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Gert Sibande DM Final Master Agri-Park Business Plan

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Gert Sibande DM Final Master Agri-Park Business Plan AGRI-PARKS MASTER BUSINESS PLAN Gert Sibande Agri-Park Final Master Business Plan April 2016 0 AGRI-PARKS MASTER BUSINESS PLAN This Report has been read and approved by: _____________________________ _________________________ Chief Director: PSSC Head Date Ms. Z Sihlangu _____________________________ _________________________ REID Director: Mr. MC Madolo Date ____________________________ _________________________ RID Director: Ms. A Mametja Date _____________________________ _________________________ GSDM: District Agri-Park Coordinator Date Mr. A Sibuyi 1 AGRI-PARKS MASTER BUSINESS PLAN URBAN-ECON DEVELOPMENT ECONOMISTS Suite 203 Metropolitan House 15 Russell Street Mbombela 1200 Tel: 013 752 4932 E-mail: [email protected] Website: www.urban-econ.com Manstrat Agricultural Intelligence Solutions Tel: 012 460 2499 Email: [email protected] Website: www.manstrat.co.za 2 AGRI-PARKS MASTER BUSINESS PLAN Content EXECUTIVE SUMMARY ........................................................................................................ 8 1 Introduction ...................................................................................................................... 11 1.1 Introduction ..................................................................................................................................... 11 1.2 Project Goals and Objectives ..................................................................................................... 11 1.3 Methodology .................................................................................................................................. 12 1.4 Project Purpose ............................................................................................................................... 12 2 The Agri-Park Model ........................................................................................................ 14 2.1 Understanding the Agri-Park Concept ...................................................................................... 14 2.2 Defining the Agri-Park System ...................................................................................................... 16 3 Policy Review ................................................................................................................... 20 3.1 National Government Policies ..................................................................................................... 20 3.2 Provincial Government Policies ................................................................................................... 32 3.3 District Policy Review ..................................................................................................................... 34 4 Locational Context........................................................................................................... 36 4.1 District Description .......................................................................................................................... 36 4.2 Location of Agri-Hub ..................................................................................................................... 38 4.3 Maps ................................................................................................................................................. 39 4.4 Economic Infrastructure ................................................................................................................ 39 5 Main Role-Players in the District ...................................................................................... 42 5.1 Government .................................................................................................................................... 42 5.2 Organisations and Industry Associations ................................................................................... 46 6 Economic and Socio-Economic Analysis .......................................................................... 48 6.1 Introduction ..................................................................................................................................... 48 6.2 Socio-Economic Profile ................................................................................................................. 48 6.3 Economic Analysis ......................................................................................................................... 51 7 Agriculture Sector Overview ............................................................................................ 55 7.1 Gert Sibande Agriculture Sector Analysis .................................................................................. 55 3 AGRI-PARKS MASTER BUSINESS PLAN 7.2 Contribution to Gross Value Added ........................................................................................... 59 7.3 Resource Analysis ........................................................................................................................... 60 7.4 Commodity Selection ................................................................................................................... 62 7.5 Gert Sibande Selected Commodities ........................................................................................ 66 8 Red Meat ......................................................................................................................... 69 8.1 Market assessment ......................................................................................................................... 69 8.2 Red Meat Market Price ................................................................................................................. 81 8.3 Value chain assessment ............................................................................................................... 83 8.4 Main Competitors .......................................................................................................................... 91 8.5 Stakeholders .................................................................................................................................... 91 8.6 Technology ...................................................................................................................................... 92 8.7 Demand and Needs Analysis ...................................................................................................... 99 8.8 Job Creation ................................................................................................................................. 100 8.9 Contribution to Food Security .................................................................................................... 101 8.10 Regulatory Requirements ......................................................................................................... 102 8.11 Substitute Products .................................................................................................................... 106 8.12 Societal Trends ............................................................................................................................ 107 8.13 Barriers to Entry ............................................................................................................................ 108 8.14 SWOT analysis .............................................................................................................................. 110 9 Vegetables ...................................................................................................................... 111 9.1 Market assessment ....................................................................................................................... 111 9.2 Value chain assessment ............................................................................................................. 118 9.3 Agro-processing opportunities .................................................................................................. 120 9.4 Competitors ................................................................................................................................... 124 9.5 Stakeholders .................................................................................................................................. 125 9.6 Technology .................................................................................................................................... 125 9.7 Demand and Needs Analysis .................................................................................................... 133 9.8 Job Creation ................................................................................................................................. 134 9.9 Contribution to Food Security .................................................................................................... 135 9.10 Regulatory Requirements ......................................................................................................... 135 4 AGRI-PARKS MASTER BUSINESS PLAN 9.11 Substitute Products .................................................................................................................... 140 9.12 Societal Trends ............................................................................................................................ 140 9.13 Barriers to Entry ............................................................................................................................ 141 9.14 SWOT Analysis ............................................................................................................................
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