The chicory plant‘s main characterised is its ability to enhance and retain the aroma and taste of coffee and to also strengthen the mixture. The plant has the ability to partially reduce and neutralise the detrimental effects of the acids and caffeine present in coffee, furthermore the inclusion of chicory in these mixtures make them cheaper than pure coffee.

 

All roasted chicory produced in South Africa is cultivated within a 200 km radius of the town of Alexandria in the Ndlambe Local Municipality. Chicory SA, located in Alexandria, is the only processor of chicory in South Africa with the processing plan being operational for over 50 years.

 

Chicory is characterised by the following health benefits: 

§         Chicory is caffeine free

§         Chicory stimulates the functioning of the liver

§         Chicory has a tranquillising effect on the nervous system

§         It serves to purify the blood and to stimulate circulation

§         Chicory stimulates the action of the kidneys

§         Chicory also stimulates the secretion of gastric juices and the movements of the bowel

§         Chicory mixed with milk prevents the formulation of clots during coagulation of milk in the stomach and that the mixture can consequently be absorbed by the body four times faster than pure milk

 

Chicory contains the molecule inulin which, in Europe, is used as a substitute for animal fat; this industry has experienced a significant growth rate. The extraction process of inulin, however drastically differs from that of the processing of chicory for the coffee mixture market.

The roots of the chicory plant are used for coffee mixtures, pure chicory drinks, chocolates, breakfast foods and pet food. Dried chicory also functions as stock feed replacement for maize, provided the protein is supplemented. The leaves of the chicory plant are also utilised as fodder.

The most effective Chicory crop rotation system is one year chicory and thereafter fouryears of other suitable crops. The advantages of a thorough planned crop rotation system are: less diseases, fungi and insect damage that can be harmful to chicory crops. It also restricts the presence of nematodes (eel-worm) in the soil profile. The most appropriate crops for crop rotation consist of maize, wheat, oats, triticale, lucerne, soya beans, canola, corn and sorghums.

South Africa is the world’s second largest producer of chicory after France. 96% of the roasted chicory is sold by Chicory SA to coffee-producing companies in South Africa, therefore enhancing the fact that Chicory SA enjoys a monopoly in the South African roasted chicory industry. This is mostly attributed to the small size of the industry and the high barriers to entry.

 

The chicory industry faces international competition from other chicory-producing countries which do not have minimum wage restrictions and have the benefit of government incentives.

 

The strengthening of the maize price caused many chicory producers to plant alternative crops. In 2008/09 Chicory SA experienced the lowest production tonnage as a result of the recent dry conditions and large numbers of producers leaving the market. 

 

The production of chicory in France for the 2009-2010 seasons is expected to remain low. The main cause is the bad root production during the summer of 2009. This was caused by the long lasting drought in combination with a very high incidence of root lice. Consequently, the chicory root production area in France has been experiencing a decrease in production for a number of years already, resulting in a 10% decrease compared to the previous year and by 18% over the last 5 years. The present area amounts to 11,200 hectares.

The chicory industry comprises of a large area from Patensie in the west to Peddie in the east and Cookhouse in the north. Presently the crop consists of approximately 40% under irrigation and 60% under dry land production. The chicory potential within the Cacadu District consist of Blue Crane Route, Makana, Ndlambe, Sundays River, Kou-Kamma and Kouga.

 

Chicory SA Limited processes all of the raw chicory produced and is the only processor of chicory in South Africa.

 

When preparing the soil for the chicory plantation the cultivation of too wet and shallow soils should be avoided. The deep loosening of soils should be conducted beforehand, while tine cultivation is necessary for aeration and levelling of the seedbed. Deep, well drained sandy or loamy soils are ideal, with a p^H of between 6.5 and 6.9 (H₂O) for the optimal absorption of nutrients.

 

To avoid soil erosion, land with slopes of 4% and more, must be protected against water erosion, while lands steeper than 12%should not be established under chicory at all. Windbreaks are of essential in sandy areas. It is essential to plant the chicory on ridges to firstly assist with identification and to make hoeing easier; secondly to accelerate the drying off in excessive wet conditions. The seed plantation should have a planning depth of between 2 and 5 mm. Approximately 160 000 to 220 000 plants can be planted per hectare. With sufficient soil moisture the ideal planting time for the sandy coastal regions (dry land) is from February to May. The up country dry land plantings are mainly dependent on enough available soil moisture and can be planted from March to middle September.

Chicory requires roughly 75 to 90mm of water per month for 160 000 to 180 000 plants per hectare, and then increasing to 120 to 140 mm per month during the last 2 months before harvesting. Irrigation periods should not be longer than 4 hours at a time; 3 to 4 hours are ideal. Delivery of the chicory to the drying plant, with approximately 400-440 kg per bag, where there should be no stones or rotten portions as well as no leaves delivered. The weigh bridge at Chicory SA is 24 metres long and can weigh up to 80 tons per load; while weighing the truck, a sample of the load will be taken which is used to determine the percentage soil as well as the TSS (Total Soluble Solids) of the delivered load.

 

 Infrastructure

The chicory production process requires adequate infrastructure in the form of reliable electricity, reticulated water supplies and well maintained transport routes. It is essential to have accessible and well maintained roads and transport since the delivery of the chicory to the drying plant is necessary.  The chicory farms require sufficient irrigation systems therefore access to extensive water is needed.

Cultivation of the chicory plant is considered to be labour intensive, since Chicory is a seasonal product the labour required will ensure that seasonal workers are employed during labour intensive periods. The cultivation process does not require skilled labour, thus sourcing human capitol is effortless.

 

Chicory SA can provide extensive knowledge of the industry and therefore could assist with technical support and serve as advisor to the business. Chicory SA can also provide assistance to point out a field officer with the necessary knowledge and background to be appointed. The duty of the field officer is to serve as medium between the workers on the farm and Chicory SA, thus increasing efficiency and timely transfer of knowledge.

 

The table below provides an outline of the costs and income of chicory production at various yields for 2010.

 

Therefore it can be seen that the profit generated from each hectare of production increases with each ton produced. The total costs per hectare for 8 tons of chicory is only slightly less than the costs incurred for 28 tons of chicory, while the income generated for 28 tons is 3.5 times greater than that generated by 8 tons. Essentially, it is more profitable to attain higher chicory yields per hectare than lower yields. 

§         Shortage in the supply of the raw product

§         Only certain areas can grow chicory

§         Lack of skilled labour to explore opportunities in value adding and processing that might exist

§         Increased chicory production under irrigation or dry land production

§         Re-engineering the marketing of chicory in terms of the raw product and alternative product uses

 

L.J. Greyling. General Guidelines for the Cultivation of Chicory in the Eastern Cape, 2008

L.J. Greyling. General Information on Chicory.

Agricultural potential of the Cacadu District Municipality, 2006

 

§         All information contained within this profile was accurate at time of publishing.

§         The information contained within this report is intended only as an industry profile and does not assume to take the place of information contained within a business plan, pre-feasibility study or feasibility study.

§         The Cacadu District and service providers are not liable for any damages caused by the use of the information contained within this report.

§         The purpose of this profile is to both promote the area for investment and inform investors of relevant issues. It is advised that investors, who wish to pursue an investment within Cacadu DM, should use this profile as a basis to conduct further research.

 

The following costs incurred and income received is based on a case example; which outlines the potential budget for a chicory enterprise. This functions to provide investors with broad categories of costs experienced, however further research in terms of feasibility studies and business plans will need to be carried out in order to determine the relevant costs and income according to the specific enterprise entered into.

The table below provides an outline of the capital costs for mechanical inputs for 2010 that are required for a successful chicory farm. On an average 20 hectare dry land farm.

 

  

 

The table below provides an outline of the mechanical costs for 2010 that are required for a successful chicory farm. At an average 20 hectare dry land farm.

 

 

The table below provides an outline of the operating costs incurred for 2010.