Farming Development Project Proposal 2020 - OpenIDEO
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Farming
Development Project
Proposal 2020
1Overberg Area Development Project
Vision
To grow good quality produce while developing people and communities towards a
sustainable future.
Mission
To achieve our vision, we aim to:
1. Create a product-based company whose goal is to exceed customers' expectations.
2. Develop a sustainable farm, surviving off its own cash flow.
3. Assist our beneficiary communities to create and sustain small-scale farms to supply
good quality produce and to, simultaneously, improve socio-economic conditions in the
area in the medium-to-long-term.
4. Create training and economic opportunities in the agribusiness sector.
5. Use this project, and those emanating therefrom, as platforms to bringing
transformation to participants at a mental, emotional and spiritual level, thereby
positively impacting on themselves and their family circles, as well as everyone in the
communities they touch.
Mutual Ventures & Innovations - The Co-operative
Mutual Ventures & Innovations Co-operative (MVI Co-operative) is being registered as a co-
operative and Public Benefit Organisation for the purposes of annual auditing. We are
constituted as a Social Enterprise to allow us to trade profitably to ensure that we
maintain sustainability and also to be able to create more training and economic
opportunities for people in the programs which we envisage. We are a Social Enterprise
first and foremost and even though the programs we envisage are income generating, this
income will provide cash flow for sustainability and also more training and other economic
opportunities for our beneficiary communities.
We seek to create jobs and training opportunities for low-income, homeless, and other at-
risk individuals by starting micro-enterprises. This model is becoming popular worldwide
where companies are building their corporate responsibility role into their target
communities from the start. It allows a more conscious and conscientious way of doing
business.
According to this definition, MVI Co-operative regards all its economic opportunities
programs and business development services as social enterprises. In this way, even though
we will only be working directly with 100 apprentices, because of the associated and
secondary pursuits involved in the project, we will be creating work and business
opportunities for more than 300 people within the first year alone.
Our personal development programs will contribute substantially to the sustainability of
the benefits of the project on this premise: We can only change what we believe in.
Otherwise stated: If we do not train our participants in terms of self-worth, self-belief
and positive attitude, over a relatively long period of time, with consistency, we could find
our project becoming just another good idea that could not be sustained because the
2participants did not have the mental, emotional and spiritual strength to sustain it, when
they needed to stand on their own.
By setting up a Permaculture Academy, we will be training our participants as well as
members of the public in permaculture to improve the local ecology and improve the
quality of the soil as well as preserving water and food security.
Introduction
Declining farming profitability and water scarcity (drought, declining rainfall or over-
demand for water) has left South Africa with less than two-thirds of the number of farms it
had in the early 1990s. In many instances the lost farms have been changed to other land
uses, or consolidated into larger farming units to achieve effective economies of scale.
Although the area under maize, wheat and dairy (5% of the national herd) has decreased
significantly over the last 20 years (Agricultural Statistics, 2008), production remains
relatively constant, indicating an increasing trend in intensified production.
The larger food companies like Pioneer Foods, Tiger Brands, etc. are buying over farms to
ensure supply and control pricing – a situation that appeals to the farmer since a contract
means an assured income. This has an opposite effect on the general population since if
food remains under the control of corporates, price fixing and indiscriminate increases
eventually become the order of the day (as has been seen with bread price fixing
recently). These changes are locking out low-income and no-income communities who by
and large can no longer afford to buy these products. Diseases like malnutrition are on the
rise in these areas and research has shown that many children in these communities are at
risk since there is little to no food to ensure their health.
In the Helderberg Basin and Overberg area, there is an extremely high unemployment rate.
Agriculture in the area has also slowed down and farmers are not employing people at the
rates of the past because of the new issues around farm and land tenure or they now
employ other African workers who are willing to work for much lower wages than local
people. Having previously done training programs in the area, we have found that people
are eager to work but work opportunities are dwindling. Also, unicrop farms need more
time and rotation to recover in order to provide high-nutritional value crops.
In these same areas, socio-economic maladies are growing rapidly, as unemployment and
related poverty escalate, often leading to domestic violence, physical & sexual abuse,
alcohol & drug abuse, increases in theft & murder, as well as many other evils associated
therewith. The aforementioned cycle is perpetuated as a result of many adults remaining
uneducated and/or unskilled, as well as socially and commercially unfit, completing the
cycle to the where all related issues converge and isolate onto the home environment,
where families have to deal with them as a result.
There is also an influx of people from the Eastern Cape, who come here in the hope that
they will find jobs and also in the Sir Lowry’s Pass area and Grabouw there is also an influx
of people from other parts of Africa who area in search of economic opportunity. This puts
immense pressure on the social structure of the area since there is a high level of
xenophobia and suspicion amongst the various racial and cultural groups.
What can be done? Who will go out and do something that will provide employment, living
wage, food, educational bursaries for the children, and the kind of education and training
that is so desperately needed in these communities? With the Overberg Area Development
Project we aim to create such opportunities by creating employment and entrepreneurial
opportunities that are available al year round.
3Project Objectives
The objectives for the Overberg Area Development Project include:
• To grow good quality food crops
• To apprentice and train individuals from the area to plan, implement and manage a
small scale mixed farm
• To eventually assist each successful participant to start and manage a small-scale
mixed produce farm
• To provide our crops for sale at a reasonable rate to assist consumers in the area
• To improve soil quality and clear the area of invasive species to safeguard water in
the area
• The utilization of our produce in at least 30% of the restaurants on the Atlantic,
Southern and Western Seaboards within the first year
• To increase the efficiency of our production by about 12% a year
• To provide consumers with an organic alternative to the produce they currently
purchase
• To create numerous education, training and entrepreneurial opportunities in
agribusiness
• To uplift the target community and revive the local economy in a sustainable way
• To improve the standard of living for our target community and their families
• To provide scholarships for the children of participants to ensure that the next
generation produces skills which can continue to improve the lives of people in the
area
Issues We Aim to Address
There are various issues in South Africa which are cause for alarm. While we cannot
eliminate the problems, we can go a long way to making a difference about them in our
area - the greater Cape Peninsula and Overberg area. By helping to revive the local
economy of Grabrouw, we can already make a difference to the people of the area.
With the Overberg Area Development Project we would like to create a “hub farm” and
various satellite “farms” where possible in the area with a common marketing plan. Each
trainee will be developed to create their own growing “patch” which will contribute to the
produce required for contracts, etc. as well as grow for their own use. In this way, we will
provide a livelihood for all the participants while we develop and expand the business.
Some of the problems which led us to designing the project:
• Dwindling agriculture – each year more farms are being shut down. One only has to
see the back of the Farmers Weekly magazine each week to see how many auctions
and liquidation sales are taking place countrywide. Fewer farms means less food
and higher prices for available food.
4• Land claims – the increase in land claims has caused a type of limbo. Farmers are
loath to invest in expansion for fear of having their land to become caught in a land
claim.
• Government policy and attitude towards agriculture – commercial agriculture is still
seen as “white” and “Afrikaans”. Although there is much lip service paid to the
importance of farms and farming, there is no real interest in improving conditions
for farmers. Training being provided to emerging farmers is not at the rate to
develop those farmers and farms to the level needed by the country
• Multinationals are contracting existing farmers to produce exclusively for them or
buying out major producers – this control of agriculture and agricultural products
can only lead to higher pricing in future and also manipulation of the market
• Annual food price increases is changing the picture of what the ordinary South
African can afford to eat. If the trend continues, ordinary households will no longer
be able to afford to buy basic products. This can be seen in the increase in the
price of meat.
• Many farmers are export-focused since it means a higher income. With more and
more produce leaving the country, the quality of what remains is also deteriorating
while prices increase irrespective.
• Because of the threat of land claims, land tenure has become questionable. Many
farmers no longer provide accommodation for their employees and some no longer
take on workers for permanent employment. This has led to many farm workers
losing positions their families have held for generations. Although they have held
these positions, many only know the tasks they have done all these years – they
have no general skills base which can help them find more work.
• Increasing petrol price – each time the petrol price increases, food prices increase.
These prices are not reviewed when the petrol price comes down again. The
increase continues to escalate. One wonders where it will all end.
• Growing unemployment – in the Helderberg Basin and Overberg area, there is much
employment and many people are not even able to find casual work. Farms can
only employ so many people and with the influx of people into the region, the gap
between the affluent and the poverty-stricken continues to grow.
While we cannot aim to completely resolve these issues, we would like to believe that we
can make a difference to at least 100 of these families through this project and then to
others through what we can provide under the auspices of what we aim to do. We also
believe that small-scale farming can help the country overcome some of the food price
increase problems, create and foster local economies and allow people to improve their
standard and quality of life in a positive way as well as provide livelihood for those who
participate in the project.
5The Overberg Area Development Project
Socio-economic Impact
The chosen area community we have decided to involve in our project are something of an
exiled community and as such will be dramatically affected by the results of the project on
an ongoing basis. Because the project aims to bring training, employment and
entrepreneurial opportunities to the community, we will be reviving the local economy.
There is an opportunity to change the skills set of the general population from farm
worker, to farm manager, and eventually farm owner. There will be both a current and
generational impact because there are many spin-offs to be had from the project.
New businesses will be formed and existing businesses expanded as people will have money
to buy products and services.
Whilst we are training 100 people in the first year, we will be looking at the various
aptitudes displayed by each individual. Where a participant shows aptitude leaning toward
the associated secondary industries, we will then move that individual into that area of the
project and replace them in the agriculture section. In this way, we estimate that we will
be creating opportunities for at least 300 people within the first year.
The alleviation of the aforementioned socio-economic issues is another important focal
point on this project.
The Small-scale Farming Model
Small-scale farming can provide both a good supply of quality produce as well as creating
jobs since farms can be managed on smallholdings and do not necessarily require large
tracts of land.
The land we have noted which could house the project is situated in Overberg Area
grounds (aerial photo attached) and consists of +40ha which has the potential to be
increased in time with ‘satellite’ farms and plots.
Sustainable small-scale agricultural practices aim to:
• Change the way land and water resources are managed, so that their long-term
productivity is optimised and sustained
• Contribute to the economic and social well-being of all participants, the communities
they touch, as well as the market at large
• Ensure a safe and high-quality supply of agricultural products
• Safeguard the livelihood and well-being of farmers, farm workers and their families
• Maintain healthy, functioning agricultural ecosystems rich in biodiversity
• Mitigate and adapt to climate change.
The benefits of sustainable farming would be:
6• Reduced or predictable input costs
• Stabilised yields
• Reduced environmental pollution
• Reduced exposure to toxins
• Increased water use efficiency
• Living soils – increased soil fertility and/or nutrient-holding capacity
• Reduced soil erosion
• Carbon sequestration (mitigating climate change)
• Enhanced, robust natural systems protecting biodiversity and ecosystem services.
Project Objectives& Business Case
The objectives of the Overberg Area Development Project include:
• Job and venture creation, thus uplifting the target community and reviving the local
economy with the purpose of sustainability and growth, thereby improving the
standard of living of our target community and their families by alleviating poverty
and hunger
• To create numerous education, training and entrepreneurial opportunities in
agribusiness
• To apprentice and train individuals from the area to plan, implement and manage a
small scale mixed farm and, eventually, to assist each successful participant to start
and manage a small-scale mixed produce farm, independent from us.
• To help, as far as possible, to alleviate the many social and domestic issues arising as a
result of the dire socio-economic situation in our target communities
• Provide education and training to bring the group (predominantly women) up to world
standard in small–scale farming methodology (we will be using UN, FAO and WWF
Standards)
• To provide scholarships for the children of participants to ensure that the next
generation produces skills which can continue to improve their own lives and that of
people in the area
• To grow good quality food crops and to sell them at a reasonable rate, to assist
consumers in the area
7• To provide consumers with a healthier, organic alternative to what is available in the
area
• To expand and create business and marketing opportunities for fresh, good quality
organic produce in the greater Cape Peninsula area and Overberg and increase the
number of small-scale and commercial farms within a generation
• Create a vibrant agricultural co-operative, where participants can bring their crops
thus strengthening the sector
• Change the situation for women in the area from subsistence to active agri-business
and to use the money generated to create ongoing assured empowerment and change
particularly for women and children in the area
• To improve soil quality and keep the area clear of invasive species to safeguard water
in the area
• To utilize our produce in at least 10% of the restaurants on the Atlantic and Western
Seaboards and Southern Cape within the first two years of operation and to increase
the efficiency of our production by about 12% per year
Project Execution
The project aims to initially involve 100 people on a +40 hectare variegated plot (8 groups
of 10 for vegetables, fruit and animal husbandry and 2 groups of 10 for the eventual
Aquaculture section) growing vegetables for both subsistence and onward sale to local and
regional markets. We will be using permaculture as our method of farming and set up a
permaculture academy for training interested candidates up to Permaculture Design level.
The ultimate aim is for this group to form, own and run the co-operative and be directly
involved in the marketing of their produce. Other work paths will also be established
within the project to make the best use of the natural skills and aptitudes the women may
display. Various sub-industries have been identified in the project such as packaging, soap
and candle making, catering and food services and childcare to name a few.
We are seeking Fairtrade labelling and to develop distribution networks which can take on
and sell the products; allowing each member of the group to create a sustainable income
and acquire skills that will enable them to become competitive in agri-business.
A longer term aim of the project is to establish a food processing plant where further
processing of the produce can be done to create a range of competitive food safe products
which would be priced affordably.
All income-generation is for the purpose of self-sustainability and also to create new
programs to expand to new projects, in order to expand our community development
reach while providing opportunities for other companies to become involved through their
own CSI profiles.
8Staffing Solutions
Economy
In the current economic climate we face globally, it is apparent that we have to take
control and ownership for improving our own lives. We can no longer rely on industry and
corporates to provide work and livelihood for the nation.
Therefore, this project will create employment with the view to part ownership/full
ownership of a small-scale mixed produce farm. Our aim is to empower our people through
apprentice training opportunities; local entrepreneurs will also have access to secondary
opportunities such as transportation of our staff to and from work and the distribution of
our products. Thereby we will be contributing directly to the local economy.
Participants
Participants in this project will be drawn from the ailing community/population of the
Grabouw and greater Overberg area. The purpose for setting up this project is to train,
mostly females, in the farming industry as food growers and processors, to increase the
availability of fresh produce in our local markets. We also aim to empower, train and
uplift workers to give themselves food security, agricultural training and a share of a
business.
Empowerment
The major purpose for setting up this project is to train more female farmers and food
growers and increase participation in this sector with a view to assisting successful trainees
to establish small scale farms specialising in food production to create more options in the
local market. The main aim of this aspect of the project is to empower, train and uplift
farm workers in a development project that would give them food security, agricultural
training and a share of a business. As mentioned previously, to go from working on a farm
to owning a farm and producing food for the public is quite a journey for each of these
participants.
The group will be trained in:
• basic land clearing and planning,
• soil care,
• layout of growing areas,
• seed bed preparation and fertilizing,
• companion planting,
• plant care,
9• plant disease & biological (non-chemical) pest control
• harvesting,
• handling of the crop
• marketing the produce
Simultaneously, we will start a number of initiatives for the production of organic fertiliser,
namely “worm farms”, composting, and post digested mass from a biogas system.
Apprenticeships
We will start with 100 apprentices in the first 3-4 months and select the 50 most dedicated
and passionate of the group to remain with us. The other 50 will be given an opportunity
to be trained for work in the associated secondary activities (where their aptitude may be
matched). By developing this entrepreneurship and personal leadership and management
approach from the start, we can help these apprentices seek out other opportunities in job
and venture creation and/or create future vendors who can provide services to the
project; also local entrepreneurs will be able to access secondary opportunities such as
transportation and distribution of our products.
Staffing Summary
• Employ 50 apprentices in the first year (selected from an initial pool of 100), and as
people become competent, they will be circulated amongst the “satellite” farms for
internships and full-time positions etc., we will bring additional people on board.
• 5 Key Players: Project Manager, Farm Manager, Administrator, HR/IR Specialist and
Training Coordinator. We feel that this team will be sufficient to implement the first
two years of the project. Further staff appointments will be made on review.
• Collaboration with industry experts, commercial and retired farmers, audio-visual
archives and practical hands-on techniques to give the participants an all-round
method of learning.
We will reassess our staffing requirements continuously and make changes as the need
arises.
Key Players - The team who will manage the project (in the following roles) consists
of:
Vanessa Paige – has experience in Community, Organisation and Personal Development. She
is a Behavioural Trainer and also works as a life and spiritual coach. She is the entire
project’s designer. Vanessa will be the principal Mindset trainer and will co-ordinate the
Training and Internship programs and schedules as well. She has extensive experience in
Training Management and Personal and Community development. Vanessa designed a
similar project for Cameroon – where it is carried out on 600,000ha. Vanessa is trained in
Permaculture and in turn is also a Permaculture Design Trainer.
Tim Brooke-Alder – has a degree in farming and has experience in business. Tim will be
the “Farm Manager”, managing the farming operation. He will do the hands-on training
and will work with the co-opted farmers to complete the designed curriculum.
10Johnny Witbooi – is an experienced farm worker with more than 20 years experience.
Johnny is well-versed in al aspects of agriculture and is also well known to the local
community.
Wentley September–A community worker who has worked with the Witzenberg
Municipality to establish community gardens and to develop the youth.
Eddie Atherton – is an IT professional with extensive project management experience, who
has a keen interest in Personal Development. Eddie will be the Project Manager as well as
assisting with the Mindset training function.
Commercial Farmers - We have managed to enlist the help of several commercial farmers
who are interested in offering our candidates a short term “internship” of practical
sessions on their farms. They are interested in increasing capacity and also helping us to
maximise the potential of the project to generate income as quickly as possible.
Candidates will spend periods of between three weeks to three months working side by
side with the other farms’ employees to gain knowledge which cannot be learnt in a
classroom situation.
Products
The project will grow varied produce as part of the training of the delegates. This will be
sold as fresh and/or processed produce and a portion of crops will be distributed as part of
the local food bank to help those who are in need in the area.
The vegetables and fruit grown will include:
Amaranth Asparagus Artichokes Basil
Beetroot Beans Broccoli Brussels sprouts
Butternut Blueberries Cabbage Carrots
Cauliflower Celery Chillies Cherries
Chives Courgettes Coriander Cucumbers
Currants Dill Eggplant Figs
Garlic Gem squash Mint Muskmelon
Okra Onions Oregano Parsley
Parsnips Peas Peppers Potatoes
Pumpkin Quince Radish Raspberries
Rosemary Spinach Strawberries Sweet melon
Swiss chard Sweetcorn Sweet potato Tomatoes
Turnips Watermelon
This list is not exhaustive. We will continue to monitor the market and add or remove any
types as the market dictates.
11These will be sold fresh and/or prepared and processed (peeled, sliced, etc). The market
for prepared vegetables and fruits is growing as people have busy lifestyles and seek
timesavers.
Biofuels compete
The fast-emerging South African biofuel industry has the potential to shake up the
agricultural sector. It remains to be seen whether promoting the use of arable land for
non-food production will be a bane or a blessing for South Africa, but if not managed
sustainably, there is concern about its effect on food prices, food availability and the
environment. If more land is given to produce crops for biofuel and biodiesel, less land will
be available for food production, if commutated over the next 25 years.
Since the price for biofuel crops far outstrips that of food crops, many farmers are looking
to land lucrative contracts to grow biofuel crops and are moving away from “traditional”
mixed farming. This trend is going to increase food prices because having a higher demand
owing to less food availability will tend to draw food to the population that is willing to
pay the higher prices viz. first world populations.
Agriculture
Historically, farming in South Africa has been undertaken by white males. In the new South
Africa, more and more black males are joining the ranks. It is not an industry normally
associated with women of colour. Also, the Agricultural sector loses at least 15% of
producers each year as large Food conglomerates (like Pioneer Foods, etc) buy out
commercial farms and contract small scale farmers to grow produce exclusively for them.
This means that more and more control is being exerted on food and food prices. If this
current trend continues, food prices will become prohibitive within the next five years.
One of the purposes for setting up this project is to train more female farmers and food
growers and increase participation in this sector with a view to assisting successful trainees
to establish small scale farms specialising in food production to create more options in the
local market. The main aim of this aspect of the project is to empower, train and uplift
farm workers in a development project that would give them food security, agricultural
training and a share of a business, thus providing much-needed financial security. The
journey for these participants is huge but attainable.
Methodologies
Permaculture
Permaculture is an innovative framework for creating sustainable ways of living; a
practical method for developing ecologically harmonious, efficient and productive systems
that can be used anywhere by anyone. It is a form of permanent agriculture where produce
is grown “as nature grows”, creating effective biosystems which benefit the soil and the
ecologies established. “Gardens” are developed progressively and require little
maintenance once established. The method is organic and natural and uses no chemical
input either for growth or pest control.
Tunnel Growing
The trainees will also be taught the skills in green house/ growing tunnels where a whole
new skills set will be required. In this area the sowing and raising of seedlings for land,
12tunnel and hydroponic growing will be housed, as well as the cultivation of produce
specifically suited to this system of growing. This production method is becoming more
and more important as the population increases and water becomes more scarce.
The tunnels will also be used to grow gourmet style vegetables and herbs, for oil
extraction, as well as medicinal and culinary use.
Hydroponic Growing
This form of growing is used with various crops for high production and rapid growth,
where, under the right conditions,between 12 to 15 crops can be grown a year. This is
especially suited to high value crops, herbs and micro greens using only 5% of the water
needed by other methods. Using this method, water and nutrients are also recycled. The
result is savings which can be applied elsewhere, thereby increasing cost efficiency.
13Animal Farming
In this aspect, we aim to work with:
• poultry
• pigs
• sheep
• goats
Herewith we will supply a number of secondary ventures connected to this aspect such as:
• milk and milk products
• cheese
• leather
• feathers and down
• eggs
• other secondary products for sale locally and nationally
This aspect of the project is not intended to be done on a commercial scale. It will be
used to provide the apprentices with in-depth knowledge of animal farming, should they
decide to go in this direction, once they are fully trained.
Aquaculture
Introduction
Fish already makes a vital contribution to food and nutritional security for 200 million
Africans, and provides income for over 10million people – mostly small-scale fisheries,
farmers, and entrepreneurs engaged in fish production, processing and trade. Fish has
become the leading export commodity for Africa. However, many African countries are
heavily reliant on unsustainable capture fisheries, accounting for 90% of the fish the
continent produces. Already the per capita fish supply in Africa has dropped from 8.8kg/
capita in 1990 to 6.7kg/capita in 2005. For a continent where food security is so
precarious, the trend is of great concern.
In Sub-Saharan Africa about 2% of fish comes from aquaculture, whereas the global supply
stands at more than 40% and is increasing. To illustrate: global aquaculture production has
increased from 3.5million tonnes in 1972 to more than 50million tonnes in 2000, and the
United Nations’ Food and Agriculture Organisation (FAO) estimates the world aquaculture
production could amount to 118million tonnes by 2030, which is a tripling of the year 2000
production, or an average of 4% growth annually. In the US, farmed tilapia and catfish is
supplying more than 65% of the fish market, in the East the percentage is even higher.
Despite this phenomenal global growth, Africa’s contribution to the world’s aquaculture
production has remained disconcertingly low, accounting for less than 1 % of global
production, while South Africa in turn contributes only about 1% of Africa’s production.
However, in Egypt, aquaculture production has grown ten-fold over the last 15years, from
55 000tonnes to over 750 000 tonnes in 2006 already.
14In many parts of Africa, aquaculture offers strategic entry points for short and long-term
investment opportunities to contribute to food security, improve health, women’s
economic empowerment, and local enterprise development for the poor. In South Africa
aquaculture is providing an opportunity for the socio-economic development and
beneficiation by rural communities through the sustainable non-consumptive utilisation of
water in State and privately-owned irrigation water-works and storage reservoirs and
schemes, without the transfer of land ownership being a prerequisite. Aquaculture is,
therefore, well positioned to contribute to food security, wealth and job creation, and it
also contributes to the reduction of protein deficiency in the diets of many rural
communities.
Fresh Water Aquaculture Market
Tilapia is an indigenous fish found in warmer waters throughout Africa. In Africa tilapia are
a staple diet harvested from local lakes and rivers by subsistence fisher (wo)men. It was
already being farmed in ancient Egypt circa 2500 BC and has always been regarded as
‘poor man’s food’.
In the 1990’s tilapia became established in the US seafood market as a desirable fish that
is healthy to eat, thaws well, has few bones and has a mild taste. They grow at reasonable
densities, and are highly tolerant of handling. They are also resistant to diseases and
fluctuating water quality common in open systems.
The advantages of tilapia and catfish is their relative ease of reproduction, fast growth
rates, adaptability to various feedstuffs & culture systems, and their good marketability.
The best selling point for tilapia is the white flesh colour which makes it an ideal
replacement for the diminishing marine fish stocks, and these desirable traits have fuelled
the increased popularity of the fish.
Marketable sizes for fish range from plate-sized (230g- 450g) upwards. However, the
biggest market segment is for whole fish (400-600g) and sliced fillets (600-950g), and
smoked sliced fillets (±1kg and above) which covers approximately 80% of the processed
product.
In South Africa, the formal market has been slow to accept tilapia as fine cuisine,
preferring marine fin-fish above freshwater fish. In contrast, the formal sector in other
Southern African countries relishes this species as food fish. The informal market is the
large opportunity that is undersupplied at present, and already several tilapia farmers and
fishermen sell tilapia into the informal market. These farmers are enjoying numerous
advantages to this sector, including selling the fish whole, unprocessed; obtaining higher
prices than in the formal market, and most of all, the informal market pays cash for the
product.
Social Impact
The pilot will create job opportunities for local communities, as well as provide a source of
affordable protein during harvest time. The project will also provide local entrepreneurs
with economic opportunities to become satellite distributors, and benefit from the
operation in terms of support and technology.
Summary
The intention in this project is to also have an aquaculture section where Tilapia, Carp,
African catfish and Marron (freshwater prawns) will be raised. This will complete part of
the fertilising plan as the high nutrient water from the fish ponds will be used to irrigate
and fertilise the crops. The aim will be to have on-site facilities to pack the crops and
process the fish in a food safe production area.
15The world’s annual fish requirements have been in shortage for a long time since many
species have been harvested into being endangered. Fish forms a large part of the human
food chain for many countries in Africa. There is a current shortage of 300,000 tons of fish
annually, worldwide. Food fish is becoming increasingly more expensive at the retail level.
We already have a pro-forma contract order for 15tons per month of tilapia which this unit
will cultivate. This part of the project will be farming Tilapia, Catfish, Carp and Marron
(freshwater prawns).
Biofuels
The biggest dilemma in the Biofuels industry today, is the competition of food and
biodiesel crops. As the biofuels industry grows, more and more land will be taken up to
plant sunflowers, canola, soybeans, maize, sugarcane, jatropha, etc. instead of food crops
for the growing world population. Arable land normally used for food cropping is now being
sequestered for biofuels. In South Africa specifically, the government has taken the stance
that maize will not be grown for use as a biofuel crop to attempt to prevent a possible
increase in the price of maize as food. This stance cannot be held in the long-term, since
crop prices for biofuel are steadily growing and it may prove impossible to prevent selling
it off as a premium crop.
Each month more and more enquiries are being made into the use of alternative
feedstocks to produce biofuel. This project has explored two such areas viz. Algae and
Bamboo.
Algae
Algae is fast becoming a popular source for such a feedstock and has been found to
produce 10 – 30 times the yield per acre than conventional feedstocks such as soya,
rapeseed, canola, jatropha or sunflower. Since algae are amongst the fastest growing
organisms on the planet, harvesting of biomass occurs every 4 days allowing for massive
yields in a small amount of space and time. The current average yield for algae is
approximately 400,000 litres per acre. Algae fuels represent an exciting opportunity, since
it represents the most optimal feedstock for biofuels in the long term. It is also aimed to
replace the entire global fossil fuel requirement.
Around the world, an urgent demand for alternative, sustainable fuels and feedstocks is
growing. Compared to other feedstocks, algae can provide a high-yield source of biodiesel,
ethanol and aviation fuels without compromising food supplies, rainforests or arable land.
For biodiesel and biochemical refineries, algae strains with high oil productivity will bring
much-needed feedstock to biorefineries world-wide. We have done extensive research
from international and local sources and have found many benefits in using algae.
The benefits of using algae include:
• Algae consumes CO2, thus reducing harmful greenhouse gases
• When in a sulphur-depleted environment, algae produces hydrogen – another
renewable biofuel alternative
• Algae can be used for favourable carbon credit trading – total estimate is currently
ZAR640 billion with an expectation of ZAR240 trillion by 2020
• Algae can be used to clean up waste water
• Production of algae biofuels also precludes the clearing of valuable forests for the
cultivation of biofuel crops
16• Algae can be grown in salt water and fresh water
• Algae can be produced in hot or cold weather
• The complete growing cycle is reached in a few days compared to a year for most crops
– making algae an ideal feedstock – quick turnaround times with higher yields make for
a brilliant profit combination and a genuine alternative to other biofuel sources
The market place for algae biofuel is also growing with large investments being made in
the research and production of such fuel. In the USA, government sectors are assembling
US$1 billion for the development of algae biofuel.
Algae presents multiple possibilities for fuel end-products:
• Biodiesel
• Ethanol
• Methanol
• Methane
• Jet fuel
• Biocrude
• and more – via a wide range of process routes.
Each of which provides its own set of opportunities, parameters, dynamics and challenges.
Execution
We have established good relationships with companies which are influential in the Algae
Biofuels industry, to be able to capitalise on opportunities happening worldwide. Our
intention in the first two years is to supply algae lipids into the biofuels market without
refining to actual biofuel. This saves us from setting up the capital intensive plant until we
have earned experience in the market. New discoveries are being made in the refining and
blending process which we will be able to capitalise on by not rushing into the purchase of
plant in the first two years.
Bamboo
Bamboo is the fastest growing grass – some species gain growth of up to a metre in a
matter of days – and binds huge amounts of carbon dioxide faster and at higher rates than
any other plant or tree. Bamboo also offers the highest carbon credits and so becomes a
valuable species to any community to offset carbon units.
Bamboo has a low input cost (R1 per plant) and because of its fast growth rate, it can
quickly pay for itself.It can grow to full height in one season (3 – 4 months) and is suitable
for use in construction within 3 – 7 years, which is 5 times faster than any tree.
Bamboo supplies feedstock for the biofuel and bioenergy industries without endangering
the basic food supply. Since it grows fast, it will produce higher yields in shorter time
frames than any other crop and ensures consistent production (unlike other crops). When
coupled with Algae, it makes a great combination for carbon offsets.
Bamboo is also extremely versatile since it can be used to:
17• create all parts of a house – from roofing to flooring;
• Furniture – bamboo produces a sturdy yet flexible “timber” which can be worked easier
than the hard woods it compares to;
• Textiles textile production – once worked, its fibres are more absorbent than cotton;
• Food source– it can be eaten (bamboo shoots) – provides a low-calories source of
potassium;
• Cooking utensils – for centuries, people in the East have produced cooking utensils from
spoons to pots from bamboo;
• Paper – bamboo fibres make paper which can be recycled many more times than the
fibre made from timber wood pulp, making it an excellent medium to make paper and
not endanger forests
• Filters for desalination – bamboo is used to make filters which absorb salt and clean
water – ideal in cleaning sea and brackish water;
• Musical instruments;
• Fishing rods and tent poles – these have been made from bamboo for many years.
• There are even bicycle frames made from bamboo – a biodegradable alternative to
plastic;
• Fuel – bamboo burns longer and hotter than most woods. It is a sustainable fuel for
communities and does not endanger forest growth since bamboo can reach heights and
weights 5 times faster than trees.
Biomass
Since the land we are scoping has many invasive species of trees, cutting these down for
agricultural cultivation will leave several tons of biomass (leaves and twigs) after the
timber has been prepared and removed which can be pelletised and used for heating and
cooking (like charcoal briquettes). All remaining off-cuts from the fruit and vegetables
(like leaves and twigs) can also be processed in this way – a green solution to a large
current problem. In this aspect, we have various associated venture end-products:
charcoal production, twig fencing, etc.
This creates an opportunity for local entrepreneurs to provide fire fuel while also helping
to remove species which threaten water security in the region.
18Water Management
The location of the project sits centrally in the Overberg zone. There are several streams
which are active during the winter rains. Using this water judiciously will require good
management and strict adherence to ensure that this source is not contaminated and is
carefully stewarded for coming generations. We remain aware of the value of water and
the threats to available water resources. Our plan is to sink wells around the property
where possible so that we are only using what is required for irrigation purposes where it is
needed. We will also establish a dam and tanks to capture and sequester rain water.
Nutrient–rich water will also be sluiced from the aquaculture tanks from time to time.
This will allow us to manage soil nutrition without fertilisers and chemicals. By using
organic and natural means to farm, we will ensure that our water source remains
uncontaminated by any toxic materials. There will be very little reliance on municipal
water
Secondary Industries
Given the nature of the entire project, we have identified that there are many associated
secondary industries and enterprises which would arise out of the different aspects of this
project. It gives us an opportunity to assist participants and beneficiaries to create their
own business ventures as a stage of the development and change, which will result out of
the project as a whole. Some of these industries include:
• Honey and Wax – Since 20ha will be under cultivation at any particular point, there
will be extensive bee coverage which yields large amounts of honey to be processed
and beeswax for sale to the leather and beauty industries.
• Transport – an opportunity exists to create a transport company to ferry all products
and by-products arising out of the various units of this entire project including moving
personnel from one place to another. This opportunity will be offered to local
entrepreneurs since we are not focused on entering the transport industry at this
stage.
• Packaging – the packaging needs of the various units of this project also create an
opportunity to set up a packaging unit to ensure that packaging does not have to be
imported from elsewhere.
• Leather – the various animal husbandry components of the project will produce
quantities of leather in the long term which can be worked into various other products
(shoes, etc.) and/or the working of hides for the furniture and automotive industries.
This element would create its own workforce; thereby creating jobs for more people
from the local community.
Secondary industries which will arise as a direct result of this project include:
• Feather & Down
• Eggs
• Organic Baby foods
• Food Processing (dehydration and/or frozen)
• Fruit & Vegetable Juice
19• Soaps &Candles
• Eco-compost and fertilizer
• Baskets
• Animal feeds
• Catering, baked goods & snack foods (dried fruit etc.)
• Textiles
• Warehousing
• Tool & auto repair
• Metal work& pipe making
• Educare
• Training
• Engineering
• Jams/Sauces/Preserves/Pickles
The outcomes of this project are going to have far-reaching effects into the focus
communities it is intended to serve, firstly, then also upon the various other communities
which our focus communities will touch, as the production and output of this venture
escalates.
Marketing
Market and Industry Analysis
Agriculture has dwindled over the past 15 years and as biofuels compete more with food
crops for use of available prime arable land, the food industry is facing decreasing land
space for growth, ever-increasing prices, unavailability of produce and dwindling supply.
Also, more farmers in Southern Africa are leaving the agricultural sector while others are
contracting to grow crops on their land for large conglomerates or even for the wealthier
nations of the Northern hemisphere.
The market itself is growing, as the world’s population is now at the 7 billion mark.
Therefore, the demand for food is growing daily. This is an opportunity for anyone wanting
to do small scale farming of this kind. By bringing food to their local market, competitive
pricing can be applied since there are minimal transportation costs and/or increased
margins because there are no middlemen to push prices up.
The current trend in the market is for organically grown, pesticide-free produce and
chemical-free processed foods that maintain or improve health and well-being. This is the
market we are attacking aggressively.
The industry consists of the wholesale and retail tiers. In the wholesale tier, the market is
divided into selling to middlemen (fresh produce market agents) or directly to wholesale
20customers (bulk buying hotels, restaurants, conference centres) while the retail tier
involves direct marketing to consumers at various levels.
We are already being approached by various interested parties to supply produce and fish
once we are up and running. The need for fresh produce in our local environment and
market, combined with the volume of interest shown in the produce of the project, gives
us great confidence that this venture is sound and that there is a definite market for what
we will produce.
Competitive Environment
As a basic commodity, the food market is highly competitive. Quality and price are the
dominant factors. More retailers (Game, Makro) are entering the fresh produce and food
market since food sales are guaranteed (everyone has to buy food) unlike other retail
products which are less guaranteed to sell.
Competitors
Currently, the following groups are our main competition:
• Fruit and Veg City – Food Lovers’ Market
• Katie’s Fruit and Veg
• Wild Organics (web-based with a small store in Woodstock)
• Fine Cuts (web-based vegetable, fruit and ready-made food delivery service)
The weakness of these companies is their location and the number of branches they have.
You have to travel some distance to make your purchases. Many of them are not located
close to other stores you may be visiting and so you have to go out of your way to get
there. They usually use the concept of “Specials” to draw customers. The only two which
are similar to ours are: Wild Organics and Fine Cuts. By using a similar model to theirs, we
can capitalise on what is a fast growing market sector – customisable food provision for the
busy lifestyle.
By delivering our produce we eliminate this factor. Also, the “specials” at these stores
usually involve large quantities of a particular vegetable – such as a pocket of butternut or
onions – customers feel that to get any value from it, you either end up having to eat that
particular item every day until it is all used up or having to give away two-thirds of it
before it grows mouldy or rots. With our food baskets, we will provide only what the
customer prefers within a certain price range limit. The customer only buys what their
family will readily eat and thereby they will feel that they are getting value for money.
Competitive Edge
We have two competitive edges that will help us maintain strong growth rates and
increasing our market penetration.
• The first edge is quality. We pride ourselves on high quality vegetables. Vegetables that
do not meet our high standards of quality are rejected as imperfect and go to a not-
for-profit food bank in the local area and/or be processed as preserves, pickles,
sauces, etc.
• Our second competitive edge is flexibility. The entire farm will be set up to allow us to
change crops or scale existing crops to meet demand. This is highly unusual as most
farms are unable to change crops mid-year and usually specialize on a particular crop.
21• Our third competitive edge is our Home & Office Delivery Service. People’s lives are
becoming more and more time-pressurised. We will deliver to them, within a certain
mileage range, for their convenience, Mr Delivery-style. Simultaneously, we will
develop an ever-broadening customer base.
Also, in the zone within which we have chosen to operate, the community would have easy
access to us and, we believe, they would welcome the idea of having produce delivered to
them.
Marketing Strategy
Target Market
We have decided to target the market segments of individual customers, public on-site
market, food-intensive institutions, like old-age homes and hospitals and restaurants. As a
Social Enterprise, the income we generate will improve the lives of disadvantaged people
by creating work and training opportunities.
The individual customers will purchase produce from us via:
• Onsite Market – Overberg Area
• Guesthouses in the False Bay area
• A web-based and SMS service where they will order a “designer” vegetable basket from
us which will be delivered to them at their home or place of work on a weekly basis.
This segment is growing at an annual rate of 12% because more and more people are
looking for healthy, organic produce as they become more informed as to the dangers of
pesticides of their families’ health. At first, we will focus on the Helderberg Basin and
Overberg area for our customer base.
The other segments are:
• Local restaurants
• Onsite Market
• Old-aged homes
• B&B’s
• School Feeding Schemes and Soup Kitchens
• Conference centres
• Boutique hotels
• Private hospitals
By marketing and selling direct to end-users, we will eliminate the long line of middle men
and be able to sell our quality, fresh produce at highly competitive prices, with a wide
variety, to our customers. It also ensures that we are not forced to sell only at wholesale
prices which we would have to do if we were to use the Produce Market supply chain.
Fruit & Vegetable Products
22As stated in the ‘Products’ section, we will cultivate and sell a mix of field vegetables and
fruits under the brand name: Return to Nature (sample of labels included in appendices).
Examples of these vegetables will range from the basic varieties of:
• Potatoes
• Tomatoes
• Cabbage
• Lettuce
• Beans
To the more exotic varieties of:
• Okra
• Swedes
• English cucumbers
• Artichokes
The fruit range will include some of the rarer kind, such as:
• Raspberries
• Gooseberries
• Cherries
• Figs
• Quinces
All these products will be purchased by end consumers, as well as restaurants and
institutions such as old age homes, conference centres and hotels, who then serve it to
their communities and patrons. These “high-end” fruits carry premium prices and are
much sought after.
Market Segmentation
We see our provision to the market as follows:
• Home and Office Deliveries – a weekly service where vegetables and fruit are
delivered to individuals at their premises or workplace after ordering via a website
and/or sms service.
• Hospitality Industry – Caterers, Conference centres, B&Bs, Restaurants, Boutique
hotels, Old-age homes and any other customer specifically geared to routinely produce
food for large numbers of diners.
23• Processed – this area includes dried and frozen foods, prepared foods (peeled, grated,
sliced, etc and bagged) and ready to eat foods.
• Onsite Market (Overberg Area) – local people who wish to start a business selling fresh
produce in the community and elsewhere. We also plan to create a co-operative, fixed
Market venue in the area with other producers to provide a more varied offering to
consumers who enjoy this method of purchase.
• Food Bank – 5% of produce we deem “unfit” for direct sale will be put into a Food bank
for destitute families in the area. We will find these families via church and welfare
organisations.
Home and Office Deliveries
We plan to develop this segment to +1000 customers during year 1.
By leveraging Social Networking technologies on the internet and our combined contact
bases, we have access to approximately 5200 households on the Peninsula alone, at this
point. We aim to grow this segment to around 20-35% of sales during Years 2 and 3.
For example: if 50 customers each buy 1kg of tomatoes each week, this amounts to 200kg
of tomatoes per month. That is 20% of 1 tonne from our first harvest. Even though the
amounts seem small at each individual purchase, the overall figure escalates to become
quite profitable.
Our competitive advantage in this segment is that we bring organic produce to the door or
desk of each family – they no longer have to drive to an outlet. The customer will register
online or by SMS. An email or SMS message will be sent out each Monday to allow
customers to make their selection and the crate or bag will be delivered to them by
Thursday. The website and SMS services will allow for online and cellphone payments as
well.
Hospitality Industry
We have the Hospitality Industry to mean any establishment that routinely produces
food for a large number of patrons. We have polled potential customers in this segment
to determine what they would look for in a service as we describe. They unanimously
stated that they wanted a supplier who could provide excellent quality ingredients and
prepared produce on demand since much of their time taken up by sourcing produce on an
ongoing basis. In this segment, we already have 10 potential customers who are interested
in having us deliver a specific range of vegetables and fruits each week.
Our plan is to sign up 30% of such establishments within the first year. As such we have a
contract marketing house which will assist us in developing our client list. We would like
this segment to represent 25% of our sales.
Onsite Market
During year 1, we aim to create a permanent venue where families can come to buy fresh
produce, ranging from meat to vegetables and baked goods, as they would normally do
24when doing their weekly or monthly shopping. We will also allow customers to pick their
own produce for a fixed amount.
Processed Foods
All sub-standard vegetables and fruit will be processed as dried, frozen or preserved food.
In areas where refrigeration is a problem as a result of no electricity or where people have
no refrigerators the demand for dried and/or preserved foods is quite high. There is a huge
population of hikers and campers who buy dried and preserved food for their supplies. We
would like to distribute to this target group, as well as the general consumer, who enjoys
these processed foods.
We would like to develop this processed foods component to around 20% of our sales. In
terms of frozen food, this market is currently seeing many new entrants – this indicates a
fair feasibility which we would like to capitalise on.
Ready to Eat
As the lifestyle of economically active South Africans becomes busier, more people are
looking for “time saver” foods – foods that are either prepared and ready to cook (peeled,
sliced, seasoned) or completely ready to eat (just needing heating). This sector is growing
rapidly and the number of foods becoming available is quite encouraging. It is fast
becoming a very lucrative market. People are not looking for more “Fast Food” but are
looking for nutritious home-style alternatives, in Fast-Food fashion. These will be sold as
frozen dishes which can be heated in a microwave or convection oven or even in its bag in
a pot on the stove.
Companies like Woolworths have heavily capitalised on this market with resounding
success.
Our research has indicated that current offerings in this market are quite costly and we
have tested with more competitive pricing. We have generated much interest and aim to
develop this sector to around 50% of the 15% of processed food sales.
Food Bank
There are many families who are destitute in the area. They are dependent on charity for
food. We aim to absorb the adults of some of these families into the project but they are
too numerous for us to cater for all of them. For those we are unable to assist with
livelihood, we will assist by allowing them access to vegetables in the Food Bank. Any
surpluses will be sent to the Bokomo Centre in Atlantis where other families are assisted.
We will allocate 5% of the crops earmarked for processing (substandard in terms of our
overall criteria) to the food bank.
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