations (2020)
EXPORTS
43%
25%
21%
11%
ASIA
EUROPE
AFRICA
AMERICAS
Figure 11: Mpumalanga import destinations (2020)
IMPORTS
90%
5%
3%
2%
AFRICA
ASIA
EUROPE
AMERICAS
HST20: Preparations of vegetables, fruit, nuts or other parts of plants R51 213 927
4
A revised protocol to relax the current regulatory requirements for cold treatment of South African lemons exported to China was signed
between the South African Department of Agriculture, Land Reform and Rural Development in June 2021. The protocol is anticipate to
increase volumes of South African citrus exports to China.
14 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 15Table 3: Key agricultural players in Mpumalanga
2.5. The concept involves a network of As a result, players within Mpumalanga’s
organisations, enterprises, and individuals and broader South Africa’s agricultural Category Function Key players in Mpumalanga
focused on bringing new products, ecosystem are crucial to promoting
Key players in the processes, and forms of organisation sustainable agriculture. The key players in Producers/farmers Key players in adopting sustainable farming practices and technologies. Produce Range of farmers producing key agricultural commodities in the province such as those
agricultural value chain into economic use, together with the the agriculture sector can be divided into commodities and in most cases do their own harvesting, storage, and transport. grains, horticultural crops, livestock products
institutions and policies that affect six broad categories: producers, research/
Research & training Key players in adopting sustainable farming practices and technologies. Produce University of Mpumalanga, Agricultural Research Council, Timbali Technology Incubator,
An ecosystem’s network of actors their behaviour and performance. academia, input suppliers, technology
institutions commodities and in most cases do their own harvesting, storage, and transport. Lowveld College of Agriculture
determines its sustainability and The approach emphasises the need suppliers, industry associations, financiers
productivity. This collaborative approach to consider and create interactions and labour organisations. The key players Industry associations These are involved in all aspects of the value chain. They support farmers and provide them Citrus Association, Subtropical Fruit Association, GrainSA, Forestry South Africa, South
is embodied in the concept of agricultural throughout the entire value chain, in Mpumalanga are indicated in Table 3. with relevant and reliable information regarding regulations, logistics, cultivar development, African Poultry Association; Sugarcane Growers Association, Red Meat Producers
innovation systems (highlighted in including beyond the farm gate etc. They also do or support research in various fields, including soil, water, production Organisation; Agri-Mpumalanga
practices and cultivars.
Figure 12). (Worldbank, 2007).
Labour organisations These are organisations that provide support for employees in the agricultural sector by Mpumalanga Farmers Union, Food & Allied Workers Union, Transvaal Agricultural Union
assisting them in attaining the best possible financial and social position in all employment
positions along the entire value chain. They also play a key role in strengthening supply
chains and minimizing disruptions.
Figure 12: Agricultural innovation system (Worldbank, 2007)
Technology suppliers Develop and supply technologies and inputs across the value chain to enable increased Range of suppliers
food production and local economic development.
Informal institutions, practices, behaviours, mind-sets and attitudes
Government Enable policy environment and incentivising business to invest in sustainable agriculture and Department of Agriculture, Rural Development, Land and Environmental Affairs;
green economy. Department of Economic Development and Tourism, Department of Social Development,
District municipalities
• Agricultural education
systems Bridging institutions Agricultural value chain 2.6.1. National legislation
(i.e. vocational training, primary, • political channels stakeholder actors & organisations 2.6. and policies
secondary or tertiary institutions) platforms media • Consumers
• Processing, wholesale, retailers The following section discusses
• Agricultural research Agricultural extension • Traders Relevant legislation the national policies and legislation
systems systems • Agricultural producers governing and driving the agriculture
(i.e. public sector, private • public, private, NGO • Input suppliers The agricultural sector is governed by sector in South Africa to be more
sector, NGO/NPO) a range of policies and regulations that sustainable and resource-efficient.
influence the trajectory of sustainable Table 4 provides policies that impact
agricultural production. This section and drive sustainable production, while
highlights key regulations at national, Table 5 highlights policies agricultural
provincial and international level that govern resource use.
Enabling environment (innovation policies, investments, agricultural policies) impacting the agricultural sector.
16 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 17Table 4: List of policies and legislation that govern sustainable agricultural production
Key policy or legislation Relevance to sustainable agriculture Industry Masterplans (2019 – 2021) There are a range of masterplans that have recently been drafted or are in the process of being developed that will have an impact on the agri-sector in
Mpumalanga. The overarching objective of the masterplans are to improve competitiveness of the industries, drive domestic and export demand and
The National Development Plan 2030 (NDP 2012) • Highlights plans to expand irrigated agriculture and develop new water schemes. to support the local industry. A few of these include:
• Highlights plans to support local and sectoral efforts to reduce water demand and improve water-use efficiency. • The sugar industry masterplan
• Highlighting the importance of agriculture to the green economy. • Poultry masterplan
• Cannabis masterplan
The Agriculture Integrated Growth and Development Plan • Plans to develop equitable, productive, competitive, profitable and sustainable agriculture, forestry and fisheries sectors. • Agriculture and agro processing masterplan
(IGDP 2012)
• Emphasises that the sector needs to benefit all South Africans.
Draft Preservation and Development of Agricultural Land The bill aims to:
National Bioeconomy Strategy (2013) • Highlights strategic interventions in the agriculture sector and enhance competitiveness. Framework Bill (2021) • provide principles for the management of agricultural land;
• Plans to unlock value of indigenous crops. • provide for agricultural land evaluation and classification;
• Plans to establish a network of agro-innovation hubs that enhance technology transfer and extension. • provide for the preparation, purpose and content of provincial agricultural sector plans;
• provide for the declaration of protected agricultural areas;
The Agricultural Policy Action Plan (APAP 2014) • A programmatic response to key policy documents, including the National Development Plan (NDP) and the New Growth Path (NGP). • provide for the general objectives of agro-ecosystem management, agro-ecosystem authorisations;
• the listing and delisting of activities or areas within agro-ecosystems and the identification of competent authorities.
Draft Conservation Agriculture Policy (2017) • To promote and establish ecologically and economically sustainable agricultural systems to increase food security.
• Recommending government to offer producers with incentives to adopt conservation agriculture measures thereby developing incentive schemes,
and that tax rebates are provided to manufacturers of conservation agriculture equipment.
Draft Climate Change Bill (2018) • To provide management of climate change impacts and identify new industrial opportunities in the growth of the green economy.
• Enhance adaptive capacity of the country and increase reduce vulnerability from climate change.
• Contribute to global efforts to reduce greenhouse gas emissions.
Draft Climate Smart Agriculture Framework Policy (2018) • To provide management of climate change impacts and identify new industrial opportunities in the growth of the green economy.
• Enhance adaptive capacity of the country and increase reduce vulnerability from climate change.
• Contribute to global efforts to reduce greenhouse gas emissions.
National Climate Change Adaptation Strategy (2019) • Support to farmers to implement more efficient climate-smart and conservation practices.
• Promotion of urban agriculture, including community and household food gardens in areas not classified as agricultural land.
• Increasing the role of agricultural extension officers in supporting vulnerable farmers.
• Promotion and subsidisation of water conservation technologies.
18 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 19Table 5: List of policies and legislation that govern agricultural resource use 2.6.2. Provincial legislation
and policies
Key policy or legislation Relevance to sustainable agriculture
The key policy frameworks in
National Water Act, Act No 36 of 1998 (NWA 1998) • Redefines water rights in South Africa to stimulate inclusive growth. Mpumalanga that intend to drive a green
• Section 21 of the National Water Act highlights different water uses that require authorisation from the Department of Water and Sanitation. economic growth in the province are
Applications for water use authorisations for water use activities may take the form of a Water Use License (WULA), or a General Authorization (GA), the Vision 2030 (2013) and Mpumalanga
depending on the nature of the proposed water use and the likely impact the water use will have on water resources. Economic Growth and Development Path
• On the 1st of April 2021, the DWS implemented a revised turnaround time to process water use licence applications from 300 to 90 days. (2011), and Biodiversity sector plan (2014).
The key objectives and relevance of the
The National Environmental Management Act 107 of 1998 • NEMA is the overarching legislative framework for environmental governance Core values are reflected through the following principles: policies to sustainable agriculture are
(NEMA 1998) ©Matthias Mullie
• Environmental management must place people and their needs at the forefront of its concern, and serve their physical, psychological, developmental, highlighted in Table 6.
cultural and social interests equitably
• Development must be environmentally, socially and economically sustainable
Carbon Tax Act, No 15 of 2019 The carbon tax act was gazetted in May 2019 and came into effect on 01 June 2019. The carbon tax will be applied over two phases: Phase 1 will be
Table 6: List of policies and regulations that govern Mpumalanga sustainable agriculture
from 01 June 2019 to 31 December 2022, and phase 2 will be from 2023 to 2030. The implications of act will become applicable to the agriculture sector
from phase 2. The carbon tax provides a range of relief measures to protect competitiveness of the local industry, among these, are carbon offsets. Key policy or legislation Relevance to sustainable agriculture
• The Carbon Offset Administration System (COAS), administered by the Department of Mineral Resources and Energy, was launched 23 July 2020.
It serves two main purposes: 1) to define the procedures through which project developers submit eligible projects and list their credits; and 2) Economic Growth and Development The Mpumalanga Economic Growth and Development Path (MEGDP) is informed by the National Economic Growth Path. The path highlights the green economy
to provide a platform through which emitters can surrender carbon credits against their tax obligations. Path (2011) and Information and Communication Technology as a key opportunity areas.
• The carbon offset regulations provide opportunities for large-scale carbon sequestration and storage in the agriculture sector. To be eligible to
generate credits for use in lieu of the carbon tax, projects must be located in South Africa. Projects in the transport, waste, agriculture, forestry, Vision 2030 (2013) The Mpumalanga Vision 2030 Strategic Implementation Framework (2013-2030) was established as a direct implementation response to the National Development
and land use sectors, which are not covered by the tax, can generate carbon credits. Plan Vision, 2030. The key objectives include promoting employment and economic growth. Agricultural and forestry development are key drivers highlighted to
promote economic growth and social protection.
Draft Expropriation Bill Of 2020 The Joint Constitutional Review Committee (JCRC) released its final recommendation, in which it advised that Section 25 of the Constitution of South
African should be amended to allow expropriation of land without compensation as a legitimate option for land reform. The Expropriation Biodiversity Sector Plan (2014) The Mpumalanga Biodiversity Sector Plan (MBSP) is a guideline which is part of a wider set of national biodiversity planning tools and initiatives that are designed for
Bill of 2020 was drafted on 9 October 2020. The bill outlines details on circumstances that permit compensation and non-compensation for the national legislation and policy. The MBSP incorporates climate change improvements in the province.
expropriation of property. The bill provides more clarity for potential and current investors of the government’s intention with this constitutional
amendment. At the same time, the Minister of Agriculture announced5 that the government is making 896 farms on 700 000 ha of underutilised or Green Economy Development Plan (2016) The Mpumalanga Green Economy Development Plan aims to change the province’s economy from relying on coal-based energy to one boasting biomass-based
vacant state land available for emerging farmers on 30-year leaseholds, with an option to buy. About 40 206ha have been allocated to Mpumalanga. energy, sustainable agriculture, and tourism and eco-conscious towns by 2030.
National Waste Management Strategy (2020) The strategy outlines government’s policy and strategic approach to waste management for South Africa for the coming years. The set of actions
to reach strategic outcomes, include:
• Waste minimisation to prevent and reuse waste
• Effective and sustainable waste services
• Mainstream waste awareness and a culture of compliance resulting in zero tolerance of pollution, litter and illegal dumping
5
https://www.gov.za/speeches/minister-didiza-allocation-state-land-1-oct-2020-0000
20 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 212.6.3. International regulations The international regulatory In addition, the EU envisages a Carbon
developments are discussed below. Border Adjustment Mechanism (CBAM),
South Africa is a major exporter of a levy on all carbon-intensive imports
agricultural products and as such needs • Most recently, China has pledged to (based on the carbon intensity of the
to adhere to international environmental reach peak carbon emissions before country of origin). The CBAM will be
regulations and standards. 2030 and reduce emissions to net introduced transitionally in 2023 and
zero by 2060. finalised before 2026. Exports from
2.6.3.1. Global climate change carbon-intensive sectors such as cement,
regulations • The European Commission plans to steel, chemicals and fertilisers will
reduce greenhouse gas emissions by significantly be affected by the CBAM
Since the Kyoto Protocol was agreed, at least 55% by 2030. The European (European Commission, 2019).
the number of climate change laws Green Deal lists a set of policy
has increased by over a factor of 20 initiatives to achieve climate In Mpumalanga and the rest of the
(Nachmany et al., 2017). In light of the neutrality by 2050, among these country, the EU plays a vital role as a
recent COVID-19 pandemic, national is the Farm-to-fork strategy. The major export destination for agricultural
governments across the globe are outlines plans to: products, so trade-related climate risks
making the transition to a low-carbon equally affect the industry.
economy as part of their economic • avoid or minimise placing products
recovery (Birol, 2020; OECD, 2020). related to deforestation or forest The growing climate ambition targets in
degradation into the European major agricultural export markets will likely
Union (EU) market; drive many South African export farmers
• ban imported products into the to adopt sustainable production practices
EU market that do not comply with and technologies to remain competitive.
EU environmental standards
• require trading partners to apply
sustainable practices in terms of plant
protection and pesticide use.
• Promote sustainable labelling schemes
for food imported into the EU
22 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 233.
EMERGING
OPPORTUNITIES,
DRIVERS AND
BARRIERS ©GreenCape
24 MPUMALANGA WATER: MIR 2021 MPUMALANGA WATER: MIR 2021 25This section provides an overview of This shift is primarily driven by climate resilience (adaptation), reduces/removes The opportunities highlighted in this A trend emerging is the application of The study defines disruptive agricultural
the major trends and drivers to support 3.1. change, population growth, scarce GHGs (mitigation) where possible, and brief are centred on opportunities in 3.2. technology to increase the efficiency of technologies as digital and technical
investment into sustainable agriculture natural resources (water and arable enhances achievement of national food the primary production stage of food production, enhance transparency, advancements that allow farmers
in Mpumalanga, and the associated land), international market pressure security and development goals”. the value again and cross-cutting and improve traceability. According to and agribusiness entrepreneurs to
opportunities and barriers that affect Major drivers and opportunities for environmentally friendly products, opportunities to improve resource Sustainable agriculture trends the Worldbank (2020), 75% of scalable improve their access to markets, boost
sustainable agricultural production and technological advancement and growing There are a range of opportunities along use efficiency and recovery. disruptive agricultural technologies their productivity, efficiency, and
resource use efficiency. The agriculture sector is vulnerable to consumer preferences for healthier the agricultural value chain that can Several trends are emerging in the (DATs) operate in Kenya, South Africa, competitiveness, and enhance their
various economic, environmental, social, products. The ongoing COVID-19 transform and reimagine food production sustainable agriculture sector that and Nigeria (see Figure 14). South Africa resilience to climate change. The agri-tech
and regulatory factors that impact the pandemic has further demonstrated the to the realities of climate change. These involve reducing food loss and waste, is the second leading agri-tech hub solutions can range from mobile apps to
industry’s productivity and investment susceptibility of the agriculture sector to can range from alternative and more preventing soil erosion and improving after Kenya, having 46 scalable DATs solar applications, portable agriculture
trends. In response, there is a global shift the changing dynamics in the industry. sustainable inputs, technologies and resource efficiency. (according to the stocktaking database), devices, and bio-fortified foods.
away from conventional farming toward As such this section highlights investment services to enable sustainable production, followed by Nigeria and Ghana.
more resource efficient and technology- opportunities in sustainable agriculture the type of crops produced and a range
driven farming methods. sector, which the Food and Agriculture of value added products. The different
organisation of the United Nations opportunities are highlighted in Figure 13. Figure 14: Disruptive scalable agri-tech (Worldbank, 2020)
defines as “agriculture that sustainably
increases productivity, enhances 70
Figure 13: Opportunities along the agricultural value chain 60 58
Number of scalable disruptive agri-tech
50 46
Primary
agriculture 40
Distribution 34
production & marketing
30
• eGroceries
• Novel farming • Value-added activities
• Biotechnology • Food safety and traceability
• Smart farming to raw produce • E-commerce / 20
• Alternative feed • Innovative transport, 15
• Sustainable agricultural • Drying and cooling home deliveries
• Biofertilisers cooling and storage
practices technologies
solutions 10 6
4 3 3 3 2 2 2 1 1 1 1 1 1 1 1
Agro-
Inputs processing Retail 0
a a a a s a n a l a s li a el d n y a o a
ny ric eri han tate gand eroo ambi nega ambi land Ma swan Isra erlan ede rman uine a Fas anad
Ke h Af Nig G S U m Z S e G th e r t z S w e G n C
ut ite
d Ca Bo Sw
it G rki
So Un Ne Bu
Water reuse & wastewater treatment; Cold chain solutions; Energy efficiency & renewable energy; Circular economy
Country
26 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 27Figure 15 illustrates the changes in 3.3.1. Sustainable production Although agriculture is at risk, it is also
global agri-food investments between 3.3. a major greenhouse gas emitter. A large
the years 2019 (pre-COVID) and 2020. Summer cereals and legumes (i.e. proportion of greenhouse gas emissions
While agri-food investments in 2019 were sunflower seed, sorghum, dry beans, is caused by livestock production, which
concentrated in upstream technologies, Investment opportunities soybeans, potatoes, cotton, and maize) includes the use of land for animal feed.
2020 has seen an increase (~43%) in in Mpumalanga are predominately grown in the Highveld Enteric fermentation in ruminants,
investments in downstream technologies. region of Mpumalanga. While in the livestock manure, synthetic fertilizers,
These can be attributed to the impact of Mpumalanga offers attractive investment Lowveld region, sub-tropical and citrus and burning of crop residues are some
COVID-19 on downstream activities in ©Western Cape Department of Agriculture
prospects due to its diverse agricultural fruits and sugar are extensively cultivated. of the main sources of agricultural
the agricultural value chain. production sector and industrial export The province is also known for its beef, emissions. Due to the importance of
base. This market brief discusses the chickens, eggs, and pork production. the livestock sector in Mpumalanga
+41L 95 51+47+2L
opportunities emerging in two broad However, despite the sector’s potential, and its contribution to greenhouse
Figure 15: Global agri-food tech investments in the years 2019 and 2020 (AgFunder, 2021) categories: sustainable production degraded soils caused by poor farming gas emissions, there are opportunities
and circular economy and resource practices and mining activities pose a to transition the sector to be more
efficiency. The opportunities described significant barrier. It is estimated that sustainable. The opportunities for
95% UPSTREAM 51% UPSTREAM
under sustainable production promote ~93 632 ha (14%) of the province’s high improved soil health, rangeland
DOWNSTREAM DOWNSTREAM environmentally conscious practices potential arable land is being mined, and management, and viable post-mining
4% 47%
and technologies on farms, while those 40% is subject to prospecting activities, land use options are detailed in Table 7.
1% MISCELLANEOUS 2% MISCELLANEOUS described under circular economy focus representing a further risk of losing about
on efficiently managing farm resources 260 000 ha of arable land if mining
2019 2020 and to reduce food loss and waste. continues (Creamer, 2021).
Overgrazing, invasive plants, land clearing,
and uncontrolled fires also threaten
rangelands6. With exposed soils and
no vegetation, these rangelands are
vulnerable to storms and droughts and
cannot store water or carbon effectively.
Upstream technologies Ag biotechnology; agribusiness marketplaces; bioenergy & biomaterials; farm management software, sensing & IoT; farm robotics, mechanization & equipment;
food safety & traceability tech, logistics & transport, processing tech; novel farming systems; innovative food
Downstream technologies In-Store retail & restaurant tech; restaurant marketplaces; eGrocery; home & cooking tech; online restaurants & mealkits; cloud retail infrastructure
Miscellaneous Fintech for farmers
6
Rangelands are lands on which native vegetation is predominantly grasses, grass-like plants, or shrubs suitable for grazing or browsing use.
28 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 MPUMALANGA SUSTAINABLE AGRICULTURE: MIR 2021 29Table 7: Sustainable production opportunities 3.3.1.1. Current market size Furthermore, the agricultural outlook • Subtropical (avocado): The avocado • Niche produce9 (berries, leafy greens,
and outlook highlighted in Bureau for Food and industry has shown rapid growth, with mushrooms etc.): Niche industries
Investment opportunity Context Market drivers Market barriers Agricultural Policy (BFAP) baseline an increased area under production show high growth potential as they
The key factors that provide potential (2020) for the period 2020 -2029 noted from 13 000ha in 2010 to 19 000ha in do not compete with existing
Improved soil health Includes interventions that focus on enhancing • Mine closure & land rehabilitation. • Legal uncertainty and poor mine closure land for sustainable agriculture the following key national production 2019, with new plantings estimated at industries. The berries and nut industry
soil health. These can include sustainable practices
• Stringent international regulations on use planning to effectively rehabilitate mining land. opportunities are the following: trends that could impact production 1000ha per annum. The industry is is among those showing high growth.
such as organic farming, agroforestry, and in Mpumalanga: projected to grow and will expand The blueberry industry has grown
Key opportunities: of chemical fertilisers. • High transition costs to soil health improvement.
• Regenerative agriculture. agroecology or conservation agriculture. In
addition, the use of biostimulants and soil • Certification to increase access to • limited skills and expertise to effectively improve • The grain sector in Mpumalanga has by 34 000 ha and 300 000 tonnes significantly compared to other crops,
• Soil remediation. premium markets. soil health. adopted conservation agriculture • Citrus: The total area under citrus by 2029. growing at a 5-year annual
remediation products can further improve
the soil health. • Unaffordable organic and Global GAP practices in less than 30% of agricultural production is expected to grow by 1.25% value of ~55%.
certification, especially for small scale farmers. operations, opening up the possibility of on average over the next 10 years. The • Macadamia8: An estimated 44 775ha of
further adoption in various field crops, cultivation area of grapefruit is expected macadamia nut plants were planted in Investments in sustainable production
Rangeland management Includes improved or modified livestock • Increased awareness on the consequences • Limited financial resources for biosafety grazing land and orchards. to show a positive trend in the outlook 2019, and the rate of production is practices and the adoption of green
management practices such as improved grazing of biosecurity risks to food supply chain and measures.
management, alternative feed, improved pasture,
period, while that of soft citrus, lemons7, expected to increase by 2000 ha technologies is expected to enable the
Key opportunities: human health. • Poor animal feed quality due to poor storage
• Alternative protein feed. and breeding for heat tolerance.
• Climate ambitions to reduce GHGs emissions in facilities.
• As highlighted Section 3.3.1, mine and limes will stagnate due to market annually due to new plantings. projected expansion in areas under
closure is inevitable in the region, with saturation. Although the area under production and yield gains.
• Sustainable livestock production. livestock sector. • Limited skills and expertise in sustainable
most coalfields expected to reach their cultivation will stagnate, with the • Maize & soybean: The per capita
• Feed storage. • Stringent food safety standards and regulations. rangeland management.
end-of-life in the next 40 years. Thus, exception of grapefruit, yield gains are consumption of white maize is 3.3.2. Circular economy and
• Consumer demand for healthier products.
post-mining land use presents an projected across all types of citrus. projected to increase by 0.5% per resource efficiency
Controlled environment agriculture The use of alternative soilless farming systems • Growing demand for locally grown and • High investment costs. opportunity for soil remediation and annum over the next 10 years. The
(soilless farming) such as hydroponics, aeroponics, and vertical environmental friendly products. agricultural production (both soil- growing population will result in an This section highlights the opportunities
• Need for specialized skills for technology use.
farming can extend growing seasons and
• Mine closure & land rehabilitation - alternative based & soilless). increase of 14% of white maize available to improve resource use
supply fresh produce year-round while • High energy demand.
Key opportunities: land use & infrastructure. consumption by 2029. The area under efficiency and reduce food loss and waste.
• Input supplies. eliminating the challenges of transport • Access to growing space.
costs and greenhouse emissions. • New local & international market access • The Draft Preservation and yellow maize and soybean is expected Table 8 highlights the key opportunities,
• Niche farming. opportunities – increase demand for Development of Agricultural bill of to increase by 9% and 47% respectively providing context to the opportunity, the
• Energy efficiency. intensive production. 2020 could halt prospective mine over the period 2019 to 2029. drivers and barriers. The current market
applications, protecting about outlook for the opportunities is further
260 000 ha of arable land. highlighted in this section.
• About 40 000ha of state owned land
has been allocated in Mpumalanga
under the land reform programme.
7
Note that this might change depending on the response to the lemon export protocol agreement with China
8
Macadamia South Africa (SAMAC, 2019)
9
Based on WCDoA (2019) study on farm level employment per hectare
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