Agro-Processing and Agri-Tech

The Gauteng Province is highly urbanised, comprising of three large metropolitan areas with high population densities. As such, agriculture is critical in supplying food to the population. Although the Province is largely urban in nature, the outer regions of Gauteng are involved in a variety of agricultural activities, with urban agriculture also emerging as activities that contribute to agricultural production. However, the land available for agriculture in Gauteng is limited and is constantly under pressure from further urbanisation and population growth, therefore making the province dependent on other provinces for its food requirements. It is estimated that only some 20% of land in Gauteng is covered by irrigated and rain fed commercial agriculture, contributing to the relatively low levels of agricultural production and limited contribution to the economy of the province.

Agro-processing forms a sub-set of the manufacturing sector and involves the processing/changing of form of raw materials from the agricultural, forestry and fisheries sector and includes a wide range of edible and non-edible agricultural products.

Gauteng Is an Import Player in the Agro-Processing Industry in South Africa

There are approximately 1,192 commercial farms dedicated to animal production in Gauteng. However, Gauteng farmers produce less than 2% of South Africa’s game, cattle, sheep and goats, but approximately 6% of chickens and 12% of pigs. Across the Province animal farming is located primarily in rural areas with adequate land availability. These areas include Cullinan and Bronkhorstspruit to the North East of Tshwane; Heidelberg and Vereeniging in the Sedibeng District Municipality; and the Krugersdorp area in the West Rand District Municipality.

Although the vast majority of production in Gauteng occurs on large-scale commercial farms, there are a growing number of small-scale black farmers that are entering the formal industry. These small-scale farmers tend to sell their products to low-value markets (abattoirs, local auctions, local butcheries and local residents). The limited access to high-value markets (commercial processors and supermarkets) is attributed not to the quality of product, but rather their low volume of output.

In terms of agro-processing, there are 70 registered feedlots in South Africa in 2014, approximately 10 of which operate in the Gauteng Province. These feedlots are primarily in the regions where primary production occurs, although some facilities are also located in the more industrial region of Ekurhuleni. An estimated 86 red meat and poultry abattoirs are operating in Gauteng, which are often owned or affiliated with cattle feedlots.

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If you want to get advice regarding the expansion of your business or new investment to Gauteng, please fill out the contact form below. This service is provided by the Gauteng Industrial Development Zone (GIDZ).