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Home About Cacadu

Description of the Cacadu District
The Cacadu District is situated in the Eastern Cape Province of South Africa. It covers an area of 58 243 km² and has an estimated population of 412 956 (Global Insight Database, 2008). The District surrounds one of the largest metropolitan ports in South Africa, Nelson Mandela Bay (Port Elizabeth), and as such, is strategically accessible for international trade and industry.

Map of the Cacadu District

 

The Cacadu District has an established agricultural sector, making it one of the priority sectors of the region. This sector in particular opens doors to the export orientation of agricultural products from the district which allows for economic growth and development within the district. The Cacadu District's location puts it in close proximity to large markets, cutting transport costs and delivery time. The markets in the district are well established and thus insure that products are sold at solid prices and that few products go to waste.

Another strategic strength that adds to the Cacadu District's economic growth is its strong existing tourism base which can largely be attributed to the diversity of the region. The district is malaria free which makes game parks accessible and risk free. The abundance of natural resources also acts as a drawing card for both tourists and investors.

The various strengths of the Cacadu District are:

·         A strong and well established agricultural sector that produces almost half of the agricultural goods in the Eastern Cape.

·         The largest mohair producer in the world.

·         Internationally competitive citrus and squid industries.

·         The heart of the expanding dairy industry in the Eastern Cape.

·         In close proximity to international airport and deep-water port for export purposes.

·         The strong linkages with the two largest metropolitan areas in the Eastern Cape.

·         A booming construction industry.

·         A specialised manufacturing base positioned in niche markets and agro-processing.

·         A large labour force.

·         The Eastern Cape is number one producer of catalytic converters world wide.

·         Two industrial development zones (IDZ) situated on the doorstep of the Cacadu district.

·         A growing tourism industry based on natural, cultural and historical features in the area.

·         The abundance of natural resources.

The commercial agricultural sector is the largest employer of people in the Cacadu District. Together with the other primary production sectors such as fishing and forestry, which employ small numbers of people, agriculture employs close to one third (32.4 percent) of the remaining workforce. An agriculture potential study has shown that agriculture has been the backbone in the development of both the Eastern Cape and the Cacadu economy, providing the main source of livelihood for the population as well as being a major export earner. Sustainable agriculture and rural development have three essential goals: food security through an appropriate and sustainable balance between self-sufficiency and self-reliance; employment and income generation in rural areas, particularly to eradicate poverty; and natural resource conservation and environmental protection.

Industry overview and strategic sectors

 
Agriculture
Livestock production
-       Premier livestock province.
-       Core agri-business in South Africa.
-       Home to more livestock than any other province.
-       Produces 21%, 28% and 46% of South Africa’s cattle, sheep & goats.
-       World class producer of wool & mohair.
Beef
-       Major potential for beef production.
-       Production is projected to peak towards 2010.
Dairy
-       Eastern Cape produces approximately 20.5% of South Africa’s total milk supply.
Sheep & Goats
-       Small stock farming predominates in the dry Karoo interior.
-       Wool & Mohair provide raw material to local industries.
-       Large parts of Cacadu suitable for sheep & goat production.
-       Merino sheep can achieve a margin above the cost of R180, even at the lowest price per kilogram per animal and at lowest wool price.
-       Sheep production is easily adapted to a small-scale or part-time farming operation.
-       Compared to most livestock enterprises, it has lower investment costs, minimal labour requirements and quicker returns.
-       Angora goats can be produced in total confinement.
-       Operating expenses for Angora goats are generally less than for sheep due to goats being smaller and needing less feed.
Ostrich
-       Good potential for ostrich farming in non-coastal areas.
-       Potential lies in high value leather goods and clothing, automotive upholstery and export of cured hides/skins.
Broilers
-       Potential lies in Kouga Municipal area.
Pigs
-       Potential lies in Blue Crane Route and Sundays River Valley Municipal areas.
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Crops
-       Eastern Cape is already a major producer of pineapples, citrus, deciduous fruit, tomatoes, chicory and tea.
-       Dry land crops can be produced in most of the Municipal areas.
-       By expanding irrigation in the Fish and Sunday’s River catchment areas, opportunities can be created for further citrus production and high value horticultural production.
Maize
-       Coastal strip of land in Koukamma Municipal area is moderately suitable for production of rain-fed maize.
-       Also land between Somerset East and Cookhouse suitable for rain-fed maize.
Wheat
-       Municipal areas suited to rain-fed wheat production include Kouga, Sundays River Valley, Makana, Ndlambe and the coastal region of Koukamma.
Soya Beans
-       Lucrative export opportunities.
-       Koukamma Municipal area most suited for soya bean production.
Sunflowers
-       Koukamma and Kouare Municipal areas are most suited to produce rain-fed sunflowers.
Cotton
-       Summer crop.
-       Suitable areas for production of irrigated cotton include Camdeboo, Ikwezi and Sundays River Valley.
Chicory
-       Drying plant established in Alexandria (near Cacadu).
-       Opportunity for expansion into the Sundays River Valley and Makana Municipal areas.
-       Used in a wide range of foodstuffs including coffee, pure chicory drinks, chocolates, breakfast foods and pet food.
Honeybush Tea
-       South Africa produces 200 tons of honeybush tea per year.
-       Growing export market.
Pineapple
-       Ndlambe Municipal area is major producer of Pineapples.
-       Labour intensive venture.
-       High volume of dew may eliminate the need for irrigation.
-       Pineapples are marketed as fresh produce, for further processing and as an export product.
-       Pineapples are the third most important commercial tropical fruit crop in the world.
Wool & Mohair
-       The dry Karoo interior is the centre of wool & mohair farming in the Eastern Cape, providing a high proportion of world mohair production.
-       Wool & Mohair are mainly produced from Merino Sheep and Angora goats.
-       Mohair is obtained from the Angora goat is regarded as the finest animal fibre available.
Olives
-       Marginally suited to Cacadu.
Deciduous Fruit
-       Langkloof Valley is home to apple and pear production.
-       Production of apple in northern parts of Camdeboo Municipal area can yield between 30 and 50 tons per hectare.
-       Production of pears in northern parts of Camdeboo Municipal area can yield between 15 and 30 tons per hectare.
Citrus
-       Oranges are mainly produced in Kirkwood area of Sundays River Valley.
-       Other areas marginally suited to citrus production under irrigation include northern parts of Camdeboo, Ikezi, Willowmore, Koukamma Municipality, Blue Crane Route and Makana.
Pecan Nuts
-       All coastal areas of Cacadu are marginally suited for production of Pecan Nuts.
Tourism
-       The main drive of the tourism industry in the District is its wide range of environmental assets.
-       On the western region of the District is the indigenous Tsitsikamma Forest with giant yellowwoods, mountains, rivers, waterfalls, bridges and high cliffs.
-       The Kouga region is characterized with beaches that are also used for international surfing competitions.
-       On the R62 from N2 west of Humansdorp is the Langkloof Fruit Route, which goes past fruit orchards and protea-covered hills.
-       Fynbos is the dominant vegetation type in this area and there are also rare mountain cedars, honeybush and indigenous herbal plants.
-       The Sunday’s River Valley is home to the famous elephants of the Greater Addo Elephant National Park.
-       It is also a major citrus and rose growing area, where the Addo Rose Festival is held in October each year.
-       “The Valley of the Baboons” between Kouga and the Baviaans Mountains is the third largest nature conservation area in South Africa with its large variety of mammal species and freshwater fish species.
-       Also forming part of the Baviaanskloof Wilderness Area are the 4 x 4 trails with gravel roads that cut across mountain peaks, rivers, valleys and plateau.
-       Grahamstown is the heart of the Frontier Country, which has a turbulent history as the scene of nine Frontier Wars between the Xhosa and the British in the 19th Century.
-       The Frontier Country Route provides a mixture of attractions, from old forts and battlefields, national monuments and museums, abundant wild life, an ethnic village and annual Arts & Culture, Science & Technology festivals.
-       The District is also home to several worldclass private nature reserves and five star eco-tourism lodges.
Forestry
-       Forestry is mainly restricted to the Kouga and Koukamma Municipal areas where predominantly pine, eucalyptus and indigenous forests are established.
-       Forestry can be expanded to a limited extent in the Tsitsikamma and the areas around Grahamstown, but potential lies more in adding value to wood products and furniture enterprises.
Furniture production has high potential with existing forestry in Tsitsikamma and Grahamstown.
-       High-value custom-made handcrafted furniture will create the need for a skills base, employment and a base for national and international sales.
Agro-processing
-       There are approximately 1300 export farmers and 2200 small farmers who supply the local market with citrus in South Africa.
-       South Africa contributes 14% of the world orange exports.
-       The Eastern Cape Province contributed 26% of South African production.
-       Valencia and navel oranges are the most popular types planted in South Africa, followed by grapefruit, mandarisn and lemons.
-       Opportunities exist to expand processing of Ultra High Temperature (UHT) milk, milk powder and cheese.
-       Opportunities also exist for new canning and juicing plants as well as prospects for the processing of wool & mohair.
Eco-tourism and Game Farming
-       Agri-tourism has massive potential for growth.
-       The Addo and Baviaanskloof World Heritage Sites and the Fish River Reserve are expanding and will increase the attraction of game reserves in the District.
-       The whole of the Cacadu District is suited for Game Farming, and this is a huge attraction for national and international agri-tourists.
-       The district has many diverse attractions and has already established tourism as a major economic activity.
Mining
-       There is very minimal mining that is carried out in the District and it is mainly for construction material.
-       There is river-sand mining in the Sunday’s River Valley as well as in the Kouga region.
-       There are studies that are being carried out on the limestone deposit that is in the Makana area as well as investigations on the viability of Uranium mining in the Camdeboo area.
Environmental Conservation
-       There are many opportunities in the District to integrate biodiversity management and conservation with sustainable development and the creation of sustainable livelihoods.
-       Opportunities lie in the development of appropriate eco-tourism enterprises, consolidation and expansion of protected areas through links with communities and land owners.
-       There are opportunities available to engage with production sectors to develop ecologically sustainable land use management practices, e.g. the Biodiversity and Citrus Initiative in the Gamtoos Valley.
-       Sustainable harvesting / commercial cultivation of indigenous species for fuelwood, medicinal or cultural purposes, as well commercial ventures, e.g. honeybush tea, bee keeping, aloe tapping, indigenous flowers.
-       Developing horticultural potential of indigenous species, e.g. pelargoniums, proteas and fynbos, indigenous trees, succulents.
-       Alien vegetation clearing programmes linked to improved catchment management.
Small, Micro and Medium-sized Enterprises (SMME’s)
-       Targets the district’s growth sectors with the aim of growing the quantity, improving the competiveness and productivity of SMME’s and large enterprises in these sectors, as well as increase the contribution of these sectors in terms of employment and contribution towards the local economy.
-       The CDM has allocated nearly R1 million towards two interventions aimed boosting SMME’s in the district.
-       This involves the development of the first district-wide SMME development strategy and rollout plan, and the establishment of three Small Enterprise Development Agency satellite offices in the district.