A three-month feasibility study, funded by the Eastern Cape Development Corporation (ECDC) and the Blue Crane Development Agency (BCDA), is set to combine three successful agricultural projects in Somerset East into a single entity.

Should the feasibility study results agree, then the Misty Mountains Flower farm will be combined with a fruit farm and a vegetable seed operation into an entity to be known as the Somerset East Agri-Park and could employ up to 80 people, the majority of which will be part-time jobs.  Currently, the three projects employ 15 people.

ECDC regional head Ken Bern explains that while each of the individual projects is currently viable, a combined entity is likely to be far more attractive to an investor who can leverage the project by providing much-needed inputs such as management skills and financial backing.

Bern expects the study to be complete within three months and is positive that it will confirm his expectations that the project viability will be enhanced if management skills are secured for the operation.

"Right now, the project already has critical elements such as land, water, labour, infrastructure and capital equipment in place, so I don't see any reason why we can't successfully take the project into its commercial phase, once we find the right partner," he adds.

Currently, the three projects operate from 74 hectares but expansion plans could see this area grow more than 10 fold to 934 hectares.

At this time, the six hectare Fish River fruit farm is being used for 4,000 pomegranate trees with expansion plans including the planting of a further 2,200 plum, peach and nectarine trees.  Another 160,000 pomegranate cuttings also await planting.

Bern is also excited that nine local commercial farmers have shown interest in this initiative and have allocated a further 360 hectares for pomegranates. These local farmers will be involved in the farm's outgrowers project, one of the first projects in the area to include commercial farmers as outgrowers. Further expansions may also include a Department of Land Affairs black economic empowerment project where 100 hectares will be used for growing pomegranate and which is expected to create 94 jobs.

The second project, the vegetable seed project, has successfully completed its commercial trial, having already sold over four tons of seed locally and abroad.

The flower and fruit farms operate on part of a 28 hectare farm where there is significant room for expansion. The vegetable seed operation is located on 40 hectares of neighbouring land, owned by the commercial farmers or outgrowers.

Once it is in its commercialisation phase, the Somerset East Agri-Park may expand by a further 400 hectares. Some of the expansion plans include a fruit packhouse and juicing facility as well as vegetable cleaning and packaging plant, and possibly in time to come, some processing capacity.

According to BCDA's agriculture manager Nico Lombard, the projects continue to create valuable jobs for rural communities, and opportunities for small businesses, skills transfer and development.

"There is no problem with the quality of the products being produced in these projects. They are viable but need sustainability through effective management and skills transfer," ends Lombard.

Bern says that his belief is that the agri-park could become a majority BEE-owned company.

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For more information, contact

Ken Bern

ECDC project development manager

Telephone 043 704 5600

Cellular 083 451 2289

Email kbern@ecdc.co.za

Nico Lombard

Blue Crane Development Agency (BCDA)

Cellular 082 329 4545

Email bcdan@lantic.net

For ECDC media relations

Lunga Mtshizana

SMG Africa

Telephone 043 726 8833

Email lunga@smgafrica.com