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Mahlogedi Victor Thindisa Manager: Agribusiness Support Gauteng Department of Agriculture and Rural Development Provincial Agro-processing Support 1.

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Presentation on theme: "Mahlogedi Victor Thindisa Manager: Agribusiness Support Gauteng Department of Agriculture and Rural Development Provincial Agro-processing Support 1."— Presentation transcript:

1 Mahlogedi Victor Thindisa Manager: Agribusiness Support Gauteng Department of Agriculture and Rural Development Provincial Agro-processing Support 1

2 OUTLINE What is agro-processing? Agricultural entrepreneur Challenges faced by SMME agro processors Post harvest losses Importance of post harvest technology Conclusion and wayforward 2

3 What is agro processing? 3 Agro-processing entails changing the form of a product. Agro-processing is the conversion of raw agricultural products into different physical state to satisfy market requirements Value addition implies adding value to a product after which a buyer is willing to pay a price for the product at more than the cost of inputs used in the process. Value can be added to products without changing physical form (cleaning, grading or labeling)

4 Simple form of adding value 4

5 Simple form of processing 5

6 Agricultural Entrepreneur 6 Entrepreneur is a person that can bring an IDEA into PROFITABLE reality. Without creativity your business will be stagnant as competition around you progress. Identify niche markets suitable to your business. Business is a sustainable profitable endeavor?

7 WHAT IS MARKETING? Marketing involves finding out what the customers want and supplying it to them at a profit (FAO, 2005) Interconnected Activities During Marketing Planning production Growing and harvesting Harvesting, field handling, Sorting, grading, packing Storage, transport, retail market Consumer preference / acceptance

8 Nigerian debt collector – would you afford not pay your due? 8

9 Challenges faced by SMME agro processors Limited production capacity (land, finance, skills, markets etc) Farms are located faraway from the markets (high transaction cost) Challenges faced in satisfying the quality requirements of the consumers (market requirements) Do not have access for new technology (skills and finance) Difficulty in obtaining new information Weak negotiations, lack of confidence with traders and companies 9

10 Post harvest losses Harvesting at an incorrect stage of produce maturity Excessive exposure to rain or extreme temperatures Physical damage Rough handling Chemical contamination Erroneous transport & spillage during transportation Improper packaging Bio-deterioration (damage by rodents, birds, pests & fungi) Prolonged storage 10

11 Efficiency vs. Effectiveness vs. Risk 11

12 Importance of post harvest technology 12

13 Importance of post harvest technology 13 Extend shelf and storage life of products Maintaining quality, nutritional properties of products Cold chain management Packaging technology to increase profit margins Overcome seasonality and perish-ability constrains Expand marketing opportunities

14 Post harvest technology stimulates the following Prevents postharvest losses Improves nutrition and adds value to agricultural products thereby opening new marketing opportunities Generating new jobs while stimulating growth of other related economic sectors Increase net profit margins 14

15 Focal points of Gauteng Agro processing Strategy Support packages to stimulate entrepreneurship by SMME agro-processors; Contribute towards investments in economic infrastructure (Roads, rail, water etc); Facilitate value chain linkages with relevant markets; Facilitate technical and managerial training of SMME agro-processors 15

16 Conclusion and way forward Gauteng Employment, Growth and Development Strategy (2009) and Gauteng Agricultural Development Strategy (2010) identified agro-processing as priority area for job creation and increase of profit margins to farmers. Coordination and integration of activities between province and municipality to maximize impact. Training and educating farmers on benefits of agro-processing. Provide financial assistance to farmers regarding agro-processing initiatives (Cost/Benefit analysis). Cooperative development 16

17 Coordination and integration of 3 spheres of GVT 17

18 O.R. Tambo Airport: Everyone is leaving RSA cause Julius is President of Republic – Year

19 END Lekker BOER Questions and clarity? Thank you!!!!! 19

20 WHO is a monkey now? 20


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