10 Ncora Cooperatives Reap Solid Returns

Inkqubela August 2015 01 | Inkqubela Harvest Edition

NCORA Silos have been built along with other forms of mechanisation units such as tractors and a milling plant

NCORA: Ten primary cooperatives in “The Jobs Fund contributed 80% of the by these communities. the Ncorha Irrigation Scheme in Cofim- funds while the remaining 20% is split 10 Ncora vaba have become the first beneficiaries equally between ECDC and ECRDA. Phumzile Boyani, chairman of the of a R91 million agro-processing initia- There are 10 villages surrounding the Ncorha/Qhumanci Producers Assembly tive managed by the Eastern Cape Rural scheme and villages have been organ- Secondary Cooperative around which Cooperatives Development Agency (ECRDA) and the ised to structure the management of the the 10 cooperatives are organised, says Eastern Cape Development Corporation scheme into a Producers Assembly where once the yield is determined after the (ECDC). each village is represented. A milling harvest, the scheme will decide how Reap Solid plant is being established where the pro- much should go back to the landowners. The Development Bank of Southern Af- cessing of the maize crop will be done, “This is usually between 5 – 10% of the rica (DBSA) Jobs Fund agro-processing silos have been built and mechanisation yield and the rest is sold to the market. Returns initiative has allocated a total of R91 mil- units are being established in the form Revenues generated from the sale of the lion over a three year period to ECRDA of tractors and related equipment,” says maize goes back into planting for the and ECDC for the implementation of the ECRDA chief executive Thozi Gwanya. new season and to add extra hectares. from R91 million agro-processing initiative. This cash in- The committees of the primary coopera- jection has resulted in 955 hectares (ha) The initiative is managed along the tives manage the funds and decide with agro-processing in 2013/14 and 1003 ha in 2014/15 being ECRDAs RED Hub concept which priori- the communities how it is to be used,” planted after the cooperatives set aside tises the village as the centre of opera- says Boyani. 1 000 ha of their land for the cultivation tion. In practice, the RED Hub concept The initiative is managed along of white maize for the benefit of 706 means that maize should be grown by the ECRDAs RED Hub concept beneficiaries who are the landowners. the community, milled in the community, The Ncorha Irrigation Scheme is 5000ha processed and packaged in the commu- which prioritises the village as the in extent, with 3000ha under irrigation, nity and even sold back into the commu- centre of operation. whilst the remaining 2000ha is dry land. nity with the whole process being owned

Ncora by numbers R91m 1000ha 5000ha allocated to ECRDA & ECDC land for the cultivation of of land for the Ncorha over 3 years for the white maize for the benefit Irrigation Scheme with 3000ha implementation of the of 706 beneficiaries who under irrigation, whilst the agro-processing initiative are the landowners remaining 2000ha is dry land 02 | Inkqubela Harvest Edition 03 | Inkqubela Harvest Edition

Editor’s Note About Rural Enterprise Areas Under PRIMARY COOPERATIVE NAME PLANNED LAND SIZE HA PLANTED LAND SIZE YIELD ESTIMATE TONS Cultivation In Ncora Ndenxe Sgangeni 136 145 696 Development (Red) Hubs Botani/Maqomeni 132 134 549.4 (yield estimates) Chotoni Nonkqayi Tshayelela 106 99 336.6 ECRDAs RED Hub concept prioritises the village as the centre of operation. The RED Jumba Matafeni 149 134 469 Hub concept has at its core a Mega Farm approach which emphasises the establishment Ngcagca 100 97 281 of viable economic units which entail pulling together fallow land in rural communities and turning these dormant assets into productive clusters. Examples of this work are Fameni 80 82 98.4 in Ncorha, Mqanduli and Mbizana in the Intsika Yethu, King Sabatha Dalindyebo and Mgababa 40 44 42.7 he launch of this harvest is a memorable and Mbizana local municipalities respectively. Lower Ncorha 90 90 288 deeply emotional milestone for those of us plying Tour trade in the rural development space. Rural Mzola 92 102 357 development is a challenging yet rewarding experience which requires years of hard work and covering a lot of Tshatshu Mahlathini 75 76 49.4 ground in order to bring our communities to a place Alfred Nzo of common purpose. This edition takes us through the RED HUBS 1000 1003 3167.8 journey of the last three years which has led to the establishment of four Rural Enterprise Development (RED) Presence in the Hubs in the province. These RED Hubs should become Eastern Cape a lasting legacy for our communities in the rural setting Joe Gqabi offering immense wealth generation opportunities.

However, it is worth acknowledging that all of this work Maize Project Revitalises could not have been achieved without the support of various partners such as the Eastern Cape Develop- ment Corporation, Development Bank of Southern Af- O.R. Tambo Chris Hani Once Barren Land At rica Jobs Fund, Department of Rural Development and Agrarian Reform among others. We pay special tribute to the teams of ECRDA and ECDC social facilitators who have criss-crossed the province bringing our communi- Ndexe/Sgangeni Villages ties to a place of common agreement in order to effect Amathole the desired socio-economic change. Cacadu Thanks also go to the communities which have allowed Cacadu us to help turn their parcels of land into productive assets Buffalo City Metro Some 145 hectares of with a vast potential for wealth and income generation. ESTABLISHMENT OF MECHANISATION UNIT: white maize were planted

Please enjoy. NobaTembu Pako • Eight tractors of different sizes, in Ndexe/Sgangeni with • two trailed harvesters, yield estimates at 4,8 tons • implements and bakkie procured per hectare. Some 696 CEO’s Message Nelson Mandela tons are expected to be Bay Metro harvested.

NCORA: What was once 300 hectares of for themselves. agro-processing/trading post initiative. Emalahleni Mqanduli fallow untilled land at Ndenxe and Sgan- The Jobs Fund will contribute 80% of the geni villages in Ncora, at the Chris Hani “Since the cooperative’s inception, we funds while the remaining 20% is split 829ha 936ha District Municipality has seen a remark- have been able to put food on our own equally between the two implementing of land is planted with grain sorghum with an of land is planted with white maize with an able revival of its agricultural potential tables and in the process, lessen the im- agents. expected yield of 912tons expected yield of 1 526tons with the establishment of the Ndenxe/ pact of poverty. As a means of encour- Sigangeni Primary Cooperative in 2010. aging the participation of each member, “Known as the DBSA Jobs Fund Agro- Driven by a uniform desire to improve we agreed on a set daily stipend for self- processing Initiative, the programme I am excited to launch this harvest edition of Inkqube- Ncora Mbizana their income generation ability as well sustenance. seeks to address production challenges, la! At ECRDA the launch of this edition is a proud as improving food security in the area, availability of storage facilities, process- moment because it is a culmination of years of hard 2925ha 1003ha 986ha 208 landowners from the two villages “We knew the potential our fertile lands ing and marketing activities in rural com- work. Over the last three years, ECRDA has under- of white maize across 3 of the RED Hubs with an of land is planted with white maize with an of land is planted with white maize with an SILOS & MILLING PLANT: clubbed together to establish a joint hold and we had to take ownership of our munities. Production costs are high in gone an exciting process which has led to the estab- expected combined yield of 5 534 tons expected yield of 2 828 tons expected yield of 1 180 tons venture which began a process of turn- development and growth as a communi- the developing sector which discourag- lishment of four Rural Enterprise Development (RED) • Milling shed nearing completion ing their fallow lands into a productive ty. With our minds made up, we immedi- es most farmers from farming,” ECRDA Hubs in the Eastern Cape. • Installation of two new 1000 ton silos complete with asset. ately began fencing our land to protect it agronomist Luvo Qongqo explains. conveying equipment. from livestock damage in preparation for This RED Hub model prioritises the village as the cen- • Weigh bridge next to trading shed. Not an exception, Ncorha is located in the planting season,” Kanzi says. Qongqo says Ndenxe/Sigangeni is only tre of operation. For example, this means that pro- a breathtaking picturesque untapped one of 10 primary cooperatives in Ncorha duce should be grown by the community, milled in ABOUT the community, processed and packaged in the com- landscape with rolling green hills typical The retired 60-year old prison warder who benefitted from the programme munity and even sold back into the community with of the imposing Eastern Cape rural set- adds that “as a start-up we were also in the last year. A total of 1003ha were the whole process being owned by these communi- NCORA RED ting. One of the cooperative’s directors equally aware that there was only so planted in Ncorha benefitting some 706 ties. ECRDA is therefore excited it has taken the nec- Zingile Kanzi describes a setting “boast- much we could do on our own as we did people with a total of 55 temporary jobs essary steps to achieve all the elements of the RED HUB 2014/15 ing hills that lie covered in green, sway- not have the necessary funds to begin created. Hub. Beyond primary production, ECRDA has led the ing wild vegetation that depicts the fer- sowing seeds into the land. On hearing establishment of processing facilities in the form of tility the land harnesses.” about the Eastern Cape Rural Develop- An added advantage for Ndenxe/Si- milling plants, silos for storage and trading stores. CROPPING ment Agency (ECRDA), we approached gangeni and the other cooperatives in This ensures that production receives the market it them and indeed they brought along a Ncorha is the milling plant being estab- needs to flourish. SEASON “boasting hills that lie great deal of assistance to us.” lished for processing and silos for storage in close proximity. There is also a Already, remarkable progress has been made in covered in green, swaying these aspects in Ncora, Mqanduli, Mbizana as well as The cooperative’s advances with ECRDA trading store being established where Emalahleni. I would like to express deep appreciation • Located at Chris Hani wild vegetation that proved a well-timed affair as the Devel- the processed products will be sold. to the various partners who have walked this journey District Municipality depicts the fertility the opment Bank of Southern Africa (DBSA) with us such as the Eastern Cape Development Cor- • R91 million investment to land harnesses.” had recently committed a total of R91 poration, Development Bank of Southern Africa Jobs Ncora and Mqanduli RED Hubs TRADING CENTRE: million over a three year period to an “The plan is to capacitate Fund, Department of Rural Development and Agrar- over three years ECRDA-Eastern Cape Development ian Reform among many others. Corporation agroprocessing partner- the beneficiaries so that • Planted land size is 1003 ha • Steel structure complete To date, the cooperative has managed • Planting dates: 08 Dec 2014 to 14 Jan 2015 ship. they can continue Finally, I wish to extend my gratitude to the various • Cladding in progress to sustain itself and its members, some communities who have made available their valuable • June 2015 crop yield estimates • Waterproofing complete of whom, due to elderly ailments, have production on their own,” “DBSA committed a total of R91 million land assets to ensure that these are turned into pro- an average of 2.8 tons/ha, • Perimeter brickwork complete delegated unemployed farmers to work adds Qongqo. for the next 3 years to both ECRDA and ductive real estate for their wealth and that of future within a range of 0.7 – 4.8 tons/ha. • Septic tank 80% complete on their behalf; thus earning a stipend generations. All of this work is in service to them. • Social charters developed Ncora - Qhumanco 1003ha satelite/arial shot • Toilet block 50% (septic tank complete) ECDC for the implementation of this 02 | Inkqubela Harvest Edition 03 | Inkqubela Harvest Edition

NCORA: What was once 300 hectares of for themselves. agro-processing/trading post initiative. Emalahleni Mqanduli fallow untilled land at Ndenxe and Sgan- The Jobs Fund will contribute 80% of the geni villages in Ncora, at the Chris Hani “Since the cooperative’s inception, we funds while the remaining 20% is split 829ha 936ha District Municipality has seen a remark- have been able to put food on our own equally between the two implementing of land is planted with grain sorghum with an of land is planted with white maize with an able revival of its agricultural potential tables and in the process, lessen the im- agents. expected yield of 912tons expected yield of 1 526tons with the establishment of the Ndenxe/ pact of poverty. As a means of encour- Sigangeni Primary Cooperative in 2010. aging the participation of each member, “Known as the DBSA Jobs Fund Agro- Driven by a uniform desire to improve we agreed on a set daily stipend for self- processing Initiative, the programme I am excited to launch this harvest edition of Inkqube- Ncora Mbizana their income generation ability as well sustenance. seeks to address production challenges, la! At ECRDA the launch of this edition is a proud as improving food security in the area, availability of storage facilities, process- moment because it is a culmination of years of hard 2925ha 1003ha 986ha 208 landowners from the two villages “We knew the potential our fertile lands ing and marketing activities in rural com- work. Over the last three years, ECRDA has under- of white maize across 3 of the RED Hubs with an of land is planted with white maize with an of land is planted with white maize with an SILOS & MILLING PLANT: clubbed together to establish a joint hold and we had to take ownership of our munities. Production costs are high in gone an exciting process which has led to the estab- expected combined yield of 5 534 tons expected yield of 2 828 tons expected yield of 1 180 tons venture which began a process of turn- development and growth as a communi- the developing sector which discourag- lishment of four Rural Enterprise Development (RED) • Milling shed nearing completion ing their fallow lands into a productive ty. With our minds made up, we immedi- es most farmers from farming,” ECRDA Hubs in the Eastern Cape. • Installation of two new 1000 ton silos complete with asset. ately began fencing our land to protect it agronomist Luvo Qongqo explains. conveying equipment. from livestock damage in preparation for This RED Hub model prioritises the village as the cen- • Weigh bridge next to trading shed. Not an exception, Ncorha is located in the planting season,” Kanzi says. Qongqo says Ndenxe/Sigangeni is only tre of operation. For example, this means that pro- a breathtaking picturesque untapped one of 10 primary cooperatives in Ncorha duce should be grown by the community, milled in ABOUT the community, processed and packaged in the com- landscape with rolling green hills typical The retired 60-year old prison warder who benefitted from the programme munity and even sold back into the community with of the imposing Eastern Cape rural set- adds that “as a start-up we were also in the last year. A total of 1003ha were the whole process being owned by these communi- NCORA RED ting. One of the cooperative’s directors equally aware that there was only so planted in Ncorha benefitting some 706 ties. ECRDA is therefore excited it has taken the nec- Zingile Kanzi describes a setting “boast- much we could do on our own as we did people with a total of 55 temporary jobs essary steps to achieve all the elements of the RED HUB 2014/15 ing hills that lie covered in green, sway- not have the necessary funds to begin created. Hub. Beyond primary production, ECRDA has led the ing wild vegetation that depicts the fer- sowing seeds into the land. On hearing establishment of processing facilities in the form of tility the land harnesses.” about the Eastern Cape Rural Develop- An added advantage for Ndenxe/Si- milling plants, silos for storage and trading stores. CROPPING ment Agency (ECRDA), we approached gangeni and the other cooperatives in This ensures that production receives the market it them and indeed they brought along a Ncorha is the milling plant being estab- needs to flourish. SEASON “boasting hills that lie great deal of assistance to us.” lished for processing and silos for storage in close proximity. There is also a Already, remarkable progress has been made in covered in green, swaying these aspects in Ncora, Mqanduli, Mbizana as well as The cooperative’s advances with ECRDA trading store being established where Emalahleni. I would like to express deep appreciation • Located at Chris Hani wild vegetation that proved a well-timed affair as the Devel- the processed products will be sold. to the various partners who have walked this journey District Municipality depicts the fertility the opment Bank of Southern Africa (DBSA) with us such as the Eastern Cape Development Cor- • R91 million investment to land harnesses.” had recently committed a total of R91 poration, Development Bank of Southern Africa Jobs Ncora and Mqanduli RED Hubs TRADING CENTRE: million over a three year period to an “The plan is to capacitate Fund, Department of Rural Development and Agrar- over three years ECRDA-Eastern Cape Development ian Reform among many others. Corporation agroprocessing partner- the beneficiaries so that • Planted land size is 1003 ha • Steel structure complete To date, the cooperative has managed • Planting dates: 08 Dec 2014 to 14 Jan 2015 ship. they can continue Finally, I wish to extend my gratitude to the various • Cladding in progress to sustain itself and its members, some communities who have made available their valuable • June 2015 crop yield estimates • Waterproofing complete of whom, due to elderly ailments, have production on their own,” “DBSA committed a total of R91 million land assets to ensure that these are turned into pro- an average of 2.8 tons/ha, • Perimeter brickwork complete delegated unemployed farmers to work adds Qongqo. for the next 3 years to both ECRDA and ductive real estate for their wealth and that of future within a range of 0.7 – 4.8 tons/ha. • Septic tank 80% complete on their behalf; thus earning a stipend generations. All of this work is in service to them. • Social charters developed Ncora - Qhumanco 1003ha satelite/arial shot • Toilet block 50% (septic tank complete) ECDC for the implementation of this 04 | Inkqubela Harvest Edition 05 | Inkqubela Harvest Edition

Ecrda Leads Development ECRDA unveils R46.5 million Of Second Ncora Irrigation Scheme Emalahleni Rural Enterprise Development Dairy Unit (RED) Hub

The development of the project started in March 2014 when Already, R26 million has been spent in the first year of the RED the first tranche of R17,2 million in funding from ECRDA was Hub initiative in Lady Frere with a total of 829 hectares(ha) of grain made available. sorghum planted between December 2014 and January this year.

NCORA: The Eastern Cape Rural Develop- operating entity are split equally between LADY FRERE: A total of 829 hectares of tions of the Emalahleni RED Hub. The Chris ment Agency (ECRDA) is leading the devel- the landowner and the sharemilker. grain sorghum planted in Lady Frere at the Hani District Municipality has also contrib- opment of a second dairy unit at the Ncora Emalahleni Local Municipality are expected uted R1,6 million to buy a bigger 120 kilo- Irrigation Scheme. According to the Eastern Cape Rural Devel- to yield a harvest of 912 tons as the harvest watt tractor which will come with its own opment Agency (ECRDA), the direct contri- season kicks off. implements,” says ECRDA agronomist Luvo The development of the second dairy unit at bution that the dairy has made to the local Qongqo. Ncora Irrigation Scheme has been funded by economy is significant. The dairy has paid A total of 574 landowners from 13 villages the Department of Rural Development and out R2.6m in salaries and wages in the last in Lady Frere are sharing the spoils from the Qongqo says funds have also been spent to 2 silos with a R3,5 million price tag with a storage capacity of Land Reform (DRDLR) through the ECRDA financial year. In addition to the salaries and R46.5 million, Eastern Cape Rural Develop- upgrade the existing Ibuyambo mill which 2,000 tons have been built. with Amadlelo as the implementing agent. wages the dairy has paid over R1m in ground ment Agency (ECRDA)-led commercialisa- will be for processing of the maize. The Ibuy- The scope of the second dairy is 300 hectares leases and bought over R4m worth of local tion and agro-processing drive over the next ambo mill has 3 tons per hour processing of pivot irrigation, 66 point rotary parlour and maize over the past 3 years. five years. In addition, the Department of Ru- capacity. The construction of a trading cen- 1200 cows. ral Development and Agrarian Reform (DR- tre is also nearing completion. The centre Some 35 people have been employed since 1200 300ha DAR) has funded and planted a further 90ha will sell production inputs such as fertilisers, 829ha 30 000ha The development of the project started in the establishment of the Ncora Dairy Trust of grain sorghum in the area. seeds, agro-chemicals and livestock medi- March 2014 when the first tranche of R17,2 in September 2012 with profits anticipated cows on site at the dairy of pivot irrigation cine among other things. of grain sorghum planted in of land in Lady Frere is million in funding from ECRDA was made to reach R5,5 million by 2016. Ncora Dairy scheme “We are excited with the R46.5 million bud- Lady Frere are expected to available for planting grain available. It is scheduled to become opera- Trust is set to continue as a profitable and get from the Eastern Cape Treasury which An off-take agreement has already been yield a harvest of 912 tons sorghum tional in September 2015. sustainable business contributing to the local has injected momentum into the roll-out of signed with Border Seed to buy all the grain economy of Ncora. It will continue to gener- RED Hubs throughout the province. A total sorghum which will be produced by the Em- “As with the Ncora Dairy Trust, an operating ate distributions to both the Ncora Produc- of 70% of the budget has been spent on the alahleni RED Hub. Once the planned Cra- trust will be registered with Ncora Producers ers Assembly Secondary Co-operative and first season with 20% and 10% spent in the dock bioethanol plant is operational, the Sorghum is an ideal crop for the area because of its drought Secondary Co-operative and Amadlelo Agri Amadlelo Agri (Pty) Ltd. second and third seasons respectively. Two grain sorghum will be sold to the plant. tolerant character. (Pty) Ltd as the beneficiaries. The partnership silos with a R3,5 million price tag with a stor- will also be in the form of a sharemilk agree- Ncora Dairy Trust started operations in Sep- age capacity of 2,000 tons have been built. “In Lady Frere about 30,000 hectares of land ment. tember 2012 as a sharemilk agreement be- is available for planting of grain sorghum. tween the Ncora Producers Assembly Sec- Sorghum is an ideal crop for the area be- A sharemilking agreement, first used and ondary Co-operative and Amadlelo Agri (Pty) A total of 70% of the budget cause of its drought tolerant character. The developed in New Zealand, involves three Ltd. The Ncora Co-op made available all the 200 35 area has low rainfall of 300 – 400mm per an- 120 kW parties, namely the landowner which owns all fixed infrastructure that includes 300 hectares has been spent on the first num. Dry-land maize production would not the land and fixed infrastructure, the share- of pivot irrigation and a 60 point rotary par- season with 20% and 10% be possible under these conditions. It needs maize plots leased at Permanent staff tractor which will come milker which owns all the livestock and loose lour that were funded by Department Rural typically 650 – 1,000mm of rain per annum,” R2 750 per hectar spent in the second and third with its own implements assets and manages the operation as well as Development and Agrarian Reform (DRDAR) seasons respectively. Qongqo explains. the operating entity which is usually a trust,” and Chris Hani District Municipality (CHDM) worth R1.6 million has been says ECRDA livestock specialist Mathemba at a cost of R 26m. Amadlelo’s contribution bought Maphuma. to the agreement is all the livestock (R12m), “In addition, ECRDA bought six tractors, a loose assets (R2m) and management of the Ncora Producers Assembly Secondary Co-operative and combine harvester, implements and a 1 ton In addition ECRDA bought 6 tractors, a combine harvester, Maphuma says any profits generated by the operating trust. Amadlelo Agri are the beneficiaries of Ncora Dairy Trust. bakkie to aid in production and the opera- imlements and a 1 ton bakkie. 04 | Inkqubela Harvest Edition 05 | Inkqubela Harvest Edition

Ecrda Leads Development ECRDA unveils R46.5 million Of Second Ncora Irrigation Scheme Emalahleni Rural Enterprise Development Dairy Unit (RED) Hub

NCORA: The Eastern Cape Rural Develop- operating entity are split equally between LADY FRERE: A total of 829 hectares of tions of the Emalahleni RED Hub. The Chris ment Agency (ECRDA) is leading the devel- the landowner and the sharemilker. grain sorghum planted in Lady Frere at the Hani District Municipality has also contrib- opment of a second dairy unit at the Ncora Emalahleni Local Municipality are expected uted R1,6 million to buy a bigger 120 kilo- Irrigation Scheme. According to the Eastern Cape Rural Devel- to yield a harvest of 912 tons as the harvest watt tractor which will come with its own opment Agency (ECRDA), the direct contri- season kicks off. implements,” says ECRDA agronomist Luvo The development of the second dairy unit at bution that the dairy has made to the local Qongqo. Ncora Irrigation Scheme has been funded by economy is significant. The dairy has paid A total of 574 landowners from 13 villages the Department of Rural Development and out R2.6m in salaries and wages in the last in Lady Frere are sharing the spoils from the Qongqo says funds have also been spent to 2 silos with a R3,5 million price tag with a storage capacity of Land Reform (DRDLR) through the ECRDA financial year. In addition to the salaries and R46.5 million, Eastern Cape Rural Develop- upgrade the existing Ibuyambo mill which 2,000 tons have been built. with Amadlelo as the implementing agent. wages the dairy has paid over R1m in ground ment Agency (ECRDA)-led commercialisa- will be for processing of the maize. The Ibuy- The scope of the second dairy is 300 hectares leases and bought over R4m worth of local tion and agro-processing drive over the next ambo mill has 3 tons per hour processing of pivot irrigation, 66 point rotary parlour and maize over the past 3 years. five years. In addition, the Department of Ru- capacity. The construction of a trading cen- 1200 cows. ral Development and Agrarian Reform (DR- tre is also nearing completion. The centre Some 35 people have been employed since 1200 300ha DAR) has funded and planted a further 90ha will sell production inputs such as fertilisers, 829ha 30 000ha The development of the project started in the establishment of the Ncora Dairy Trust of grain sorghum in the area. seeds, agro-chemicals and livestock medi- March 2014 when the first tranche of R17,2 in September 2012 with profits anticipated cows on site at the dairy of pivot irrigation cine among other things. of grain sorghum planted in of land in Lady Frere is million in funding from ECRDA was made to reach R5,5 million by 2016. Ncora Dairy scheme “We are excited with the R46.5 million bud- Lady Frere are expected to available for planting grain available. It is scheduled to become opera- Trust is set to continue as a profitable and get from the Eastern Cape Treasury which An off-take agreement has already been yield a harvest of 912 tons sorghum tional in September 2015. sustainable business contributing to the local has injected momentum into the roll-out of signed with Border Seed to buy all the grain economy of Ncora. It will continue to gener- RED Hubs throughout the province. A total sorghum which will be produced by the Em- “As with the Ncora Dairy Trust, an operating ate distributions to both the Ncora Produc- of 70% of the budget has been spent on the alahleni RED Hub. Once the planned Cra- trust will be registered with Ncora Producers ers Assembly Secondary Co-operative and first season with 20% and 10% spent in the dock bioethanol plant is operational, the Sorghum is an ideal crop for the area because of its drought Secondary Co-operative and Amadlelo Agri Amadlelo Agri (Pty) Ltd. second and third seasons respectively. Two grain sorghum will be sold to the plant. tolerant character. (Pty) Ltd as the beneficiaries. The partnership silos with a R3,5 million price tag with a stor- will also be in the form of a sharemilk agree- Ncora Dairy Trust started operations in Sep- age capacity of 2,000 tons have been built. “In Lady Frere about 30,000 hectares of land ment. tember 2012 as a sharemilk agreement be- is available for planting of grain sorghum. tween the Ncora Producers Assembly Sec- Sorghum is an ideal crop for the area be- A sharemilking agreement, first used and ondary Co-operative and Amadlelo Agri (Pty) A total of 70% of the budget cause of its drought tolerant character. The developed in New Zealand, involves three Ltd. The Ncora Co-op made available all the 200 35 area has low rainfall of 300 – 400mm per an- 120 kW parties, namely the landowner which owns all fixed infrastructure that includes 300 hectares has been spent on the first num. Dry-land maize production would not the land and fixed infrastructure, the share- of pivot irrigation and a 60 point rotary par- season with 20% and 10% be possible under these conditions. It needs maize plots leased at Permanent staff tractor which will come milker which owns all the livestock and loose lour that were funded by Department Rural typically 650 – 1,000mm of rain per annum,” R2 750 per hectar spent in the second and third with its own implements assets and manages the operation as well as Development and Agrarian Reform (DRDAR) seasons respectively. Qongqo explains. the operating entity which is usually a trust,” and Chris Hani District Municipality (CHDM) worth R1.6 million has been says ECRDA livestock specialist Mathemba at a cost of R 26m. Amadlelo’s contribution bought Maphuma. to the agreement is all the livestock (R12m), “In addition, ECRDA bought six tractors, a loose assets (R2m) and management of the Ncora Producers Assembly Secondary Co-operative and combine harvester, implements and a 1 ton In addition ECRDA bought 6 tractors, a combine harvester, Maphuma says any profits generated by the operating trust. Amadlelo Agri are the beneficiaries of Ncora Dairy Trust. bakkie to aid in production and the opera- imlements and a 1 ton bakkie. 06 | Inkqubela Harvest Edition 07 | Inkqubela Harvest Edition

How did the Jobs Fund Agro-processing How much is ECDCs contribution? rural economy. Agro-processing then initiative come about? ECDCs contribution amounts to R9 mil- becomes an essential link in both rural In Conversation The DBSA Jobs Fund Agro-processing lion as well as additional capacity to sup- and urban economies. Agro-processing R53 Million initiative has its roots in a joint applica- port the implementation of the projects. is not only a priority sector within the with Eastern Cape tion between ECDC and ECRDAs prede- province; but nationally. ECDC views cessor, the Accelerated Shared Growth What is ECDCs key role? agro-processing as the sector with the Pumped Into Initiative of South Africa (AsgiSA-EC). While our implementing partner, ECRDA, greatest potential for growth. Industriali- Development The two agencies submitted the joint is more focused on primary production sation of agriculture will bring about the application in response to the very first of maize, ECDCs role is mainly in the greatest impact in our economy. Mbizana RED Hub Corporation (ECDC) call for proposals by the DBSA Jobs processing and value addition of maize, Fund in December 2012, which was sub- and the ultimate marketing and distribution What are some of the opportunities agro-processing sequently approved in April 2013. of the final product. available in the Eastern Cape’s A total of R53 million has been committed to Mbizana agro-processing sector? specialist What motivated the joint application How is the RED Hub model linked Opportunities exist in renewable biofuels, over the next three years. In this first season, 983 with ECRDA to DBSA? to the objectives of the Provincial livestock, natural products, and benefi- hect-ares of white maize were planted in Mbizana. We had already identified non-collabo- Industrial Development Strategy ciation of the established fruit industry. Mlamli Nodada ration and uncoordinated efforts in im- (PIDS)? MBIZANA: The Eastern Cape Rural De- of planting on both sites with the bulk, plementing projects as one of the root Agro-processing is the common feature What investment opportunities has velopment Agency (ECRDA) says it ex- about R19,2 million going toward mech- causes of failure of many projects during in both the Red Hub as well as PIDS with ECDC packaged in the sector? pects a yield of 1,180 tons from the 983 anisation units and implements. Inkqubela editor NobaTembu Pako the implementation stage. particular emphasis on enterprise devel- Investment opportunities exist in dairy, hectares of white maize planted at the speaks to the man behind ECDCs opment within the local rural communi- greenhouse, medicinal and aromatic plants. Mbizana RED Hub Gwanya says communities benefit by What are the key elements of the ties. Agro-processing also happens to contributing their own land which has agro-processing drive. agreement? be one of the key priority sectors of the Finally, what will be ECDCs future With the harvest season having officially been lying fallow for many years for pro- Stakeholder consultation, matched PIDS which contributes to the diversifica- focus for the sector? kicked off in Mbizana at the beginning of duction. funding, creation of jobs as per the pro- tion of the Eastern Cape economy be- ECDC will focus on industrialisation of August, a total of 422 landowners in the posal submitted, governance and proj- yond the automotive sector which is the established industries such as maize villages of Bizana from the R53 set aside “In the first year, government contrib- ect management as well as reporting. dominant sector. production, biofuels crops, while focus- for the programme in the area over the utes 100% of the production costs and ing on high value crops like essential oils next three years. thereafter landowners through coopera- How much has been allocated to the Why ECDCs strong focus on and natural products. tives contribute to production on a slid- RED Hubs in Ncora and Mqanduli? agro-processing? “Eastern Cape Provincial Treasury has ing scale. A total of R91 million is to be spent over The Eastern Cape has the greatest potential Thank you. set aside a total of R53 million and R46 a period of three years. in agriculture, which also talks to the million respectively for the Bizana and For example, in the second season, they Lady Frere over the next three years. In will contribute 25% of costs, and 50%, this first season, 983 hectares of white 75% and 100% from the third to fifth maize have been planted in Bizana and year. This creates self-sustainability and Agro-Processing Forestry Boost For Rural Communities 829 hectares of grain sorghum were a sense of ownership by communities in planted in Lady Frere. A total of R20 mil- these programmes,” Gwanya explains. Sector Gains Ground lion was committed for this first season

The agro-processing sector in the Eastern Cape is gaining In 2014/15, ECDC in partnership with mented with planting, bush clearing and A long time ECDC client since 2005, PG traction with fresh leads coming from various countries in the Eastern Cape Rural Development site preparation activities taking place. Bison has taken on a new afforestation Europe such as Belgium, Switzerland, Germany (for bio- Agency (ECRDA), consolidated the im- ECDC also established a project imple- project of 572ha which has created an mass, dairy processing and cosmetics), the Netherlands plementation of the National Treasury mentation office in Mthatha to build ca- additional 55 jobs in the last year. (greenhouse/tunnel production), dairy, red meat, chicory Jobs Fund R113 million forestry initia- pacity to run the project with ECRDA. and citrus production and value addition. tive. In terms of the initiative, ECDC Singisi Forests also expanded and cre- and ECRDA contribute R15 million each ECDC is funding an Environmental Im- ated an additional 25 new jobs. Apart All these stand to benefit rural economies throughout the toward the realisation of the project ob- pact Assessment for the Mkhambathi from being a shareholder, ECDC also province particularly east of the province. The emphasis is jectives. The initiative currently supports project. Consultants have been ap- assisted with the community facilitation the creation of requisite infrastructure such as silos, abat- five community forestry projects with a pointed in Mkhambathi and Sinawo for process. toirs as well as milling plants which was partly achieved total target of eight. In the period un- the planting of 1,200ha each in order to this year supported by the DBSA Jobs Fund Investment. der review, the five projects were imple- accelerate the afforestation process. 1180tons R20m

of white maize is expected was committed for this first by the ECRDA from the season of planting in both 983ha planted eMbizana Mbizana and Lady Frere

MQANDULI: Six primary co-operatives ture development. implements such as disc, planters, cul- 1,526 Tons forming part of the Mqanduli RED Hub tivators, boom sprayers among other are expected to harvested 1,526 tons of ECRDA contributed 75% and the bal- implements. Funds were also spent on white maize form the 936 hectares plant- ance of 25% of primary production costs the establishment of grain silos and the Expected From ed in 2014/15. was from farmer contributions. In addi- servicing of an existing 1,5 tons-per-hour tion, 36 people have been employed on mill in Mqanduli. Mqanduli Harvest In 2014/15 a total of R51 million was a permanent basis in Mqanduli. A total spent on the development of the Mqa- of 80 temporary workers were employed In Mqanduli the existing 500 ton silo was nduli and Ncora hubs. The funds were during harvesting in Mqanduli. extended to 750 tons. In addition, a new A total of 80 temporary workers spent on primary production of white 750 ton silo was built to complement the were employed during harvesting maize on both sites, on the development A total of 7 tractors and a bakkie were refurbished one bringing total storage in Mqanduli. of mechanisation units in the form of ma- bought for the Mqanduli site, a self- capacity at the site to 1,500 tons. chinery and implements and infrastruc- propelled combine harvester as well as 06 | Inkqubela Harvest Edition 07 | Inkqubela Harvest Edition

of white maize is expected was committed for this first by the ECRDA from the season of planting in both 983ha planted eMbizana Mbizana and Lady Frere

MQANDULI: Six primary co-operatives ture development. implements such as disc, planters, cul- 1,526 Tons forming part of the Mqanduli RED Hub tivators, boom sprayers among other are expected to harvested 1,526 tons of ECRDA contributed 75% and the bal- implements. Funds were also spent on white maize form the 936 hectares plant- ance of 25% of primary production costs the establishment of grain silos and the Expected From ed in 2014/15. was from farmer contributions. In addi- servicing of an existing 1,5 tons-per-hour tion, 36 people have been employed on mill in Mqanduli. Mqanduli Harvest In 2014/15 a total of R51 million was a permanent basis in Mqanduli. A total spent on the development of the Mqa- of 80 temporary workers were employed In Mqanduli the existing 500 ton silo was nduli and Ncora hubs. The funds were during harvesting in Mqanduli. extended to 750 tons. In addition, a new A total of 80 temporary workers spent on primary production of white 750 ton silo was built to complement the were employed during harvesting maize on both sites, on the development A total of 7 tractors and a bakkie were refurbished one bringing total storage in Mqanduli. of mechanisation units in the form of ma- bought for the Mqanduli site, a self- capacity at the site to 1,500 tons. chinery and implements and infrastruc- propelled combine harvester as well as 08 | Inkqubela Harvest Edition ECRDAs approach to the application of the RED Hubs - A sit down with Luvo Qongqo

• Lack of funding for primary production cessing of grain through the establishment How does ECRDA plan to improve • High mechanisation costs for soil of milling plants, branding and marketing yields and product quality? preparation and other operations of processed products to local and external The first thing is to plant early and within • Long distance to market which will markets among other things. planting window period. This will improve results in high transport cost. yield and quality significantly. Lobby other • Lack of access to localised value Who owns the land for the primary stakeholders with funding for fencing in or- adding services. production? der to reduce livestock damage. • Lack of localised grain storage. It is owned by members of primary cooperatives. • Access to inputs and support services. What are the main challenges being con- • Low skill base How do community members benefit? fronted in the implementation of the • The community members will benefit hubs? How is it different from models tried before? by selling their grain crops to the RED There are a number of them but to mention The RED Hub model encompasses all the Hub, which will be the closest market a few major challenges: critical value chain aspects, starting from pri- to them and will cut out transport costs. • Late planting which adversely affect crop mary production, processing and marketing. • RED Hub will bring employment yield and quality. INKQUBELA EDITOR A RED Hub creates a platform for economic opportunities and will also business • Poor farmer participation NobaTembu Pako speaks to activity, ultimately resulting in increased rural opportunities like transport business. • Most crop field are not fenced and the incomes through the processing of primary • Those community members that are crop is being damaged by livestock ECRDA agronomist production, promoting rural savings and in- primary cooperative members will • Theft is also a serious challenge Luvo Qongqo vestment, creating a communal and external. earn dividends from the RED Hub. • Availability of power to run the milling plant is a challenge especially on new Why ECRDAs strong agro-processing focus? In practice, what does the RED Hub model How many community members have sites and hinders the progress For now, ECRDAs focus is on processing mean? benefitted from the Ncora RED Hub? grain crops like maize and sorghum through A RED Hub creates a platform for economic The total number of primary cooperative What are ECRDAs future plans for the hubs? the establishment of micro milling plants in activity, ultimately resulting in increased ru- members is 1,031. The plan is to introduce more enterprises rural areas. ral incomes through the facilitation primary such as feedlots. grain (maize, sorghum & soya beans) pro- How many jobs have been created? Why the RED Hub model? duction, establishment of mechanisation Some 162 jobs have been created which Is there a plan to develop more hubs? The RED Hub model is attempting to re- units and workshops with tractors, harvest- includes production workers, mechanisation Yes, there is a plan to develop one RED Hub spond to identified challenges that affect ers, implements and bakkies. This includes supervisors, tractor operators, mill operators, in- each year. emerging farmers, namely: the installation of grain storage silos, pro- terns and RED Hub Managers.

For more information about the Jobs Meet Ecrda Social Facilitators Fund Agro-processing Initiative and the RED Hubs please contact:

TEAM MANAGER: ROLES

• interaction with the communities • Promoting ECRDA and other programmes • Community Awareness • Social Facilitation and Socio-economic development Eastern Cape Rural Development • Capacity Building and business support Agency and advisory services Beacon Bay Crossing, SKG Building,1st • Development of Rural Development Floor Clusters East London, South Africa. • Support to Rural Markets Tel. 043 703 6300 The team is led by Zingisa Somlotha as the For enquiries and support contact manager responsible for the programme. Mr Zingisa Somlotha on 060 991 2422/ [email protected] SOCIAL FACILITATORS:

Ocean Terrace Park, Moore Street, Quigney, EAST LONDON PO Box 11197, Southernwood, East London, Eastern Cape, South Africa, 5213 Telephone: 043 704 5600

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