Professional Documents
Culture Documents
How To Start Crop Farming in South Africa APT PROJECTS
How To Start Crop Farming in South Africa APT PROJECTS
You should take advantage of the resources at your disposal and bring food from our fields to the table. I’m
talking about crop production in South Africa.
The fact that food production, and therefore food prices, are affected by weather, pests, and other
unpredictable factors, makes this industry an exciting and opportunistic field for business.
Agriculture is an important regional driver of rural development, job creation and poverty alleviation. Focus on
innovative ways to reconnect our food system with our economy and gain profitable yields in the process.
South Africa is divided into a number if farming regions according to climate, natural vegetation, soil type and
farming practices.
• Grain and oil seeds: The grain industry is one with the largest in South Africa, producing between 25%
- Maize is the largest locally produced field crop, and the most important carbohydrates in the Southern
African region.
- Wheat is produced in the winter rainfall areas of the Western Cape and the eastern part of the Free State.
• Sunflower seeds: Produced in the Free State, North West, and Mpumalanga Highveld and Limpopo
province.
• Groundnuts: Are mainly grown in the Free State, North East and Northern Cape.
• Sugar: South Africa is the world’s 13th largest sugar producer. Sugarcane is grown in the Eastern Cape,
Kwazulu-Natal and Mpumalanga.
• Fruit: This industry’s export earnings represent about 12% of South Africa’s total earning from
Agriculture.
• Vegetables: Potatoes make up about 40% of vegetables farmers’ gross income, with tomatoes, onions,
green mealies and sweetcorn contributing about 38%.
• Cotton: Grown under irrigation and in dryland conditions. Cultivated in Mpumalanga, Limpopo, Northern
Cape, Kwazulu-Natal and North West.
• Tea: Honeybush has become a commercial crop, with the production of more than 100 tons of
processed tea per year. Rooibos tea is an indigenous herb produced mainly in the Cedarburg area and
Western Cape.
• Wine: South Africa is the ninth largest wine producer in the world. South African wine export rose from
22-million litres in 1992 to almost 314-million litres in 2007.
Overall the production of field crops in South Africa has increased. In the twenty-first century the growth of
yields from all these crops increased due to a shift in consumer preferences. Consumers are now demanding
more locally grown produce, especially if organically grown.
Agriculture as a percentage of GDP has increased over the past four decades, currently contributing around
2%. This implies that our economy is maturing, moving towards the secondary and tertiary sector.
The government plans to exploit South Africa’s competitive advantage that will place South Africa among the
top 10 export producers’ in high-value agricultural products.
Financing is available from the Industrial Development Corporation to encourage development within the food,
beverage and Agro industries. To approve for this financing or any other for that matter you’ll need an
exceptional business plan.
Formal agriculture training is available at colleges, Technikons and universities. The Agricultural Research
Council (ARC) regularly present various specialised training courses and information days which are attended
by farmers and delegates from South Africa and neighbouring countries. See more information in the resource
section.
The development and adoption of best management practices, incentives, guidelines and training in farm
business and risk management are necessary to enhance farm provability and promote the adoption of
agricultural practices that are both sustainable and productive.
The South African Society of Crop Production (SASCP) annually awards two bursaries to deserving students
who study full-time in the broad area of Crop Production at a South African University.
MAFISA:
Micro Agricultural Financing Institution of South Africa is a financial scheme to address financial services needs
of the smallholder farmers and agribusinesses.
Mafisa provides capital (loans) to enhance agricultural activities. If you are historically from a disadvantage
group and a South African citizen, older than 21 with a household monthly income less than R20 000, then you
can apply for this fund.
It’s a maximum loan of R500 000 per person and must be used for the purposes for which it was applied.
Standard Bank offers structured advances and loans, which takes the effect of cycles into account.
Often start-up entrepreneurs make the mistake of trading from their personal bank account. This makes
it harder to differentiate between your personal expenses and business expenses. It also doesn’t allow
you to build up a credit risk profile for your business, which is an important factor should you ever
want to approach a bank for financing. Rather, start trading as a business from the get-go by opening
up a Business Current Account.
ATTRA:
The National Sustainable Agriculture Information Service. The list features sustainable agriculture-related
funding information updated weekly and searchable by date and keyword.
The Department of Agriculture has entered into a partnership with Khula Enterprise Finance to extend financial
services to South Africa’s emerging farmers and agri-businesses.
Eskom:
A business-to-business partnership focused on inviting South Africa’s farmers to join hand with Eskom in a
national drive toward establishing smart energy use, as one of the most effective weapons in the fight against
rising operating costs.
IDC:
International Development Corporation focuses on identifying projects in the Agro-processing and Agriculture
industry that will expand local production capabilities, replace import and enhance competiveness. They
provide funding of up to R1 billion tailored to suit the needs of the applicant.
What you need to know when employing farm workers in South Africa
As an agricultural employer, there are certain obligations you must meet. These include ensuring your worker’s
pay and working conditions meet the minimum requirements.
A farm worker includes any person who is involved in farming activities, including a general worker on a farm,
all domestic workers who work in a house on a farm and also security guards how is employed to guard the
farm.
A written contract must be issued to every farm worker as a preventive and precautionary measure for both
parties, so that they both know what exactly is expected of them.
Issue a permanent contract if the farm worker is permanently employed for an undetermined period or a fixed
term employment contract if your farm worker I employed only for a specific fixed period of time.
Providing training to your workers can help increase their productivity. This in turn can help make your business
more competitive and efficient. It can also help ensure workers carry out the work in a safe and competent
way.
Successful farming and sustainable agriculture require extensive knowledge, expertise and commitment. You
cannot open an agri-business on a whim. You will need to do extensive research, write an impressive business
plan and be a proficient manager.
There are still great agriculture opportunities in South Africa and if you’ve got your heart set on farming be sure
to treat you workers fairly and contribute to improving our land.