Kayalethu Sotsha and Bonani Nyhodo, agricultural economists at the National Agricultural Marketing Council (NAMC), assert that South Africa’s raisin industry is not just sweet – it’s smart. As the world’s fifth-largest exporter, it’s growing profits and smallholder power.
The raisin industry takes pleasure in producing one of the world’s finest products, with 88% destined for lucrative international markets. South Africa is currently ranked as the fifth-largest exporter of raisins globally.
The industry is devoted to transformation activities that aim to promote previously disadvantaged industry role players, thereby growing in an inclusive manner, as envisioned in the Agriculture and Agro-processing Master Plan (AAMP).
The Smallholder Market Access Tracker (SMAT) was utilised by the National Agricultural Marketing Council (NAMC) in 2021 to gauge smallholder raisin producers’ advancement towards market access. (Report available here).
Among other things, the SMAT indicated that, while market access is not a problem because these farmers’ produce is contracted to processors, smallholder producers believed processors were unfair in how they graded and priced their produce.
The NAMC advised Raisins South Africa to investigate the problem but cautioned that the perceived unfairness could also be due to quality issues.
Raisins South Africa intervened in several ways, including:
- appointing a grading specialist to allow farmers to lodge complaints regarding the grading process,
- assisting farmers to obtain the SAGAP certificate in collaboration with the provincial department of agriculture, and
- conducting training sessions with farmers to interpret market information reports and help them understand how the marketing process of raisins works beyond the delivery of the produce.
Raisin the bar
In contrast to other industries like citrus and poultry (broiler), where the baseline was conducted four to five years ago, the raisin industry is the first to be prepared for the second round of the SMAT, which is currently underway to ascertain the effectiveness of these interventions, among other things.
Over the course of the 2021–2024 levy cycle, the raisin industry received around R56 million in statutory levies and spent over R25 million, exceeding the 20% recommended for transformation.
This is part of the industry’s commitment to transformation. Over R100 million in projects for the next five years were also secured by the industry.
These consist of R20 million in soft loans from the Kgodiso Trust, R47 million in grant funding from the First Rand Empowerment Fund, R34 million in grant funding from Rural Development, and R15 million in grant funding from the Industrial Development Corporation (IDC).
To promote farming and elevate the farmers’ prime exporter status through locally based skills development, the industry also developed the Vine Academy and Model Farm in the Northern Cape (Orange River Valley).
The Academy further conducts research to advise farmers on topics like market information and real-time weather events.
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Expanding facilities, expanding opportunities
The industry is further involved in socio-economic development through establishing maize and cotton fields, expanding and improving the raisins’ drying facilities, and providing further support to projects such as the Eksteenskuil Farmers Association.
One of the AAMP’s delivery models, the production scheme, is currently being established.
The industry’s responsiveness and creativity are admirable, as is its determination to ensure more and sustainable farming, which forms the foundation of the Orange River Valley’s economy.
One excellent example that must be upscaled and replicated is the ability to leverage more money from other sources. This also relates to the AAMP, which promotes cooperative agreements between the public and private sectors to jointly plan, fund, conduct, and run projects and services while utilising their respective advantages to advance economic growth and development.
- Kayalethu Sotsha and Bonani Nyhodo are agricultural economists at the National Agricultural Marketing Council (NAMC). The views and opinions expressed in this article are those of the author and do not necessarily reflect the views or positions of Food For Mzansi.
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